Burning, sharing hurts AU music sales: Survey

The Australian Record Industry Association has released survey figures it claims supports the theory that CD burning and online file sharing is having a negative impact on album sales.

The 15 minute telephone survey of 1,001 people aged 10 years and above -- released today -- claims that 3.6 million Australian illegally burnt a CD in the six months before the survey, and 1.8 million Australians illegitimately downloaded music files via a file sharing service in the month prior to the survey.

Stephen Peach, the chief executive officer of ARIA, admitted that people who made back-up copies of legally purchased CDs or compilation recordings for their own use were included in the figures of people who had copied music illegally, and denied the activity was acceptable.

"Once you legitimise home copying then everything becomes home copying," he said.

Peach said the recording industry both in Australia and overseas was looking at a number of ways of fighting illegal copying. He said litigation against file-sharing software companies would be continued, but said ARIA had not considered following its U.S. counterpart in suing individual file swappers.

"The Australian record industry has not even considered whether we would go down that path and we hope if we turn this [problem of illegal copying] around we won't have to consider it," said Peach.

"There is a big job for us to do on the education front," said Peach. The survey revealed that 32 percent of respondents were unaware that it was illegal to copy music files onto a blank CD or computer hard drive without the permission of the copyright owner.

A higher proportion of the younger generation didn't know it was illegal, with 49 percent of under-25's responding they knew the activity was illegal.

"In my experience, most people like to do the right thing most of the time," said Peach, indicating why he thought an education campaign would be successful in reducing illegal copying.

The problem for the recording industry was summed up by Adrian Goldsmith, director of Quantum Market Research who conducted the survey. "A large proportion of those who buy a large proportion of the music don't understand that what they're doing is illegal," he said.

The survey revealed that the under-25 age group -- traditionally the backbone of the music industry -- have vastly different opinions as to what is illegal behaviour compared to the general population. The main differences in opinion were:

  • 57 percent of the general population agreed that burning music without paying for it is like stealing, while only 35 percent of under-25's agreed.
  • 49 percent of the general population agreed that downloading music from the Internet without permission is like stealing from a record store, while only 33 percent of under-25's agreed.
  • 46 percent of the general population agree that too many people are able to make copies of music and that technology should be changed to stop this, while only 28 percent of under-25's agreed with this view.
The survey did not ask the respondents whether they had purchased a CD after hearing a sample of it on the Web or from a friend. A 2000 Price Waterhouse Coopers consumer technology survey of five countries revealed that 25 percent of Australian Internet users had downloaded music from the Internet, with the majority claiming that accessing music online had exposed them to new artists or new types of music. 78 percent of Australians who had downloaded music said that doing so had prompted them to buy a particular CD or tape.

Other statistics to emerge from the survey include:

  • 21 percent of respondents had used a file sharing service, with 11 percent using one in the month prior to the survey. In the under-25's group the figure was 26 percent. The average volume downloaded by individuals was 19.6 files (32.4 files for the 18-24 age group), with 51 percent of file sharers indicating they 'never' or 'rarely' purchased the music they have downloaded, while 37 percent only buy 'sometimes'. Over 50 percent of file sharers burn their music onto CD or transfer to an MP3 player.
  • 22 percent of respondents had burned a CD in the six months prior to the survey, in the under-25's group the figure was 40 percent. Of this group, 54 percent burned material from their own CDs, 34 percent from borrowed CDs and 28 percent from music downloaded from the Internet.
  • 40 percent of the general population had received a burnt CD in the 12 months prior to the survey (69 percent for the 18-24 age group), with 82 percent claiming they would 'never' or 'rarely' buy a CD they had received.
  • Illegitimate channels account for 10.7 percent of all music acquired by the general population, for the under-17's group this figure is 31 percent, for 18-24 yr the figure is 21 percent.

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Talkback 12 comments

  1. "The 15 minute telephone survey of 1,001 people aged 10 years and above -- released today -- claims that 3.6 million Australian illegally burnt a CD in the six months before the survey, and 1.8 million Australians illegitimately downloaded music file Ford Fairlane -- 16/07/03

    "The 15 minute telephone survey of 1,001 people aged 10 years and above -- released today -- claims that 3.6 million Australian illegally burnt a CD in the six months before the survey, and 1.8 million Australians illegitimately downloaded music files via a file sharing service in the month prior to the survey."

    There is nothing like going the extra mile to find valid and factual information which irrefutably supports your public statement's by surveying 1001 Australian's lol.

    "Hello it's the ARIA and we'd like to speak to your ten year old child if we can ; and do you have a teenager there too? we'd like to speak to him/her if possible and all of his/her friends".

