Canadian Record Industry Disputes Own P2P Claims

[p2p-sharing-rules]

The Canadian Recording Industry Association has quietly issued a new study that contradicts many of its own claims about the impact of P2P usage on the music industry. Michael Geist summarizes the 144 page study by noting that the research 'concludes that P2P downloading constitutes less than one-third of the music on downloaders' computers, that P2P users frequently try music on P2P services before they buy, that the largest P2P downloader demographic is also the largest music buying demographic, and that reduced purchasing has little to do with the availability of music on P2P services.

slashdot.org

Particularly noteworthy findings in the 144 page study report (appendix one) include:

*The survey asked for the sources of music on people's computers. Among those who download music from P2P services, the top source of music was ripping copies of their own CDs (36.4%), followed by P2P downloads (32.6%), paid downloads (20.1%), shared music from friends (8.8%), downloads from artist sites (5.6%), and other sources (2.9%). In other words, even among those who download music from P2P services, the music acquired on those services account for only one-third of the music on their computers as store-bought CDs remain the single largest source of music for downloaders (page 53).
*For all the emphasis on the teenage downloaders, it is interesting that the 35 to 44 age group had the largest spread between CDs and P2P as the source of music. Among that demographic, 31 percent of their music comes from P2P services and 27 percent from ripping their own CDs (page 69).
*Consistent with many other studies, people who download music from P2P services frequently buy that same music. The study found that only 25% of respondents said they never bought music after listening to it as a P2P downloaded track. That obviously leaves nearly 75% as future purchasers, including 21% who have bought music ten times or more. Note that demographically, the lowest percentage of non-buyers actually belonged to the 13 to 17 year old demographic (page 70).
*The 13 to 17 year old demographic also happens to be the largest purchasing group of music, buying an average of 11.6 music CDs or DVDs in the past six months. Close behind are the 18 to 24 age group at 10.9 music CDs or DVDs. By comparison, the older demographics may not download much music but they don't buy much either. The 55 - 64 age group bought 4.2 music CDs or DVDs, while the 65 and up age group bought 2.8 music CDs or DVDs (page 92).
*As for music buying trends, the study also asked whether purchasing patterns had increased or decreased over the previous year. The data was inconclusive with 28% buying more, 35% buying less, and 37% saying they didn't know (page 93).
*More interestingly, the survey also asked why people bought less. Only 10% of respondents cited the availability of music downloads. Instead, people cited a long list of alternatives that have nothing to do with downloading including price (16%), nothing of interest (14%), lack of time (13%), collection is big enough (9%), don't buy (7%), listen to radio (7%), change in tastes (6%), no CD player (3%), have an MP3 player (2%), lack of opportunity to buy (2%), watch more tv (2%), age (1%), only buy what I like (1%). Simply put, P2P simply is not a major factor behind decisions to buy less music (page 95).

michaelgeist.ca

[p2p-sharing-rules]

CRIA's Study Contradicts Own Claims
March 18, 2006
Drew Wilson


At the beginning of the month, the CRIA, Canadian equivalent of the RIAA, gained attention from various news sources over a study that they claimed demonstrated file-sharing was to blame for "an almost decade-long [downward] spiral". On the contrary, the Pollera study they cite, now released in full, contradicts the claim.

The Pollara study even suggests that CD ripping is the number one source for Canadians' music. Ripped CD's made 36.4% of the total source of music, while P2P networks came in second at 32.6% (stated on page 56)

Remaining consistent with other studies, page 70 of the Pollara study states that people who download copyrighted music on file-sharing networks will also frequently buy the same music, ringing true to the claim that file-sharing is an extension of 'try before you buy'. Interestingly enough, in 2004, the president of the CRIA dismissed such studies.

Also contradicting an earlier claim that the 18 to 29 age demographic will download music without paying for it, the now fully released Pollara study states that people of the same age demographic are the second largest purchasers of music, with 13 to 17 year olds buying the most CD's and DVD's (page 29).

So what does the study say about the decline of music CD's? Only 10% said available music downloads caused them to buy fewer CD's. So where's the other 90% going? Michael Geist notes from the study, "people cited a long list of alternatives that have nothing to do with downloading including price (16%), nothing of interest (14%), lack of time (13%), collection is big enough (9%), don't buy (7%), listen to radio (7%), change in tastes (6%), no CD player (3%), have an MP3 player (2%), lack of opportunity to buy (2%), watch more tv (2%), age (1%), only buy what I like (1%)."

