unit 8

Unit 8 – Research Project on Digital Music Services and Illegal Downloads

[Name of the Writer]

[Name of the Institution]

[Dated]

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Table of Contents

Task 1: The Research Proposal........................................................................................................1

a) Formulate and Record Possible Research Project Outline Specifications...............................1

Introduction..............................................................................................................................1

Aims and Objectives of the Research.......................................................................................2

Methodology for Collecting Data.............................................................................................2

b) Factors Contributing to the Process of Research Project Selection.........................................3

c) Critical Review of Key References for the Research project..................................................3

Critical Review on Digital Music.............................................................................................3

d) Research Project Specification................................................................................................4

Research Objective...................................................................................................................4

Research Rationale...................................................................................................................5

Hypothesis Statement...............................................................................................................5

Scope of the Research..............................................................................................................5

Methodology............................................................................................................................6

Secondary Research.................................................................................................................6

Primary Research.....................................................................................................................6

Approach used in this research.................................................................................................6

Ethical Consideration of the Research.....................................................................................7

e) Plan and Procedures for the Agreed Research Specification...................................................7

Plan and Timescale for the Research.......................................................................................7

f) Resources and the Research Question or Hypothesis..............................................................8

Task 2: Implementing the Research Project....................................................................................9

a) Proposed Research Investigation according to Specification and Procedures.........................9

b) Record and Collate Relevant Data.........................................................................................10

Questionnaire Results.............................................................................................................11

Task 3: Evaluation of the Research Outcomes for the Project......................................................14

a) Appropriate Research Evaluation Techniques.......................................................................14

Evaluation Method.................................................................................................................14

b) Interpretation and Analysis of Results...................................................................................14

Research Findings Summary..................................................................................................14

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c) Recommendations and Justification for Further Consideration.............................................15

Limitation to the Research.....................................................................................................15

Recommendations..................................................................................................................16

Task 4: Presentation of Research Findings....................................................................................16

Conclusion.................................................................................................................................16

References......................................................................................................................................18

Appendix........................................................................................................................................20

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Unit 8 – Research Project on Digital Music Services and Illegal Downloads

Task 1: The Research Proposal

a) Formulate and Record Possible Research Project Outline Specifications

Introduction

Peer to Peer or commonly referred as P2P and involves sharing of copyrighted files

without express permission by the copyright owners. Nevertheless, it is a business which has

grown since early 2000s, even after the introduction of the Digital Economy Act 2010 which

specifically addressed media policy issues pertaining to unauthorised sharing of digital media

leading to copyright infringements (Koegel, 2009, 4). Hence, sharing music specifically on

websites and allowing multiple users to download the data without express permission from the

copyright owners is considered illegal and is a direct violation of copyright law (Latif, 2010).

Nevertheless, this trend has grown to a point where people in the UK mostly download

illegal data off the internet instead of purchasing the CDs or DVDs of especially media content

such as music or movies (IFPI, 2010, 1). Furthermore, it is the various internet providers instead

of individual users who face liability for this infringement as individual users are harder to

identify. As per an article published in BBC News, internet service providers such as Talk Talk

and BT have argued that the Digital Economy Act 2010 is in conflict with the European Union

law as the Act as it states that ISPs are responsible for sending warning letters to individual users

downloading illegal data and to monitor their usage. However, it cannot be argued that the

creative industry loses over four hundred million pounds per year in revenue due to illegal

downloading and P2P sharing (Tschmuck, 2010, 30).

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Aims and Objectives of the Research

The aim of this research project is to investigate the online file sharing industry which

will allow digital music services such as Spotify to remain competitive.

The objective is to provide recommendations and form certain strategies for the senior

management and other shareholders of Spotify so as to allow them to keep ahead of their

competition.

Methodology for Collecting Data

Qualitative Research

Qualitative research usually entails fieldwork which allows the researcher to observe and

record events and other behaviour in natural environments as it is occurring. This research is also

based on participation as opposed to results and revolves around experiences and perceptions.

For the purpose of this research qualitative data collection through interviews will be adopted.

Primary Research

Primary research techniques for this research will involve gathering data via primary

collection data collection using semi structured interviews.

