UNIT 8: RESEARCH REPORT

Submitted by:
EXUCUTIVE SUMMARY
File sharing is refer to an exchange of files between computers over the net. It can also
be the mean of disk sharing or server sharing amongst computers on a closed network.
File sharing is commonly used for sharing files with unlimited number of internet users
worldwide to download music, movies or TV shows mostly. File sharing is considered
as the means of copyright infringement because most of the file shared usually music or
movie are copyright protected
The first website for file sharing used Peer-to-peer or P2P file sharing which enabled a
users whole music library available to other user for download. Users were able to
search and download music in large quantities in a short time. BitTorrent technology
came right after the P2P file sharing which is an open source file sharing application
which allowed users to separate the file they want on a shared network and download it
in parts from several different users. BitTorrent software downloads a piece of the file
from many users while P2P downloads file from a single user.
Music file sharing is the biggest concern for copyright owners. They call it a means of
helping in copyright infringement.

Many lawsuits have been launched by copyright

owners and their representatives aiming to shut down websites that use P2P and other
file sharing softwares.
Copyright owners identified that easily downloadable free music demand is not going to
disappear.

Therefore music industry representatives and copyright owners have

created music download services or streaming services charging nominal fees or some
sort of right protection system to avoid infringement. Some of these services are proven
to be popular. (wisegeek.com)

1.1

Formulate and record possible research project outline specifications

Aims and Objectives of the Research
The aim of this project is to conduct a research on file sharing growing industry
which will allow Spotify to remain competitive. The objectives of this project is to
give recommendations to senior management and shareholders of Spotify to
create strategies to beat their competition
Introduction
P2P usage is mostly against the law because sharing of copyrighted files without
permission from the copyright owner is involve. File sharing and copyright has
flared controversy since 1999.

Digital Economy Act 2010 addresses media

policy issues related to digital media which also includes copyright infringement.
Copyright infringement is using copyright protected work without permission.
Exclusive rights are granted to the holder of copyright such as right to reproduce,
display, perform or distribute the protected material. Works creators are the
copyright owners or the publisher or other companies copyright is given. Public
opinion however supports the IP (intellectual property) rights.
Uploading music from the CD that is owned and allowing other people to
download music from your website without express permission from the owners
of the copyright are all violations of copyright law. Downloading copyrighted
music is illegal and morally wrong.

Today many people in UK use illegal

downloading off the internet as an alternative to purchasing CDs or DVDs of

movies. There are consequences who practice the illegal downloads. Liability
for breaches could be tossed on the internet provider because it is difficult to
identify the individual user. IPs risk losing internet access or paying a heavy fine
if there is any copyright infringement takes place from their service.
(acomp.stanford.edu)
According to the BBC News internet service providers like BT and Talk Talk
argued the UKs Digital Economy Act was conflicting with EU law.

The Act

suggest that ISPs are responsible to send warning letters to illegal file
downloaders and cut users off. Creative industry claims the cost of piracy is

400 m a year in lost revenue. BT and Talk Talk both has lost an appeal against
the Act. Talk Talk stated Though we have lost this appeal, we will continue
fighting to defend our customers rights against the ill-judged legislation
(bbc.com)
Methodology for Collecting Data
Quantitative Research
Research that uses numerical analysis is called quantitative research.

This

research method decrease the data into numbers for example in percentage of
people who thinks file sharing should be legalised. The researcher is aware of
they are looking for and they design all study aspects before data collection.
Quantitative research is done using scientific methods.

Methods of data

collection in Quantitative research are:

Surveys or Questionnaires uses closed ended questions

Experiments uses control group and experimental

group

(sociology.about.com)
Qualitative Research
Qualitative research is also known as field research which usually involves
fieldwork.

Researcher observes and records events and behaviour in their

natural environment.

Researcher visit people to observe the subject as it

naturally or normally behaves. The researcher of qualitative research are

concerned with process and practice instead of results. They concentrate on
participants, experiences and perception and what way things makes sense in
their lives. Methods of Data Collection are

Direct observation: study of people in their natural setting. Observing

people interactions and behaviour without participating

In-depth interviews: participants are taken in-depth interviews one on one
basis. There are no specific set of questions.

Participation: Behaviours are observed through participating in the group

and getting first-hand experience

Focus group: small group of participants are interviewed by a researcher.
Focus groups are more structured and includes 10-15 participants at one
time. (sociology.about.com)

Primary Research
The research involves gathering data though going out and collecting
information

yourself

by

surveys,

interviews,

ethnographic

research.

(owl.english.purdue.edu)
Secondary Research
Secondary data collection is the process which involves collecting data from
the journals, books, articles.

Secondary research is the most common

method used, it is basically accessing information which already been

collected and published. (knowthis.com)

1.2

Identify the factors that contribute to the process of Research project

selection
Organisation have to make one of the biggest decisions related to the research
project they would take on.

