Study: P2P Music Downloads Actually Increase Music CD Sales

Contrary to the music industry’s assertions, peer-to-peer (P2P) file-sharing does not have a negative affect on the legal purchasing of music, according to a study commissioned by the Canadian government ministry Industry Canada, writes sister site MarketingCharts (via Kapica’s Cyberia).

The study (pdf), “The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music: A Study for Industry Canada,” finds that in the aggregate - that is, among all Canadians - there was “no direct evidence to suggest that the net effect of P2P file-sharing on CD purchasing is either positive or negative.”

However, it found “a strong positive relationship between P2P file-sharing and CD purchasing” among the subgroup of P2P file-sharers. Specifically, “among Canadians actually engaged in it, P2P file-sharing increases CD purchasing.”

The study estimates that for every 12 P2P-downloaded songs, music purchases by P2P downloaders increase by 0.44 CDs: “That is, downloading the equivalent of approximately one CD increases purchasing by about half of a CD.”

As for a relationship between P2P downloading and the purchase of electronically delivered tracks, such as via iTunes, “We are unable to find evidence of any relationship between P2P file-sharing and purchases of electronically-delivered music tracks.”

Among other findings of the study:

• About half of P2P tracks were downloaded because the downloaders wanted to hear them before buying them or because they didn’t want to buy the entire CD just for that one song.
• About one-quarter of P2P tracks were downloaded because they were not available for purchase anywhere.

An outline of music acquisition patterns by Canadians, according to the study:

• 77 percent of Canadians buy music CDs (see table of Canadians’ music acquisition patterns); women do so more than men - 80 percent vs. 74 percent (see table of music acquisition patterns, by gender).
• 29 percent download free music from P2P networks; men do so more than women (35 percent vs. 23 percent).
• Nearly 14 percent buy music tracks from websites; men do so more than women (15 percent vs. 12 percent).
• The age groups that engage most in P2P free music downloading are the 25-34 (41 percent) and 35-44 (31 percent) year-olds (see table of 25-44-year-olds’ music acquisition patterns).