  2. The headline for this article should have read: "High prices for CD's and greedy record companies hurts AU music sales: Survey" Most people still use dialup modems to connect. It takes about 30 minutes on average to download Sir Scrotum -- 16/07/03

    The headline for this article should have read:

    "High prices for CD's and greedy record companies hurts AU music sales: Survey"

    Most people still use dialup modems to connect. It takes about 30 minutes on average to download a song, let alone try all night to get an album, coping with ISP hangups, users going offline, wanting to use the phone line etc... If I want to buy music (which I do) I would prefer to pay less for it.

    Maybe the survey should have detailed how much music people buy from overseas?

    My last purchase was 6 CD's from amazon UK. Cost in total $34 including freight for all CDs, all brand new. The cost for me to buy the same CD's in Australia would have cost $122.

    Have I downloaded music? Of course I have. I could justify it by saying I am replacing damaged CD's that I own (TRUE! - why should I have to pay another royalty to the record company for the media?), or that I am unable to purchase legitimately the song I am after (eg: out of print vinyl etc..) or even using the file swapping system as my own personal backup library.

    I have not bought music from an australian store for about 3 years. All my music, and much of my dvd purchases are from overseas sources. The reasons for that is that it is just too expensive compared to the overseas stores.

  3. Incredible that the record industries only focus on copying/sharing as the sole reason why their sales are down. You cannot ignore the fact that there is now a much larger market for the consumer's entertainment dollar. Why don't they find out i Anonymous -- 16/07/03

    Incredible that the record industries only focus on copying/sharing as the sole reason why their sales are down.

    You cannot ignore the fact that there is now a much larger market for the consumer's entertainment dollar. Why don't they find out if their traditional customers have decided that they'd rather spend their money on DVD's and games, given the proliferation of these technologies in the last few years. With DVDs retailing at around $35 each, and new release games at over $100, it's not surprising that there is less money being spent on music.

  4. I am a writer for various websites and street mags, and I get my copies of the albums I have to review on CD. I do not own a portable CD player, but do own a minidisk player. I travel on public transport alot, and listen to my minidisk. Anonymous -- 16/07/03

    I am a writer for various websites and street mags, and I get my copies of the albums I have to review on CD.

    I do not own a portable CD player, but do own a minidisk player. I travel on public transport alot, and listen to my minidisk.

    What is the point of having minidisks if you are not allowed to copy CDs & other music onto it?

  5. With these blokes it is always someone elses fault. And to boot they are accusing every person in Australia (and the world) of Piracy. If you treat a person like a criminal you get a criminal, and I take offence to their accusations. How about t Anonymous -- 16/07/03

    With these blokes it is always someone elses fault. And to boot they are accusing every person in Australia (and the world) of Piracy. If you treat a person like a criminal you get a criminal, and I take offence to their accusations.

    How about they do what other industries do when faced with competition: Compete! Improve! and make the prices more acceptable.

    All I hear at the moment are sob stories, and incrimination; hardly brings a tear to my eye so I will not lend a simpathetic ear to their plight.

    The internet has given rise to better ways to distribute creative works, such as music. Those that can create do so, do it well and distribute it, without the restrictive practices of music mogals who would govern their moves.

    The signs are there: if there is a better way of doing something then people will do it. Because the music mogals bottom line appears to be dropping, they beleive it is the result of criminal activity denying them of future riches. I think they should look a little harder, with more clarity and less bias at this problem.

    God forbid they be denyed more money.

    If allowed to conclude the way they want it to, it will become an offense for you, or I, to backup our digital works to CD.

  6. I buy Cds and Dvd because and use my Dial up isp for Surfing, Banking etc because its cheaper to buy a DVD or CD a month than to pay extra for Cable or DSL and try get a bootleg copy of the same thing. No problem everyone should be happy since I dont deny Jim Papadopoulos -- 17/07/03

    I buy Cds and Dvd because and use my Dial up isp for Surfing, Banking etc because its cheaper to buy a DVD or CD a month than to pay extra for Cable or DSL and try get a bootleg copy of the same thing. No problem everyone should be happy since I dont deny anyone of any revenues.

    I had my car broken into an my ORIGINAL cds were stolen so I have to pay for them again to replace them. Am I not entitled to make a copy from my car without being acused of being a criminal?

    I still have not heard from the police about my CD player and CDs and I dont expect to get them back so I now make a copy of my music for my car.

    Having admited this now I Get arrested for being a theif while the guys who broke into my car go unpunished!

    This is incredibly unjust. I cant afford to lobby to government the way ARIA does and I cant afford lawyers to follow things up. In fact my insurance did not even cover me.