There are many factors that needed to be

considered after the proposal has been received. The goals and needs of the
organisation needs to be kept in mind to choose the most viable option.
Project selection is a process to evaluate each idea of the project and choose the
highest priority project. At this stage projects are just suggestions, therefore its
selection is based on project brief description.
Factors contribute to Research Project Selection
Research process cannot take place without a research problem which is
considered as a heart of the research process. To convey the problem, the

variables must be important and be able to be identified easily and a each

research problem must have a hypothesis. Research hypothesis is determined
through translating a clearly defined research problem. Hypothesis must state
the relationship between two or more variables into one or more populations.
Research problem will be explored first. Researcher explore the importance of
research problem, sources of research problem, consideration and steps to
follow when research problem is being formulated. The variable identification will
be discussed second through the three common variables and four obvious
measurement scales.
Some factors need to be considered in the research process. Research problem
sources spin around the four Ps
People
Problems
Phenomena
Program
Research problem formulation is the process that includes these steps
1. Variables are measurable factors that can presume more than one value. The
three types of variables are characterised: dependent, extraneous and
independent variables
2. The different types of measurement scale are: interval scale, nominal scale,
ordinal scale, ratio scale are used to classify variables.
3. Hypothesis is an uncertain statement of the outcome of a research which points
the relationship between tow or more variables waiting to be verified. Hypothesis
allows the researcher to add the theory formulation if proved to be true. The
alternate hypothesis and the hypothesis of the researcher are the most important
factors when doing or analysing research. (slideshare.net)

1.3

Undertake a critical review of key references for the Research project

Critical Review on Digital Music

Many books, articles and journals have addressed the issues that music
business industry face in the market space, especially the major music
companies predicament. The Big Four players such as Sony Music, Universal
Music Group EMI and Warner Bros Records owns 87% of the market share of
recorded sale of music globally (Billboard, 2011). The four player has formed the
four cornerstone as a platform for music industry.
The introduction of the internet and the related digital music distribution formats
has imposed a direct threat to channel of distribution which was controlled by the
big four before. This point serves as an inspiration for my anticipation research
effort.

The International Federation of the Phonographic Industry (IFPI),

Recording Industry Association of America (RIAA) and British Recording Industry

(BPI) has identified the culprit which is the illegal downloading of music files on
P2P file-sharing sites.

The four major music firms directly supports these

legislative bodies and claim to represent the copyright owners interest. All of
these firms have decided to combat illegal music downloads (or, piracy)
All of these firms are halling national and international courts to pass harder laws
on copyright or appeal Internet Service Providers (ISP) to block those sites who
allow illegal downloads. According to the Annual Digital Music Report (DMR)
Governments are beginning to understand the scale of the challenge of trying to
monetize content in an environment where around 95% of all music is
downloaded without payment to artist or producers (IFPI 2010)
The aim of this review is to draw attention to the DMR and give some ideas on
piracy-related data. I hold the view that the present stress on digital piracy was
built on many liable events that resulted in the decline of the industry. I have
discussed some of these important events, present a review on piracy and
related concepts.
Koegel Buford, Yu et al. (2009) has defined File sharing or P2P sharing as
networks that enable users to directly share digital content (such as audio, video,
and text files) as well as real-time data (such as telephony traffic) with other

users without depending on a central server. The authors tried to make a point
that even though P2P is connected to unauthorised online downloading it is still
legally used to exchange large files in many areas which includes: medicine,
telecommunications, academic, and social networking (Koegel Buford, Yu et al,
2009).
In order to use P2P network the installation of a file sharing software is required
on a computer and the user then becomes a part of an online community which
is willing and has agreed to share files like documents, movies, music, mp3 etc.
An individual can search for specific file through logging onto the network. The
search matches the criteria and the user initiates the transfer. File sharing is the
process of transferring a copy of the file and the original file is retained on the
source of host machine. (Gil, 2010)
Before Napster in 1999 consumer were restricted to purchase an entire album
that has their favourite song.

With digital technology, single track can be

downloaded from a digital album. For a consumer it means there is no more

restriction to pay full price for an entire album if they only want one song. I
believe that this behavioural change has disentangled the fundamental attitude of
the industry revenue structure.

Consumers have re directed their spending

towards a lower price single track. According to Recording Industry Association

of America 2008 Report If digital singles are converted into an album equivalent
(divided by ten) and added to both CDs and digital albums there is still a decline
of 14% in an overall album unit (RIAA 2008). In 2007 83% of sales for the music
recording industry came in the full length CD form. US digital formats contains
52% of sales at the end of 2010 which is why industry profit margins and
revenues are lower than previous levels.
IFPI and its correspondence have petitioned ISPs and also national and
international governing bodies to pass tougher laws and bring legal action
against file-sharing sites to secure intellectual property rights.

They have

succeeded in closing many file-sharing sites such as Napster, eDonkey,

LimeWire, Grokster. However, the recent trends reveal the fact that consumer
patterns of spending has shifted to digital systems from physical CD.
Digital Piracy
Tshmuck (2010) stated in his literature review of studies related issues of piracy
and its impact on the sales of music industry Some authors speak of piracy,
where others use terms such as file sharing, downloading and unauthorised
copying free music consumption, etc (Tschmuck, 2010). Tshmuck reasons
that use of terms carelessly may explain some of the extreme differences in the
various studies results. He investigated that the lack of consent on the methods
of research in exploring the industry problem. For instance IFPI commissioned
studies like Jupiter Research 2007, 2009 and Forrester Research 2009 are
basically constructed on internet users surveys. Other researcher investigated
empirical data by differentiating actual downloads from file-sharing sites to chart
activity of industry (Oberholzer-Gee and Strumpf 2007) have used data which
was country specific or completely different database altogether to measure
variables. To my understanding Piracy is the internet users percentage who are
engaged in unauthorised download activity of copyrighted material without any
willingness to pay.
IFPI reports did not identify the connection between file-sharing activities and the
degree of revenue decline in the music industry. It concentrated on inferring lost
purchase opportunity through identifying the illegal file sharers percentage and
applying it to a pre-determined level of P2P activities and utilizing retail price
download average and then calculating the impact on sales.
According to Blackburn (2004) file-sharing have two effects on sales: substitution
effect where consumer choose the option of download over a cd purchase and
the other effect is sampling effect where a consumer wish to examine or sample
the product before buying it. Blackburn studies suggested that in the long run
sampling effect may increase the sales of artists material. It seems like an
attempt to contrast between pirates and consumers looking for sampling
purposes. (Bounie, Bourreau et al. 2005)

