Challenges for Copyright

Page 1

Challenges for copyright: Music and cinema in the digital era May 2007


TRENDS

ÍNDICE 1

INTRODUCTION

2

METHODOLOGY

3

HIGHLIGHTS

4

MUSIC IN THE DIGITAL ERA

5

CINEMA AND SERIES IN INTERNET

6

TO PAY FOR CULTURE YES, BUT HOW MUCH?

7

INTERNET USERS AND THE COPYRIGHT

8

NOTES AND REFERENCES

1 de 31


TRENDS

1 INTRODUCTION According to the last issue of “Navegantes en la Red” (October - December 2006)1 close to 60% of the Internet users interviewed had downloaded music and more than 50% had downloaded films in the last 30 days. In both cases, the highest percentage corresponded to users who declared that they had accessed these contents for free. Beyond the legal, commercial and ethical considerations, the Net has consolidated itself as an important channel for the access to, and consumption of, music, film and T.V. productions.This is a reality not only for the younger user, as would be expected, but is also distributed in a wide range of ages between 20 and 44 years old (around 40% of the Internet users that download free content are concentrated between the ages of 25 and 34). The data on free downloads is not the most surprising of the statistics facilitated by the AIMC. What it really called to our attention is that only between 3% and 4% of the interviewees declared “to have bought” music or films via the Internet in the previous month. The use of the Internet as a means of consumption of “Culture” is a practice becoming more and more established amongst Internet users, but it contrasts with the campaigns and the strategies of record companies and audiovisual distributors against the illegal access to cultural content and with the policies of the State of condemning and persecuting piracy. The Media Industry and the State agree on a common front mounted to oppose the new forms of consumption that constitute a challenge to certain models of commercialization that do not seem to work in the Information Society.

Three positions At the present juncture it is possible to find three clear positions facing the free access to music and cinema that the Internet offers 2. One of them is the condemnation and criminalization of the practice, represented by Pedro Farré, Head of the Office of Intellectual Property of the SGAE, that defines the Internet in the following way: “Thus, before the extraordinary growth that this form of delinquency [the piracy] has acquired in our country in the last years, supported by sophisticated technologies in constant development and mutation, and considering the tolerance with which the Spanish society seems to accept it… The extraordinary advances experienced in the last years in the new information and communications technologies decisively affect those who in one form or another are dedicated to intellectual creation. The Internet is the paradigm of this development, a mean and factor of communication that provides to everyone not only great advances and challenges, but also poses serious dangers for some of our rights. One of the greatest threats is represented by the so called “digital piracy”, a worrying phenomenon that is on the rise and that seriously damages all of the cultural sector. According to a recent report by CIMEC, during the last twelve months in Spain there have been between 180 and 200 million songs illegally downloaded via the Internet, in addition to between 15 3 and 20 million films” .

2 de 31


TRENDS

A second position is the one that claims that Internet and P2P applications imply a challenge for the commercial creativity of each and every one of the cultural industries. This is what, amongst other things, can be read in the definition of the Internet that Lawrence Lessig of Creative Commons gives4:

“The interchange of files between peers (p2p) is one of the most efficient technologies amongst all of the efficient technologies that the Internet permits. Using distributed intelligence the p2p systems facilitate the easy diffusion of contents in a way that nobody from the last generation would have imagined [...] The Net does not discriminate between the interchange of contents with copyright or without it. Therefore an immense amount of copyrighted contents has been shared. That interchange has incited the war as well, since the owners of copyright fear that the interchange `would rob the author of his profit [...] But with the birth of the Internet, this natural limit of the reach of the law has disappeared. The law controls not only the creativity of commercial creators, but in fact the creativity of everybody. Although that extension of the law would not matter so much if the definition of “to copy” wasn’t so wide and opaque, but in this case the extension matters a lot. The weight of this law now surpasses any original benefit especially when it affects non-commercial creativity, and increasingly so when it also affects commercial creativity. So that [...] the role of the law is less and less to support creativity, and more and more to protect certain industries against the competition. Just at the time in which digital technology could open up an extraordinary range of commercial and noncommercial creativity, the laws impose on this creativity the load of irrationally complex and vague rules and the threat of obscenely severe penalties.” (p.15-16)

Introduction

Finally, it is possible to find a third position, whom amongst its standard-bearers are Bloggers such as Enrique Dans and Jose Cervera, who position themselves against the deafness of the commercial strategies of the culture industries in relation to the demands of the users: “Third of October, Worldwide Day against DRM. A day to position ourselves before the contents industry, and to tell it that we are not going to buy it’s stupid products, full of restrictions, plagued by negative innovation, and measures that attack our rights and our privacy. The Bits are free, and will continue being so, no matter how many absurd barriers they try to impose on them. Songs that erase themselves in three days, contents that cannot be transferred to other media types, reproducers that do not work when they are connected to certain monitors, cables that keep their eye on you, products that “call home”, and point the finger at you if you try modify them, CDs that install spy-ware programs and create vulnerabilities in the computer, all initiatives that, although always failing when challenged by individual or collective intelligence, imply attacks against our most elementary liberties, something that we should never accept. A long as the industry insists on selling us defective products, our duty as clients will be to reject them and to obtain them by other means. Let’s show the industry that DRM and the culture of restriction are not the way to get anywhere”5.

3 de 31


TRENDS

Introduction

When considering the previous positions, it seemed to us that we were lacking a deeper understanding of the attitudes of the fourth agent in this scenario: the Internet user. In dnx - in collaboration with SSI - we wanted to investigate what is the opinion of Internet users and what are their habits in relation to the access to and consumption of music, films and television series.

• What are the ways in which they access the music, the films and the TV series? • Do those who download for free also buy? • What are the reasons that they offer up for making the choice to buy, against downloading cultural contents for free? • What do they know about DRM? • Within what range of prices would they be willing to pay for content instead of downloading it for free? • What is the climate of opinion towards the rights of artists, the future of cinemas, or the attitude of the record companies?

These are some of the questions that we have put to a sample of consumers with access to the Internet who had experience at downloading free or paid content. These are some of the questions that this dnxTrends tries to answer.

4 de 31


TRENDS

2 Methodology Research Techniques File The data, which is analyzed in this report, has been obtained through an online survey, which has been validated by a panel of experts. The control of unique answers, the programming and the system of validation of the questionnaire were carried out with the dnxSuite application.