Secondary Research

Secondary research or data collection for this research was carried out by collecting

information from secondary sources such as published articles, books, journals etc. This method

is used most commonly as it allows the researcher to gather a large amount of data without the

hassle of fieldwork (Kumar, 2010, 62).

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b) Factors Contributing to the Process of Research Project Selection

The process of research can only be undertaken after a research problem has been

identified. Hence, variables affecting the problem or issue need to be acknowledged and each

problem should have a separate hypothesis which can be used to state the relationship between

two or more variables (Kumar, 2010, 64).

The main research problem in any research project has to thoroughly explored to allow

the researcher to clearly formulate the problem, its sources, various considerations etc. Hence,

factors affecting the research process include the four Ps – people, problem, phenomena and

program. Formulation of a research problem has to follow the below mentioned steps (Kumar,

2010, 64):

1. Measureable variables which can presume multiple values – dependent, independent and

extraneous.

2. Different measurement scales to classify the variables – interval, normal, ratio and

nominal scales.

3. Hypothesis is a potential statement of the outcome of the research which connects and

verifies the variables.

c) Critical Review of Key References for the Research project

Critical Review on Digital Music

Various articles, books and journals have addressed issues stemming from illegal online

downloading of media for the music industry. Giants such as Warner Bros Records, Sonry Music

and Universal Music Group own around ninety percent of market share of recorded music sales

globally (Koegel, 2009, 4). Online distribution of digital music or illegal sharing and distribution

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of P2P file sharing hence is a direct threat to pre-existing channels of distribution for these

giants. These companies along with official bodies such as the BPI, IFPI and RIAA have

therefore taken a strong stance against illegal downloading and sharing of media online, and

regularly call for more stringent laws relating to copyright and file appeals to ISPs to block such

websites. Hence, this review relates to DMR and piracy related data and holds the view that

liable events have promoted digital piracy and the decline of the industry (Kreitz & Niemela,

2010, 1).

P2P networks can be defined as networks which enable internet users to share digital

content such as video, audio and text files directly along with real time data which includes

telephony traffic without being dependant on a central server. Hence, P2P content is an illegal

method of obtaining data but is still a common way of exchanging large files. Hence, users need

a file sharing software which can be used to download or transfer files from the host machine

(Poster, 2010, 409).

The introduction of Napster in 1999 allowed consumers more freedom is buying media

content as opposed to being forced to buy entire albums. With the advent of digital technology, a

single track can now be downloaded for free without any restriction. The on-going fight against

unauthorised digital content has therefore been focused on such networks such as LimeWire,

Napster etc (Kreitz & Niemela, 2010, 3; Tschmuck, 2010, 36).

d) Research Project Specification

Research Objective

The objective of this research is to delve into the perceptions and opinions of users who

frequent online music digital service sites on the important issues of piracy and illegal

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downloading. Furthermore, the researcher will also gather data related to copyright laws and

whether downloading music and movies online should be allowed. Hence, the main objectives of

research are as following:

Evaluating literature on music piracy

Investigating ‘pirates’ and their methods of downloading

Understanding music piracy ethics

Exploring industry responses

Reviewing the problem of music piracy and analysing its impact on the industry

Research Rationale

It has been found that almost a third of internet users from the UK access, download or

stream media illegally. Furthermore, online piracy has been steadily growing and has reached

sixty percent. Therefore there is a need to identify the reasons the problem of music piracy and

analysing its impact on the industry.

Hypothesis Statement

Hypothesis for this research is:

H1: Legal digital services would increase revenues for the media industry

H0: Legal digital services would not increase revenues for the media industry

Scope of the Research

Scope of this research is to analyse the precedent of online piracy and illegal accessing of

media content through P2P websites and its consequences. Hence, the findings of this research

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will allow for the formation of certain recommendations for Spotify on how to improve their

services in order to remain competitive so as to encourage internet users to opt for legal means of

downloading as opposed to illegal downloading/streaming.

Methodology

This research will focus on internet user’s attitudes and perceptions related to media

piracy. Secondary research will utilise articles, journals, books etc and primary research will be

built on the secondary research findings.

