Lee (2006)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Lee (2006)
Title: The Effect of file sharing on Consumer’s Purchasing Pattern: A Survey Approach
Author(s): Lee, S.
Year: 2006
Citation: Lee, S. (2006, August). The Effect of File sharing on Consumer’s Purchasing Pattern: A Survey Approach. TPRC.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: Initial survey of 106 Korean university students was performed to determine which factors primarily influenced CD purchase. The primary survey of 396 Korea University students from middle-class households answered hypotheticals about filesharing and CD purchasing behaviour.
Data Type: Primary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?:
Government or policy study?:
Time Period(s) of Collection:
  • 2004-2005
Funder(s):
  • Not Stated

Abstract

Digital compression and distribution technologies influence the music industry in various ways. This paper investigates how consumer behavior is affected by the free music products on the Internet. Survey methodology was used to determine the respondents’ perceived likelihood of purchasing legitimate CDs depending on the free availability of the same music via a streaming service or downloading on the Internet. In the pre-study, several factors affecting consumer purchasing were identified based on the responses of 106 university students. In consideration of these factors, the paper investigated how the price and free music availability jointly affect a consumer’s willingness to buy. In addition, this paper examined how the effects of price and non-price factors such as rating of singer, preference for genre, number of songs on a CD, SES factors, and music consumption style may change in the “free” vs. “non-free” Internet availability conditions. The results showed that there was a weak pattern of interaction between price and free music availability, though the interaction effect was not significant. In the non-free Internet availability situation, price along with some other factors had significant effects on consumer purchasing patterns for some CDs, whereas in the free Internet availability situation, price had insignificant effects on a consumer’s willingness to purchase all twelve CDs used in the questionnaire. Instead, some non-price factors influenced consumer purchasing patterns.

Main Results of the Study

  • Consumers’ willingness to buy is likely to plummet to an ‘average’ price level with the emerging free music;
  • Under the “nonfree” Internet availability situation, price had a statistically significant effect on consumers’ willingness to buy for some CDs and some non-price factors have significant effects as well, whereas under the “free” Internet availability situation, price had no significant effect on consumers’ willingness to buy.


Policy Implications as Stated By Author

When the emergence of free music via a file-sharing system turns the attention of consumers to non-price factors ahead of CD purchases, firms must concentrate on the kinds of non-price factors such as various CD characteristics that can attract consumers, such as targeting genre and age groups.



Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Green-tick.png
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size: 106
Level of aggregation: University students
Period of material under study: 2004


Sample size: 396
Level of aggregation: University students
Period of material under study: 2005