Universe:

TRENDS dnxTrends is the analysis of trends that dnx put into action in 2007 to collect and circulate data about the market’s main developments in the field of the information technologies and their impact on society. The goal of these analyses is to shed some light on complex and changing phenomena, facilitating understanding and decision making related to them.

Spanish consumers with access to Internet. Aged between 14-45 years People with experience in free or paid downloads in the last 6 months. Sample: 1160 individuals (valid questionnaires). 1183 questionnaires were collected initially and a screening of the data base was made to eliminate incoherencies. The data has been weighted by sex and age according to EGM February-March 2007. The margin of error of the study is of Âą 2.82%. Data Collection Technique: Online Survey applied to the SSI Panel

dnx is a company that specializes in the investigation and consultancy of use experience and interaction design. Founded in May, 2001, it is one of the most representative companies in this area of business in Spain, and works with clients like Movistar, Bankinter, BBVA and Real Madrid‌ Our objective is to help our clients increase their potential and to adapt their applications to their users real needs, to adjust them to human behavior and to improve the users experiences. www.dnxgroup.com

Field Work: Accomp. between 24 and the 27 of April, 2007. Cross tabs variables: Age, sex, level of studies, level of English knowledge, and level of computer knowledge Analysis: Descriptive statistic and multivariate analysis in attitudinal variables.

Survey Sampling International (SSI), founded on 1977, the leading global supplier of samples for market studies by telephone and by Internet, provides sampling solutions in 40 countries. With offices in Australia, China, France, Japan, the Netherlands, Spain, United Kingdom, the Eastern and Western U.S.A., and with an international group that represents more than 15 different countries and 25 different languages, SSI has panels in the most important markets of the world. www.surveysampling.com

5 de 31


TRENDS

3 Highlights In the consumption of music, films and TV series the free downloading and the purchase are not mutually exclusive practices

Unlike what happens with music CD’s, the perception of quality of original DVD’s is one of the factors that stimulate their purchase

47% of the people polled who have downloaded music in the last 6 the months have also bought CDs. Also amongst those who download, 17% have paid for songs downloaded from the Internet.

Whereas 60% of Internet users consider that the quality of purchased and downloaded music are similar, some 74% think that the quality of films and series downloaded for free is worse than that obtained when they buy original DVDs.

Only 26% of Internet users practice free downloading as their only way of accessing audiovisual content. 50% include renting films amongst their habits of consumption and 60% admits having acquired DVDs in stores or through the Internet.

Young people under of 19 years of age are the ones who most download free music The access to musical contents without paying appears in an inverse relation to the age (table 1) Although the “freeness” is the main justification for this form of downloading content via the Internet, Tabla 1 Relation between age range and the % of free access to musical contents.

Age Range

% Free access

14 - 19

61,9 %

25 - 34

48,5 %

35 - 44

38,5 %

45 - 54

33,4 %

there is emerging between the young people a new digital culture that is characterized by the importance of sharing with friends and taking advantage of the versatility of reproduction of the new technologies.

Less money is spent in the purchase of audiovisual products 68% of the people interviewed consider that since they have free access to content they buy less music, and 58% express the same opinion in respect to DVDs.

Free downloads help people to discover new artists and creators Internet users value the advantages that the Net and file sharing applications (P2P) offer to discover and “try out” for free new music and artists. In fact, the Internet users mainly buy CDs when they know the song or the artist (“When I know I’m going to like it”) or when they have to give someone a present.

Anti-copy systems such as DRM are not widely known, but the concept is an element that inhibits purchasing because it goes against one of the main demands of the users: versatility of reproduction More than the two thirds of the interviewees do not know about DRM systems. The minority that do know about it do not seem to be willing to pay more for DRM free music.

The elements that physically make up a CD (jewel case, booklet, extras, etc.) have an important symbolic dimension that can motivate its’ purchase as a gift or as a collectible item The main motive given by interviewees asked the reason for buying a CD was “for giving as a gift”, although the presence of additional contents or extras is relatively important, above all between women and people over 35 years old.

Industry and consumers have a opposing perception in relation to the significance of free downloads Measures and messages against piracy treat all Internet users as being equally guilty, independ-

6 de 31


TRENDS

Highlights

ently of whether the freely download content is to be used to generate economic benefits or not. This position contrasts radically with that of consumers with Internet access who consider that free downloads are not illegal, and for whom buying pirated material from street vendors is a small percentage of their purchasing practices. In addition, they offer the rigid position of the intellectual property agents (Industry and State) as a justification of the downloading practices.

The prices that users would be willing to pay to modify some of their downloading habits are much less than those offered at present. There has been made evident a real gap between the actual model of the commercialization of cultural goods – and the agents than sustain it – and the demand – users with a capacity to skirt the limitations of this model and to make up for what they consider it’s deficiencies. (Table 2)

certs and festivals. With regard to the audio-visual sector, people polled stated that since they have started downloading they have seen more films, and in addition they do not consider that the film theaters are going to disappear.

The data indicates that there exists a clear gap between the present systems of commercialization of audiovisual content, and the expectations and possibilities that the users see in the use of the new technologies The study has allowed us to clarify the critical posture of Internet users towards the record companies and author’s rights societies, as well as the rejection of the present forms of commercialization represented by the pricing policies, and the constrictions of consumption that the physical media storage and anti-copy systems bring with them.

Internet users consider that attendance figures for concerts, and the cinema, will not be affected by the new ways of accessing audio-visual content Although Internet users admit that by downloading they spend less money on buying music, they also mention that they are now attending more live con-

Table 2 Comparative range of optimal prices vs. the presently offered prices

Item

Range of optimal prices (€)

Price asked (€)

One song

0,30 - 0,45

0,99 (iTunes), 1,20 (sin DRM)

One album

2,00 - 2,50

12 - 18 (iTunes)

One film

2,25 - 2,75

3 - 7 Ofertas, 14 - 17 Estrenos (PixBox)

TV Series, one chapter

0,90 - 1,00

1,19 - 2,99 (PixBox)

TV Series, whole season

3,50 - 5,00

> 20 (PixBox)

7 de 31


TRENDS

4 Music in the digital era The consumption of music is at the center of the present discussions about the so-called “piracy” behavior. The agents and traditional channels of distribution are battling hard against the competition that involves file sharing programs (P2P) and their progressive popularization.

• 89% who have downloaded “something” via the Internet, have downloaded music for free have downloaded music fo free using programs such as E-mule, BitTorrent, etc. • 47% admit to have copied music from an MP3 player, a friend’s iPod, or from a CD ripped to MP3.