British Recording Industry (BPI) has reported that total units that were
downloaded were 1.2 billion in 2010, which cost the industry loss revenue of
984m (Frontier-Economics 2011). In my point of view the figure assumes that
every downloaded track is piracy and it disregards the sampling effect
completely. The revenue lost appears to be unrealistic. I think some freeloaders
may be converted to legal consumers in the P2P absence and the category that
are not willing to pay anyways are overlooked. I think that those users who are
not willing to pay for music will not become active music buyers. The value of
free is tempting and attractive that is why an incentive can be served for some to
engage in file-sharing activity and gain some benefit that are given out in
portions. IFPI claims that 95% of all music downloads are illegal, a number
equals to 40 billion units worldwide (IFPI 2010). My question is how was this
number determined, there are no published report produced by IFPI, Jupiter or
NPD Group which provided any detailed calculations to demonstrate how this
estimate is determined.

All these doubts lead me to say that the data lack

transparency. Some journalists like have severly criticized the statistic.

Conclusion
I share Tshumucks (2010) view that IFPI may be point in the wrong direction in
stressing on assigning lot of the industry decline on file sharing rather than
society which is embedded in a digitization age at the global level, and
consumers discovery of music and pattern of spending.

Consumers are

constantly looking for other kinds of entertainment. Advancement in DVD and

game technology has enabled this area to give improved cooperative experience
(Arthur 2009). Live performances are also on the rise and artists are actively
reaching other ways of revenues to cover declining recording income.
Millions of pounds in settlement and pounds are filling the music label reserves.
My question is how do labels decide which artist accounts are credited when they
receive settlement? Do non-label and independent acts receive their fair share?
Music is an artistic expression, and serves a divine purpose. It is a picture of
human emotion, a universal language and a friend on social warzones, it is a

cultural good and when retaining such a good, priorities are determined by
economic drivers and focus on short-term profits, the results are going to be
disappointing. Digital technology has revealed the weakness of music industry
business structure. By broadcasting questionable statistics through Digital Music
Report is an unsuccessful effort to maintain this model.

1.4

Produce the research project specification

Research Objective
The objective of the research is to search for an answer to specific questions by
the applying scientific procedures. This research was undertaken to answer the
specific research question
Should people be allowed to download movies and music from the Internet
or are they violating copyright law?
The objective of this research are to determine the attitude towards music piracy.
The objectives are:
Evaluate the literature on the recent debate on music piracy
Review the problem of music piracy and analyse its impact on the industry
Investigate who is doing music piracy and what methods they use
Collect the qualitative understanding into the music piracy ethics.
Explore industry responses.
Research Rationale
The rationale for carrying out this research project lies in the well documented
findings in the literature that people should be allowed to download music or film
without breaking any copyright laws. The theoretical demanding nature of the
subject increasing the number of unauthorised downloads through P2P file
sharing everyday. According to Ofcom almost a third of UK internet users has
stream or downloaded music, TV and movies illegally. The report stated 18% of
users had illegally accessed content. It also stated that online piracy with the
increase in internet user who access online contents is from 57% to 60%
(nme.com)

Hypothesis Statement
Hypothesis is an statement that suggest a likely explanation to an event or trend.
It is a testable statement which may include a prediction. (accessexcellence.org).
The hypothesis for this research is
Legal digital services may increase revenues for music industry
Scope of the Research
The scope of the research refer to the area covered in the research. The scope
of this research is to cover the facts about illegal downloads. The research also
covers what consequences are there for illegal downloads. Evaluate the findings
of the research.

Recommend Spotify on how to remain competitive and to

improve their services to encourage people to choose legal means of

downloading instead of illegal.
Literature Review
According to the Musicmetrics in-depth study United Kingdom is the second
worst country in the world for illegal music downloads and United States is the
first in the world. Manchester is the worst city for downloading music illegally.
The study shows that in the UK more than twice as many albums are illegally
downloaded as well as legal music downloads such as iTunes. In the first six
months of the year more than 33 million albums and 10 million singles were
illegally downloaded from the popular file sharing network BitTorrent. The loss in
retail sales has equals to more than 500 million pounds, which is the reason for
music companies concerns about damaging effect file sharing have on long term
sales. Andy Heath, the director of British record company Beggars Group stated
Clearly the biggest problem with illegally downloaded music is that there is a
generation who feel it is natural that music and all creative contents is free
(Bowie-Sell, 2012, Telegraph).
Firms that operates in the music industry supply the unique product to the market
that is purely symbolic good (Scott, 1999). The aim of record companies is to
earn a return on investment in less profitable ventures through increasing the

return on an astonishing successful release. (Bettig,1996). Big four record labels

of Universal Music Group, EMI, Sony music entertainment and Warner Music
Group has categorised the market.
P2P network such as Napster, where individual could download files directly from
each others computer and making the essential uncommon good of recorded
music substantially replicable (Baym, 2010).