Secondary Research

Current data and statistics regarding the music industry and online piracy will be

evaluated from sources which have already used a combination of surveys, questionnaires etc in

their research.

Primary Research

Primary research is usually moulded from a variety of options based on the nature of the

study. Hence, looking at the set research objectives will allow the researcher to select an

adequate method of gathering data. These are: evaluating literature on music piracy, reviewing

the problem of illegal downloading and its impact on the media industry, understanding the issue

of music piracy ethics and exploring the industry responses.

Approach used in this research

Primary research can be either conducted through interviews, questionnaires and

observation. For this research, an interpretivist approach will be used to analyse a small sample

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of respondents in order to gain user insights into the problem of music piracy and user needs.

Interpretivist approach is the concept that reality is not objective but contains individual

perceptions and translation which creates understandings. The interview will contain semi

structured questions and privacy of all respondents will be respected.

Ethical Consideration of the Research

The research was conducted based on the rules of ethical conduct. For example, the

research did not harm the participants in any way and the researcher promised to uphold their

privacy and anonymity. None of their identifying personal information was released or retained

by the researcher and all the information provided by them was kept strictly confidential.

Furthermore, the researcher gained participants consent before enlisting them for the project and

used anonymous participants.

e) Plan and Procedures for the Agreed Research Specification

Plan and Timescale for the Research

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f) Resources and the Research Question or Hypothesis

Piracy, file sharing and free music consumption are terms used interchangeably by

different internet users based on their perceptions and views. Hence, results of studies based on

the issues of piracy also reflect these extreme differences and lack of unity in methods of

research pose a problem in correlating data on the issue. From IFPI commissioned studies such

as the Jupiter Research in 2009 which used internet user surveys from empirical data gathered by

differentiating actual downloads from file-sharing sites to chart activity of industry demonstrate a

wide divergence in terms of the measureable variables (Baym, 2010, 177).

Nevertheless, file sharing has a two pronged effect on sales – the substitution effect

where users opt for downloading data instead of purchasing the DVD or CDs and the sampling

effect where users prefer to sample or examine the product before purchasing it (Latif, 2010).

However, studies have suggested that in the long run, the sampling effect could potentially

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increase an artist’s sales; nevertheless, this contrast could be termed as an attempt to differentiate

between pirates and users looking for sampling purposes (Bowie-Sell, 2012).

In 2010, BPI reported that over 1.2 billion units downloaded illegally cost the industry

over £984m in revenue. Hence, the researcher opines that certain freeloaders could be converted

to legal users in absence of P2P and consumers who are not willing to pay for their media usually

cannot be converted to buyers. It has been proposed that incentives can be served to engage in

file sharing activities which could provide some benefits given in portions (Frontier-Economics,

2011).

Task 2: Implementing the Research Project

a) Proposed Research Investigation according to Specification and Procedures

Sixteen (16) undergraduate students aged 19-23 were selected as the target population for

interviews. This is due to the fact that young people such as college students are commonly

reported as most likely to obtain media from illegal downloading websites as digital music piracy

behavioural model demonstrated that people over 29 years of age will engage less in illegal

downloading. Nevertheless, despite selecting the correct target population, it can be said that the

results of this study cannot adequately reflect opinions of the general population due to the

limited number of respondents.

The interview was divided into seven units:

The first unit was based on the demographic information such as age, occupation etc. so

as to build a rapport with the respondents to make them feel comfortable.

The second unit was geared towards finding out the respondents sampling method of

download as it is the main argument in favour of illegal downloading. The questions were

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regarding illegally downloaded music for the purpose of sampling it and purchasing the

CDs/DVDs or from official apps such as iTunes later.

The third unit targeted social norms of respondents and their friends/family.

The fourth unit aimed to discover any justifications given by the respondents to justify

their actions.

The fifth and sixth units asked questions about their perceptions of legal threats and legal

alternatives.

The seventh unit aimed to get the participants attitudes towards the music industry.

b) Record and Collate Relevant Data

Figure - Descriptive Statistics

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The above table demonstrates that students with income less than £3375 were more likely

to resort to piracy instead of buying music. All of the participants admitted to downloading

content from P2P services such as BitTorrent sites from which Kickasstorrents and The

PirateBay were most common amongst the sample.