The dimension in the media of this battle is sometimes expressed in the generalized criminalization of downloading practices. In the fight against “piracy” everybody is equal and equally guilty: those who obtain profits and those who search, access and listen (consume). In this report we are concerned with the Internet users of the second group.

• The information, which proves to be the most interesting from this graph is that the pattern of consumption of music, also includes the purchase (of data files or physical discs). In fact, in the last 6 months, 49% of people polled admit to having bought CDs, and 17% have paid for songs from the Internet.

Forms of access to music

• Additionally, it is necessary to point out that the number of purchases of pirated material from street vendors carries little weight amongst the various ways to access music: less than 6% admits to having acquired music this way.

The data of this study allow us to show that, effectively, the free access to music (Fig.1) is a practice in place equally between male and female Internet users.

fig 1. Forms of access to music in the last 6 months (total and gender) 100 91,6

90

89,1 87,4

80 70 60 48,6

50

47,2 46,3

40

48,7 49,3 49,7

30 16,2

20

16,8

10

7,6 5,7

15,4 4,4

0 Purchase from street vendor

base 1160

Purchase on Internet

Copy

Purchase of physical disc

Free Downloas from Internet

—• Total —• Man —• Woman

8 de 31


TRENDS

Music in the digital era

Even though no differences appear in the pattern of access to music between men and women, particular forms of consumption related to age do exist (Fig.2).

• In the case of purchasing music via the Internet, we emphasize the fact that the instances of this practice are significantly higher amongst those over 35 years old: nearly 25% of those between 45 to 54 years old have paid for CDs or “bits” on sites as Amazon or iTunes , and in the case of users between the 35 and 44 years old the percentage is 18%. In spite of this data, the fact is that the purchase of music online appears not to be a widely spread form of consumption between Internet users in relation to other practices.

• In the case of the youngest people (under 24 years), the main form of access to music is free downloading, followed by copying from a CD or an MP3 reproducer (more than 60% admit to this practice), and in third place is the purchasing of music in stores (34.7% of the people under 19 years and 41.6% of those between 20 and 24 years old). The purchase of merchandise from street vendors appears in a marginal way, between those who are 19 years old or less (1.1%).

• Although a greater percentage of interviewed adults (>35 years) admit to purchasing from street vendors, on the whole this practice is below 10% in all age groups.

• In the interviewees over 25 years old, the access pattern is different. Although the majority admits to downloading free music via the Internet, the percentage for copying appears below that of purchasing of music from stores, those saying they bought music were: 61.1% of interviewees over 45 years, 58% of those between 35 to 44 years old, and 47.6% of those between 25 to 34 years old.

Taking into consideration how the forms of access to music are distributed, we could ask ourselves if concurrent patterns exist, that is to say, if paying and free access are mutually exclusive, or if on the contrary, when the finger of criminalization is pointed at someone who downloads it is really pointing at a person who also buys.

fig 2. Ways of access to music in the last 6 moths (age)

100

96,5 94,2

90

88,1 86,7

80

82,5

70 62,1

61,1

60

58,0

61,1 50

44,9

47,6 41,6

39,8

40

36,3

30

34,7

24,7 18,0 16,6

20 7,8 6,1 6,7 5,6 1,1

10 0

CPurchase from street vendor

base 1160

11,7 9,3 Purchase on Internet

Copy

Purchase of physical disc

Free download from Internet

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

9 de 31


TRENDS

Music in the digital era

To download or to pay: is not always the question For 47.7% of the Internet users interviewed (fig.3) the purchase and the free access to music are complementary forms of consumption. That is to say, almost half of the users who take advantage of the file sharing potential of the P2P applications also go to the store to buy a CD, they make use of

fig 3. Concurrent patterns (total) Purchase Compraand y free access acceso gratuito 47,7% 47,7

Onlycompra purchase Sólo 5,4 5,4 %

Sólo acceso Only free gratuito 46,8access

5,4 %

base 1160

For 47.7% of the Internet users interviewed the purchase and the free access to music are complementary forms of consumption newspapers promotions, or use Amazon or iTunes as a means of purchasing6. There exists another numerous group of Internet users (46.8%) who admit that downloading or copying for free are their only ways of access to music; however, as we will see further on, part of the justifications that these users give has to do with the idea that current prices of CDs or songs are very high. This coincides with the differences we find between

• There is a significantly larger percentage of Internet users between 35 and 44 years old that only obtain music by buying it (7.4%). It is also important to point out that the second highest percentage of online purchases is in this age group. The highest percentage group is the over 45 years olds. • There exists an inverse relation between age and the practices of “purchase and free access”: 62% of the youngest Internet users (under 19 years old) point out that they only obtain the music they like for free. This percentage descends progressively to 33% in the over 45 year olds. • The youngest users, major music consumers, resort to free downloads, or to copying, to satisfy their desires. As we shall see in the following section price is not the only reason on which these practices are based.

fig 4. Concurrent patterns (edad)

Only purchase

base 1159

Only Free access

Purchase and free access

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

10 de 31


TRENDS

Attitudes towards purchasing and downloading music In this study we have wanted to investigate why the Internet users download music, and what is even more interesting, why they buy it, if, thanks to the new technologies they are able to access it for free. To do this, a set of attitudinal variables was created that would account for a wide number of reasons with which Internet users could identify themselves, regardless of whether they had the experience of music purchasing, or whether they had downloaded or copied it7.

Music in the digital era

• The highest average scores revolve around the factor associated with the “digital culture 2.0” that the new technologies offer: the users want to be able to listen to their music on any reproduction device, and to share it with their friends. They consider that it is easy to download music (only a click) and value the possibility that the Internet offers to learn about and to sample new music and artists for free. It’s all about an emergent digital culture that is able to take the greatest advantage of the possibilities of the Net.

It’s all about an emergent digital culture that is able to take the greatest advantage of the possibilities of the Net.

The results show that there are at least 6 groups of reasons, which the users feel more or less identified with (Fig.5).

The second group of attitudes (with averages above 4 over 6) has to do with the free access to music that the Internet allows. When emphasizing the free nature of the downloads not only a clearly opportunistic sensibility is clear (“I copy or download music because it’s free”, or “I download albums or complete discographies of artists”), but also a reaction against the present form of commercialization (price) and musical distribution (limitations of the physical item): “I wouldn’t download music for free if the price in the stores was acceptable” and “I pay to download individual songs because I’m not interested in the whole CD”.

fig 5. Attitudes towards the purchase and downloading of music (total)

base 1160

—• Total

11 de 31


TRENDS

• It is necessary to point out that the opportunistic attitude - also carries with it the acknowledgement that “now I spend less money on music because I have free access to it via the Internet”.