Consequently digital media has

converted the cultural object and has empowered the consumer comparative to
music industry (Poster, 2010). The technology of streaming is the latest creation
in the music distribution. The technology does not use downloading an MP3 to
the computer, it uses buffered play so that consumer are able to listen to music,
but unable to retain possession. (Fox, 2005). Cloud based music services are
digital lockers that save content for users to access from other devices.
Illegal file sharing is considered as the cause of decline in the revenue of music
industry. Many studies have attacked this phenomenon. One of the earliest
econometric studies was conducted by Hui and Png (2003) which examined the
sale data over the 1994-1998 that showed that piracy has decreased the demand
of CDs, their study made a contribution to understand the trade-off between
negative effects of piracy and positive demand-side externalities, however the
study did not address digital piracy therefore is of limited use today.
Lesig (2004 has contributed to assess different parts of P2P network users.
Lesig suggest that file sharing is used by minority as an easy way to exchange
legal content. The network gives sense to obtain copyrighted material that would
not been bought otherwise and would not have received recognition. Lessig also
outlined a group of consumer that samples music before buying it.
File sharing can increase the quantity of music purchase. Peitz and Waelbroeck
(2006) have argued in favour of sampling through matching buyers preference
with products, they suggested that P2P networks result in purchased which
compensates the negative impact of copyright infringement. On the other hand

Blackburn (2004) said that file sharing decreases the sales for popular artists
compared to unknown artists. From the largest label perspective sampling is a
weak argument in favour of P2P networks because of the pure quantity and
scope of copyright infringement executed.

Negative affects on Music Industry

Music industry is still dependent on album sales, however tours and live
performances are increasingly becoming source of revenue for artists and labels.
According to Elberse (2010). In the music market large number of consumer
prefer to own one or two tracks instead of the whole album which is the cause of
damage. Amberg and Schroder (2007) has conducted a review which states that
69.4% of interviewed individuals prefer to buy a single track over the whole
album which has turned many consumers towards piracy to have an access
those single tracks.

The growing threat of internet piracy and the quickly

declining prices of record media has made the revenue decrease from 13% in
2003, 4% in 2009 due to the significant international competition in the UK.
(Pass Port GMID, 2010).
The KeyNote Research (2010) indicates that 79.5% of adults listen to music
every day in the UK and 69.4% listens to the radio and 23.3% buy music CDs
from a shop. The research also said that according to Nielsen Media Research
(NMR) market review of music industry has shown that record industry had to cut
its budget for conservative advertising and promotion.

BPI has stated that

revenues from advertising have decreased to 100 m a year from 131.6 m.

This shows how piracy has broken the budget of the advertising.
Music Industry sees rise in revenue in 2013 for first time
The International Federation of the Phonographic Industry (IFPI) reported that
music revenue is up 0.3 % over 2011, moving to 10.9 billion. IFPI also stated
that legal digital music services are available in over 100 countries and revenues
from legal digital services continue to rise quickly. According to NPD Group

illegal music file declined significantly in 2012 and illegal downloaded music
files from P2P services also declined 26%.

It was long suspected that

reasonably priced and easy to use legal alternatives will make people not to use
unauthorised sites and services. (Farivar, 2013)
Legal Download Sites
According to IFPIs digital report (2012) the most complete and updated directory
of 500 legal music services in 78 countries. The most popular service is iTunes.
Consumers have also accessed download stores , music streaming services,
and Internet radio websites. Music streaming services have attracted a large
amount of attention. Spotify have allowed two of the largest record labels to
generate tremendous amount of revenue in Sweden. (Lindvall, 2011). In 2011
digital music revenues of record companies increases by 8% worldwide.
More industry friendly services like Spotify has arrived in recent years. Spotify
was launched in 2008 and it is music streaming service which offers minimum
potential access to a 8 million music track library, it is operated through
combining peer-to-peer protocols and client-serve access (Kreitz, 2010). Spotify
offer two versions of the service. Free one is the most popular version, where
users can listen to music without any charge but they have to listen to ads and
promotions between every few songs. The second version is Spotify premium
where users pays a subscription fee per month of 9.99 and no advertisements,
users may also make playlist of their favourite songs to listen offline.
Steven Bertoni (2012) a Forbes magazine writer have stated that Daniel EK, a
Swedish born and also a creator of Spotify, has created a free of cost faceenables platform that may save the music industry from piracy. Bertoni has also
said that music industry was waiting for a long time for someone to create
something more attractive to consumer than piracy which would also give a
better model of revenue. As mentioned earlier that IFPI digital music report 2012
stated that service subscription has captured extraordinary market especially in
Scandinavia. 84% of subscription was accounted of digital revenues in 2011 first
ten months through Spotify. The service have now launched in 12 countries

including the US and Germany, a continue trend of success is expected in the

future so far. (Bertoni, 2012)
Methodology
This research will concentrate on peoples attitude to music piracy.

The

Secondary research was presented in the above sections by using books,

articles, journals etc. The second type of research is Primary research which
was build on secondary research findings. The researcher will now outline the
methodology of the primary research to be conducted and what approaches to
use. The methods will be evaluated of why they were suitable and what are their
drawbacks.
Secondary Research
The reusing of existing data gained from previous research studies is called
secondary research and it can be used to examine or investigate new or more
research questions or to verify previous research findings (Heaton, 2008).
Secondary data can be fragmented in internal or external groups. Internal data is
good for businesses because this data is collected by the organisations
previously and is available to help the other organisation. External data is good
for individuals academic needs because this the information collected from
outside sources such as public libraries, universities databases, government
(Malhotra et al, 2003).
In this research many secondary sources were used for the reason that a
combination of documentary and survey was used. Most of the secondary data
was used from academic journals, articles available online. The effort was made
by the researcher to get a hold of most updated data on music industry statistics
and online piracy. Survey data was used for example Keynote, Nielsen which
are privately owned market research companies who release market data to
participating institutions and subscribed customers. IFPI website and their 2012
digital music report was used for majority of industry statistics.
Primary Research

Primary research is the data gathered and created for the question for research.
Primary data can be both quantitative and qualitative.

