Bhattacharjee, Gopal and Sanders (2003)

Source Details

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.
Year:	2003
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:	Givon, Mahajan and Muller (1995) Gopal and Sanders (1998) Gopal and Sanders (2000) Waters (2003)
Discipline:	O3: Technological Change • Research and Development • Intellectual Property Rights O33: Technological Change: Choices and Consequences • Diffusion Processes
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:	Quantitative Collection Methods Survey Research (quantitative; e.g. sales/income reporting)
Data Analysis Methods:	Quantitative Analysis Methods Descriptive statistics (counting; means reporting; cross-tabulation)
Industry(ies):	Sound recording and music publishing
Country(ies):	United States
Cross Country Study?:	No
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	2000-2001
Funder(s):

Abstract

"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

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)

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)

Datasets

Sample size:	200
Level of aggregation:	Individual
Period of material under study:	2000-2001