Hard Evidence: MP3s Do Not Hurt Sales

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There's an interesting new study out vindicating MP3s in regard
to sales. This is the first scientific study of p2p sharing:

http://www.news.harvard.edu/gazette/2004/04.15/09-filesharing.html

Squirrel_Police (Squirrel_Police), Thursday, 29 April 2004 04:26 (twenty-two years ago)

you mean they used test tubes and beakers and stuff?

s1ocki (slutsky), Thursday, 29 April 2004 04:30 (twenty-two years ago)

they used mostly > signs, I think.

hstencil (hstencil), Thursday, 29 April 2004 04:31 (twenty-two years ago)

No.

Just a microscope. They actually don't have enough money to get enough beakers to do this study.

Aja (aja), Thursday, 29 April 2004 04:31 (twenty-two years ago)

C'mon people, economics is a science too. According to economists,
anyway.

Squirrel_Police (Squirrel_Police), Thursday, 29 April 2004 04:42 (twenty-two years ago)

"the dismal science"

hstencil (hstencil), Thursday, 29 April 2004 04:43 (twenty-two years ago)

Funny thing is, whenever you ask an economist to predict what's
going to happen in the market he pontificates for seventeen minutes
to the effect of "Could go up, could go down, who the hell knows,"
and then whatever happens he'll say "See?? Told you so, told you
so! Don't feel stupid, it took years of training to get this damn
good."

Squirrel_Police (Squirrel_Police), Thursday, 29 April 2004 04:53 (twenty-two years ago)

they never reveal their positions (opinions) because doing so would reveal their positions (investments). Economists are good with their own money, but never give them any of yours (Long Term Capital Management, anyone?).

hstencil (hstencil), Thursday, 29 April 2004 04:56 (twenty-two years ago)

near as i can tell, the "qualitative/quantitative" arguments that ripped thru most other social sciences in the middle of the century (hello, critical theory) kinda never happened (or, are happening now?)in econ cos the discipline really really thinks it's a capital h Hard Science. you don't get much closer to "serving the current order" than classical econ. (i'm guessing there's a pretty big gulf between academic economists and wall streeters, too.)

so when, say, the chair of the econ dept at harvard gives an interview and talks candidly about marx, etc, the next issue has outraged letters: "why don't they have physicists teach abt phlogiston! or teach med students abt the 4 humors!"

g--ff (gcannon), Thursday, 29 April 2004 06:39 (twenty-two years ago)

yeah you'd be hard pressed to find a Marxist economist at a Wall Street firm, whereas at a liberal arts college...

hstencil (hstencil), Thursday, 29 April 2004 13:21 (twenty-two years ago)

Usually "Hard Evidence" means "published and peer reviewed." Is that the case yet for this? Last I checked (when news of it first hit), it wasn't.

dlp9001, Thursday, 29 April 2004 14:53 (twenty-two years ago)

Hard evidence means what you want it to mean, Monsieur
Shit-for-brains.

Squirrel_Police (Squirrel_Police), Thursday, 29 April 2004 18:28 (twenty-two years ago)

Possibly in the Squirrel Police world. Out here, where the squirrels run free, I hear that there's hard evidence that you don't really know what you're talking about. Enjoy the rest of your fascinating thread.

dlp9001, Thursday, 29 April 2004 19:11 (twenty-two years ago)

Don't make me do this:

Main Entry: 1ev·i·dence
Pronunciation: 'e-v&-d&n(t)s, -v&-"den(t)s
Function: noun
1 a : an outward sign : INDICATION b : something that furnishes proof : TESTIMONY; specifically : something legally submitted to a tribunal to ascertain the truth of a matter

Squirrel_Police (Squirrel_Police), Thursday, 29 April 2004 19:14 (twenty-two years ago)

I'm confused now. At first "hard evidence" means "what one wants it to mean," and now it apparently has *the exact same meaning* as the word "evidence." I think we need to commission an interesting and scientific (though non-peer reviewed...or is it? Oh yeah, that was the actual question at hand before someone bought a dictionary) study to sort out this amazing phenomenon. Then we'll vindicate someone, as long as it's not those bastards at the RIAA.

dlp9001, Thursday, 29 April 2004 20:31 (twenty-two years ago)

"Levidence?" The evidence of levity?

