Andersen and Frenz (2008)

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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

Andersen and Frenz (2008)
Title: The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music in Canada
Author(s): Andersen, B., Frenz, M.
Year: 2008
Citation: Andersen, B., & Frenz, M. (2008). The impact of music downloads and P2P file-sharing on the purchase of music in Canada.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Lunney, Jr. (2012), Oberholzer-Gee and Strumpf (2010)
About the Data
Data Description: The paper analyzes Canadian survey data and results are representative of the Canadian population aged 15 and older. The analysis is based on direct answers provided by 2,100 Canadian respondents. The sampling technique used was quota-based random sampling, stratified by age (participants were 15 years or older), gender, geographical region and downloading status.
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:
  • 2005-2008
Funder(s):
  • None

Abstract

This paper addresses the emergence and growth of new types of markets, - the on-line markets for electronic delivered music -, which in turn influence organizational change and industry evolution in the music industry. (The direct challenge this raises for the copyright and the appropriability regime in the music industry is also central to the results.) The direct focus on the paper is consumption and consumer behaviour in music markets. This study measures the extent to which free music downloads and peer-to-peer file sharing networks, for which the sound recording industry receives no remuneration, affect music purchasing activity in Canada, including both electronic delivered music and CDs. The big debate is whether free music downloading and copying substitute existing music pay-markets or reinforce them. The analysis relies on representative micro-data of the Canadian population age 15 and over, obtained by asking Canadian individuals to what extent they are engaged in downloading and/or purchasing of music, and about their incentives behind such behaviours, focusing on the conventional mainstream demand-side factors related to (i) price of the good, (ii) price of related goods (whether substitutes or complements), (iii) consumer income, and (iv) consumer taste. This paper builds upon a major study conducted for Industry Canada between 2005-08, and was aimed at supporting policy decisions in relation to the internal review of the copyright regime in Canada.

Main Results of the Study

This paper addresses the emergence and growth of new types of markets – the on-line markets for electronic delivered music – which in turn influence organizational change and industry evolution in the music industry. The direct challenge this raises for the copyright and the appropriability regime in the music industry is also central to the results. The direct focus on the paper is consumption and consumer behaviour in music markets. This study measures the extent to which free music downloads and peer-to-peer file sharing networks, for which the sound recording industry receives no remuneration, affect music purchasing activity in Canada, including both electronic delivered music and CDs. The big debate is whether free music downloading and copying substitute existing music pay-markets or reinforce them. More specifically, this paper shows that:

  • Those engaging in free music downloads and file-sharing do not purchase more or less music compared with those who are not engaged in such activities, but that very active downloaders and file-sharers purchase more music compared with downloaders and file-sharers who download relatively few songs.
  • There is a positive and statistically significant relationship between the number of music tracks downloaded via P2P networks and the number of CDs purchased.
  • Both the P2P file-sharing group and the entire population show a positive and statistically significant association between ripping CDs and CD purchases.
  • Canadians who participate in P2P file-sharing because they find CD albums to be too expensive also purchase fewer CDs.
  • People who participate in P2P file-sharing because the music is ‘not available elsewhere’ also tend to purchase more CDs.
  • There is no direct evidence that CD price influences CD purchases.
  • Respondents who experienced a higher CD price purchased fewer electronically-delivered music tracks.
  • People who buy a high number of DVDs, videogames, cinema tickets and concert tickets also purchase a high number of CD albums.
  • Music purchasing in general takes up a too low share of peoples’ income to have any effect on purchasing behaviour.

Policy Implications as Stated By Author

Demographic variables show some indication of a digital-divide in Canada with respect to Internet skills, age and region of residence. Greater Internet skills and younger age groups were associated with increased music purchases from Internet pay-sites. However, there is no digital-divide with respect to gender and Canadian females are relatively active music downloaders of paid electronically-delivered music tracks.


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)
Green-tick.png
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)
Green-tick.png

Datasets

Sample size: 2,100
Level of aggregation: Individual
Period of material under study: 2005-2008