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Lies, Damned Lies, and the UK Copyright Industry

artg writes "Ben Goldacre writes about invalid and misleading 'science' in the Guardian. Here's his report on the statistics behind a recent press story that reported illegal downloading to involve 120 billion pounds worth of material."

36 of 219 comments (clear)

  1. For god's sake by Anonymous Coward · · Score: 5, Funny

    It's the scumbags like RIAA gives lies a bad name. Lies keep marriage in tact, family together, friendship, gov't, you name it. Along comes RIAA and ruins lie's good name. Shame.

  2. Oh, really? by G-forze · · Score: 5, Insightful

    Big surprise. Everything that has come from this industry has been at best broad guesstimates, at worst intentionally spread lies. Trying to explain the demise of an obsolete business model without taking the obvious into account is hard!

    --
    "There's someone in my head but it's not me." - Pink Floyd, Dark Side of the Moon
    1. Re:Oh, really? by siloko · · Score: 5, Informative

      Classic coup de grâce in the article: "Like I said: as far as I'm concerned, everything from this industry is false, until proven otherwise." Why are industry statistics still endlessly repeated in the media? It makes you wonder what market the newspapers using these fabricated stats are aiming for, because the majority of filesharers would laugh into their porridge at the thought of buying every film, track and OS they downloaded!

    2. Re:Oh, really? by Znork · · Score: 4, Interesting

      Of course, by making up unlikely numbers they divert attention from the even more insidious propaganda buried in the claim.

      It's not money _lost_, it's money _saved_.

      Downloading _saves_ the economy £120 Billion.

      The money that doesn't get spent on media doesn't magically disappear. It's spent on other things instead. Jobs aren't lost, in fact, I'd wager the money saved creates more jobs in the local economy than money to the media industry which to a large extent doesn't go towards labour intensive activity, and in many cases simply goes out of the country.

    3. Re:Oh, really? by houghi · · Score: 5, Funny

      It always reminds me of a friend who tells he saved 1EUR by running after the bus instead of taking it. I always say he is an idiot and he should run after a taxi. That way he would save much more.

      --
      Don't fight for your country, if your country does not fight for you.
    4. Re:Oh, really? by Philip_the_physicist · · Score: 4, Insightful

      The Sun is a Murdoch rag. The question is then not why they publish this nonsense, but how he benefits from doing so.

    5. Re:Oh, really? by noidentity · · Score: 3, Informative

      It always reminds me of a friend who tells he saved 1EUR by running after the bus instead of taking it. I always say he is an idiot and he should run after a taxi. That way he would save much more.

      You're both dumb; I run after airplanes and save a bundle (and don't have to wait for hours getting strip-searched).

    6. Re:Oh, really? by TheTurtlesMoves · · Score: 3, Interesting

      Trying to explain the demise of an obsolete business model..

      The movie Dark knight cost about 185 million to make and took in a total revenue of over 1billion. Thats more than five times the original investment. Iron Man cost 140 million and made over 500 million. Transformers cost 151 million and made over 700 million. The list goes on.

      That does not look like a demise of an industry to me. That looks like bloody good business. You can find similar statistics for music, however its somewhat harder to do. For example black eyed peas "Monkey Business" sold about 300k copies in its first week alone.

      I think obsolete does not mean what you think it means.

      --
      The Grey Goo disaster happened 3 billion years ago. This rock is covered in self replicating machines!
    7. Re:Oh, really? by Anonymous+Brave+Guy · · Score: 3, Insightful

      Trying to explain the demise of an obsolete business model without taking the obvious into account is hard!

      You could start by explaining what alternative you propose, if the current model is "obsolete" and its flaws are "obvious".

      You can certainly criticise some of the current pricing, aggressive legal strategies and industry propaganda. However, you can't deny that ultimately, it does cost a lot of money to make movies, software, etc., and that some of these products are valued by a lot of people. Moreover, there has to be some return on investment for those who back the successful projects, because a lot of the others make big losses, and no-one would back a new project if the best it was going to do was break even. This is basic economics, and the fact that the marginal cost of distributing a work can be close to zero in the Internet age is not the whole equation.