The quantitative

characteristics is targeted at numbering larger samples to carry out some kind of

statistical analysis to approve or disapprove hypothesis. The qualitative aspect
on the other hand is aimed at small samples to give more direct outcomes for
instance to search the problems understanding. Both these methods are helpful
for research (Kumar, 2010). The choice of research method is determined by the
nature of the study.

The research objective is important to determine

methodology for the primary research.

Evaluate the literature on the recent debate on music piracy
Review the problem of music piracy and analyse its impact on the industry
Investigate who is doing music piracy and what do they use
Collect the qualitative understanding into the music piracy ethics.
Explore industry responses

Qualitative and Quantitative Approaches

Qualitative or Interpretivist approach is the concept that reality is not external
or objective but is an individual meanings perceptions and translation which
creates understandings (Creswell, 2003).

Interpretivist includes qualitative

assessment that explains different experiences people have instead of looking

for external forces to understand their behaviour (Easterby- Smith, 2002).
According to Saunders (1997) small samples of subjects is very appropriate
methodology for this aspect.
Quantitative or Positivist approach believes the idea that world should be
viewed objectively as it exist externally. The philosopher Auguste Comte argued
that society acts in accordance to their laws by believing that only real knowledge
exist which is based on observed facts which means that researcher are able to
assume theory hypothesis to try to explain relationships between factors that are
liable to change by using quantitative method. (Easterby- Smith et at. 2002)

Approach used in this research

There are three types of primary research: Interview, questionnaires and

observation. Observation method is watching and listening to subject in their
natural environment. However, observation is an unrealistic way of gathering
data for piracy (Kumar, 2010) The researcher have used interpretivist approach
which contains small sample of respondents to collect more understanding and
insight. The interview will take semi-structured form. The anonymity is assured
for the interview method to work. The researcher have personally promised to
keep their private information a secret.

Ethical Consideration of the Research

The researcher has conducted the research according to the principles of ethical
conduct. The researcher have followed the ethical conduct discussed below:

Researcher have been extra careful in ensuring that participants in this

research study are not involved in any situation in which they wouldve

been harmed. The research was not harmful to participants in any way.
Researcher has sworn on guaranteeing privacy of the participants. The
researcher has not revealed any identifying information about the

participants in written or any other means of communication.

Researcher has treated all the information provided by the participants in

a confidential manner.
Researcher have personally informed the participants the nature of the

research and got their consent before conducting the research

Researcher tried really hard to choose participants who are not
researchers friend and have provide an environment that is trustworthy to
participants (sagepub.com)

1.5

Provide an appropriate plan and procedures for the agreed research

specification
Plan and Timescale for the Research

Task
Start Date
Meeting Planning
16/6/14
Develop Questions 16/6/14

Duration
1
11

End Date
16/6/14
30/6/14

for interview
Appointments

12

15/7/14

for 30/6/2014

Interview

2.1

Receive responses
Data Entry
Data Analysis
Write Report
Distribute
Draft

15/7/14
15/7/14
11/8/14
14/8/14
3/9/14

16
18
4
12
1

5/8/14
8/8/14
14/8/14
1/9/14
4/9/14

Report
Solicit comments
Finalise report
Distribute to Board
Board meeting

5/9/14
10/9/14
18/9/14
26/9/14

4
5
1
1

10/9/14
17/9/14
18/9/14
26/9/14

Match resources efficiently to the research question or hypothesis

Goeff Taylor, the British Recorded Music Industry (BPI) stated that illegal
downloading was becoming a parasite. According to BPI research on internet
users habits reports that more than three quarters of music downloaded in the
UK is illegally attained without any payment to the song writers, music companies
and musicians who produce it. On the positive note BPI also reported early this
year that legal downloads had seen rise in sales by 154 million which is more
than 50% compared to 2008 which was 101.5 million. (bbc.co.uk)
Lane (2013) have stated that illegal downloading in the UK have increased
despite the blocking popular file sharing sites by ISPs. However more people are
paying for online music, movies and TV shows. Lane explained that 48% of
users obtain media files illegally because it is free, 39% do it because it is
convenient, and 36% attempt illegal downloads because it is quick (Lane, 2013).

Courts have compelled UKs main broadband providers to block popular filesharing sites. BPI, MPA and other copyright owners have aimed UKs largest
ISPS such as BT (Plusnet included), Virgin Media, Sky (O2 and Be included) and
TalkTalk to block Pirate Bay, Kickass Torrents, Newzbin2, Download4All, Movie2k
and EZTV. (recombu.com)
Copyright protection is very highly important to the music industry.

It is

necessary to understand the copyright concept to know the impact of illegal

downloading on the record label and consumers intellectual property rights
expansion. Copyright allows the record label to produce and artists work and
sell if for profit. However the P2P networks popularity means that the occurrence
of copyright infringement is on a massive scale by unauthorised copying and
distributing media files. (Yar, 2005).