    When I made a copy of my music for my old tape player that was OK now that I have a CD player and want to do the same thing I am regarded as a criminal.

    The music industry should pull their head out of their **** and stop chasing defenceless poor people. You already make millions of dollars and pople like me are still poor so stop complaining.

  7. This Survey, is very poor piece of work. No checking appears to heve been done on the actual # of people in Oz who have internet access and doing the %. How many working CD Writer are in Oz? I doubt 3.8Million. And in my experience and high % of pe Anonymous -- 17/07/03

    This Survey, is very poor piece of work. No checking appears to heve been done on the actual # of people in Oz who have internet access and doing the %.
    How many working CD Writer are in Oz? I doubt 3.8Million. And in my experience and high % of people who have a CD writer don't know how to use them.
    Was a requirement of being surveyed, that they had Internet & a burner?

    Don't forget there's lies, damm'd lies and statistics. Here is a great example.

  8. Would the users who have burned CD's necessarily purchased those CD's if ripping wasn't available? As the music industry wouldn't allow a competitive CD market in Australia for years, driving up the prices, buyers feel jilted. Now hopefully the Anonymous -- 17/07/03

    Would the users who have burned CD's necessarily purchased those CD's if ripping wasn't available?

    As the music industry wouldn't allow a competitive CD market in Australia for years, driving up the prices, buyers feel jilted. Now hopefully they will know what it's like to be screwed.

    If they had a little forsight they would realise that other mediums existed where people would try to obtain music from. If they used their cash wisely they would now be in a dominant position to rule the market. Fools! It is not new people ripping songs, has been going on for years, and only now do they care? Surely someone in the music industry saw that it was going to be popular and yet there is still no legal products available to Australians for the internet medium. What were they thinking? As soon as they do allow music to be purchased over the internet for immediate gratification they will find that most users will do the right thing and pay. Until then rip away.

  9. If the australian music industry would grow up and offer a real alternative I am sure it would slow down quickly. The truth of the matter is that it is faster to find and download music illegally than it is to do it legitimatly. Maybe iTunes and Anonymous -- 01/08/03

    If the australian music industry would grow up and offer a real alternative I am sure it would slow down quickly.

    The truth of the matter is that it is faster to find and download music illegally than it is to do it legitimatly. Maybe iTunes and iMusic store for PC will change things.

  10. I read the comments that others have made on this article and all they seem to think about is the artists that they claim are "making millions". What about people like myself who own a small music store? My mark-up on a cd is extremely small. If Geoff -- 30/09/03

    I read the comments that others have made on this article and all they seem to think about is the artists that they claim are "making millions". What about people like myself who own a small music store? My mark-up on a cd is extremely small. If I had no other costs involved than just buying the cd, i would make a measley $8 on a $30 cd. Bear in mind that I also have to pay for freight, electricity, phone, rent, wages, advertising, internet costs, etc. That figure of $8 gets reduced to about $1 profit. I'm working between 60 and 80hrs a week and I am only taking home about $50 a week for my wage. I would like to see anyone out there who thinks burning cd's and file sharing isn't hurting anyone, I would like to see you work in a job like mine and say that it doesn't hurt anyone after all. Not one of you would work in a 60 to 80hr a week job for only $50. So don't tell me that burning cd's and file sharing of music doesn't hurt anyone, cos although it might not effect the artists, it definitely effects the small business owners.

  11. I regard the purchase of a CD to be obtaining a license to listen to the audio data on the disc. Therefore, the disc itself isn't what I've purchased, I've purchased the audio, and the record company has supplied me the CD as a data medium. With Anonymous -- 06/11/03

    I regard the purchase of a CD to be obtaining a license to listen to the audio data on the disc. Therefore, the disc itself isn't what I've purchased, I've purchased the audio, and the record company has supplied me the CD as a data medium.

    With this perspective, I have no problem with the record companies pursuing legal action against people who copy discs for their friends, but I don't believe copying the disc for personal use or for backup to be unethical.

    How I choose to listen to the audio should be my choice, not theirs. After all, why would I carry around 15 CDs when I can put them all on a single 50 cent CD-R and play them in my Discman in MP3 format?

  12. Australia pay more for cds than any other country in the world with a lower % of that ost going to the artist themself than any other country in the world. I know that from personal experience as an artist. I do not believe that making a personal copy sho Anonymous -- 22/04/05

    Australia pay more for cds than any other country in the world with a lower % of that ost going to the artist themself than any other country in the world. I know that from personal experience as an artist. I do not believe that making a personal copy should be an illegal practice. Lower the cd prices and maybe the average joe may be able to afford them instead of downloading them.

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