Private copying explodes in 2001/2002 according to collective’s evidence

Private copying of music has exploded in the past two years according to a survey, obtained by Canadian NEW MEDIA, to be entered into the blank tape levy hearings slated to begin in mid-January (CNM, Sept. 6/02). The survey of 12,197 Canadians, conducted by Gatineau QC’s Réseau Circum between July 2001 and June 2002, could provide powerful ammunition to proponents of a hike in the levy and extension of the tariff to devices such as MP3 players. The report is a follow up to one submitted in the 2000 Copyright Board of Canada hearings into the same tariff (CNM, Nov. 15/00). Among the more incendiary findings is a vastly increased use of peer-to-peer music networks as a method of obtaining private copies and a giant leap in the total number of tracks copied. The study finds that while there was a slight decrease in the number of Canadians aged 12 and over who made at least one private copy of a musical track in 2001-2002 compared to 1999-2000, down to 28% from 31% (also a reduction from 1998), the number of tracks copied overall has mushroomed from 598 million to 1.07 billion, an increase of 88%. Perhaps more importantly, the number of copies made from an original fell from about half to 37% in the same period. Adolescents and young adults were the heaviest users, copying 134 and 130 tracks on average, respectively, per year. The study goes on to state that, translated into album sales, the number of tracks copied would represent 74 million CDs, or 77% of actual CD sales in Canada, though the authors are careful to note the number doesn’t translate directly into actual market sales. In 2001-2002, 14% of respondents to the survey said they bought more music, while 25% said they bought less. Among those who bought less music during the period, 13% cited cost, 8% cited the quality of music, the same number cited the availability of copying technology, 7% cited a lack of free time and 7% cited the Internet. The availability of copying technology as an explanation for reduced purchasing doubled over the period and, in fact, stood at 10% as the survey was conducted through June 2002. The study finds that the number of CD burners in Canada has increased from 6% of households to 12%, and only 10% of tracks were copied from CDs to analog audiocassettes, three times fewer than in 1999-2000, and six times fewer than in 1998. In a statistic already likely guessed at by industry watchers, the Internet has become the largest single source of music copied privately, growing from 2% in 1998 to 19% in 1999-2000 and to 48% in 2001-2002. The study finds that those who burn copies to CDs copy three times the number of tracks as those who copy to tapes. For every one user of blank tapes, there are four users of blank CDs, the research indicates. In an alarming figure for the recording industry, the report indicates that in 2001-2002, about one in five Canadians 12 or over have downloaded music at least once in the previous year. Further, 29% of those with a computer at home keep music on disc, with a median 146 tracks, 83 of which were downloaded from the Internet. The median number of tracks downloaders obtained in the previous month was 13, representing 431 million tracks over the year. Virtually all, 93%, were obtained peer-to-peer. A small fraction of downloads, 3%, came from commercial, for-pay sites, the study finds. One of the key issues in the upcoming blank tape levy hearings will be whether a tariff should apply to a new class of music listening devices, including MP3 players. The Canadian Private Copying Collective, which is responsible for administering the tariff and which commissioned the Réseau Circum report, has asked for a $21 per gigabyte of memory levy on devices such as MP3 players that use non-removable hard drives. The study finds that MP3 player ownership was stable at 1% for the total period of the study, which took place over one year, though the number showed signs of doubling in the survey’s last month. For youth, the ownership number stood at 4%.

Private copying explodes in 2001/2002 according to collective’s evidence

Broadcast | December 20, 2002

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