Music industry model face a serious

challenge from digital piracy because the industry depends on a pricing per unit
and enforcement of copyright law. (Leyshon, Webb, French, Thrift, & Crewe,
2005)

2.2

Undertake the proposed research investigation in accordance with the

agreed specification and procedures
According to Barriball (1994) semi structured interviews are appropriate to
explore the opinions and perception of respondents. This method allowed the
researcher to review information which cannot be done on a questionnaire.
Interviews enable the researcher to come into personal contact with the
respondents that makes the researcher able to improve data contradictions.
Sample of the Interview
Interviews were conducted on 16 undergraduate students as target population.
The reason for researching on students is because IFPI (2005) reported that
young people specifically college students most likely to get their music from
illegal downloading sites. Students need for social networks and studies has

made high speed internet a necessity for students. Internet plays a huge role in
a students life. Majority of digital song downloading takes place in the university
environments that is why university is the suitable setting for this research (Healy,
2003)
Interview Design
Researcher has personally approached to talk about the conducting the interview
possibility.

The participants asked questions about the process and time

arrangements convenient to both researcher and participant. 26 students were

asked to participate in the interview but 16 agreed to do it. Participating students
were informed about the nature and purpose of the interview before carrying out
the interview. The interview was between 25 to 55 minutes.
Validity
Validity was tested by conducting two pilot interviews prior to the main interviews
by asking the respondents how they thought the interview was, interview
framework set out by Lazarsfeld (1954).
Interview Strategy
Primary research strategy was to prepare a semi-structured interview before. A
basic list of open ended questions was made in order to follow the interpretivist
approach. The interviews were recorded on a tape recorder. Some participants
were concerned about the interview being recorded due to the threat to
anonymity; therefore, the researcher promised personally that none of the
information would be disclosed like their name and address.
The interview was created into seven units.

The first unit asked about

demographic information to build rapport with the respondents to make them feel
comfortable and their music downloading behaviour. This unit will build basic
respondents profile like age, occupation. The second unit asked about sampling
method of downloading. Sampling method is the main argument in favour of

illegal downloading. The questions were regarding illegal downloaded music for
the purpose of trying out and buying it later.
The third unit asked about social norms. The first two questions tried to assess
the comparison between their own behaviour and friends and family.
The fourth unit targets to disclose any neutralisations used by respondents to
justify their actions.
The fifth and sixth unit enquire legal threats and legal alternatives to piracy.
The seventh unit is designed to get participants views towards music industry.
The interview design allowed the researcher to build rapport with the participants.
The interview to examine further the relationship between researcher and
respondents had developed.

2.3

Record and collate relevant data where appropriate

Sample of Descriptive Statistics
Respondent

Age

Gend

Incom

er

(R)

Status

Amount of Applications
download

()

used

ed songs

R1

Male

21

3375

Student

illegally
1500

R2

Male

21

3375

Student

500

BitTorrent
Torlock

700

BitTorrent
Torlock

200

BitTorrent
Isohunt

R3
R4

Male
Male

22
19

3375
3375

student
Student

Isohunt

R5

Female

22

4000

Student

3000

BitTorrent
FlixFlux

R6

Female

23

4000

Student

4000

BitTorrent
Kickasstorrent

R7
R8

Male
Male

22
22

3375
3375

Student
Student

350

s BitTorrent
Isohunt

1000

BitTorrent
Torrentcafe

R9

Male

20

5200

Student

2000

BitTorrent
Kickasstorrent

R10

Female

22

3375

Student

5000

s BitTorrents
Piratebay

4000

BitTorrent
Kickasstorrent

8000

s BitTorrents
Piratebay

R11
R12

Female
Male

21
21

3375
3375

Student
Student

R13

Female

22

4200

Student

400

BitTorrent
Piratebay

R14

Male

22

3375

Student

800-1000

BitTorrent
Demonoid

10,000

BitTorrent
Piratebay

300

BitTorrent
Kickasstorrent

R15
R16

Male
Male

21
23

3375
3375

Student
Student

s BitTorrents

Each respondent was given a code. The letter R stands for respondents for
interview and number represents the order they were interviewed. The objective
of the research which was who is doing music piracy and what do they use is
satisfied by this unit. All participants were students between the age of 19-23.
The research may limit the effectiveness if results from the interview due to the
fact that general population was not represented.

According to Gopal et al

(2009) stated that digital music piracy behavioural model shows that older people
above 29 years of age will engage less in illegal downloading. This gives the
chance that the information on respondents between the age of 24 and 29 would
improve the results.

The students whose income was 3375 shows that

individuals with lower incomes are more likely to turn to piracy instead of buying
and sample new music. 100% students download music from P2P services from

the BitTorrent sites. Pirate bay and Kickasstorrents were the most common sites
amongst the sample
Have you downloaded as a sample method
The results showed that only three of the 16 participants (R3, R6, R10) had used
sampling method to buy music: A quote from 16 stated:
I do download a track from my favourite singer when the songs are released just
to see if I like them. I do buy tracks right away sometimes without downloading,
if I love the singer and the track I always buy it
According to respondent R11 he buys the previously downloaded track if hes
unable to find a good or full download of the song on any BitTorrent sites.
Among all the participants the most common response received was they would
not buy a track if they already got it for free.
How you know someone else who illegally downloads
The answer ranged from friends to parents. R7 responded that it is a norm in his
group of friends, they text each other to download a good song before going out
at nights.

Do you evaluate the rightness or wrongness of your action before every

song or album you download illegally? Do you evaluate what good or bad
will result from your actions?
Only one student admitted that he does evaluate the wrongness of his action
(R1) and he does realise that some bad might come out of his actions. All the
other 15 did not feel that illegal download is an ethical dilemma for them.

Do you think the moral values of illegal downloaders are same to those
who legally download their music?
The researcher received mixed results.

