Wednesday, January 28, 2009

Dutch Study Finds Economic Benefit from File Sharing

From: File sharing per saldo positieve economische effecten

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Full Report: Currently the 142 page full report is only available in Dutch. I am hoping for an English version soon. Its available at the TNO site.

File sharing net positive economic impact

The economic effects of file sharing on the Dutch welfare in the short and long term net positive. Consumers will benefit as a result of file sharing access to a wide range of cultural products. On the other hand, a fall in turnover from the sale of sound recordings, DVDs and games as a result is plausible.

This is reflected in joint research of SEO Economic Research, the Institute for Information Law (IViR) and TNO to the economic and cultural consequences of file sharing for music, movies and games on behalf of the Ministries of Education, Ministry of Economic Affairs and Justice. The analysis was conducted on the basis of a study of statistics and scientific literature, interviews with fervent downloaders, a representative survey of the population and a number of informational workshops in the sector.

Regulatory unclear

It appears that there are many unclear about the admissibility of download. The download for personal use of copyrighted music and movies may. Downloading games is prohibited. Downloading games is prohibited. In the case of p2p networks is often not only downloaded, but material, often automatically, again made available to others. This upload files without the permission of the owner, as such not allowed.

The effects of unpaid downloading the purchase of paid content are difficult to determine. Download and buy are not mutually exclusive: an average music downloaders buy more DVDs and more games than people who never download. Even more downloaders go to concerts and buy more merchandise.

Net profit prosperity

For the music industry is that downloaded pictures of 1-to-1 can be translated into lost sales. Many consumers who download music would not be in the same amount at current prices to buy and download unpaid not feasible. There are people who download music and get to know where to buy if they like.
Although there are also positive effects on the purchasing behavior of downloading, is a negative impact on the turnover of the sectors likely. This is particularly true for the sale of recordings, especially as downloading music has become the most established. In addition, there are differences between artists known artists seem to have more damage, while relatively unknown artists may even benefit when exchanging files increased their awareness .. For society as a whole is against this turnover of the sector the benefits of the large group of downloaders who would otherwise never have to purchase. On balance, there is a significant welfare gains.

New business models emerging

The music and film industries face the challenge to match their offerings with the changing consumer demand. New business models are emerging. The music is made for new movements to tap revenubronnen (concerts, merchandise and sponsorship). There is a place for music recordings, but in future it does not seem possible only on the basis of recorded music to run a profitable business. Within the film industry to grow the markets visit cinema and DVD sales still. DVD rental has fallen. Over time this can change quickly if the Internet is available. Again, there are important new business models. The game industry is growing boisterous, especially the console games and their hardware-software combination content. Here is file sharing on the watch less than eg PC games, where turnover is now stagnating. A related official platform game has so many advantages that it is not inconceivable that this industry is the file-sharing practice the music industry now faces a far greater extent could avert or circumvent.

Mr.Dr. A.E.H. (Annelies) Huygen
015 285 71 49

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