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    8. Re:Oh, really? by cliffski · · Score: 4, Interesting

      indeed. its money for old rope. Absolutely everyone who produces entertianment content is a millioanire and lives in a gold plated house.
      No movie, game or tv show ever lost money, and we are all just pretendind that piracy costs people jobs.
      In fact, the absolute guarntee of a 500% ROI is a genuine fact, despite the fact that this is in complete contravention of basic high school economics, because if it were true, you, and every other slashdotter would be falling over themselves to start up movie studios.

      *sigh*

      --
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    9. Re:Oh, really? by jthill · · Score: 3, Insightful

      If the *AA's want absolution for pretending distribution costs real money, they're going to have to give absolution for the kids pretending production doesn't.

      Or, alternatively, we could just ignore them all, both crowds, and have sane conversations premised on observable fact: production costs real money and entails corporate-level risk, and distribution is, on that scale, virtually free. Somewhere in here everyone's going to have to settle on a business model where the people who do the valuable work (that's creation and production) get returns sufficient to motivate the effort required; the old models are struggling because they piggybacked on the distribution effort.

      But if we're going to get to sane-land, this mirror-image pretense, where the *AA's pretend that singing "Happy Birthday" or playing the radio in your taxi-maintenance bay are theft and the children pretend making copies of "The Dark Knight" isn't, is going to have to stop. It doesn't matter any more who started it, everybody's going to need to stop. Me, I think it's kinda incumbent on the grownups to stop first.

      --
      As always, all IMO. Insert "I think" everywhere grammatically possible.
    10. Re:Oh, really? by Scrameustache · · Score: 3, Insightful

      Why are industry statistics still endlessly repeated in the media?

      Because that industy owns those medias.

      --

      You can't take the sky from me...

  3. Full story by Anonymous Coward · · Score: 5, Informative

    Full article is posted on Ben's blog at http://www.badscience.net/2009/06/home-taping-didnt-kill-music/ (sorry Ben for the slashdotting) - the guardian tends to remove bits of his writing in print/on their website (for space reasons I assume).

    1. Re:Full story by deglr6328 · · Score: 4, Interesting

      There's several videos floating around with him too that are definitely worth watching. He is a very sharp mind and it pleases me greatly to see his urgently needed skeptical analysis getting the press coverage it so thoroughly deserves.

      --
      - "Hear that?! The percolations are imminent! Cease your ingress!"
    2. Re:Full story by vectorious · · Score: 3, Informative

      He does not state that there is a causal relationship, he links to a study showing that there is a correlation and says that in light of this he doubts that it can be shown that every download is lost revenue. The onus of proof is surely on the person who is making the statement, not the one doubting its veracity, and showing data at best inconsistent with the hypothesis that each download is lost revenue.

  4. Lost? by WillKemp · · Score: 4, Insightful

    I just read TFA in the paper (yeah, i'll hand my geek card in on the way out...) and it struck me that the most important thing that he doesn't mention is that there's no evidence that anyone downloading a pirate copy of anything would actually buy it if they couldn't download it for free. Therefore nothing is actually lost.

    My guess is that 99% of the stuff "illegally" downloaded would never actually be bought if it wasn't there to download.

    1. Re:Lost? by FailedTheTuringTest · · Score: 5, Informative

      The comments to TFA (I guess I'm not a real ./er either) include links to a properly rigorous academic study (and some news articles) that shows that downloaders spend more money, not less: for every CD downloaded, they buy 0.4 additional CDs. The study's authors also "find evidence that purchases of other forms of entertainment such as cinema and concert tickets, and video games tend to increase with music purchases."

      http://www.ic.gc.ca/eic/site/ippd-dppi.nsf/eng/ip01457.html
      http://arstechnica.com/old/content/2006/03/6418.ars
      http://news.bbc.co.uk/1/hi/technology/4718249.stm

    2. Re:Lost? by hairyfeet · · Score: 4, Interesting

      Not to mention those of us that have actually found new shows and bought them thanks to P2P. For example, in the late 90s I hear all this buzz about this new show that is a remake of a bad movie I had seen called Buffy The Vampire Slayer. Supposedly unlike the movie this was actually really good, with good acting and storytelling. But where I lived there was no WB to be had.

      So I downloaded a couple of episodes to see if it was any good. I actually enjoyed them and I ended up buying the entire Joss Whedon collection, including the Angel series and Firefly. At $50 a season, for the seven seasons of Buffy, Five of Angel, and one of Firefly you are looking at $650, not including a few collectibles and various promo stuff from the shows that my late sister bought me. All told probably close to $1000 was spent on a show that I never would have bought if it wasn't for P2P, because after seeing the movie I honestly didn't see how they could make it not suck.