Only 6 students responded that the

moral values are not the same because people who buy music want to support
the artist. The other 10 students said that they are same because either way
they want to enjoy music its just a matter of choice.
Which statement do you agree the most?
Studen R

10

11

12

13

14

15

16

Statem
ents

A
B
C
D
E
F

The table demonstrate the results of which statements students agreed most.
The letters relate to the statements below that students agreed the most:
A. Illegal download is the only choice I have because I dont have enough
money to buy the whole album.
B. I dont believe downloading one song for free affects the whole industry
C.
D.
E.
F.

therefore my actions are not significant

Prices are so high that piracy is the good option so its the labels fault
If industry was fair with me I wouldnt have downloaded illegally
My actions may be wrong to some extent, but I did for family and friends
I dont agree with any statement.

Statement A was the one that most students agreed the most. B and C were
respectively followed and no one agreed with F which indicates that all sixteen
students were aware of their wrong behaviour. This technique is neutralization
technique. Majority of students justified their behaviour by denying their
responsibility. Money plays a big part in illegal downloading.
Are you aware of legal downloading platforms? Do you identify the current
attempt of music industry to combat piracy and what are your views on
legal downloading methods?
All sixteen students knew about legal downloading platforms, with most common
is iTunes. 9 of the participants have actually purchased songs of iTunes.
R14 stated that he just downloads music from Demonoid and drag it to iTunes to
put it straight on to iPod.
9 of sixteen didnt know any subscription services. After investigating more it
turned out that 14 of sixteen have heard of Spotify, one of the most popular
subscription services in UK. Students lack knowledge of the services provided
by subscription services and how it can benefit industry.

How do you feel about the legal threat which illegal download pose on
individual in the form of lawsuit?
The responses indicated that students believe a threat of getting caught and
penalized is very insignificant. R9 stated that it must have been one in a million
if they even fined so hes not worried at all.
Ive downloaded around 10,000 songs and they havent caught me yet I dont
they can ever. (R15)

Would you stop downloading illegally if the chances of being prosecuted

are higher?
!3 out of 16 admitted that they would probably stop illegal downloading if the
chances of getting prosecuted was higher. R7 and R10 it wouldnt completely
stop them.
How would you feel if specific Bit Torrent site got shut down?
14 responded that they would switch to another site. Three said they would be
annoyed but they would try something else. The response indicated that illegal
downloading is more influential than the programmes.
Legal actions taken by the music industry on people so far are unable to serve as
discouragement.
How do you think your actions are affecting the industry?
Majority of students have perceived the industry as greedy because the prices of
music is too high. All students believe music industry is highly rich and everyone
belong to it are well paid. R17 said that Album prices are ridiculously high.
Tickets and merchandise price is ridiculously high and expensive. They all have
luxurious lives.
The responses demonstrate the distrust towards the industry.

What negative affects if any do you think can piracy have on the
industry?
The answer to this question were that all students agreed that record label
and artists would gain less money off album sales. One of the student R9
said that Zaavi and Virgin Megastores went out of business because high
street retailers are affected

The only negative affect that students view is loss of jobs.

3.1

Select and use the appropriate research evaluation techniques

Evaluation Method
The researcher have used semi-structured interviews on one on one basis.
The richer data was collected by participants. The validity and success of an
interview rests on the whether the respondents opinion are true. According to
Jones (1985, cited on Punch 2001) In order to understand other persons
constructions of reality, we would do well to ask them...and to ask them in
such a way that they can tell us in depth which addresses the rich context that
is the substance of the meanings. Validity threat to interview is the use of
leading questions or the preconceived ideas researchers which influence
what worth discussing.

The live nature of face-to-face interviewing and

language difficulty is not easy to avoid. On the other hand the complexity
gave rich and deep data. The researcher has use participatory approach in
which the interview data are evaluated and increases internal validity.
Patton (2002) mentioned that comparability is decrease because responses
are different in each interview. Interviews develop their own coherence which
analysed itself. Researcher had pulled evidence from the data which when
understood sounds credible, reliable and convincing.
The researcher used both recording the interview on the tape and writing
summary of the answers. I have used the tape recorder with a counter, and
set it at zero at the beginning of each tape and wrote down counter number
every few minutes. The tapes are later transcribed and compared with the
answers summary to ensure validity and reliability.

3.2

Interpret and analyse the results in terms of the original research

specification
Research Findings Summary

Students responses in this research were similar but the downloading

patterns were different. Gender did not play any role in the illegal downloads
female download just as much as males do. Students use decentralised P2P
Bit Torrent site, and Pirate Bay and Kickass torrents were the most popular
ones. The research showed that sampling method applies on small minority
of music pirates. I found that increasingly piracy social acceptance leads to
no ethical dilemma for the user. Students justified their behaviour through
denying their responsibility of using unauthorised downloading.
The study found all students were aware of legal downloading sites. However
researcher found it very interesting that some of the students were actually
using legal alternatives to help transfer illegal music files. Students have lack
of knowledge about subscription services, industry should encourage
promotions of the legal sites to handle illegal methods.
Students were not concerned about potential legal action, because the
number of penalised cases is very small. Students majority are willing to stop
downloading if the chances of being prosecuted is higher.

Students

perception about music industry is very negative, they believe piracy is not
affecting music industry but they are aware of the negative effects on the loss
of jobs for common people. The effort of music industry to educate people
about the affect of illegal downloading is working as figures by IFPI reported
that there has been rise in revenues through legal digital downloading sites.
The study was exploratory and there was a lack of quantitative findings, but
the research does provide a multidimensional explanatory understanding into
what is useful to measure peoples attitudes toward downloading.

