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Filesharers are good customers for content providers

Not to blame for society’s ills after all
Tue May 04 2010, 18:05

A STUDY HAS REVEALED that there's no correlation between peer-to-peer (P2P) users and lower sales by music providers.

The Dutch study by the University of Amsterdam reported that it couldn't find any proof that filesharers were responsible for a drop in music sales at big content providers. In fact, the research by Professor Nico van Eijk suggested that P2P users were actually some of the music industry's best customers.

"Only part of the decline in music sales can be attributed to file sharing. Despite the losses for the music industry, the increased accessibility of culture renders the overall welfare effects of file sharing robustly positive," said van Eijk.

He said the proliferation of digital technology means that music providers "have to explore new models to sustain their business."

In a sample of Dutch P2P users, the study found that buying music and sharing files went hand in hand. Filesharers were equally likely to buy music as non-filesharers with 68 per cent of the sample spending cash on tunes. The study also found that P2P users spent more money on merchandise and attended more concerts than non-filesharers.

"When it comes to attending concerts, and expenses on DVDs and games, file sharers are the industry's largest customers," the study reported.

So that leaves the question, why is the music industry apparently working so hard to alienate these same people? µ

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Comments
"have to explore new models to sustain their business."

Wow, looks like some people are still born with brains after all.

That study might also find out if that these stupid anti-piracy dicks are also illegal music listeners themselves.

Lets take a look inside that lousy MP3 player in your pocket. Yeah, I knew it.

posted by : mycelo, 05 May 2010 Complain about this comment
Big music/media co.'s have to die

because this has gone too far already. Most of the music published is crap. But it is not crap because there is no more innovative people, but because these same companies push this kind of music out, and search/make music artists for it.

Movies are almost the same, if not more. There is about one movie per year that is really good, and maybe a couple so-so. What kind of a statistic is that?!? No wonder people don't buy their stuff.

I've already stopped buying music completely, and I go to a cinema only a few times a year, and even that is more than needed.

I did my part, now You have to do yours.

posted by : Psihomodo, 05 May 2010 Complain about this comment
I used to download movies

So I am a success story for the RIAA.

I also used to buy a lot and I mean a lot of DVD's/CD (my current collect is 600 DVD's about the same in CD's approx)

Now I don't download nor will a buy a new DVD or CD. Wait a few weeks and then buy it off eBay. Simple you get your film and THEY get none of my money.

Its the only way to fight back

posted by : iRISH_dONKEY, 05 May 2010 Complain about this comment
Only themselves to blame!

As well as pushing shite music, the industry also needs to look at the quality of what they're pushing. Thanks to the loudness war, the sound quality of music from the last 10 or 15 years is frankly appalling compared with the quality of music from the 80s and early 90s. Back then, music was mastered to make it sound as good as possible. Now it's mastered to make it sound as loud as possible.

End result? No dynamics, no feeling, just a wall of heavily compressed, muffled and distorted racket. I really have lost count of the amount of modern albums I've listened to, liked the music, but hated just how awfully it's been mastered and produced. Only in the music industry can they create a product, /intentionally/ damage and degrade it, release it, then moan about lower sales.

posted by : DaveyK, 05 May 2010 Complain about this comment
Music Companies

Music companies are pushing shite music!

My local indy music store said he sells more rock,country and old school music by about 10 to 1 compared to the top 20.

Thats a good indication the music industry needs to look at their customer base and work out what people want.
the store owner went on to say that if was not for Queen, Led Zepplin, Garth Brooks and co he would have been out of business.

Music execs epxect to keep their massive margins and bonus's and refuse to change that model as it controls how, when, why and how much.

posted by : Matthew McPherson, 05 May 2010 Complain about this comment
@Jon

Thats an intresting argument, but most folk i know who do download films including myself have some of the largest collections of DVDs compared to those who dont.

It is intresting that isnt it, that someone who downloads films tends to have more DVDs, from my own experience and those around me of course.

