|Title:||Evidence of the effect of free music downloads on the purchase of music CDs in Canada|
|Author(s):||Barker, G. R.|
|Citation:||Barker, G. R. (2012). Evidence of the effect of free music downloads on the purchase of music CDs in Canada. Review of Economic Research on Copyright Issues, 9(2), 55-78.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||Telephone interviews with 2,100 randomly selected Canadians (15 years and older) across the country between April and June 2006 — 1,000 who downloaded music files over the Internet and 1,100 who did not.|
|Data Type:||Primary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
This paper examines data on the effects of Internet peer-to peer (P2P) file sharing activities on music purchasing. The data was obtained from a survey commissioned by Industry Canada to “inform Industry Canada’s policy development work” regarding copyright law reform in Canada. The paper focuses on an important survey question which has not yet been analysed. Analysis of survey responses suggests that P2Pfile-sharing is a substitute for legitimate music purchases and has strong negative effects on legitimate music purchases. This contradicts the results of earlier analysis of the data commissioned by Industry Canada first published on Industry Canada’s website in 2007 (Andersen and Frenz, 2007), and then subsequently revised and republished as Andersen and Frenz (2010).
Main Results of the Study
- Contrary to Andersen and Frenz’s claims, these study’s results suggest that if music were not available on P2P networks, respondents would buy a significant positive percentage of the downloaded music no longer available.
- This in turn suggests the technical problems outlined earlier with the methodology used by AF in their statistical analysis of cross sectional data on the activity question responses may be biasing their results.
- The survey on which this study is based clearly supports the view that stronger copyright laws that effectively reduce and deter free P2P music file-sharing would tend to increase music purchasing and music industry sales and, by implication, increase artist revenues and industry employment and contribute to both economic growth and higher government tax revenues.
- Whereas weaker copyright laws reduce music purchases, music industry sales, artist revenues, industry employment, GDP and government tax revenues.
Policy Implications as Stated By Author
Stronger copyright laws that effectively reduce and deter free P2P music file-sharing would tend to increase music purchasing and music industry sales and, by implication, increase artist revenues and industry employment and contribute to both economic growth and higher government tax revenues.
Coverage of Study
|Level of aggregation:||Individual|
|Period of material under study:||2006|