Ned Raggett (Ned), Thursday, 29 April 2004 20:36 (twenty-two years ago)

whoa, it looks like around 2:30 is the start time for any gossettesque rambling from me, wtf do i know abt econ?? anyway the "interview" & "next issue" bit i mention above is from the Economist, it really happened.

g--ff (gcannon), Thursday, 29 April 2004 20:40 (twenty-two years ago)

This is the most baffling thread I've read in some time.

N. (nickdastoor), Thursday, 29 April 2004 20:44 (twenty-two years ago)

I actually have hard evidence that downloads do in fact hurt CD sales. I've downloaded enough songs that ended up sucking this year already that I've avoided purchasing at least 4 CDs.

webcrack (music=crack), Thursday, 29 April 2004 20:45 (twenty-two years ago)

glad i could help, N.

g--ff (gcannon), Thursday, 29 April 2004 20:50 (twenty-two years ago)

We don't need to argue like this about the meaning of 'hard evidence' when we could just make penis jokes about it.

Sasha (sgh), Friday, 30 April 2004 02:41 (twenty-two years ago)

Don't be silly DLP,

"an outward sign : INDICATION b : something that furnishes proof"

are all entirely subjective.

Squirrel_Police (Squirrel_Police), Friday, 30 April 2004 04:09 (twenty-two years ago)

So IOW, I did not contradict myself. Try again.

Squirrel_Police (Squirrel_Police), Friday, 30 April 2004 04:09 (twenty-two years ago)

Don't really need to, SP.

dlp9001, Friday, 30 April 2004 11:01 (twenty-two years ago)

Yeah, to be honest, I haven't bought a CD in, like, MONTHS. And that's not because I'm not listening to new music. They absolutely do hurt sales.

Naive Teen Idol (Naive Teen Idol), Friday, 30 April 2004 13:51 (twenty-two years ago)

My CD consumption has dropped dramatically because I no longer have the same amount of disposable income; downloading has nothing to do with it (and I can't actually think of a new release that I have heard on mp3 that I liked that I have not bought) (oh, this reminds me that I need to purchase _Attention_ by Gus Gus).

VengaDan Perry (Dan Perry), Friday, 30 April 2004 13:55 (twenty-two years ago)

My CD consumption has dropped dramatically because I no longer have the same amount of disposable income; downloading has nothing to do with it

For the 13443243153165th time, what Dan said.

Ned Raggett (Ned), Friday, 30 April 2004 13:59 (twenty-two years ago)

I mean, if I still had $1000 extra dollars a month screaming "SPEND ME SPEND ME SPEND ME!!!" I'd have so many more CDs I would have to buy a new place specifically to have space to put them.

VengaDan Perry (Dan Perry), Friday, 30 April 2004 14:11 (twenty-two years ago)

certainly a recession hitting at the same time that MP3 technology and broadband access became widely available didn't help the industry.

hstencil (hstencil), Friday, 30 April 2004 14:20 (twenty-two years ago)

I can't actually think of a new release that I have heard on mp3 that I liked that I have not bought

Well, some people are really into owning the product itself — the packaging, etc. I actually prefer it, too.

But I find it hard to believe the same can be said for the majority of the buying public, especially as iPods and so forth get increasingly popular.

Naive Teen Idol (Naive Teen Idol), Friday, 30 April 2004 15:32 (twenty-two years ago)

I'm a digital Robin Hood. I download everything I can, and
buy what I can't (obscure artists on tiny labels). But studies
like the one I linked to are important, I hope there's a lot more
in the works; because that kind of evidence can completely
trump anecdotal evidence.

