An Analytical Framework for Evaluation of Peer-to-Peer Business Models

While existing research on peer-to-peer (P2P) file-sharing services has increased our understanding in many respects, it has not yet supplied a comprehensive theoretical framework that explains business failures of P2P file-sharing network service models. We develop an analytical model based on seven specific market constraints — technical, economic, structural, legal, political, cognitive, and cultural — that are specifically relevant for P2P services. We show how our model can be used as a tool for strategic analysis of P2P business models using Napster as a particular case of study. We show that the evolution of P2P filesharing networks can be traced through the use of these constraints. In addition we demonstrate that P2P file-sharing networks can be conceptualized as electronic markets and suggest possible further applications of our framework.