      I'm sure there are plenty like me, that are happy to buy something we enjoy if we are given fair value, and who for one reason or another don't have access to many of these shows or other entertainment. If I would have saw Buffy the Vampire Slayer boxed sets in a B&M store I never would have given it a second thought if I hadn't gotten to see a couple of episodes on P2P. After all, who would have thought any series based on a Kristie Swanson movie could actually be entertaining?

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      ACs don't waste your time replying, your posts are never seen by me.
  5. I think someone does not understand economics. by Edward+Nardella · · Score: 4, Insightful

    People don't spend less money because they get something that they would have payed for for free, they just spend it on something else.

    --
    My sig doesn't address Anons, sigs aren't visible to them.
  6. Nearly 10% of GDP! by msgmonkey · · Score: 4, Funny

    And there I was thinking it was the credit crunch that has caused our economic problems, it's obvious now that the real problem are the millions of teenage girls downloading britney spears albums (or who ever is in at the moment).

  7. I, too, am impressed by these figures. by jd · · Score: 4, Insightful

    So they added up all the bittorent users, multiplied the figure by 25, and assumed that was the total cost to the economy.

    I'm sure the Blender team would LOVE to receive 25 pounds ($40) for every download of each and every one of their movies. Ms. Boyle would doubtless be substantially richer if she were given the same for every person who had ever downloaded (or watched on YouTube) a clip of her singing. More members of Ubuntu might be able to play space tourist if each and every file (whether it be a CD, DVD or just a patch) resulted in a $40 donation. Radiohead and Nine Inch Nails would be over the moon if each individual song they've released for free got them that in checks received via fan mail.

    I'm not saying that all the legit material added together make a substantial chunk of the corrected figure, but rather that the researchers never bothered to consider the fact that the material is not of equal value and that some items have a value of zero. They assumed everything was illegal and everything had identical worth.

    That goes beyond Bad Science. How many of you, in elementary/primary school, got taught algebra by being given shopping lists? Pretty much everyone? Good. It would be a pointless exercise if apples and oranges had the same price ($40 each), so we can assume your class used different prices for different object, right? Right. So. Hands up who can tell me what you could do then that these researchers didn't do now?

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
    1. Re:I, too, am impressed by these figures. by arkhan_jg · · Score: 3, Informative

      Actually, they added up all the bittorrent users on one file in the afternoon, waved some magic fairly dust to extrapolate that to everyone for a year, multiplied the figure by £25 as the 'average' price per file, and then multipled *that* figure by 10 (from £12 billion to £120 billion) in the press release by accident, then quietly changed it when challenged by a BBC reporter. Not that they issued a retraction.

      It's such a useless figure for anything it's laughable. Well, apart from whipping up a moral panic in the government so they pass yet more draconian legislation forcing ISPs to act as some sort of panopticon against their own userbase at their own cost. I'm sure it's pretty good at that.

      --
      Remember kids, it's all fun and games until someone commits wholesale galactic genocide.
  8. Downloading keeping "billions" inside the UK by David+Gerard · · Score: 5, Interesting
    More than seven million Britons use illegal downloading sites that keep billions of pounds circulating inside the British economy rather than being sent overseas to US media companies or obscure tax havens, despite almost everything on offer being appalling rubbish no sane person would pay a penny for, according to unnamed researchers copying a passing number found in a 2004 press release from music industry lawyers trying to drum up business.

    Intellectual Property Minister David Lammy said the report brought home the impact illegal downloads had on the UK economy as a whole. "If we take as read the music industry's assumption that every download is a lost sale, then billions of pounds are freed up for ordinary people to spend of things of actual economic substance to keep local businesses healthy, rather than chasing phantom pseudo-value from things that have an inherent cost of production of zero. This makes the whole economy more efficient and lets money go where it is actually useful, rather than to Bono's numbered account in the Virgin Islands."

    The government says it will be hard to change attitudes to free downloading, particularly from the entrenched old media parasites. "Studies consistently show that downloaders buy more music. We have to stop this and get them downloading dodgy rips from BitTorrent, rather than official high-quality versions from iTunes."

