Post Tagged with: "industry canada"

Gov’t Commissioned Study Finds P2P Downloaders Buy More Music

A newly study commissioned by Industry Canada, which includes some of the most extensive surveying to date of the Canadian population on music purchasing habits, finds what many have long suspected (though CRIA has denied) – there is a positive correlation between peer-to-peer downloading and CD purchasing. The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music: A Study For Industry Canada was conducted collaboratively by two professors from the University of London, Industry Canada, and Decima Research, who surveyed over 2,000 Canadians on their music downloading and purchasing habits. The authors believe this is the first ever empirical study to employ representative microeconomic data.

The two key findings:

When assessing the P2P downloading population, there was "a strong positive relationship between P2P file sharing and CD purchasing. That is, among Canadians actually engaged in it, P2P file sharing increases CD purchases." The study estimates that 12 additional P2P downloads per month increases music purchasing by 0.44 CDs per year.
When viewed in the aggreggate (ie. the entire Canadian population), there is no direct relationship between P2P file sharing and CD purchases in Canada. According to the study authors, "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."

Bear in mind, this is not a study with a particular desired outcome or sponsor – it is the government commissioning independent research to help it make better policy decisions. The results of that research, consistent with earlier Canadian Heritage sponsored study by Shelley Stein-Sacks that refused to blame P2P for the industry's problems, is that P2P actually increases CD sales since those that download also tend to buy more music.

November 2, 2007 — 187 comments — News

Spectrum Auction Delay?

Deirdre McMurdy reports that "industry buzz" on the forthcoming spectrum auction would delay release of the rules to December 2007 with the auction to follow in May 2008.

August 27, 2007 — 1 comment — News

Deadline Day Passes for Spectrum Auction Reply Comments

The National Post has coverage as the parties got one last shot at commenting on the forthcoming spectrum auction. Given the Telus flip-flop, the Post rightly notes that it seems increasingly likely that the government will create a set-aside for a new entrant to provide much needed competition into the […]

June 28, 2007 — 1 comment — News

Telus on the Spectrum Auction

Telus responds to my column this week on the forthcoming wireless spectrum auction with a letter to the editor in today's Ottawa Citizen. The company says that it takes exception to my advocacy for a set-aside for new entrants, stating that "we strongly believe that the competitive playing field should […]

June 22, 2007 — 2 comments — News

Spectrum Auction Puts Wireless Competition on the Line

My weekly column (Ottawa Citizen version, homepage version) looks at the current debate over the spectrum auction set for 2008. The first round of the consultation comments closed last month, generating nearly 50 industry submissions, yet surprisingly only four Canadians provided their views (follow up responses can be made until June 27th). By comparison, in the United States more than 250,000 people have written to the Federal Communications Commission to urge it to set conditions on a forthcoming spectrum auction that would make Internet access more open, affordable, and accessible.

Despite the lack of Canadian public awareness, the issue has an enormous impact on telecommunications since it plays a pivotal role in determining wireless competition. The three incumbent wireless providers (Bell, Telus, and Rogers) along with some business groups stand on one side, calling for an "open auction" that would involve minimal pre-conditions and see the available spectrum auctioned off to the highest bidders. These groups argue that the Canadian wireless market is already competitive and that the government should avoid setting aside spectrum for new providers.

Major cable companies (Shaw, Quebecor, Cogeco) and smaller telecom companies (MTS Allstream, Toronto Hydro Telecom) provide the alternate perspective. They are seeking a "set-aside" that would reserve spectrum for new entrants. These companies point to data that places Canada well below other developed countries on metrics such as the number of wireless subscribers, pricing, and the introduction of innovative services. They also note that Canadian spectrum auctions are not truly open, since foreign ownership restrictions exclude many potential bidders.

While the incumbents have been quick to characterize a spectrum set-aside as akin to a government subsidy, they fail to acknowledge that they were handed reserved spectrum to get off the ground.

June 19, 2007 — 4 comments — Columns