• Closely related to the previous attitudes, the third group of reasons is linked to the criticism directed towards the representatives of author’s rights and intellectual property. This criticism also works as an auto-legitimization of the practice of free access to music. Internet users consider, mainly, that “the price of songs on downloading sites is too high”, that “to download music for free is not illegal” and that “the artists have other means of income”.

Internet users consider that “the price of songs in downloading sites is too high”, that “to download music for free is not illegal” and that “the artists have other means of income”.

• There appear later two groups of attitudes that are related to the impact of digitalization in music storage. We have called these groups Pro-CD’s and Pro-Bits, respectively. • The main reason for the purchase of CD’s is as a gift (“I buy CDs to give as gifts”). As a secondary reason CD’s are bought when the artist or the song is previously known and the consumer makes a purchase without risk (“I know that I like it”).

Music in the digital era

• Other reasons are added extra contents, or items on sale, although they appear with a low average. FALTA UN PARRAFO

• The aspect that seems to have the least importance in the purchase of music CD’s is quality: people polled consider that there are no differences between the quality of music that is “bought” and music that is “downloaded”.

• The main reason that the users admit to preferring downloaded music to CD’s is that “I don’t want to pay for a CD if I only like some songs”. It’s a reason related to the criticism of the record industries that we pointed out before.

• Although, to a lesser extent, there is also present in the “pro-bits” attitude a disregard of the symbolic value of the physical disc: it says, “I can do without the original item (CD, record, box, etc)”.

….people polled consider that there are no differences between the quality of music that is “bought” and music that is “downloaded”.

• The arguments in favor of music “in bits” do not seem to be related to a rejection of the physical media storage as an object that occupies space.

12 de 31


TRENDS

• Finally, in the analysis a group emerges with attitudes that have less internal coherence, but that have a clear weight to the recognition of the stimulus that the downloading gives to going to see live music (“Since I download music I go to more concerts/festivals”). • It can be pointed out that the items related to the commercial logic defined as long tail8 have not reached high averages of agreement: “I buy music from the internet because it is easier to check the catalogue” or “I buy CD’s on the Internet I can’t find in Spain”.

Differences and coincidences by groups of age and sex

Music in the digital era

• Women show significantly higher scores in those items that allude to the social dimension of music consumption.

There are no great differences according to the gender between the attitudes towards the purchasing and the free downloading of music. • They value, more than men, the factor related to “Digital Culture 2.0” mainly when it is related to “sharing music with friends” and, in addition, they seem to be more willing to buy CDs “to give as gifts”.

When analyzing how these attitudes are expressed starting from the main variables of segmentation of the study, we want to find out if the men and women (fig. 6) or the young people and the adults (fig. 7) have different views of their music accessing practices. Fig.6 attitudes towards the purchasing and the downloading of music (gender)

base 1160

—• Man —• Woman

13 de 31


TRENDS

• The youngest people (under 24 years old) appear to be the most opportunistic group, the one that admits - over the average – that it takes advantage of the “Freeness” that P2P applications offer, and in addition as the group that disregards the importance of buying physical CD’s/DVD’s.

Without differentiating by age, the interviewees consider that they would download less if the price of music were reasonable.

• It’s about an audience that values the diverse possibilities of reproduction that the technology offers, and the group enjoyment that this versatility offers. • Consistently with the above we notice that the youngest people are the group that complains the most about prices of CDs and the songs in pay sites.

Music in the digital era

• In the adult groups (over of 35 years old) there appears a greater appreciation of the purchasing of CDs, but not implying a rejection of music in “bits”, but rather as a form of music acquisition by diverse reasons: “I know what I like”, for “giving it as a gift”, for the added content or because of the CD being on sale. • It is interesting to point out that in this group, the averages of items relating to a lesser familiarity with new technologies are also higher: the difficulty of the downloading procedure (“Going to the store is faster than downloading music”) or the perception of a lesser quality in the “free” music (“when I download free music it does not have the same quality as the one I pay for”). • Youngsters, as much as adults, agree in their criticism of the representatives of intellectual property, and in their way of auto legitimizing their free downloads. • Without any differentiation by age, the interviewees consider that they would download less if the price of music were reasonable.

fig . 7 Attitudes towards the purchasing and the downloading of music (age)

base 1160

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

14 de 31


TRENDS

5 Cinema and series in the Internet Internet users access practices Owing to the generalized image of piracy i.e. that it goes against the audio-visual industries, that is frequently circulated in the mass media, we wanted within this study to look at the access practices to films and TV series of Internet users with downloading experience, and to understand the reasons and attitudes that they adduce as justification of them. According to information collected by the SGAE9:

“Blockbuster has been the first victim of a predicted death. The chain of video clubs is closing the 86 centers that it has in Spain due to the continued reduction in the renting of films, a situation that the company describes as ‘unique’. The people in charge of the multinational in Spain assure that the piracy of films, especially from the Internet, was the “coup de grace”. “It’s just like what happened to the Madrid Rock music store. Without doubt, its closure is owed to piracy and whoever says the contrary is not conscious of the situation’, assures Manuel de Benito, director of the Office of Defense of Intellectual Property of SGAE. `We have managed to restrain the sale of copies “off the street”, the street vendors, but digital piracy is reaching worrisome levels’, he adds (Cinco Dias, 17/03/2006).”

Diverse channels, diverse forms of access Only 26% of interviewed Internet users (fig. 8) acknowledges downloading via P2P applications or copying as their only form of access to films and the TV series (not shown on commercial TV channels) This implies that a great majority of users of the Internet have concurrent standards of purchasing, downloading and renting.

These numbers allow us to ask ourselves to what extent the decline of certain video-clubs has to do more with supply problems, services offered, and the natural evolution of the market, than with illegal content access practices.

For example, 50% of people interviewed included the renting of films or series in their habits of audiovisual consumption, and what is more interesting, 60% of them have bought this content in DVD or through the Internet10. These numbers allow us to ask ourselves to what extent the decline of certain video-clubs has to do more with supply problems, services offered, and the natural evolution of the market, than with illegal content access practices.

fig . 8 Standards of concurrent access to films and TV series (total) Compra,

Purchase, free descarga y accessalquiler and renting 29% 29%

Only Sólopurchase Compra 55% %

Sólo Alquiler Only 2% renting

Descarga y

Free access and Alquiler renting 12% 12%

Only access Sólo free Descarga 26 26%%

Purchase and Compra y Alquiler renting 7% 7%

Compra y

2%

Purchase Descargaand free19% access 19%

base 1160

15 de 31


TRENDS

Cinema and series in the Internet

• These young people are minor buyers of DVDs in comparison with the adults, and their percentage goes down to 15% when talking about Internet purchases in comparison to the 36.7% of the over 45 years olds.

