Giletti (2012)

Source Details

Giletti (2012)
Title:	Why Pay if it’s Free? Streaming, Downloading and Digital Music Consumption in the “iTunes Era”
Author(s):	Giletti, T.
Year:	2012
Citation:	Giletti, T., Why Pay if it’s Free? Streaming, Downloading and Digital Music Consumption in the “iTunes Era”, (2012)
Link(s):	Definitive , Open Access
Key Related Studies:	Hui and Png (2003) Liebowitz (2005) Peitz and Waelbroeck (2006)
Discipline:	K42: Illegal Behavior and the Enforcement of Law O34: Intellectual Property and Intellectual Capital
Linked by:

About the Data
Data Description:	The study uses the responses of 162 consumers to an online survey. The survey was comprised of twenty questions including nominal, ordinal, and five-point Likert scale formats.
Data Type:	Primary data
Secondary Data Sources:
Data Collection Methods:	Quantitative Collection Methods Survey Research (quantitative; e.g. sales/income reporting) Qualitative Collection Methods Survey Research (qualitative; e.g. consumer preferences)
Data Analysis Methods:	Quantitative Analysis Methods Quantitative content analysis (e.g. text or data mining) Qualitative Analysis Methods Textual Content Analysis
Industry(ies):	Sound recording and music publishing
Country(ies):	Canada Thailand Switzerland Brazil The Netherlands United States United Kingdom
Cross Country Study?:	Yes
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	Data was collected over two weeks in 2012.
Funder(s):

Abstract

This research study is an investigation into the consumption of digital music. Rapid growth in the market for digital music has been led by the rise in popularity of online download stores such as iTunes and streaming services. Consumers now have the option to acquire songs from a variety of paid and non-paid legitimate sources, as well as through unlawful channels. At the same time, rights holders have attempted to re-commodify a product that has been decommodified through copyright infringement. Drawing from the theory of planned behavior, this study places emphasis on the role of norms and attitudes in the formation of intentions to either purchase music or download it for free. It will be shown that these preferences affect the treatment of digital music as a cultural object. A political economy framework is used to understand negative attitudes towards attempts to control digital music distribution. An online questionnaire was designed and completed by a total of (n = 162) consumers. The data was analyzed using a mixed-method approach in order to triangulate quantitative results. The results indicate that a large portion of consumers are willing to pay for digital music. However, they are not encouraged by the threat of legal repercussions. Despite being satisfied with the streaming service, users are not willing to subscribe. The youngest consumers hold favorable attitudes towards illegal downloading which is grounded in a norm of copyright infringement and belief in the Internet as free. Finally, it was found that affinity for the recording artist serves to moderate intentions to download illegally. Overall, the results have implications for measures to counter digital piracy and to encourage willingness to pay. Furthermore, they question the long-term viability of the subscription-revenue streaming business model.

Main Results of the Study

The results indicate that a large portion of consumers are willing to pay for digital music. However, they are not encouraged by the threat of legal repercussions. Despite being satisfied with the streaming service, users are not willing to subscribe. The youngest consumers hold favorable attitudes towards illegal downloading which is grounded in a norm of copyright infringement and belief in the Internet as free. Finally, it was found that affinity for the recording artist serves to moderate intentions to download illegally. Overall, the results have implications for measures to counter digital piracy and to encourage willingness to pay. Furthermore, they question the long-term viability of the subscription-revenue streaming business model.

Policy Implications as Stated By Author

• Large numbers of consumers are willing to pay for digital music* Legal repercussions for illegal downloading of digital music is not an effective deterrent* Younger consumers are much more likely to download music illegally as they are less likely to see it as 'wrong'* An affinity with a particular artist can mitigate the willingness to download music illegally* Education of consumers likely to be more effective at combating piracy than punitive measures

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:	162
Level of aggregation:	Individual
Period of material under study:	2012