Canadian Gov't studies P2P music downloading

[Bobblehead]

And discovered that it has no effect CD sales. In fact, when they just looked at the "Canadian P2P file-sharing subpopulation" they found that downloading actually increased CD sales.

http://strategis.ic.gc.ca/epic/site/..._ip01456e.html

n the aggregate, we are unable to discover any direct relationship between P2P file-sharing and CD purchases in Canada. The analysis of the entire Canadian population does not uncover either a positive or negative relationship between the number of files downloaded from P2P networks and CDs purchased. That is, we find no direct evidence to suggest that the net effect of P2P file-sharing on CD purchasing is either positive or negative for Canada as a whole. These inferences are based on the results obtained from estimation of the negative binomial models (Table 4.1 and Appendix 4).

However, our analysis of the Canadian P2P file-sharing subpopulation suggests that there is a strong positive relationship between P2P file-sharing and CD purchasing. That is, among Canadians actually engaged in it, P2P file-sharing increases CD purchasing. We estimate that the effect of one additional P2P download per month is to increase music purchasing by 0.44 CDs per year (based on estimates obtained from the negative binomial model in Table 4.3). Furthermore, we find indirect evidence of the 'market creation' effect of P2P file-sharing in the positive coefficient on the variable 'Not available elsewhere' (Table 4.3).

This isn't a study by the music industry or a pro-P2P group. This was a study for Industry Canada.

http://www.michaelgeist.ca/content/view/2347/125/

[Azure]

holy....by all accounts, the music industry should support it now.

[Dan02]

I have purchased more CDs post P2P then pre P2P, the thing in my experience, it tends to be the smaller bands who gain the most, as i don't buy any of the music from the big popular bands but do from the small ones you downloaded a random song from.

[Azure]

Yep....I've found out about a LOT of European bands through torrents and P2P downloading....and have even bought a couple CDs because of that.

[Cerebral]

Based on common sense and the research I've done on the topic, the bands who get hurt the most by downloading are those who are already immensely popular. Artists like Justin Timberlake don't need any more advertising and downloads simply take away from his overall sales.

In contrast, a lot of new bands (particularly in the indie genre where they're not going to get much in the way of press) really rely on the internet and P2P downloading to develop a fan-base. Make no mistake, bands like The Arcade Fire or Clap Your Hands Say Yeah! never would have made it big so quickly without free downloading.