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Piracy Has Zero Impact on Legit Purchasing, European Study Concludes...

Posted 19th March 2013 by Michael Osborn


Piracy Has Zero Impact on Legit Purchasing, European Study Concludes... This is one of the biggest debates in music right now, and it goes far beyond morality and artist rights. Because what if pirates are simply buying more stuff?

What then?

That's actually the conclusion of a new study just published by the European Commission's influential Joint Research Centre, one that involved more than 16,000 participants across five EU countries. And at a top level, the survey, conducted by the Centre's Institute for Prospective Studies, found very little cannibalization between illegal and legal. "Perhaps surprisingly, our results present no evidence of digital music sales displacement," the report concludes.

"Our results suggest that internet users do not view illegal downloading as a substitute to legal digital music."

So, they wouldn't be buying, anyway? Pretty much. "In other words, music consumers are found to substitute legal music consumption for illegal music consumption, but much of what is consumed illegally would not have been purchased if piracy was not available."

"This means that although there is trespassing of private property rights (copyrights), there is unlikely to be much harm done on digital music revenues."

But beyond that, the Centre also concluded that a positive (albeit, small) correlation between illegal and legal is happening. This was based on observations of clicks and site visits among the sample. "If this estimate is given a causal interpretation, it means that clicks on legal purchase websites would have been 2 percent lower in the absence of illegal downloading websites," the report states. That number shifts to 7 percent when legal streaming and paid download sites are compared.

"The complementarity effect of online streaming is found to be somewhat larger, suggesting a stimulating effect of this activity on the sales of digital music." The survey went beyond simple questions and answers: across five EU countries, the research group also analyzed actual web usage to get a sense for actual behavior. That was mapped against demographic data.

The policy implications of this study could be massive, especially for programs like HADOPI. Just recently, HADOPI data showed a massive dent on file-swapping levels, but no complementary gain in actual sales.

On that note, the authors of the study declined to offer a policy recommendation, but the leanings were obvious. "Digital music revenues to record companies are growing substantially," the study observed. "They increased more than 1,000% during the period 2004-2010, and grew 8% globally in 2011 to an estimated US$5.2 billion, reflecting the importance of digitization in the music industry (IFPI, 2011, 2012)."

"From that perspective, our findings suggest that digital music piracy should not be viewed as a growing concern for copyright holders in the digital era."

Copyright © 2013 Digital Music News.

Posted in: News

Tags: legal


On 19th Mar 2013, said:

The Grateful Dead became the overall most popular rock band and most enduring music brand in history. They stayed on the road and by not only allowing, but actually abetting, traffic in pirate tapes of their music, they continued to grow. Illegal distribution is just another channel.

Anything that increases a brand's footprint just makes it more popular and the more music it sells. Digital files are unstoppable. Record once, sell infinitely.

As Bobby McFerrin so eloquently sang, "Don't worry. . . Be happy." When fans spread the word that's more valuable than the cost of the music they stole.

So what good is DRM if it inhibits brand growth? Just my 2 cents.

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