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Dutch Study Says Filesharing Has Positive Economic Effects
An anonymous reader writes "In a study conducted by TNO for the Dutch government the economic effects of filesharing are found to be positive. According to the 146 page report (available for download, but in Dutch) filesharing is good for the prosperity of the Dutch: with filesharing more media are available, even though this costs the media industry some profit. One of the most noticeable conclusions is that downloading and buying are not mutually exclusive: downloaders on average buy just as much music as non-downloaders, but they buy more DVDs and games then people who don't download. They also tend to visit more concerts and buy more merchandise."
...but where's the torrent?
since 15th century, dutch speaking countries (low countries) have led the world in modern and visionary concepts, in areas ranging from humanism to trade. erasmus, spinoza and more. and now this ....
a little big nation. kudos.
Read radical news here
This is the evidence to wwhat I've suspected all along - file sharing is patriotic and the RIAA is trying to destroy the economy by undermining media sales with their spamigation method!
This is definitely the case for me. I'll download an mp3 or two, and if I like them, I'll go out and buy their album (normally directly from the band if Im able to), and go to their shows if they play locally, buy their merchandise, etc.
I've discovered a lot of great music from filesharing, that I wouldn't have been exposed to otherwise, and went on to buy their stuff.
This is the final proof that pirates are destroying the economy!
Pirates are like terrorists!
And they pervert children to pirate more!
Pirates steal music and musicians everywhere are suiciding because they're so poor.
Did you already forget the article? Or do I have to blabber about children and wars for a while until I totally misdirect your atten... Until we really concentrate on the pirate comunist music thieves.
File sharing net positive economic impact
.. 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.
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 by TNO, SEO Economic Research and the Institute for Information Law (IViR) 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.
Estimates of the volume of the global download unauthorized movement vary widely. The world is in any case, many billions of files per year, a substantial part of international Internet traffic. Some 4.7 million Dutch Internet users aged 15 and older in the last 12 months unpaid ever downloaded. Citizens see the download and share music, movies and games as a general social acceptance, but know little of the technology and regulations that it faces. 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. 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
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.
She made the willows dance
The music industry doesn't care if the end result of file sharing is good for the economy (which I can easily agree it probably is) because they don't make money from the economy as a whole. They don't care if fans of music (including file sharers) are more inclined to pay outrageous prices to see a concert - most music companies don't make money from concert proceeds. For me, however, POLITICIANS should be paying attention to this information. Sure, they may have some lobbyist chewing their ear out about how bad file sharing is and that it must be stopped before the end of the world comes as a result but they need to be shown the bigger picture so that they can make the best decision for the people.
I know. I know. I can hope that there are still some politicians who are actually interested in doing the right thing for the people they represent...
And to do something in return I'll give you my attempt at translating the interesting parts of the article (which is quite interesting). Note that the net effect on the content industry is still negative, and the net gain for Dutch prosperity is positive, this might be because quite a bit of the losses are outside the country. It can also be seen as a proof of the failure of the normal free market model to give an optimal allocation of resources in the case of near-zero marginal costs.
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File sharing has positive net effect on economy
The economyic effects of file sharing on Dutch prosperity on long and short term are positive. Consumers obtain access to a wide range of cultural products due to file sharing. On the other hand it is likely that there is a decrease of turnover in the sales.
This was shown by a joint study of TNO, SEO Economic Research, and the Institute for Information Rights (IViR) into the economic and social consequences of file sharing for music, films, and games ordered by the Ministries of Education & Culture, Economic Affairs, and Justice. This analysis is conducted based on a study of statistics and recent scientific literatur, interviews with frequent downloaders, a representative survey of the Dutch population and a number of informative workshops with the [media] sector.
Estimates of the volume of global unauthorised downloading are widely divergent. The global count is at least several billion files per year, a substantial part of the international Internet traffic. Around 4.7 million Dutch Internet users of 15 years and older have downloaded something without authorisation in the past year. Citizens view downloading and sharing of music, films, and games as socially accepted, but know little of the technique and regulation involved.
[...]
Net prosperity gain
For the music industry the downloaded recordings cannot be translated 1-on-1 into lost sales. Many downloading consumers would not have bought the same amount of music [that they downloaded] against current prices if downloaded would not be possible. Additionally, there are people who download music in order to get to know it and buy it if they like it.
Although there are also positive effects of downloading music on sales, a negative effect on the turnover of the involved sectors is likely. This is especially the case for music because downloading music has become the most normal. There is a differentiated effect based on the artist: well-known artist are most impacted negatively, while relatively unknown artists can even profit when file sharing increases their reknown. For society at large the lost turnover of the [media] sector is opposed to the gains by the large group of downloaders that would otherwise not have made a purchase. The net effect on prosperity is substantial.
Rise of new business models
The music and film industry are faced by the challenge of matching their supply with the changed consumer demand. New business models are on the rise. The music industry is moving to use new sources of revenue (concerts, merchanise, sponsoring). There is a place for music recordings, but in the future it will probably become impossible to run a company on music recordings alone. Within the movie industry the markets of cinema and DVD sales are still growing. DVD rentals are down strongly. In the longer term this might change as faster internet becomes available. Here also new business models are important. The gaming industry is growing in spurts, especially console games and their combination of hardware and software. Especially here file sharing is less prevalent than in e.g. PC games, where turnover is stagnating. A platform bound official game has so many advantages that it is not inconceivable that this branch will be able to aboid file sharing to a larger degree than the music industry.
3) People have a fixed amount of money to spend on entertainment, by downloading shitty music on the internet they spend that money on other entertainment products/services.
For the Netherlands that's a win because the loser is the music companies and they are mostly overseas corporations and the winners are live performances which provide local employment and so on.
Of course I haven't read the article, not knowing Dutch and not bothering with a translate this page thing, and I know nothing of the music industry - for all I know the Dutch produce 99% of the world's music, though I doubt it.
Give me one good reason why anyone has a natural right to simply copy the recorded work of an artist or musician.
Give me one good reason why anyone has a natural right to prevent someone from making a copy of any recorded work.
You can argue until you are blue in the fact that there is a major difference between copyright infringement and outright theft, but in the end, the entitlement mentality that justifies both on moral grounds is the same in both cases.
The justification isn't the same unless you've already made the assumption that copyright is a legitimate form of property. The moral argument supporting private property rights is a product of scarcity, which doesn't apply to copyrights. Even the pro-copyright crowd doesn't really treat copyrights as though they were property; differences include time limits, statutory damages, higher penalties than are imposed for outright theft, etc.
If the law simply set the same standards for damages for copyright infringement as for theft it would resolve the issue instantly, as there are no damages for copyright infringement -- not unless you consider competition itself to be a tort demanding recompense (the "lost sale" argument). It is copyright itself, not infringement, which demands justification.
"The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat