Zeljka Kozul-Wright, an economist focused on the creative industries with UNCTAD, has posted personal comments on the recent Industry Canada P2P study. Kozul-Wright notes that: To hold file sharing uniquely responsible for the decline in record sales i.e., largely unauthorized downloading, is basically erroneous and far too simplistic. Moreover, such […]
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Industry Canada's release earlier this month of an independent study on the impact of P2P file sharing generated considerable public interest and some debate from economists around the world who were provided with complete access to all the raw data. First out of the blocks was Stan Liebowitz, a Texas economics professor who immediately pronounced that "without going into details of the study we can ask whether this result is even remotely plausible" and that "the result is so counterintuitive that I think it fails the laugh test." While those comments generated headlines, once Liebowitz had a chance to actually view the study and the data, he dropped that language and acknowledged that some of the initial criticism was too harsh. His primary criticism is that:
the authors present two sets of results, one for the entire sample and one just for downloaders. It makes little or no sense to look only at downloaders and when they do so the authors find a result that is not only implausible but is actually is impossible to be true, given their data. When the appropriate full sample is used the results are still likely to be biased upward because the authors do not fully account for the impact of music interest, which impacts both downloading and purchasing.
Birgitte Andersen, one of the authors of the study, has now posted a response to Liebowitz.
The Hill Times features a special op-ed this week (HT version (sub required), homepage version) that I wrote on the recent Statistics Canada and Industry Canada studies on the music industry. With independent data now confirming that the Canadian music industry is enjoying healthy profits and that Internet file sharing […]
Appeared in the Hill Times on November 12, 2007 as Politics Trumps Policy As Copyright Bill Approaches The annual Canadian Music Week celebration in Toronto is still several months away, but last week Ottawa staged its own version of the event. Two federal departments – Statistics Canada and Industry Canada […]
There has unsurprisingly been a tremendous amount of coverage and online discussion regarding the economic study commissioned by Industry Canada that found that there is a positive correlation between file sharers and music purchasing. You can read the Globe, the Guardian, or hundreds of blogs on the topic. Or you […]