    The report also noted that new, faster broadband services could increase file-sharing, which was already more than half of net traffic in the UK. The ISPs modestly declined credit for their part in helping Britain's financial future, noting that it was their customers, the great British public, who had voted with their browsers to do the hard work of keeping the country afloat.

    --
    http://rocknerd.co.uk
  9. Re:Hypocrite alert! by anonieuweling · · Score: 3, Insightful

    - To get a decent bearer for the media
    - Decent artwork, info
    - To get more after getting interested
    - To support the artist as well-made choice after checking out the art
    Yes, I am not of the ipod-generation.

  10. Re:Hypocrite alert! by freedom_india · · Score: 3, Interesting

    I would have to disagree, after all if I can get the music for free, why would anyone ever pay

    I can get poo for free as a manure for my Garden.
    Why do i go and buy manure, red soil, natural fertilizer and all that crap from Home Depot?

    --
    "Doing what i can, with what i have." ~ Burt Gummer
  11. Re:Hypocrite alert! by Anonymous Coward · · Score: 4, Informative

    The Guardian tends to edit his pieces a bit when they put them up. If you look at his blog post on badscience.net containing the original version you'll see that sentence links to another Guardian piece about a study showing that people who download more also buy more music - he's quoting from that rather than making it up...
    http://www.badscience.net/2009/06/home-taping-didnt-kill-music/ has the original and you'll see it links to http://www.guardian.co.uk/music/2009/apr/21/study-finds-pirates-buy-more-music

    Poor form of the Guardian to remove that link.

  12. Re:Doh! by tagno25 · · Score: 4, Interesting

    Assuming only 1k electrons in a bit, then a bit would be 9.10938215(45)x10^-28 kg.
    If we then assume that every p2p user downloads at 100kbps, then in 1 second a single user would have acquired 9.10938215(45)x10^-23 kg Assuming there are only 1 billion users in one second 9.10938215(45)x10^-15 kg worth of data would be transfered After approximately 317 years only 9.10938215(45)x10^-5 kg worth of data would have been transfered

    I do not see how even one pound of data has been lost.

  13. Re:Hypocrite alert! by Bazzargh · · Score: 4, Informative

    Ben Goldacre also makes up some facts, like this one "...for example, people who download more also buy more music."

    No, you're wrong.

    http://news.bbc.co.uk/1/hi/technology/4718249.stm

    People who illegally share music files online are also big spenders on legal music downloads, research suggests. Digital music research firm The Leading Question found that they spent four and a half times more on paid-for music downloads than average fans.

  14. Re:Hypocrite alert! by Splab · · Score: 3, Informative

    Depending on where you are in the world shit can be quite easily acquired. For instance here in Denmark it is quite expensive to keep it around since there all sorts of rules and regulations, so the farmers in Jutland are more than happy to give shit away for free - so his analogy is one of the more insightful I've read around here in a long time.

  15. Re:Hypocrite alert! by Bazzargh · · Score: 3, Informative

    What other music fans?

    Its those who are not "regular downloaders of unlicensed music", obviously.

    When the answer to your question is given in the sentence you quoted, I know you're either a troll, or incapable of understanding English.

  16. a couple orders of magnitude is nothing . . . by Alan+R+Light · · Score: 3, Insightful

    So, the first number was off by a factor of ten, not counting the silly estimate of 25 Pounds when even 2.5 Pounds was doubtless too much - meaning that the original number was off by at least a factor of one hundred.

    Still nothing compared to what government and government-related groups can come up with to scare people. Anyone remember how we were all told in the '80s that 1.5 million children were kidnapped each year in the United States, when the real relevant figure (kidnappings by strangers) was closer to 150? That was off by a factor of 10,000.

    And how about those Weapons of Mass Destruction in Iraq? We're going to find them any day now.

    Yes, what this proves to us once again is that as bad and unethical as industry can be, they still can't compete with government and the do-gooders.

  17. Re:"pounds of material" by Lachlan+Hunt · · Score: 4, Insightful

    Sure, with today's coinage, a 1 pound coin doesn't weight that much. But, originally, it was based on the value of a pound (mass) of silver.

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  18. Broken Window Fallacy by mdwh2 · · Score: 5, Informative

    Exactly - this is basically the parable of the broken window. Also see: http://notnews.today.com/2009/06/06/downloading-keeping-billions-inside-the-uk/ .

