Government study proves illegal file sharing increases music sales

[Polarbear]

A government study has proved what many of us have suspected for a long time, that illegal file sharing actually increases the number of CDs sold rather than reduces it.

The study was commissioned by Industry Canada, a ministry of the Canadian federal government.

It is called ‘The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music: A Study for Industry Canada‘, and was written by Birgitte Andersen and Marion Frenz, of the Department of Management at the University of London in England.

The pair surveyed over 2,000 Canadians on their music downloading and purchasing habits, and the results will be uncomfortable reading for the CRIA (Canadian Recording Industry Association) and the RIAA (Recording Industry Association of America) both of which have repeatedly denied the positive connections between downloads and physical purchases.

The most striking conclusion of the survey is that P2P file sharing does not actively harm the music industry in terms of sales, and in fact the opposite is true: It increases music sales.

The study claims that for every 12 P2P downloads, or one album, music purchasing increases by 0.44 CDs per year. Furthermore, about half of all P2P tracks are downloaded because individuals want to hear songs before buying them, not as copies intended to replace the need for making a purchase in the first place.

So it seems that the claims of recording industry organisations around the world as to how damaging illegal downloads are to their business are either plain wrong or at least being exaggerated.

Obviously industry lobbyists will be very quick to jump in to the debate and dismiss the study as insubstantial or inaccurate, but when a study by a government ministry tells them they are wrong, where are they going to take the argument next?

http://strategis.ic.gc.ca/epic/site/ippd-dppi.nsf/en/h_ip01456e.html

[Sench]

Obviously industry lobbyists will be very quick to jump in to the debate and dismiss the study as insubstantial or inaccurate, but when a study by a government ministry tells them they are wrong, where are they going to take the argument next?
:yup:

[Cmon]

interesting read :P

[Cheffy]

Well doing a survey on 2000 people dont really tell all that much.

Im am 100% sure that the music industry is losing money. How much they really are losing is another matter. But by looking at my self, my friends, my friends friends friends, And even my family. Its rare that people actually go out and buy cd`s. This might not be the file sharing's fault. It might be that it was "cooler" to buy music 10 years ago. People might be listening a lot more to Mtv now a days than earlier. And dont feel the need to own all the latest top 20 songs. since they are running 24/7 on Mtv.
However people do go out and buy the latest album of their favorite band, even tough they found it pre released 14 days on the internet.
And now its actually easier for some bands to make it, Since its not the industry thats decides everything thats going to get played. So the industry is loosing "control". All you need now is a Myspace page, a creditcard a paypal account and a computer and you can release your own music and earn money on it.
And im pretty sure that this is the thing that scares the hell out if the suits thats trying to restrict all the downloading. They are a dieing breed, they are actually not needed anymore.
Well, groups like Spice girls and pussycat dolls are always going to need someone to tell them what songs to play, and how to dress and all that. But for the people that actually make their own music, not just 5 cute girls that meet in a room with a suite,sign their soul over to the devil and walla a new hit thats going to irritating the hell out of us for 2 months.
The record lables have been used to being the ones in charge of the music, what gets recorded and so forth.
With internet being the new medium, everything gets turned up side down. Now the suites have to go on the internet and look for new talents and sign them up. Before they manage to get enough money donated to record their own CD.


Wow look at me raving on, well back to my original point.
A survey of 2000 people dont really tell you all that much, because we had this kind of thing at my school once. And apparently me, and all my friends all answer that we all bought the music that we liked. We were sitting there like 12-15 people discussing it after we had it. All of us answered that we bought music that we liked, but between all of us, only one person had bought a cd the last 6 months.

[Vercors]

The record labels want us to believe that everytime we download an album/single/whatever, we're hurting the artist sales. But the real question is : would you have bought the CDs anyway?

As stated in the article, "half of all P2P tracks are downloaded because individuals want to hear songs before buying them, not as copies intended to replace the need for making a purchase in the first place.".
Sure there will always be a part that will never buy anything, but there's also a part that will hear to lesser known artists through filesharing, and possibly buy albums that they would have otherwise never heard of.

Maybe a survey on more people would be more efficient, but you wouldn't make it show the opposite

[Sylar666]

Thanx, Polarbear. The key is that this old distribution method of music is OVER. (Reatail). Embedded legal rights, copyrights are BAD. It has to and it will change - sooner than U imagine.
Record industry dying - new, complex, Internet - and multimedia-based industry rising. And we ar f...ing part of it, not only witnesses.. We can have an impact. It's the most quoted axioma of marketing: The customer is always right. Are we?

[game1283]

Can't agree more, I've been thinking of this for a long time.. :)

[Defy]

The study claims that for every 12 P2P downloads, or one album, music purchasing increases by 0.44 CDs per year. Furthermore, about half of all P2P tracks are downloaded because individuals want to hear songs before buying them, not as copies intended to replace the need for making a purchase in the first place.

I believe this to be very true. Many people will still buy an album, or even a song online from the artist just to get the 320 bitrate or pure wav file for listening pleasure. Most of the content that comes out beforehand is of lower quality.