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Online piracy is not to be blamed for the drop in music revenues

  • 27-03-2013 7:25pm
    #1
    Registered Users, Registered Users 2 Posts: 4,051 ✭✭✭


    while not directly applicable to broadband provision it is an issue that affects many broadband users...
    ==========================================================
    Online piracy is not to be blamed for the drop in music revenues
    ==========================================================

    As continuously argued by different IT specialists, digital freedom
    activists and organisations during the last few years, online piracy
    does not affect music industry revenues, as it is shown by a new
    research performed by The Institute for Prospective Technological
    Studies which is part of European Commission’s Joint Research Centre.

    After having examined the browsing habits of 16 000 Europeans, the
    researchers found there is actually a positive relationship between
    online piracy and visits to legal music stores.

    “It seems that the majority of the music that is consumed illegally by
    the individuals in our sample would not have been purchased if illegal
    downloading websites were not available to them,” says the paper in
    published by the researchers which is entitled “Digital Music
    Consumption on the Internet: Evidence from Clickstream Data”.

    The relationship between online piracy and music stores was established
    by comparing the users’ visits to allegedly illegal sites and to the
    legal music stores and the conclusion was that those visiting alleged
    illegal sites are likely to visit legal stores as well. Online streaming
    seems to have a stimulating effect on the sales of digital music.

    “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,” says the research.
    While admitting that other external factors might influence these
    effects, the researchers conclude that, in any case, there is no
    evidence that online piracy is damaging for the music industry sales.
    The paper also points out that “digital music piracy does not displace
    legal music purchases in digital format. This means that although there
    is trespassing of private property rights, there is unlikely to be much
    harm done on digital music revenues.”

    This paper is very useful in the ongoing copyright enforcement debate in
    Europe representing good arguments against increased surveillance and
    policing of copyrighted content.

    JRC report - Digital Music Consumption on the Internet: Evidence from
    Clickstream Data (2013)
    http://ftp.jrc.es/EURdoc/JRC79605.pdf

    Online Music Piracy Doesn’t Hurt Sales, European Commission Finds
    (18.03.2013)
    http://torrentfreak.com/online-piracy-is-not-hurting-music-revenues-european-commission-finds-130318/

    Spotify Is Now Smearing That EU Study on Piracy... (21.03.2013)
    http://www.digitalmusicnews.com/permalink/2013/20130321spotifysmearing


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