And there is a good reason for this, and its a very similar reason to anyone who ive spoken to on the net or face to face who does download, and thats simply that we wont pay for crap films, but if the film is good then we purchase it, now you can claim that thats BS and thats your right, but my conscious is clear i have hundreds of DVDS.

If i want i can go to a libary and read a book for free, if i like it i buy it, if i go and get some food and it tastes like crap, ill complain and either get my money back or something else, if i buy a car ill drive it first, if i buy a house ill walk around it, if i buy a TV ill try it out first in the shop, if i buy a news paper ill check it first to see if its worth reading, if i buy a bag of crisps i can check its contents for fat before i buy it.

I could go on forever, Music is different because you can hear it before you buy it on the radio, but movies you cant, you have to eat what ever crap is served and you cant get your money back, trailers are a load of crap, we all know this, whilst you can have an idea whats its going to be like from reviews you wont know until you watch it if you will like it.

posted by : Darren, 05 May 2010 Complain about this comment
Consumer's implies payment

There is no issue with folks purchasing goods and services, the issue is theft or illegal distribution of copyright protected materials. All civilized countries recognize copyright laws and prosecute violators.

posted by : Paul, 05 May 2010 Complain about this comment
Customer comes first

One thing that public company tend to forget, we are the customer, we pay for what we want, how we want it, when we want it, and since we pay for it, we want to keep it too.

NY Times used to sell their digital newspaper with expiry, I file a complaint, I paid for my digital form of newspaper, I have the right to keep the paper as long as I want, NY Times eventually remove the expiration.

posted by : Spook, 05 May 2010 Complain about this comment
Sure, whatever

This type of "research" smacks of desperation by those trying to legalize piracy. P-to-P is fine but piracy is not. There is a difference.

posted by : Jon, 05 May 2010 Complain about this comment
Money making

With all these companies like Twitter and Facebook around that make money mostly from selling statistical information to companies, these music industry companies ought to sponsor their own P2P system that taps into the same kind of thing. They could limit the quality of the shared music to certain limits, and maybe provide it on their own, and then provide buy-it-now links for those who want better quality ones--completely bypassing iTunes taxes and other services.

But then again, it's the music industry. They never evolve.

posted by : BB, 05 May 2010 Complain about this comment
yeah right, P2P is like viagra

music trade Inc only need to deliver good songs on time

posted by : interesting, 04 May 2010 Complain about this comment
@ Damn right

Err, yeah, what he said! id buy that, id like to add a wee suggestion tho, i want no adverts during TV shows, no regional based role out, when its released we can all get it, if there has to be adverts then they must be skipable. There is nothing more enoying then being forced to watch 3 different adverts/trailers before you get to what you want. If i buy it, i want to watch it as i want, when i want where i want as many times as i want with whoever i want (public displaying limited obviously)

Sad thing is, no one will run with this idea unless the old dinosaws incharge get replaced, they dont see how you can make money with no actual physical product, and if they do do it then they will probably charge a forture for it not realiseing physical media is dead.

posted by : Darren, 04 May 2010 Complain about this comment
Damn right

Let's see, what do I want from major content holders:

1. Get together.

2. Open a shop.

3. A shop sort of like steam, I can access it from any hardware that can in any way get online.

4. A shop with multiple choice quality. I can get a 128k mp3 or ogg for my mobile, a flac for my hard drive plugged into my stereo, a huge whopping 24/96 for my high-end stereo. 1080p movies for my telly, 480p for my phone, 720p for my laptop.

5. I buy it *once*.

6. I download it whenever, whereever and on whatever I want.

7. If pay extra I can stream in real-time.

8. I want the making of movie with my records, I want extensive liner notes, I want high resolution pictures in multiple choice formats.

9. I want better service than p2p bedroom pirates can provide and I'm willing to pay for it.

10. And it bloody works when I'm on holiday on the other side of the planet allright? and need some instant music for my afterparty, yeah? Yeah. That's what I wanna hear.

posted by : b, 04 May 2010 Complain about this comment
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