As in the case of music, the weight of “off the street” purchasing in the set of forms of access to films again appears to be a smaller option, around 9% of the totality of the sample (Fig. 9). • There do not exist differences by sex in the forms of access to the audio-visual content. Although the percentage of women who rent films or TV series is higher in relation to men (53.7% versus 47.3%), this distance is not statistically significant. There aren’t any differences either between the 53.8% of men who buy DVDs and the 50.6% of women who also buy.

The people interviewed who acknowledge to have rented films online represent only a 2.5% of the total of the sample.

• From the point of view of digital consumption, the interviewees who are 25 to 34 years old appear as a transition group. With regards to freely downloading and the copying of DVDs, they are nearer the practices of the over 35 year olds, but when dealing with general purchasing they appear nearer to the under 24 years old groups.

Age, according to what is shown in fig. 10, does mark differences in the ways of access:

• Young people under 19 years old are the group with the greater significant weight in the practice of free downloading, followed by the group of 20 to 24 years old (87.3% and 84.1% respectively). However, in both cases they are the ones who admit buying the smallest amount “off the street” (around 6%).

fig . 9 Forms of access to films and TV series (total and gender) 100

90 79,2

80

78,9 78,7

70

60 53,7 49,9

50

47,3

53,8 52,5 50,6

40

30

23,0 22,0

25,8 25,4 25,1

20

20,6 9,1

10

8,9 8,7

0 Purchase of DVD from street vendors

base 1160

DVD copy

Purchase via the Internet

Renting

Physical Purchase

Free download from the Internet

—• Total —• Man —• Woman

16 de 31


TRENDS

Cinema and series in the Internet

• The groups of over 35 years old are those who appear, as buyers of audiovisual contents: in the purchasing of DVDs the percentage of buyers are placed around 60%. Some 36% of online buyers stand out in the segment of the over 45 years old, a percentage significantly higher than those in the rest of the age groups.

• The people interviewed who said they have rented films online represent only 2.5% of the total of the sample. We asked those who had this experience to state their level of satisfaction: the average found is 3.96 over 6. We could say that it is good, but when analyzing the data in detail we found a deviation of 1.3, which indicates that there is no overall consensus in the valuation of the services of online video-clubs.

Young people under 19 years old are the group with a greater significant weight in the practice of free downloading.

• When analyzing the distribution of the diverse channels of payment for audiovisual contents, the results show that the percentage of over 45 years old is significantly superior in purchasing through newspaper promotions, downloading in payment sites (such as iTunes) and in online purchase sites (such as Amazon or E-bay) fig . 10 Ways of access to films and TV series (age) 100

90

87,3 84,1

80

77,1 76,5 73,9

70 53,9 51,4

60

50,2

61,0 58,4 50,6

50 48,4 46,5

• 40

46,5 43,1

36,7 27,9 27,0

30

21,5

20

18,4 17,9

11,9

10

9,5 8,0

27,7 23,5 24,1 15,1

6,0 6,4

0 Purchase of DVD from street vendors

base 1160

DVD copy

Purchase via the Internet

Renting

Physical Purchase

Free download from the Internet

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

17 de 31


TRENDS

Attitudes towards purchasing and downloading movies and TV series. In the same way that we have explored the reasons of the Internet users given to explain their purchase or free access of music, in this study we have wanted to understand what are their attitudes towards the payment or non-payment for audiovisual content. There are at least 5 groups of attitudes towards the purchasing or the downloading of films or series of TV that we will analyze next11: • The results (fig.11) show that in the access to films and TV series what is valued the most is the quality of the reproduction of the contents. The Internet users point out that “they do not buy from the street vendors” (4.6 over 6) and that “when you download free films it’s possible that they don’t have the same quality as a DVD” (4.5 over 6). • The second group of attitudes towards access to audiovisual content corresponds to a series of auto-justifications, in which the Internet users legitimize their practice accessing films and TV series for free. Amongst the main reasons that they state are, ranking in

Cinema and series in the Internet

first place, downloading is easy thanks to the P2P applications (“as easy as clicking”); in second place, the possibilities that these technologies offer to find out about productions not offered by the traditional channels of distribution and, thirdly, the fact that they do not consider the free downloading of content to be illegal.

… the high quality of the reproduction in cinema or television is a dimension of the consumption that interests equally men and women, as well as viewers of any age.

• Although differences have been found in some of these attitudes according to age group, it’s interesting to point out that in the perception of non-illegality of the practice of free downloading of audiovisual content there is no difference between sex nor age.

fig . 11 Attitudes towards the purchasing and the downloading of films and TV series (Totall)

base 1160

—• Total

18 de 31


TRENDS

• In the legitimization of downloading there appears as a fourth reason the simple fact of not having to pay for it, followed by the affirmation that “Since I began downloading I watch more films”. • One interesting aspect is that the item that registers the lower average within this factor is “I go to the cinema less often since I’m able to download films via the Internet” (3.02 over 6). As it will be seen in the next chapter this data is consistent with the interviewees perception that the cinemas are not going to disappear. • The attitudes to which the third and fourth factors refer are relative to the nature of the medium: DVD’s and bits, respectively. In a manner consistent with the results on music, the physical character of the media storage as objects that occupy space does not appear as a justification for the downloading practices: the item “I do not buy DVDs because they take up too much space” is the one that has register the lowest average (2.27 over 6).

Cinema and series in the Internet

• Finally, there is a set of attitudes that we have called longtailer, because they are related to the deficiencies perceived in the traditional systems of audio-visual distribution and correlatively - to the advantages that the new technologies provide for a new “commercial creativity” (we use here the expression of Lawrence Lessig).

... the item that registers the lower average within this factor is “I go to the cinema less often since I can download films via the Internet”

• Between the items that meet in this factor two criticisms to the present logic of commercialization of films and series stand out: “I download films or TV series that can’t be found in the stores” (4.22 over 6) and “I download films or TV series that have not been released in Spain” (3.46 over 6).