Squirrel_Police (Squirrel_Police), Friday, 30 April 2004 17:22 (twenty-two years ago)

but, um, this study is entirely anecdotal evidence. they observed that cd sales and downloads tend to rise and fall at the same time. that's anecdotal. they observed this across a huge database of sales and download information. which makes it just a huge amount of anecdotal information.

the hard evidence that's missing is any scientific proof of cause and effect between the downloads and the sales.

it's quite possible, for example, that downloads and cd sales for a given album rise in the same week because the artist or the song is in the news that week. so an extra 10,000 people download the song and an extra 20,000 buy the album. that doesn't provide even a shred of scientific proof that downloads aren't hurting sales. that's merely scientific proof that a given artist was really popular that week.

fact checking cuz (fcc), Friday, 30 April 2004 18:04 (twenty-two years ago)

This thread reminds me that I bought 25 CDs last month and only downloaded one. :(

dean!dean!dean (deangulberry), Friday, 30 April 2004 18:05 (twenty-two years ago)

now THAT's scientific proof -- scientific proof that you need to download more albums!

fact checking cuz (fcc), Friday, 30 April 2004 18:06 (twenty-two years ago)

but, um, this study is entirely anecdotal evidence
Huh? No, a sample size such as the one they used cannot be passed off as anecdotal.
Interpreting the results is a different matter. The breadth of the study greater than anything I can recall. Most studies target "college towns" or something to that effect, and argue that people download more and buy less, ergo Kazaa is evil, without taking into account that a) CD's may be overpriced, b) students don't have as much disposable income as adults, c) competition for that disposable income from things such as computer games and getting plastered. And lots of other factors.
So maybe 10000 extra people download a song and 20000 extra buy the record. And maybe if there were no internet, the 10K who downloaded would have bought the record instead and it would have sold 30K extra. Or maybe if there were no internet, 10K fewer people would have heard the song in the first place and not have been interested in buying the album, and it only would have sold 10K extra.
The industry should start considering the possibility of the latter explanation as well as the former.

Barry Bruner (Barry Bruner), Friday, 30 April 2004 18:29 (twenty-two years ago)

anecdotal may or may not be the right word for what i'm trying to say; if it's wrong, my bad. but either way, what's missing is anything that can allow you to draw any kid of conclusion about whether or not downloads hurt or help cd sales.

both of barry's possible conclusions make sense. and they're opposite conclusions. which is the basic problem here. it's an interesting, worthwhile study that proves nothing.

fact checking cuz (fcc), Friday, 30 April 2004 18:43 (twenty-two years ago)

I'm honestly not trying to pick apart your language, FCC, but the study doesn't "prove nothing", in that few studies can be said to conclusively prove anything.
They did a study, they have data, and they've chosen to interpret it in a particular way. In this case, they've chosen the second of my conclusions.
Their idea was to look for correlations between downloading and sales, and in accordance, they took data on a day-to-day timescale. Most studies of these sorts look at downloading and sales over a period of months or longer, which makes it far more difficult, IMO, to ascertain any sort of cause and effect relation.
I can't think of a way to do a better, purely statistical study on this subject. If others are able to corroborate their data, then we'll have to start accepting their version of the downloading/sales statistical trends as correct, and then start arguing over the interpretation of those trends.
However, the industry would have us all believe that downloading makes people not want to buy music, but their data contradicts that quite strongly. They would then have to argue for my first conclusion above, that downloading is costing them some sales of popular albums, is not the same thing.

Barry Bruner (Barry Bruner), Friday, 30 April 2004 19:01 (twenty-two years ago)

For anyone who might want to actually see the paper (which has not been published yet in any economics journal yet), go to one of the authors' website at http://www.unc.edu/~cigar/ and you can view a pdf.
I may try to read this over the weekend. It's nice to try and pick apart someone else's data once in a while.

Barry Bruner (Barry Bruner), Friday, 30 April 2004 19:10 (twenty-two years ago)

(x-post; i now mean barry's 2nd-to-last post)

the only thing i really disagree with in barry's last post is this...

the industry would have us all believe that downloading makes people not want to buy music, but their data contradicts that quite strongly.

