COPYRIGHT
Internet, record labels

We have a feeling that this might blow up into a big story. Almost all of the justifications for the legal actions taken by record labels and their trade associations – The British Phonographic Industry (BPI), The International Federation of Phonographic Industries (IFPI), the Recording Industry Association of America (RIAA) and their Canadian counterpart (CRIA) – has been that there is a direct negative correlation between illegal downloading and the use of peer-2-peer file swapping sites and the slump in CD sales. But now an independent report sponsored by Industry Canada and undertaken by Birgitte Andersen and Marion Frenz of the University of London ( Birkbeck College) and Decima Research seems to suggest that illegal downloading actually lead to an increase in music purchases. The survey, of 2000 Canadians on their music downloading and purchasing practices  seems to suggest that illegal downloading actually leads to an increase in music purchases and that there is a positive correlation between peer-to-peer downloading and CD purchasing – although Canadian music sales are down 45% since 1999. A recently leaked report from CapGemini for the Value Recognition Strategy (MCPS, AIM International Managers Forum, British Music Rights etc) in October 2007 suggested that “format changes” and price pressure from discounted CDs on sale in supermarkets are most to blame for the “value gap”. However that report dismissed the idea that P2P file sharing stimulates demand for sales, or is even a neutral factor although recognising that simply going after illegal downloaders won’t save the music business. The Canadian Music Industry Piracy Investigations group have pointed to a Quantum Market study from 2006 that found 57% of active P2P users rarely went on to buy music legally. Details of the report The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music: A Study for Industry Canada See The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music: A Study for Industry Canada and comment can be found at:http://www.michaelgeist.ca/content/view/2347/125/

And see http://www.p2pnet.net/story/13884

http://yro.slashdot.org/yro/07/11/03/048256.shtml

http://www.theregister.co.uk/2007/10/19/vrs_value_gap_report/