Questionnaire Results

Questionnaire has been provided in the appendix. Answers are discussed as per the question

number.

1. Answer to Question 1

3 out of 16 participants agreed that they had used the sampling method before buying

music. 1 responded that he only buys a previously downloaded track if he is not able to find the

full version of the song on BitTorrent. However, most of the participants agreed that they would

not buy the content if they were getting it for free.


Answers ranged from family to friends and one respondent admitted that it is a common

way of getting content.


Here, only one participant agreed that he understands the moral and legal complications

of his actions. The rest did not feel that it is an ethical dilemma for them.


Results here were mixed. Only 6 participants agreed that they had different moral values

and the others responded that enjoying music any way they want to is a matter of choice.

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Figure - Results of correlating statements

The above table demonstrates the most agreed upon statements. The letters relate to the

statements below in terms of most agreed upon.

A) Downloading illegally is my only choice because of financial limitations.

B) My actions in downloading one or two free songs cannot affect the music industry as

a whole.

C) Piracy is booming because record labels keep their prices very high and so it is their

fault.

D) The industry is very unfair which is why I download illegally.

E) My actions could be wrong, however, I download illegally for friends and family.

F) I do not agree with the above statements.

Statement A received the most agreement however F had no agreements which can

indicate that none of the participants were fully aware of their immoral and illegal behaviour.

Most participants justified their behaviour and denied their culpability. Also, it was found that

money is a factor in online piracy.


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All participants knew about legal downloading platforms such as iTunes. Only 9

participants had actually purchased from iTunes.

9 participants also were not aware of subscription services. Further investigation revealed

that 14 participants out of 16 had heard of Spotify.


The responses indicated that none of the students believed there was an actual threat of

being caught and held legally responsible.


13 participants agreed that if chances of being caught and held legally responsible were to

rise, they would stop downloading illegal content.


14 respondents stated that they would switch to alternate sites. 3 mentioned that they

would try something else. This demonstrated that gaining content is actually more important that

the websites or the applications.


All participants indicated distrust of the industry and did not believe that their actions

were affecting the industry much.


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All participants agreed that artists and labels would be paid less. The only agreed upon

negative affect was the resulting loss of jobs.

Task 3: Evaluation of the Research Outcomes for the Project

a) Appropriate Research Evaluation Techniques

Evaluation Method

Semi structured interviews were conducted on a one on one basis. The researcher also

attempted to keep personal bias and views from the interview so as to not prejudice the

participants’ responses even though it is difficult to do so during one on one interviewing and

resulting discussions. Nevertheless, the participatory approach used provided for rich data which

served to increase internal validity (Kumar, 2010, 69).

It has been observed that comparability of data decreases as each response is different in

participatory approached. However, the researcher believes that interviews develop their own

coherence.

Responses were recorded and observations were also written by the researcher. The tapes

were later transcribed and compared with the observations to ensure reliability and validity.

b) Interpretation and Analysis of Results

Research Findings Summary

Most of the participants in the research responded similarly, only their downloading

patterns were found to be a little different. Gender was not found to be an important element,

females and males all downloaded illegal content. The participants used P2P BitTorrent sites

with Kickass and PirateBay torrents the most popular. Furthermore, the researcher found that

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increased social acceptance of illegal downloading via torrents has dampened remorse or ethical

dilemma for the users.

Furthermore, the research found that participants were all aware of legal downloading

platforms. IT was also found that some respondents used illegal downloads and transferred them

to legal alternatives (downloading a song from P2P and transferring it iTunes for example).

Furthermore, it was found that participants lack knowledge about subscription services which the

industry could promote as an alternative.

Furthermore, participants indicated lack of concern for potential prosecution as the

number of cases where users have been caught is very small. However, majority of the

participants accepted that if legal measures were strengthened, they would probably stop illegally

downloading content. The participants also had a very decided negative view about the industry

and believed that the only downside of music industry losing out in revenue was the potential

loss of jobs for common workers.