...for the reasons i mentioned earlier. i don't see anything being contradicted.

fact checking cuz (fcc), Friday, 30 April 2004 19:13 (twenty-two years ago)

I meant it more as a matter of scale. To continue with the example we've been discussing, it's clear that neither of the two conclusions above are strictly correct, the truth is somewhere in the middle.
We can likely all agree that the data shows that downloading correlates to popularity, but that popularity may or may not lead to sales.
So, the industry, by and large, refuses to consider any shades of grey on the issue. That is, if sales are down by 20%, then it's because roughly 20% more people are downloading instead of buying CD's.
What is more likely is that sales *would have* been down by more than 20%, but added popularity due to downloading has helped to make up some of that sale loss (which doesn't exclude the possibility that some sales are indeed lost to downloading, just not as much as they want to think).

Barry Bruner (Barry Bruner), Friday, 30 April 2004 20:01 (twenty-two years ago)

to me the SCALE is totally the problem.

small bands are getting sorta screwed when they used to feed off of the "exploratory" purchase model. "who's this? oh, they're on that label or they're so and so's other band so i'm gonna have to buy that and check it out."

now it's, "i'm gonna have to download that."

it pretty much killed several small indie labels. and hey, maybe that's that, but mp3s do hurt those bands. somebody paid a couple thousand bucks to run off 500 or 1000 copies of a cd and was just hoping to make their money back more than pay the bills.

some of those people have gotten screwed. and i'm sure that HURT.

in the future, they'll just offer shit via website or p2p and indie bands may not have much merch. perhaps a small run while on tour or something. i dunno.

nothing justifies entitlement.
m.

msp, Friday, 30 April 2004 20:10 (twenty-two years ago)

I'm a digital Robin Hood. I download everything I can, and
buy what I can't (obscure artists on tiny labels).

This is a hilariously capitalistic adaptation of Robin Hood. Robin Hood gave to the poor--he didn't buy things from them.

buckeroo, Friday, 30 April 2004 20:26 (twenty-two years ago)

to me the SCALE is totally the problem.
This is a different problem, since those indie bands make up such a small component of the total sales industry. The major labels don't care about them, unfortunately. The war on downloading isn't about them, it's about Britney Spears selling 5.2 million instead of 5.8 million.
However, I agree that some small labels are being screwed by p2p and that putting the emphasis more touring and merchandising, instead of CD promotion, may be the future that these labels are being forced into.

Barry Bruner (Barry Bruner), Friday, 30 April 2004 20:34 (twenty-two years ago)

the industry, by and large, refuses to consider any shades of grey on the issue.

you're OTM with that, barry, but you could say the same thing about the downloading community, couldn't you?

i'm pretty much in favor of unlimited downloading, period, on the grounds that the technology is there, it's only going to get better, and consumers have made clear they like it. it's GOOD technology. i think it will probably help the music world in general in the long run, but i think the jury's very much out on what it's doing to the music business right now. and if the pros and cons have any interest in talking, it would probably help if both of them admitted that they just might be a little bit wrong and their enemy might be at least a little bit right.

fact checking cuz (fcc), Friday, 30 April 2004 20:43 (twenty-two years ago)

Very true. But although p2p is undoubtedly hurting some smaller labels, many others claim that it helps them by disseminating their music to a wider audience, quickly. But of course, these labels represent only a tiny fraction of the total music business, so most of the "evidence" they give is anecdotal (i.e. sample size is too small). So yes, the jury is very much out on what p2p is doing to both large and small labels.

But unlike the smaller labels, where there is at least some varying opinion, the majors unamimously stick to their party line that downloading is bad, full stop.

Barry Bruner (Barry Bruner), Saturday, 1 May 2004 02:48 (twenty-two years ago)

small bands are getting sorta screwed when they used to feed off of the "exploratory" purchase model. "who's this? oh, they're on that label or they're so and so's other band so i'm gonna have to buy that and check it out."

now it's, "i'm gonna have to download that."