• The purchase of DVDs seems to be mainly due to three reasons: being able to watch it repeatedly (“I pay for films that I like very much and that I will watch many times”); as a gift (“I buy DVDs to give as gifts”) and the discounts in the sales. Within the group of attitudes that we have called Pro-DVD what stands out, is the strong coincidence that the totality of the sample rejects identifying themselves with the following phrase “I buy DVDs because I believe that they have a reasonable price”. • With respect to the Pro-bits arguments, it can be pointed out that the item that stands out the most (3.64 on 6), is the one related with the little value that a part of the sample grants to the original support: “I can do without the original physical media storage (DVD, scripts, covers, etc)”.

19 de 31


TRENDS

Differences between gender and age groups The analysis of the data allows us to point out that when it concerns the audiovisual content there seems to be more coincidences than divergences between the different groups of interviewed people. In fig 12, that gathers the averages by gender, it is possible to observe that there does not exist significant differences in most of the items.

• The exception is in “I only buy collector’s editions”, which averages is significantly higher in men than in women: 2.5 versus 2.1 over 6, respectively. However, both averages are quite low.

Cinema and series in the Internet

• As justification of the use of P2P applications, and as a way to access films and TV series, young people under 19 years old are the ones that have significantly superior averages in the items relative to free access, and to the decrease of their purchases, followed by those between 20 to 24 years old. In addition they are the ones who consider that the use of these applications is easier.(“just a click”).

... when it concerns the audiovisual contents there seems to be more coincidences than divergences between the different groups of people interviewed.

As is shown in fig.13 (following page), between the age groups the main differences appear in the reasons for the auto-legitimization of free downloading, the attitudes towards the purchasing of DVD and the profile of the longtailer.

fig . 12 Attitudes towards the purchasing and the downloading of films and TV series (gender)

base 1160

—• Man —• Woman

20 de 31


TRENDS

• Within the set of auto-justifications it is interesting to point out that the younger the interviewed people are, the higher the averages of the item “Thanks to free downloading sites I have seen films or series that I didn’t know about before”. This fact should make us think about the potential of the Internet as a channel of distribution of productions not related to the box office or fashionable, and as a tool to make old films or series available to a new audience.

• The youngest people interviewed (under of 19 years old) also appear with a clearer longtailer profile compared to the rest of the age groups: their averages are significantly higher in the items related to downloading because “they have not been released in Spain” and “you can’t find them in the stores”.

Cinema and series in the Internet

• When analyzing the rest of differences between the groups, the over 35 years old come out as the internet users that buy DVDs: they have the highest averages in purchasing during sales, or to give as gift. Additionally, their averages are also significantly higher in “to go to the store is faster than to download the film from the Internet”. This is consistent with the fact that their averages are lower in the perception of the ease of use of the downloading applications.

This fact should make us think about the potential of the Internet as a channel of distribution of productions not related to the box office or fashionable.

fig . 13 Attitudes towards the purchasing and the downloading of films and TV series (age)

base 1160

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

21 de 31


TRENDS

6 To pay for culture yes, but how much… Taking into account that one of the main reasons adduced by Internet users to auto-legitimize their practices of downloading free music, films or TV series is that the price is not reasonable (Fig.14 and Fig.15), in this study we have wanted to investigate what would be the range of prices in which these cultural goods would have to be located to favor, on one hand, ceasing free downloading, and on the other, considering purchasing as a way of supporting the work of the artists and creators. The set of people interviewed were asked about three types of pricing: reasonable price for which they will stop downloading, maximum price which they will not be willing to pay and the price that they would be willing to pay so that artists and creators can continue to create. This model of analysis is a variant of the one proposed by van Westendorp to measure the sensitivity towards prices12.

fig . 14 “would not download music if the price were reasonable” Desacuerdo Disagree 23,6% 23,6%

Acuerdo Agree 76,4% 76,4%

fig . 15 “I buy DVDs because I believe that they are reasonably priced” Agree Acuerdo 24,0% 24,0%

Disagree Desacuerdo 23,6% 76,0%

base 1160

The price of the “click” In general, Internet users - mainly the youngest consider that it is very easy to download music or films from the Internet: “as simple as clicking”. For this reason we asked ourselves how much would they be willing to pay for those clicks? • In the case of a song, the range is located between 0.30 € - 0.50 € (Fig. 16). These are prices quite far from, for example, 0.99€ (with DRM) or 1.20€ (without DRM) from iTunes. It is possible to observe in the graph that approximately 90% of the people interviewed consider that the price so that artists can continue producing should be below 1.20 €. For an album, the interviewees consider a reasonable range 2€ - 2.5€ (Fig. 17). Fig . 16 Range of prices for a song

base 1160

The type of analysis that arises has to do with how Internet users perceive that the weight must be distributed between what they consider reasonable to pay, and what they consider a fair price to pay to be able to continue enjoying the music and the cinema that they like. Additionally, we obtain the price-point at which these consumers consider that the limit of economic effort has been surpassed, and that purchasing is no longer worth the while.

base 1160 — Máximun — Reasonable — Fair price for the artists

22 de 31


TRENDS

• Although this is regarding prices for downloading, if we track some online stores we can find that, for example in Amazon, the sales for “top best sellers” situate music CDs at 9.99 US$ (around 8.3€), and in the online Spanish stores it’s possible to find prices that go from12€ to 18€. Again the gap between the offer and the expectations of demand is made clear.

To pay for culture yes, but how much…

Fig . 18 Range of prices for a film

Fig . 17 Range of prices for an album

base 1160 — Máximum — Reasonable — Fair price for the artists

• The range of prices for downloading of films is 2.25€ - 2.75€. In paid download sites in Spain such as PixBox, it is possible to find catalog films from around 3€ - 7€, to new releases between 14€ and 17€, approximately. base 1160 — Maximum — Reasonable — Fair price for the artists

Fig . 19 Range of prices for a chapter of a TV series

Again the gap between the offer and the expectations of demand is made clear. • In the case of TV series the people interviewed were consulted about the price for one chapter, and the price for one full season. The results show that for a chapter the range of prices is between 0.90€ and 1.00€ (Fig. 19). In some pay download sites it is possible to find chapters at prices that go from 1.19€ to 2.99€. base 1160 — Máximum — Reasonable — Fair price for the artist

23 de 31


TRENDS

To pay for culture yes, but how much…

• The price that the interviewees have found right for one whole season of a TV serie is located between 3.5€ and 5€ (Fig. 20).