Overall, even though there were no quantitative findings, the research did provide a

multidimensional explanatory understanding of useful measures of user attitudes towards

downloading music.

c) Recommendations and Justification for Further Consideration

Limitation to the Research

One limitation in this research was that by using students as the sample target meant that

they would lean more towards illegal downloading. Future studies could rely on a mix of

demographics to receive a more accurate view of P2P websites.

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Recommendations

The research provided several insights into illegal downloading of content.

Recommendations were synthesised from the results such as:

Due to a rise in P2P users, further research needs to be conducted into its usage.

Spotify could educate people on the benefits of subscription services.

Different subscription packages could also encourage P2P users to stop downloading

illegal content.

Spotify could create effective student packages to attract them.

Spotify could also include access to radio stations in its student packages by partnering

with other distribution channels to balance open services.

Spotify could also create a Sirius radio type service by partnering with car companies as a

lot of music in listened to on the go.

Task 4: Presentation of Research Findings

Conclusion

All in all, this research has demonstrated that users do not believe that downloading

illegal content is wrong, which is why it is fast becoming a social norm, By utilising a

neutralisation technique based on primary and secondary data, it was found that the music

industry could greatly benefit from conducting further studies into understanding piracy,

especially where young users are concerned.

Hence, digital service providers such as Spotify could work to educate the young

demography about subscription services in order to stop downloading of illegal content or reduce

it, thereby enhancing Spotify’s reputation as a mainstream choice as much as Bit Torrent.

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Nevertheless, it seems that stopping music piracy is almost impossible as long as there are

multiple choices in P2P sites.

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References

Baym, N. K. (2010) Rethinking the Music Industry. Popular Communication, 8(3), 177-180.

Bowie-Sell, (2012), UK second worst in world for illegal music downloads, [Online],

http://www.telegraph.co.uk/culture/music/music-news/9547974/UK-second-worst-in-

world-for-illegal-music-downloads.html

Frontier-Economics (2011). Estimating the global economic and social impacts of counterfeiting

and piracy. Are port commissioned by Business Action To Stop Counterfeiting And

Piracy (BASCAP), International Chamber of Commerce.

IFPI (2010). Digital Music Report 2009: New Business Models for a Changing Environment.

Digital Music Report.London, IFPI (International Federation of the Phonographic

Industry). 1-5.

Koegel Buford, J. F., H. H. Yu, et al. (2009). P2P networking and applications. Amsterdam;

Boston, Elsevier/Morgan Kaufmann. 4-9.

Kreitz, G. Niemela F (2010) , "Spotify -- Large Scale, Low Latency, P2P Music-on-Demand

Streaming," Peer-to-Peer Computing (P2P), 2010 IEEE Tenth International Conference

on , vol., no., pp.1-10.

Kumar R (2010) ‘Research Methodology: A Step-By-Step Guide for Beginners’ SAGE

Publications Ltd. 59-75.

Latif, L. (2010), BPI Claims illegal music downloads are on the rise: just like legal ones.

[Online], http://www.theinquirer.net/inquirer/news/1933251/bpi-claims-illegal-music-

downloads-rise .

Poster, M. (2010) Consumption and Digital Commodities in the Everyday. Cultural Studies,

18(2), 409-423.

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Tschmuck, P. (2010). The Economics of Music File Sharing - A Literature Overview. Vienna

Music Business ResearchDays. Vienna, Austria. 30-42.

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Appendix

Questionnaire:

1. Have you downloaded as a sample method

2. Do you know someone else who illegally downloads

3. Do you evaluate the rightness or wrongness of your action before every song or album

you download illegally? Do you evaluate what good or bad will result from your actions?

4. Do you think the moral values of illegal downloader’s are same to those who legally

download their music?

5. Which statement do you agree with the most?

6. Are you aware of legal downloading platforms? Do you identify the current attempt of

music industry to combat piracy and what are your views on legal downloading methods?

7. How do you feel about the legal threat which illegal download pose on individual in the

form of lawsuit?

8. Would you stop downloading illegally if the chances of being prosecuted are higher?

9. How would you feel if specific Bit Torrent site got shut down?

10. How do you think your actions are affecting the industry?

11. What negative affects if any do you think can piracy have on the industry?

unit 8

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