Internet growing fast as source of music copied to CDs and cassettes: study

MP3s are fast becoming the preferred medium for Canadians copying music according to a new survey conducted for the Canadian Private Copying Collective (CPCC) by Réseau Circum Inc. In a study introduced into the record at the recently concluded Copyright Board hearing on blank tape levies, it was found that year-over-year, the Internet now accounts for 19 per cent of all music copied to blank compact discs – several hundred per cent higher than the previous year. While the MP3 format has taken off in popularity, it was also found that private copying is down, compared to a similar survey taken in 1998. According to the study, the number of Canadians 12 and older making at least one private copy fell from 48 per cent to 31 per cent. The study’s authors say it’s possible Canadians have been turned off of analog cassettes because of quality issues, and are increasingly turning to the Internet without copying tracks from their hard drives. The findings will likely prove valuable ammunition for the CPCC as it argues for much higher levies on blank media (CNM, June 28/00). The collective is seeking approval from the Copyright Board to increase fees on blank CDs from the current $0.052 to $0.50. Sources say that figure is unlikely and the board will likely approve a hike somewhere in the middle. The levy was originally implemented to compensate rights-holders in the wake of legalizing private copying. When Canadians have copied to blank CDs, according to the survey, 91 per cent say they derive as much enjoyment from the copy as from the original, 81 per cent listen to the copy more or as often as the original, 73 per cent say the audio quality is as good or better than the original, and 73 per cent don’t consider the lack of original packaging a disadvantage. Those copies are also growing at an accelerating pace. In 1998, only six per cent of copies were made to CDs; in 1999-2000, 41 per cent of copies were made to CDs. On average, every Canadian initiated the copying of pre-recorded music twice, for a total of 569 million tracks over the course of the year. The study also suggests MP3 is more popular than other forms of digital music. At least 103 million tracks (76 per cent) obtained digitally were in MP3 format. Of those who made their last copy of a track onto a blank CD, they copied an average of 172 tracks – far higher than the 63 tracks copied by those recording to blank cassettes. Overall, the sale of blank cassettes and CDs was equal in 1999-2000, but among young adults and teenagers, the sale of blank CDs was well higher than tapes. Of particular interest to industry observers were new figures that show half of all tracks copied to either blank tape or CD were done in the process of making compilations. Advocates of Napster and other file sharing programs have argued that traditional albums represent a poor value for music fans who pay for tracks they often don’t want. Study figures also show that half of all tracks copied to either CD or cassette were of music released in the last year, suggesting that hit music sold piecemeal for a small fee might constitute a workable business model. Recent figures have shown that, despite the popularity of file-sharing programs, sales of pre-recorded CDs are rising. The figures are borne out in the Réseau study, which indicates that half of all copied tracks were made by people who owned the album. Still, two-thirds of Canadians 12 or older purchased four CDs of pre-recorded music in 1999-2000, accounting for an average of 13 tracks. On average, the same group copied 16 tracks. The study shows that 83 per cent of those obtaining music in MP3 format didn’t pay for it. For the time being, private copying of MP3s to blank CDs is a limited phenomenon as the technology for doing so isn’t wide-spread. Only six per cent of respondents had access to a CD burner at home, and only one per cent of the sample had a portable MP3 player.

Internet growing fast as source of music copied to CDs and cassettes: study

Broadcast | November 15, 2000

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