Fig . 20 Range of prices for one season of a TV series

base 1160 — Máximum — Reasonable — Fair price for the artists

The preceding model analysis does not try to estimate the range of prices in market complex conditions. In fact there exist other models such as the conjoint analysis that allows us to study prices and

... proposing to the interviewees “reasonable prices” scenarios has evidenced a real gap between the present model of commercialization of cultural goods and the demand.

characteristics or aspects of added value more accurately and rigorously. However, the exercise of proposing to the interviewees “reasonable prices” scenarios has evidenced a real gap between the present model of commercialization of cultural goods - and the agents that support it - and the demand - users with a powerful capacity to border the limits of this model and to make up for what they consider deficiencies in it.

24 de 31


TRENDS

The payment systems in online purchasing When analyzing the data about the ways of access to music or cinema our attention is called to the low percentage of Internet users with online purchasing experience (physical media storage or bits), in relation to the other accessing alternatives, be they paid or free, brought up in the study. A possible explanation is the weakness of the Internet as a commercial channel, and this is a reasonable hypothesis because certainly in Spain the data of online sales is far from flattering. It’s well known that people distrust revealing personal and banking data on the Web, however, going beyond this, we wanted to ask the people interviewed about their preferences for the different online payment systems. Fig. 21 shows that the systems of payment with the higher degree of preference (4.4 over 6) are of the PayPal type: a financial service on the Internet that allows the transfer of money between users that have email, an alternative to the traditional paper method like checks or money orders13.

To pay for culture yes, but how much…

Next to appear is the use of a mobile telephone utilizing a “Mobipay” type system (3.9 over 6), this is a system that allows, through the association of a means of payment to a mobile telephone number,

The Pay Pal type payment systems are significantly preferred by the over 35 years olds, whereas young people show a greater preference for payment via SMS

Table 3 Percentage of Internet users who have bought via the Internet

Music

Films or TV series

Downloads in paid sites such as iTune

11,1 %

5,9 %

Purchasing CDs/ DVDs in the Internet (Amazon, eBay...)

7,8 %

8%

Fig . 21 Degree of preference of payment system (total)

base 1160

—• Total

25 de 31


TRENDS

To pay for culture yes, but how much…

to make payments in a variety of situations, from secure payments on the Internet to payments to vending machines, recharging prepay telephones, payments in taxis, or the consultation of account movements related to bank cards14. The preference for various payment systems varies according to age, as is shown in Fig.22. The data indicates that there are no differences between men and women when specifying their preferences in this subject. • The PayPal type payment systems are significantly preferred by over 35 year olds, whereas in comparison young people show a greater preference for payment via SMS. • Young people - with a smaller index of banking - show less preference for bank transfers as a means of payment.

Fig . 22 Degree of preference of payment system (age)

base 1160

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

26 de 31


TRENDS

7 Internet users and Copyright The standards of accessing music, films and TV series described up to now are immersed in a climate of opinion, which we have given account of in the introduction to this report, what is the Internet users position? What do they think of DRM or the agents who defend the present legal-commercial model of intellectual property? What do they think the future is of businesses such as cinemas or video-clubs?

DRM: Why pay more for something that we don’t know about? More than the two thirds of the people interviewed do not know what DRM (Digital Rights Management) is15, and this ignorance appears independently of age or gender (Fig.22). Therefore, at least in Spain, it seems feasible to indicate that the commercial strategies based on the existence or not of technological restrictions on the reproduction, have as a scenario a market that, on the one hand, understands that sharing is a constituent of musical consumption, and on the other, doesn’t know about one of the characteristics on which the price setting is based: without DRM.

This same position has been observed between men and women, and between interviewees of different age groups. Although those over 35 years old seem more willing to pay for goods without DRM, the bases are too small to talk about a statistical difference.

More than two thirds of the people interviewed don’t know what DRM (Digital Rights Management) is and this ignorance appears independently of age or gender.

Fig . 23 Knowledge of DRM base 1160

Yes

Sí; 23,8 23,8%

Climate of Opinion: auto-legitimization and criticisms of the model No No; 76,2 76,2%

The minority that said they knew about DRM (23.8%), was asked to what extent they were willing to pay a little more to acquire cultural goods without DRM. The obtained average was 2.8 over 6. When analyzing the positions it’s possible to point out that more than the 65% who answered this question ended up in the negative part of the scale (between 1 and 3).

When analyzing precisely the attitudes towards the access to music and cinema we pointed out that one of clearest emergent positions was the one that referred to the justifications that Internet users postulate when they access cultural goods for free. This data is confirmed when we evaluate the climate of general opinion around copyright, the illegal practices, and the strategies of the intellectual property agents.

27 de 31


TRENDS

In Fig.24 the high value of the averages of the set of items that have appeared in the factor that we have called “auto-legitimization” is observed16. Although we will comment on it in detail later, the high degree of disagreement (1.99 over 6) that the initiative of the SGAE to introduce a tax on reproduction equipment produces, stands out as the only exception. The specific analysis of the items of this factor points to several interesting aspects: • In auto-legitimization, the advantages of the Internet as a channel of access to culture arise (“The Internet allows free access to culture”), but what is more important, the justification seems to be articulated around the issue of unsatisfied market demands, and that they are being criminalized without any right to respond: “there is nothing wrong in sharing music or films via the Internet that you have bought” or “making personal copies of music or films isn’t illegal”. • For the people interviewed, these items speak of the value that the enjoyment of sharing the reproduction of music and cinema have as part of a consumption variable.

Internet users and Copyright

Not only does it set up the right to personal consumption according to “multi-device” standard, but it also evinces the understanding that these cultural goods are important elements of the new ways of relating that the Net allows.

…there emerges the demand for other forms of commercialization that allows the access to music and films beyond the logic of the hit parade or the limitations imposed by the choice of material on stores shelves… • Additionally, there emerges the demand for other forms of commercialization that allows the access to music and films beyond the logic of the hit parade or the limitations imposed by the choice of material on stores shelves: “the P2P programs allow the access to music and cinema that you can not find by paying” or “in the stores you can only find what the majority likes”.

Fig . 24 Climate of opinion surrounding copyright (Total)

base 1160

—• Total

28 de 31


TRENDS

Internet users and Copyright

• Consistent with the above, the next factor with higher averages is the one that we have denominated “criticism of the model”. The values indicate, on one hand, a negative image of the role of record and distributing companies, and on the other, a criticism of the business model based on the use of the technology to obtain profits. In general, it does not seem clear that the anti-copying systems benefit the artists, nor that people are willing to pay for “the right” of being able to reproduce content “in any reproduction device”.

