Monday 10 May 2010

Research findings

From the research I did from a 'computer literate demographic' I have been able to draw the following conclusions and statements:


Downloading quantities
  • 55% of people from a computer literate demographic claim to download 'rarely' (a few tracks a month)
  • only 4.5% said they did 'a lot' (Over10 albums per month)

Downloading method
  • 47% of people responded saying their main method of acquiring illegally sourced music is via torrent sites.
  • 30% share locally, either by exchanging files on a Local Area Network or by swapping physical media (CDs or external hard drives)

Consumption
  • 49% of people from a computer literate background consume music from a player on their computer, eg iTunes or Windows Media Player

Reasons for not downloading
  • Most people cited the reason for not downloading as the convenience of having a CD
  • Reason for not paying for music
  • Majority of people, 24% cited their reason for not paying for the music they were downloading was due to it'd difficulty to find in mainstream shops or online retailers.
  • 22% agreed that they would pay, but they feel it's too expensive.
  • Of those 22% the majority also responded saying they only download 'rarely', a few songs a month

And why use a computer literate demographic? I want to find out of people's knowledge and competency on computers affects how they download. In other words, is a limiting factor on people's illegal downloading activities the ease at which it is possible?

Saturday 10 April 2010

Initial compiling of questionnaires complete!

I got all of my research from the weekend compiled into a database I designed this evening, I'm leaving the 'fun' side of it - the analysis until tomorrow.


Oh, you can also have some Culture Capital for the summer.


Friday 9 April 2010

Start of research analysis...

I'm starting the consolidation and analysis of the research that I gathered over the weekend on illegal downloading. Online questionnaires may be easier to carry out and asses, but for some reason paper questionnaires appeal much more to me, there's something more honest about going up to someone and saying "can you please fill this out for me, feedback would be appreciated".



See you in 50 questionnaire entries.

Tuesday 6 April 2010

New research!

I've been away this Easter weekend at the gaming event i39, where I conducted some research on a highly computer literate demographic. I intend to compare the findings to the questions asked to a none computer literate demographic to see what affect it has on people's illegal downloading habits.

Check back shortly for results.

Friday 19 March 2010

Trusting The Big Names - BPI Illegal Downloading Report

The first places I go to for information when writing an essay on the music industry will usually be one of the industry's trade associations; the BPI (British Phonographic Industry) or the IFPI (The International Federation of the Phonographic Industry). It makes sense that they would carry the best, unbiased information which spans the entire industry.

However with the industry hanging in limbo it's fairly clear what the industry's preferred afterlife is. Piracy is bad. Piracy ruined what we had. Piracy took our control. It's been 10 years now since Napster shifted the customers power in music consumption, personally I think it's about time some trade associations took a better attitude towards it, and perhaps they'd be able to start helping find real solutions rather than chasing million-pound-pipe-dreams. I'll save that for another post.

So how much can we trust these organisations reports? Let's have a look at the BPI's report on "The Impact of Illegal Downloading on Music Purchasing", conducted November 2009.

The report starts with a Terminator 2 style synopsis of the state of the industry since Skynet Napster came onto the scene in 1999. The report goes on to mention the "decline of music sales" in the UK falling by 25% in the last decade, attributing illegal sites and services to the problem.

Come to think of it,  I don't think I've ever heard the auto industry blame public transport for decline in car sales, as if every time I get a train that's one less car sold. More on that later too.

The report then goes onto recognise three notable reports which do in fact draw the conclusion that there is little evidence to prove that illegal file sharing activity is the cause of the current decline in music industry revenue. That's fairly good of them I'll admit, I also like the quotes they chosen to represent them, from the Oberholzer & Strumpf report:

"Downloads have an effect on sales which is statistically indistinguishable from zero"

Moving on, the report now goes on to list a torrent of sources which backup the viewpoint that illegal file sharing is destroying the industry as we know it. First up is a report by Juniper Research, which is bound to be unbiased right? I'll quickly check to see who it was commissioned by first though...

....IFPI, BPI, FIMI, AIM, IMPALA, MPAA. Ok well considering this is research paid for, compiled and hosted by the very people making the argument let's place it aside for now, there's bound to be plenty more arguing their case, right?

Second on the list is "Ups & Downs – Economic and Cultural Effects of File Sharing on Music, Film and Game", an incredibly comprehensive and well written Dutch study on many areas of the media industry. I had a lot of fun reading this report, although apparently the IFPI didn't considering the quote they use is completely out of context to back up their own agenda.

Perhaps the quote which in fact sums my the report, and my own opinion is from page 98:

"For every study that finds a negative correlation, there is another that concludes that there is no impact, or in some cases even positive implications."

It goes on later to say in its own conclusion "Given the multitude of dimensions to the relationship between free downloading and sales, an undisputed, unambiguously positive or negative impact cannot be identified." 

I'll be looking into the BPI report more in the near future, but that's all for now, keep reading though if you're interested in my own opinion of the music industry's decline.

Declining CD Sales: A Theory


Here's a graph I made which shows the total album sales value over the past 30 years or so. As you can see thanks to my handy annotation, after the CD player was launched music industry revenue proceeded to increased throughout the 80s. This makes sense, considering the peak for the cassette wasn't until 1989 when it sold 83 million units in the UK (BBC).

However, after this there's a period where cassettes are in rapid decline, but CDs are still getting going (1990 - 1992, blue circle on graph). Lucky for record companies, they  could charge premium prices for the latest technology, £15 - £16 for a CD wasn't uncommon. This, in my opinion, is where the problem lies. Now, the music industry has no new technology that they can charge a big premium for unlike in the Blu-ray market, there was no new purchasing platform for the consumer when they were ready to move on. For this reason, I do believe the market will pick up, perhaps even getting back to a breakeven point, but because of the lag time between the old format (CD) dying and the new format (digital) being taken up by consumers, it may be another 5 years yet.