A (the?) monetary solution to file sharing
p2pnet news view Cool | P2P:- A problem with judge James P. Jones’ (right) ruling that files shared don’t automatically mean sales lost is: there’s also a supposition that file sharing does have a certain whispy impact on corporate income.
Following this, if one accepts the labels are down a staggering, but unknown, amount, how does one arrive at an equitable estimate which the “devastated” Big 4, namely, Vivendi Universal, EMI, Warner Music and Sony BMG will be able to claim by way of redress?
I personally have difficulty with numbers of more than two digits but luckily for the labels, Randy Blumhagen isn’t similarly handicapped.
He’s come up with a cutting edge mathematical equation – Nay! formula – he earnestly hopes the wise grey heads who run Big Music will be able to use to decide precisely how much a given download costs them.
This, in turn, will enable them to stop calling their customers thieving criminals.
Thus p2pnet is proud to present what will inevitably become known as the Blumhagen Solution, expressed like this »»»
p2p should be written with an exponent, p²ººººp, to more closely resemble its true function. Written as an equation, solve for p, where p = profit, purchases or piracy, p²ººººp = $0
Blumhagen will be universally hailed as the saviour of online music, online music lovers, and the desperately hard-pressed corporate music industry.
Our thanks to Randy for allowing us to reveal this priceless mathematical file sharing solution to a waiting world.
JN
January , 2009
Use free p2pnet newsfeeds for your site. It`s really easy!
Subscribe to p2pnet.net | | rss feed: http://p2pnet.net/p2p.rss | | Mobile – http://p2pnet.net/index-wml.php
Net access blocked by government restrictions? Use Psiphon from the Citizen Lab at the University of Toronto. Go here for details.
January 19th, 2009 at 10:50 am
Hi Jon,
There is a report just out in The Netherlands where three research organisations have researched the question if downloading music, movies etc by P2P means that people don’t buy any music or movies. Basically their findings conclude that it may have some negative effect on corporate earnings but it has a positive effect on the economy and prosperity of the people.
Please find below a Google Translation of the press release
File sharing net positive economic impact
The economic effects of file sharing on the Dutch welfare in the short and long term net positive. Consumers will benefit as a result of file sharing access to a wide range of cultural products. On the other hand, a fall in turnover from the sale of sound recordings, DVDs and games as a result is plausible.
This is reflected in joint research by TNO, SEO Economic Research and the Institute for Information Law (IViR) to the economic and cultural consequences of file sharing for music, movies and games on behalf of the Ministries of Education, Ministry of Economic Affairs and Justice. The analysis was conducted on the basis of a study of statistics and scientific literature, interviews with fervent downloaders, a representative survey of the population and a number of informational workshops in the sector.
Estimates of the volume of the global download unauthorized movement vary widely. The world is in any case, many billions of files per year, a substantial part of international Internet traffic. Some 4.7 million Dutch Internet users aged 15 and older in the last 12 months unpaid ever downloaded. Citizens see the download and share music, movies and games as a general social acceptance, but know little of the technology and regulations that it faces.
Regulatory unclear
It appears that there are many unclear about the admissibility of download. The download for personal use of copyrighted music and movies may. Downloading games is prohibited. In the case of p2p networks is often not only downloaded, but material, often automatically, again made available to others. This upload files without the permission of the owner, as such not allowed.
The effects of unpaid downloading the purchase of paid content are difficult to determine. Download and buy are not mutually exclusive: an average music downloaders buy more DVDs and more games than people who never download. Even more downloaders go to concerts and buy more merchandise.
Net profit prosperity
For the music industry is that downloaded pictures of 1-to-1 can be translated into lost sales. Many consumers who download music would not be in the same amount at current prices to buy and download unpaid not feasible. There are people who download music and get to know where to buy if they like.
Although there are also positive effects on the purchasing behavior of downloading, is a negative impact on the turnover of the sectors likely. This is particularly true for the sale of recordings, especially as downloading music has become the most established. In addition, there are differences between artists known artists seem to have more damage, while relatively unknown artists may even benefit when exchanging files increased their awareness .. For society as a whole is against this turnover of the sector the benefits of the large group of downloaders who would otherwise never have to purchase. On balance, there is a significant welfare gains.
New business models emerging
The music and film industries face the challenge to match their offerings with the changing consumer demand. New business models are emerging. The music is made for new movements to tap revenubronnen (concerts, merchandise and sponsorship). There is a place for music recordings, but in future it does not seem possible only on the basis of recorded music to run a profitable business. Within the film industry to grow the markets visit cinema and DVD sales still. DVD rental has fallen. Over time this can change quickly if the Internet is available. Again, there are important new business models. The game industry is growing boisterous, especially the console games and their hardware-software combination content. Here is file sharing on the watch less than eg PC games, where turnover is now stagnating. A related official platform game has so many advantages that it is not inconceivable that this industry is the file-sharing practice the music industry now faces a far greater extent could avert or circumvent.
January 19th, 2009 at 11:24 am
so 2+ 2 = p2 poop? ‘)
January 19th, 2009 at 12:56 pm
Please find the dutch version of the press release here: http://www.tno.nl/content.cfm?context=overtno&content=nieuwsbericht&laag1=37&laag2=2&item_id=2009-01-16%2012:57:23.0 . You can also download the report itself but only after you have registered on the TNO site.
January 19th, 2009 at 1:24 pm
^^ Thanks, Nicolas. Can anyone offer up a non-Google translation?
Cheers! And thanks …
January 19th, 2009 at 3:11 pm
Nicolas and Jon, here is a Slashdot post on this http://yro.slashdot.org/article.pl?sid=09/01/19/1440254:
“In a study conducted by TNO for the Dutch government the economic effects of filesharing are found to be positive. According to the 146 page report (available for download, but in Dutch) filesharing is good for the prosperity of the Dutch: with filesharing more media are available, even though this costs the media industry some profit. One of the most noticeable conclusions is that downloading and buying are not mutually exclusive: downloaders on average buy just as much music as non-downloaders, but they buy more DVD’s and games then people who don’t download. They also tend to visit more concerts and buy more merchandise.”