• Defense of the artists appears as the third factor. Although at first sight it might seem contradictory to combine the criticisms of the present commercial model with a position of defense of the artists, the data indicates that the Internet users understand that the rights of the latter must be protected and that paying is a way to carry this out. However, as we have already reviewed in the study there exists a gap between prices and payment expectations.

Fig . 25 “Video-clubs have no future”

Desacuerdo Disagree 47,3% 47,3% Acuerdo Agree 52,7% 52,7%

Fig . 26 “Cinemas are going to disappear” Agree 21,4%

Disagree 78,6%

base 1160

… the data indicates that the Internet users understand that the rights of the latter (the artists) must be protected and that paying is a way to carry this out. A broad consensus of opinion Meanwhile, when analyzing the forms and patterns of access to music, cinema, and TV series, we found differences between the different age groups, the data relating to the opinions on themes linked to author’s rights, intellectual property, and to the demands of the consumer, indicates that there exists a base of socially coincident opinions. With this what we would like to say, as is shown in Fig.27, is that between young people and adults, or between men and women, there are very few differences that are worth mentioning.

base 1160

Finally the interviewees were asked about the future of businesses related to cultural consumption: cinemas and video-clubs. The data indicates that 52.7% of Internet users think that the video-clubs do not have a future (Fig.25), whereas 79% consider that cinemas are not going to disappear (Fig.26).

• There exists a strong consensus in the autolegitimization reasons given for the free downloading practices, related to the criticism of the tax on materials and machines, , the commercial strategy of stores, and with the idea that sharing cannot be considered an illegal act.

29 de 31


TRENDS

• Within this coincidence, the over 45 years old do not think that is so evident that P2P applications allow access to cultural goods that “you can’t find by paying”. It is possible that this perception is based on a lesser familiarity with these technologies as we have seen in previous chapters.

• Additionally, all age groups, except the under 19 years old, consider that “culture and the cultural industry are different things”.

• In the rest of the factors, the significant differences are the following: the over 45 years old are the ones who clearly defend the fact that the “rights of the artists must be protected” and the groups of over 35 years old are more inclined to pay for products without DRM (“I wouldn’t mind paying more if I could hear the music, or watch the film in any machine”).

Internet users and Copyright

As far as the analysis by gender is concerned, the data indicates that in certain aspects women seem to be slightly more aligned with the position of the intellectual property agents: their averages are significantly higher in the consideration that the tax on material and machines is a fair measure (2.1 over 6. vs. 1.9 over 6 for men), and the item related to the anti-copying systems benefiting the artists (3.97 over 6 vs. 3.4 over 6 for men).

There exists a strong consensus in the auto-legitimization reasons given for the free downloading practices, related to the criticism of the tax on materials and machines and the commercial strategy of stores In correlation, there is a significantly superior average of men who consider that making personal copies is not illegal (5.2 over 6), to the women’s average (4.8 over 6).

Fig . 27 Climate of opinion surrounding copyright (Age)

base 1160

—• 14-19 —• 20-24 —•25-34 —•35-44 —• 45-54

30 de 31


TRENDS

8 Notes and references

(10) To analyze the concurrent patterns, the forms of access to the audiovisual contents have been grouped in the following way:

(1) This is a periodic study done by AIMC in Spain http://www. aimc.es

(2) We want to thank the SIBE (Society of Etnomusicologie) for its thoughts about the three public positions that usually accompany the debate about intellectual property in the case of music and other cultural goods: http://www.sibetrans.com

Purchasing: purchase of DVDs in stores, on the Internet (Amazon, eBay, etc), through newspaper promotions, and the adquisition of films or series through paid TV (pay-per- view), or downloading from the Internet via paid sites such as iTunes.

Free Access: copying in DVD, hard disk, iPod, etc. or free downloads from the Internet through applications like E-Mule, BitTorrent, etc.

(3) FARRÉ, Pedro: “La pirateria nos afecta a todos”: http://tinyurl. com/28btb5

Rent: renting in video-club or by downloading via online videoclubs.

In the analysis of the concurrent patterns we have disregard purchasing from street vendors.

(4) LESSIG, Lawrence: “Cultura libre. Cómo los grandes medios usan la tecnología y las leyes para encerrar la cultura y controlar la creatividad” (pdf document link): http://tinyurl.com/2cx875

(5) DANS, Enrique: Día Mundial contra el DRM: http://tinyurl. com/23gdgg

(11) Starting with a question in which a list of 24 items was offered, the agreement/disagreement degree was measured with a Likert scale of 6 levels- from “totally in disagreement” to “totally in agreement”. With the data a factorial analysis was made and 5 factors were extracted.

(6) To analyze the concurrent standards the forms of access were grouped the following way:

Purchasing: purchase of CD in store, through newspaper promotion, on the Internet (Amazon, eBay, etc), and downloading from the Internet using paid sites like iTunes.

Free access: copying from the mp3 or iPod of a friend/ acquaintance, or from a CD to an mp3, and downloading off the internet via applications such as E-Mule, BitTorrent, etc.

Purchasing CDs from street vendors has been excluded from the analysis, since only 1 person interviewed declared accessing music exclusively through this channel.

(7) Starting with a question in which a list of 29 items was offered, the agreement/disagreement degree was measured with a Likert scale of 6 levels- from “totally in disagreement” to “totally in agreement”. With the data a factorial analysis was made and 6 factors were extracted.

(8) To study this subject in depth, we recommend reading Chris Anderson’ Blog: http://longtail.typepad.com/

(12) For this study we have elaborated a variant of the model of van Westendorp. This model, as it it has been articulated by Paul Hunt, the Canadian specialist in prices, stands on two psychological budgets (pdf document link): http://tinyurl.com/23zbr5

“The theory of reasonable prices”, that states that the buyers are capable of examining a good or and attribute to it an approximated expected price, or they can at least specify the rank of prices in which the price could fall.

“The price as a quality indicator”, according to this assumption some prices are “too low” and the buyers will avoid aquiring products that are in this ranking of prices from fear of low quality.

(13) Definition in Wikipedia: http://tinyurl.com/m2kcw (14) Definition in Wikipedia: http://tinyurl.com/2elyjp. 15) For more information in Wikipedia: http://tinyurl.com/ceoh7 DRM (16) A factorial analysis was made for 14 items, and 4 factors were extracted.

(9) Appeared in the Spanish newspaper “Cinco Dias”: http://tinyurl.com/2539no

31 de 31


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.