    Of course, I'm not surprised that the RIAA twist the truth, but to hear Government advisers falling for the fallacy? Either they are ignorant of basic economics, or they are intentionally being deceitful on economic matters. Either way, it's no wonder the economy is going down the tubes.

  19. It hurts to see your trade being abused. by Opportunist · · Score: 4, Insightful

    Slightly offtopic, I admit it, but please read it regardless.

    "Lies, damn lies and statistics". "Don't trust statistics you didn't forge yourself". "70% of statistics are made up, 80% of all people know that".

    And so on.

    There's a reason for those jokes, and it's shoddy statistics. Often, it's not even malice, it's simple inaptness. Ok, far too often it's also malice. Numbers are just too impressive, and they have authority. People believe them. They are regarded as "hard facts". They are not "a lot", they're not "a few", they are a million, a billion, and so on.

    Funny about it is, though, that people believe those statistics. Not much differently than they believe the fuzzy "a few" and "a lot" statements. Because they're unable to test them. Even if it is as easy to throw the "numbers" out the window as in this example. 25 pounds "damage" per infringment. Nuts? 25 pounds ain't even what a current blockbuster costs when you buy it on DVD (legally, ok? Not talking about those flying Chinese traders where you know you're buying a bootleg copy). But did anyone care to check?

    Probably no. It was numbers. It was hard facts. Hey, they wouldn't dare to release information like this if they didn't fact check, do they?

    Heh. It was printed in the SUN. Dunno about you, but I've made up my mind about the fact checking abilities of their reporters...

    Anyway. It does hurt to see my original trade being abused that way. I'm a statistician, at least according to my degree. I was, and still am, fascinated with the ability to aggregate a whole lot of samples into a simple, understandable statement. Statistics can serve a valuable purpose if, and only if, they are used sensibly and earnestly. And NOT "creatively".

    So here's a little guide how to use statistics and how to gauge their credibility:

    If you don't get to see the sample or don't get any information about how the sample was gathered, throw it to the dump. I can easily "prove" that every single listener to music buys it and that no copying is going on if I pick my sample "right". It's easy to "prove" every computer gamer is a potential addict if I only look at people playing 10+ hours a day. If you don't get told what's the source of the data and what data they worked with, chances are good that the whole deal is rigged.

    If it's a "voluntary", "opt-in" sample, throw it out. All those statistics based on online questionaires where people can sign up and go to to fill out forms if they're "interested enough" are worthless. You'll get samples filled out by people who have a strong opinion about the subject already. When there is an online questionaire regarding "too much internet use", what kind of answers do you expect to get? Worse, what kind of people do you think will participate at all? It's a rigged sample from the start.

    If you don't get to see the sample size, throw it out. The sample size gives you a fairly good idea how much of an error you may expect. 1/N^2 is a good rule of thumb (with N being the sample size) for the statistical error. That doesn't mean that a small sample automatically leads to a huge error margin, 200 samples may be already good enough if they are picked well, and if they're not "hand picked" (see above).

    If you don't get to see a mean, a median and a standard deviation, throw it out. It's easy to prove that everyone's doing quite fine on average, even in this economy, because on average everyone has enough money to live well. The mean says so (the "average"). Without standard deviation, you won't get to see that the average is nothing but an artificial number that has no reflection in reality. It's not that everyone has the average, there's some who have a TON more and many that have a LOT less. The median would easily tell you so (that's the "middle number" of the sample). Comparing mean ("average") and median ("middle") tells you a lot about whether your sample was homogenous or whether you have a few VERY different bits in the sample (which should have been cut from the stati

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  20. Re:Doh! by Anonymous Coward · · Score: 3, Funny

    Furthermore, signaling is by AC signals

    I knew we were useful for something!

  21. Re:"pounds of material" by Kidbro · · Score: 4, Informative

    Huh? Citation please. The pound coin hasnt been in circulation for very long and replaced one pound notes.

    Kids these days. What do you learn in school?

    http://en.wikipedia.org/wiki/Pound_sterling#Anglo-Saxon

    No, the pound coin in its current form hasn't been around for more than a few decades. But the pound as a monetary unit is more than a thousand years old and did indeed represent the value of one pound of silver. The first coin to to be worth this much was, afaik, the Sovereign which was introduced in the late fifteenth century.

    What's your definition of "very long"?