[CAnet - news] P2P music downloads have a positive effect on music purchases

For more information on this item please visit my blog at 
http://green-broadband.blogspot.com/ or http://billstarnaud.blogspot.com
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 [Industry Canaada recently commissioned a study on the impact of
unauthorized P2P music downloads and the impact on the sales of CDs.
Surprisingly the authors of the study concluded that such downloads generate
increased CD sales. Not surprisingly this has generated a lot of controversy
world wide.  Some excerpts from Michael Geist's blog and the Industry Canada
web site -- BSA]


http://www.michaelgeist.ca/content/view/2395/125/

Industry Canada's release earlier this month of an independent study on the
impact of P2P file sharing generated considerable public interest and some
debate from economists around the world who were provided with complete
access to all the raw data.  

[...]

The most striking problem with the study's conclusion is that the authors
have assumed that the positive relationship observed between CD sales and
P2P downloads is because downloading increases CD sales. The more plausible
explanation is likely to be that those who download more are more interested
in a variety of music and so purchase more CDs.

[..]


http://strategis.ic.gc.ca/epic/site/ippd-dppi.nsf/en/h_ip01456e.html

The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music:
A Study for Industry Canada

Description: Industry Canada undertook a music file sharing study during
2006-07 to measure the extent to which music downloads over peer-to-peer
file sharing networks, for which the sound recording industry receives no
remuneration, affect music purchasing activity in Canada. The data used for
this analysis are from a Decima Research survey conducted between April and
June, 2006, on behalf of Industry Canada. The report, prepared by University
of London researchers, Birgitte Andersen and Marion Frenz, found that music
downloads have a positive effect on music purchases among Canadian
downloaders but that there is no effect taken over the entire population
aged 15 and over.

by

Birgitte Andersen* and Marion Frenz**

Department of Management
Birkbeck, University of London
Malet Street, Bloomsbury
LONDON WC1E 7HX, England, UK

*Reader in the Economics and Management of Innovation, and
Director of E-Business Programmes
Tel: +44 (0)20 7631 6848
[email protected]

** Lecturer in Management
Tel: +44 (0)20 7631 6829
[email protected]


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