Bhattacharjee, Gopal and Sanders (2003)
|Bhattacharjee, Gopal and Sanders (2003)|
|Title:||Digital music and online sharing: Software piracy 2.0?|
|Author(s):||Bhattacharjee, S., Gopal, R. D., Sanders, G. L.|
|Citation:||Bhattacharjee, S., Gopal, R. D., & Sanders, G. L. (2003). Digital music and online sharing: Software piracy 2.0?. Communications of the ACM, 46(7), 107-111.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|Linked by:||Oestreicher-Singer and Sundararajan (2005), Sandulli (2007), Sandulli and Martin-Barbero (2007), Shang, Chen and Chen (2008)|
|About the Data|
|Data Description:||The authors surveyed over 200 respondents during 2000–2001 as part of an ongoing study of consumer attitudes toward online music.|
|Data Type:||Primary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:|
|Time Period(s) of Collection:||
Rapid advances in Internet connectivity and digital compression technologies have dramatically increased online sharing of digitized material, raising issues of intellectual property rights and lost sales. For instance, online music sharing has prompted legal challenges and industry alliances, while raising significant concerns regarding the industry’s future. A study in 2000 reported 14% of Internet users had downloaded music for free. This number has grown rapidly, and online music sharing has been estimated to result in annual sales losses of $3.1 billion by 2005 for the music industry. Here, we strive to understand individual motivations to “freeload” digital music, such that affected industries could develop effective measures to combat the problem.
Main Results of the Study
- Price of music and available bandwidth are found to have significant effects on piracy. The price impact becomes more pronounced as technology improves.
- The authors find existence of piracy across all music categories, and weak evidence of sampling for “unknown” music. Interestingly, the perceived quality of compressed audio did not seem toplay any significant role.
- The authors also find viability of subscription-based models, which exhibit sensitivity to gender differences and differentiated pricing based on bandwidth.
- These insights could influence enhanced pricing models in the future. Recent variations of the subscription-based model are beginning to provide consumers greater flexibility in purchasing and listening to digital music.
Policy Implications as Stated By Author
All industries that produce digital goods and face the problem of illegal dwonloading need to be studied. The global scope of the Internet calls for the development of generalized models for information goods that are supranational and that transcend cultural, legal, and economic barriers.
Coverage of Study
|Level of aggregation:||Individual|
|Period of material under study:||2000-2001|