IP Outreach Research > IP Crime
Reference
| Title: | Consumer Search and Retailer Strategies in the Presence of Online Music Sharing |
| Author: | Sudip Bhattacharjee, Ram D Gopal and James R Marsden [University of Connecticut], Kaveepan Lertwachara [California Polytechnic State University] |
| Source: | Journal of Management Information Systems 23, no. 1: 129-159 |
| Year: | 2006 |
Details
| Subject/Type: | Piracy |
| Focus: | Music |
| Country/Territory: | United States of America |
| Objective: | To investigate the impact of online piracy on consumer purchasing choices and opportunities for retailers. |
| Sample: | Consumers and a major P2P network |
| Methodology: | Survey and data from online sharing networks |
Main Findings
When asked to compare the acoustic quality of music at illegal sites (MP3) to that of an original CD, 48% of consumers find it “almost the same”, 42% “very good, but not the same”, 9% “half as good”, and about 1% state “does note even compare”.
Online music selling strategies for traditional retailers can provide additional profits despite piracy: the study’s results indicate that decreasing piracy does not necessarily imply increasing profits – rather, maximum profit outcomes occur in the presence of piracy. The most promising strategy for retailers is a mixed model allowing consumers to subscribe or to purchase music à la carte. Efficient search techniques are essential to attract consumers to legal online markets.
The authors conclude that seeking regulatory means to stop piracy is likely to be a self-harming strategy as part of unauthorised file sharing may well be pre-purchase sampling, an activity aiding consumer to make better purchases.
[Date Added: Oct 22, 2008 ]