So with file-sharing statistically proving to assist paid for content, all claims by the CRIA stating that file-sharing is hurting music sales is proven false by their own study.

source: slyck.com

[p2p-sharing-rules]

Geist and Pollara Exchange Shots Over P2P Study
March 23, 2006
Drew Wilson

It has become a tradition in Canada - never trust statistics. If organizations responsible for statistics wanted to be more credible, the recent comments Pollara made on a file-sharing study might not have helped any.

Statistics gathering organizations were dealt a huge blow in the last Canadian election. They predicted that there would be a Conservative majority win. All of the predictions would prove to be blatantly wrong when the election was actually over with the Conservative party winning a minority government. It is one thing for ones own statistics to be wrong in the public eye, but it is another to publicly appear biased for ones own client.

Pollara, a Canadian market research firm, was responsible for collecting the data for a controversial study funded by the CRIA (Canadian Recording Industry Association). The response by the copyright community to the Pollara "study" was, for the most part, to blame filesharing for all of their financial woes. Critics pointed out that blaming filesharing for their financial problems isn't entirely accurate. In fact, critics also pointed out many other factors associated with the "losses" in CD sales, such as the rise in sales at the iTunes music store.

As such, Pollara's reputation started to slip once the other studies suggested that file-sharers actually pay more for music. It was later learned that the full Pollara study was quietly released in full. Michael Geist read through the study and reported that it is actually going more in line with the other studies reported earlier, confirming what they presented.

One would have thought that this would be the end of this chapter in the CRIA's campaign to promote tighter restrictions of copyright in Canada. Not quite. It was then that Pollara threw an interesting curveball by sending a memo (PDF) in an attempt to debunk some of Michael Geist's claims. The memo states, "We have reviewed Mr. Geist's statements and found them to be variously misleading, incorrect and inconsistent, and therefore feel compelled to respond."

Trying to stay as unbiased as a research firm should be, they continue, "All the data that we have collected on this topic points to a strong inverse relationship between downloading and music purchases." One may wonder if they heard that sentence before. As a matter of fact, they have. In a report earlier this month "The CRIA said the decline resumes an almost decade-long spiral paralleling the rise of music file swapping on the Internet and continues unabated due to the failure of the Canadian government to enact much overdue copyright reform." Such a correlation may have a negative impact on the credibility of such a firm as Pollara given that they have already fuelled speculation and criticism as it is.

Pollara then claims, "The availability of P2P downloads has a direct and negative effect on the purchase of legitimate recorded music." They then attack Michael by saying, "All in all, Mr. Geist's comments are not only inaccurate but are unhelpful as his misinterpretation of the data does little to advance our understanding of this behaviour and its impact on other media in Canada. His intrusion... is impertinent and presumptuous. Let us hope it does not distract us from the serious business at hand."

To say that Pollara attacks with mere words would be incorrect as they do try and backup their claims with their statistics. One of such statistics to help further their "understanding" of the Canadian culture in the digital era is, "the following chart, from the NDP in the United States, we find and interesting confirmatory data, which shows that less than one third of the music obtained by young adults and teenagers was actually paid for." They further state, "there is no emphasis on teenagers in the Pollara study... In fact, an entire section at the beginning of the study is dedicated to an analysis of 13-24 year olds' behaviour." Pollara then claims, "Those who download "illegal files" tend to be those who purchase the least music."

Michael Geist then responded to claims like these and more in his blog. In short, he reminds Pollara that Canada has a private copying levy which does more then enough to compensate for "illegal files" on CD's.

Michael Geist cited misleading and embarrassing questions as a cause for some of the questionable data obtained in the study. Copyright Watch responded with a study done by Pollster instead. They suggested alternative questions that Pollara could have asked.

One such example of an alternative question was, "Some people have said that the current copyright laws are sufficient to protect artists, and others suggest that Canadian laws should be up to international standards that have been drafted by the WIPO, the world organization responsible for copyright. Generally, do you think Canadian copyright laws should be up to international standards or is the present law sufficient?"

With the recent events refuelling controversy and debate, it seems that the debate in this current saga may not end any time soon. One may take note that it may also help polarize the positions people might take on this delicate and less-than-mainstream issue.

source:slyck