3.3

Make recommendations and justify areas for further consideration

Limitation to the Research

The first limitation of the research was that the respondents were mostly
males than females which could have affected the validity of the sample and
making females seems that they download as much as males unreliable. The
study shouldve been done by equal genders.
The second limitation was that sample was targeted on students because
student population use illegal downloading and music piracy more than any
other sample. A mix of demographics could be implied on further research.
Recommendations

The research has found that there are more P2P users that is why

more research should conducted into P2P rise.

Spotify should focus on educating people on the benefits of

subscription services such as Spotify.

Industries should create package to stop illegal digital content .
Spotify should come up with packages particularly for student which is
cost effective and will encourage them to turn to Spotify and not

towards illegal networks.

Money is the main issue for illegal downloads, Spotify should introduce
a package that fits for students needs which price is reasonable and
attractive enough to pursue students towards Spotify since student

population is the largest user of the music piracy.

Spotify can improve its like based radio stations, it can partners with
other distribution channels, balance the effects of networks and open

services.
Spotify should also continue with its strategy of bundling and

decreasing switching costs from competitors

Spotify have to improve its algorithms to better quality than Pandora.
Spotify could partner with the car companies because large amount of
music is listened to in the car, Spotify can develop a Sirius radio type
service that streams users personaised music library in their car.

4.1

Use an agreed format and appropriate media to present the outcomes of

the research to an audience

Conclusion
Research has found that majority of consumer does not find music downloading
unethical because it has grown within the social norms of societys youth.
Neutralisation was used to predict the pattern of illegal downloading behaviour.
Primary research and secondary research (literature) was used for a better
understanding of piracy.

It could be useful for industry to make efforts to

understand piracy more especially in universities where illegal downloading is

used by dense student population.

Proportion of young people do not notice the industrys efforts even though they
know the situation and they are not threatened by the legal action which
organisations has taken such as RIAA.

It is clear from the research that

subscription services such as Spotify must be focused by industry. The study

has shown that there is a huge lack of knowledge about the advantages of
subscription services to consumers. Spotify should be made a mainstream as
much as Bit Torrent.
Final thought on conclusion is that music piracy is here to stay. People will get
better opportunities of downloading contents illegally then music piracy will
increase.

The primary research suggests that people are not going to stop

unless there is a higher chance of prosecution.

DISTINCTION CRITERIA
D1

Use Critical Reflection to Evaluate own work and Justify Valid Conclusions

I conducted this research to examine the peoples behaviour towards illegally

downloading music files.

Illegal downloading has become an immensely

extensive practice which poses a huge challenge to political and economic actors
in the cultural industry. Many studies have focused on illegal downloading, I
have notices that none of the studies have addressed questions like how do
common people reach to the point of undertaking illegal practice on every day
basis as a normal activity? And What type of strategies are used to neutralise the
tensions created by illegal practices?
I believe common downloading behaviours should be analysed further because
to my surprise not even one student was concerned with legal actions or felt any
tension of doing illegal practices. In the research I used neutralization theory and
wrote 6 statements for students to agree with the most.

My aim was to

understand the processes by which students reduce feelings of guilt. During the
research I came to realise that moral norms are accepted by groups with which
the respondent interacts such as family and friends.

I used neutralization

technique to see how the participants can justify their action to themselves, which
needed to be much more specified. Many researchers found that morality level
is negatively connected with illegal music downloading. It was really hard for me
to get people respond to questions about such sensitive issues like unauthorised
digital music downloading therefore I looked at whether people downloaded
illegally and asking about their preferred sources of digital music. I learned that
users are happy with their choice of sources of digital music downloading
because it provides overall utility in a free product than the one with a price.
People seems excited and dont seem to bother much if they switch to legal
channels of downloading with an incentive. As mentioned above people lack the
knowledge of subscription services and what good they can do for the industry
and for consumers.

There is a desperate need for educating them and

promoting services like Spotify for people to stop music piracy

D2

Take Responsibility for Managing and Organising Activities

D3

Demonstrate Convergent/Lateral/ Creative Thinking

File sharing technology has enabled consumers to copy music, books, videos
and games. Copyright holders and multinational music industries make and sell
the material are not happy with this development. Their revenues are threatened
by file sharing so they take drastic measures to sue for huge amounts of money
people who are engage in file sharing. Millions of people in majority are the
youth but not all are engaged in file sharing.
I believe prosecuting users for file sharing will not do any good for society. To the
consumer just because file sharing is illegal does not make it immoral. Young
people are questioning the laws merit that restricts them from sharing material.
They break copyright laws because they to them laws are not fair

Since young people are most likely to use file sharing sites due to the fact that
youth and students have limited or nonexistent funds therefore, they approach
free media with one in a million chances of being caught is too good to waste.
Even though BPI claims that illegal music downloading cost the industry 219
million is unrealistic especially when BPI have produced a document that showed
online music sales topped 160 million in 2010 a rise of 10 million over last
year. BPI blames the loss of revenue to illegal downloading but they did not
mention anything about how much are artists losing from illegal music
downloads. To my understanding the artists have never been that well paid by
the record label.
Geoff Taylor tried to present an argument to increase governments help by
saying The creative industries employ two million people in the UK and are the
fastest growing sector of the economy. Urgent action is needed to protect those
jobs and allow Britain to achieve its potential in the global digital market. I was
thinking that record labels want governments help instead of doing something to
help millions of UK workers. We all know record labels are multi-billion pound
industries that reported sales growth and still asking governments help that has
just gone through most sever public sector cuts in the lifetime for help. I wouldnt
expect anything soon if I was Mr. Taylor.
I would think if record labels would reduce prices, increase loyalty and not be so
greedy then BPI can see the growth it wants. (Latif, 2010)

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