Leung (2009)

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

Leung (2009)
Title: Should the Music Industry Sue Its Own Customers? Impacts of Music Piracy and Policy Suggestions
Author(s): Leung, T. C.
Year: 2009
Citation: Leung, T. C. (2008). Should the music industry sue its own customers? Impacts of music piracy and policy suggestions. University of Minnesota, retrieved Nov, 28, 2012.
Link(s): Definitive
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: The study distributed a survey to 1800 undergraduates at the University of Minnesota, of which 884 responses were used. Students were asked to answer two main types of questions, report demographic information and recent consumption of both music and iPods, and make hypothetical choices on music.

90% of the students reported a weekly income less than $200. Students reported surfing the internet an average of 3-4 hours per day.

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?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2007-2008
Funder(s):
  • University of Minnesota

Abstract

Two beliefs about music piracy prevail in the music industry. First, music piracy hurts music record sales. Second, the only copyright regime that can help the music industry is one that will eradicate music piracy. To test the two beliefs, I construct a unique survey data set, estimate the demand for music and iPods and show three things. First, music piracy does hurt record sales. Second, music piracy contributes 20% to iPod sales. Finally, counterfactuals experiments show that while a regime without music piracy benefits music producers at the expense of students and Apple, another regime with legal online music and iPod royalty benefits most students and music producers at the expense of Apple.

Main Results of the Study

  • The average student owed 2508 songs on his computer, both purchased and pirated. 59.8% of students had bought music and 61% had pirated.
  • Students pirate much more music than they purchase (70 songs per month compared to one CD every other month and 4-5 songs per month).
  • Students buy fewer iTunes songs and CDs when prices are more expensive. When price per iTunes song increases from $0.99 to $1.87, demand drops 49% and students pirate 15% more music and buy 6% more CDs.
  • When students pirate 10% more music through P2P web sites, they buy 0.7% fewer iTunes songs and 0.4% fewer CDs.
  • On average, there s a loss of $79/student if the government switches from the Current Regime to the No Music Piracy Regime. On the other hand, switching to the Free Music Royalty Regime on average gains students $534.
  • Results indicate that while the No Music Piracy Regime benefits music producers t the expense of students and Apple, the Free Music-Royalty Regime benefits most students and music producers at the expense of Apple.


Policy Implications as Stated By Author

  • A copyright regime that eradicates music piracy is not the only regime that can help the music industry.



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)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
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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)
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)
Green-tick.png

Datasets

Sample size: 884
Level of aggregation: University students
Period of material under study: 2007-2008