Amid the hot debate over whether music should be free or not, there are also ethical and moral considerations. The emergence of digital entertainment, whether MP3, peer-to-peer (P2P) applications, video streaming, or audiobooks, has brought about an inevitable change in the entertainment market (Weiss, 2006 ). Napster quickly became a success when it began allowing its customers to download MP3 music for free. In fact, Napster's form of file sharing shifted the entertainment market from a commodity base to a service base by eliminating costs to the customer. This article will address the major questions of this case study, who the main stakeholders are and how they have changed since the beginning of Napster, what were the issues for the different stakeholders associated with the first and second incarnation of Napster, why Napster failed to succeed in this case study. market, and what is the appropriate balance between consumers' fair use rights and the financial interests of artists and record labels. Organizations like Napster deprive a content owner of the ability to restrict the provision of their intellectual property on a large scale. Thus, the ethical concern was that artists in the music industry as well as major record labels would not be legitimately compensated for their work (Weiss, 2006). Without controls, copyright owners would be unable to maintain price control and revenue would be lost as it comes primarily from CD sales. As a result, the music industry has resorted to litigation and restrictive usage rules on licensed or retailed digital products (Weiss, 2006). Initially, Napster was not concerned with protecting the intellectual property rights of artists and songwriters (Weiss, 2006). . ...... middle of paper ...... be used in part to compensate record labels and artists who provide music. Napster made a decision in the best interest of all: to remove the “free” idea of ​​Napster (Weiss, 2006). In conclusion, the Napster saga continued by agreeing to partner with various artists to offer secure membership. -based service. This new business will provide the Napster community with quality file sharing while also providing payments to rights holders, including artists, songwriters, record labels and music publishers. Therefore, one solution to satisfy the music industries argument would be to charge a fee for using the system so that all parties are satisfied. Works Cited Weiss, J. W. (2006). Business Ethics: A Stakeholder and Issues Management Approach, Fourth Edition. Mason, OH: Thomson Southwestern Higher Education.