This may be true; in fact, I generally download a few tracks before making a purchase. However, if I don't like a band's music, I don't feel that they are entitled to my 'exploratory' purchase dollars. Since the advent of P2P, I now purchase far more records or cds that I like and waste less on bands that end up being mediocre or worse.

webcrack (music=crack), Saturday, 1 May 2004 03:26 (twenty-two years ago)

the something for nothing attitude rubs me wrong. i've got friends who download movies and constantly i hear, "oh the industry sucks! if hollywood made good movies then i'd pay for them!"

if the movies have no value, why are you downloading them?

obviously, regardless of the suckiness of the industry, there's evidentally enough value in there to spend your time searching for all the parts, burning the dvd, and watching it.

same with music. i know it happens and happens all the time, but who sneaks into a show? who used to steal cds from stores?

you wouldn't sneak in or steal physical shit if you didn't somehow care about the reward. (aside from cleptomania or something.)

despite this folks download all day and never seem to see the connection. they instantly devalue the product in their minds despite the fact that they're gonna have a good time from the effort of others.

why can't the downloading populace wake up to how their using the musicians they value so highly?

i'm definitely down with unlimited downloads, but in a situation like compulsory licensing... a lot like radio, where $5 a month goes to some organization, that's actually accountable unlike riaa or bmi tend to be, ... and it could be rolled up into our monthly dsl or cable bill or part of a college kid's dorm bill or whatever infrastructure that needs to collect the dough. $60 a year over say 60 million people is more than enough to cover the "damages" to the industry over illegal downloading. that's a goldmine and half in fact... we all pay $5, which i think we can all agree is dirt cheap, and the organization gets in my example above $3.6B (or $300M a month) to spread amongst the artists. with the existing marketing research framework, they could count downloads/files at several points during a month and say "ok, jay z at the top gets around ten million this month, but lightning bolt gets eleven thousand."

that's the best middle of the road solution i've seen so far but everybody seems to have their own ass in interest, not everybody's.

i wish somebody important would start touting this sort of idea because it's a lot kinder to the public than anything the powers that be are gonna push down our throats sooner than later.
m.

msp, Saturday, 1 May 2004 03:56 (twenty-two years ago)

This may be true; in fact, I generally download a few tracks before making a purchase. However, if I don't like a band's music, I don't feel that they are entitled to my 'exploratory' purchase dollars. Since the advent of P2P, I now purchase far more records or cds that I like and waste less on bands that end up being mediocre or worse.

that's definitely a good point. i do this too in different ways through the bands website, college radio, swapping mix tapes (how really different from p2p is that?), listening stations, etc. after i wrote the "exploratory" purchase post i was thinking about how flawed that was. essentially i was arguing that crappy indie labels benefited from our ignorance back in the day. and it's true, they partly did! which, it's stupid to protect that sort of profit isn't it?

(of course, let's not start talking about corporate welfare... )
m.

msp, Saturday, 1 May 2004 04:05 (twenty-two years ago)

I feel where you are going, though, msp; it's like burned cds to me, if I get one I like, I have to purchase the real thing. Not only is it always better to have, but then the artist gets a few pennies in royalties, etc.

A flat monthly fee to download as much as one wanted would be ideal if the selection was sufficiently large and varied; however, I think your point about the music being devalued would still apply as those who downloaded the most would be reducing their cost per song significantly. I don't really see an easy solution besides personal ethics, the Pandora's box is already open.

webcrack (music=crack), Saturday, 1 May 2004 04:21 (twenty-two years ago)

With a flat monthly fee, it doesn't matter who downloads the most. Same with the phone and cable bills -- if you pay $40/mo. for cable, it doesn't matter if you watch 2 or 200 hours of TV during that month. TV shows don't get devalued based on how much time you spend watching TV. But the cable companies are smart enough to offer you free previews before you buy -- it's their most effective way of selling new product (phone and internet providers use similar tactics). Why can't the music industry learn from this?

People who download, but say "if the industry made any good music/films, then I'd buy them!" are clearly asswipes who are spewing lines they read from a two-paragraph news summary about file sharing in some entertainment mag. The value of the downloadable product is clear, the problem is how to make money from it.

Barry Bruner (Barry Bruner), Saturday, 1 May 2004 05:27 (twenty-two years ago)


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