Intellectual Property Policy

FirstPreviousNext

The Impact of Music Downloads and P2P File-Sharing: Tables

Table 3.1: Summary of basic demographics across the dataset based on 2005 data
Variable Number of observations n Weighted population N
Number Percent Number Percent
Source: own calculations based on Decima Research survey data.
Women 1,065 50.7 12,615,189 52.0
Men 1,035 49.3 11,666,415 48.0
 
Age group 15 and 19 523 25.1 2,860,611 11.8
Age group 20 to 24 298 14.2 1,586,431 6.5
Age group 25 to 34 339 16.2 4,429,441 18.2
Age group 35 to 44 322 15.4 4,933,076 20.3
Age group 45 to 54 277 13.3 4,412,018 18.2
Age group 55 to 64 194 9.3 3,402,099 14.0
Age group 65 plus 134 6.4 2,535,992 10.4
 
French Canadian 1,006 47.9 5,945,875 24.5
English Canadian 1,094 52.1 18,335,729 75.5
 
P2P downloads 1,005 47.9 7053251 29.0
No P2P downloads 1,095 52.1 17228353 71.0
 
Total 2,100 24,281,604
Table 3.2: Patterns of acquiring music within the Canadian population based on 2005 data
Ways to acquire music Number of population Percent of population Standard error in percent
Source: own calculations based on Decima Research survey data.
Buy music CDs 18,748,389 77.2 1.3
Buy music tracks from pay-sites 3,311,519 13.6 1.0
Download free music, e.g. promotion websites 5,624,353 23.2 1.1
Download free music from P2P networks 7,053,251 29.0 1.1
Copy MP3s from friends 4,974,705 20.5 1.1
Rip songs from CDs 7,096,634 29.2 1.3
Download music from peoples free music websites 2,074,280 8.5 0.8
Table 3.3: Summary of variables used for estimating the extent and determinants of music consumption in CD and MP3 pay-markets based on 2005 information
Concept Variable Relevance Type of data
Demand and price in pay markets
  • Number of CDs purchased by respondents
  • Number of MP3s purchased (i.e. buying music tracks from online pay-sites like iTunes or Archambault)
 Whole sample Count
  • Experienced average price of music CDs in $ Canadian
  • Experienced average price of MP3 music files
 Whole sample Interval
Relative price
  • Percentage of P2P downloads due to 'album too expensive'.
 P2P file sharers Percent
Other free music markets
  • Downloading free music from P2P file-sharing networks, like Kazaa, LimeWire, eDonkey, BearShare or Gnutella
  • Ripping CDs and copying them onto computers
  • Downloading free music from promotional website
  • Download music from peoples' private Internet websites
  • Copy MP3 from friends
 Whole sample Count and Binary
(yes/no)
Substitute entertainment goods
  • Number of purchased DVDs
  • Number of purchased video games
  • Number of movie tickets
  • Number of live concerts
 Whole sample Count
Availability
  • Percentage of P2P downloads due to music 'not elsewhere available'
  • Percentage of P2P downloads due to wishing to buy 'whole album'
 P2P file sharers Percent
MP3 ownership
  • MP3 player ownership.
 P2P file sharers Binary
(yes/no)
Music exploring
  • Percentage of P2P downloads to 'hear before buying'
 P2P file sharers Percent
Income
  • Household income in $ Canadian under 10K
  • Household income in $ Canadian: income 10K to 20K
  • Household income in $ Canadian: income 20K to 40K
  • Household income in $ Canadian: income 40K to 60K
  • Household income in $ Canadian: income 60K and higher
 Whole sample Interval
Music quality
  • Experience of increased 'quality' of music (= more taste for current music)
  • Experience of decreased 'quality' of music (= less taste for current music)
  • Experience of same 'quality' of music (= neutral taste for current music)
 Whole sample Binary
(yes/no)
Music interest
  • Music interest very limited
  • Music interest somewhat limited
  • Music interest moderate
  • Music interest somewhat strong
  • Music interest very strong
 Whole sample Binary
(yes/no)
Internet skills
  • Internet skills: not at all skilled
  • Internet skills: not very skilled
  • Internet skills: somewhat skilled
  • Internet skills: skilled
  • Internet skills: very skilled
 Whole sample Binary
(yes/no)
Age
  • Age group 15-19
  • Age group 20-24
  • Age group 25-34
  • Age group 35-44
  • Age group 45-54
  • Age group 55-64
  • Age group 65-plus
 Whole sample Binary
(yes/no)
Gender
  • Male
  • Female
 Whole sample Binary
(yes/no)
Region
  • Quebec
  • Rest of Canada
 Whole sample Binary
(yes/no)
Table 4.1: Determinants of CD album purchases in the Canadian population for the year 2005
Dependent variables Number of CD albums Log number of CD albums Square root no of CD albums
Estimation model OLS OLS OLS
Independent variables b t-value sig b t-value sig b t-value sig
* p<0.10;
** p<0.05;
*** p<0.01.
All regressions are estimated with a constant. The number of observations is smaller than the total number of respondents in the survey due to missing values; e.g. Price of CDs was answered by 1,575 survey participants.
Source: own calculations based on Decima Research survey.
Price of CDs -0.019 -0.19   -0.003 -0.50   -0.004 -0.37  
P2P (yes/no) -2.510 -1.80 * -0.076 -1.29   -0.206 -1.62  
Rip CD (yes/no) 3.127 2.28 ** 0.089 1.39   0.259 1.90 *
Promotional (yes/no) -0.039 -0.03   -0.103 -1.63 * -0.114 -0.92  
Private Web (yes/no) 6.513 2.60 *** 0.236 2.42 ** 0.591 2.66 ***
Copy MP3 (yes/no) -2.658 -2.35 ** -0.130 -2.38 ** -0.291 -2.57 ***
Purchased MP3s (yes/no) 0.349 0.28   0.088 1.39   0.113 0.88  
Number of DVDs 0.873 2.06 ** 0.080 3.88 *** 0.136 3.15 ***
Number of videogames 2.129 2.70 *** 0.106 3.49 *** 0.226 3.28 ***
Number of cinema tickets 0.331 0.79   0.043 1.80 * 0.063 1.38  
Number of concert tickets 3.032 3.43 *** 0.152 4.78 *** 0.320 4.25 ***
Income 10 to 20 -0.704 -0.47   -0.032 -0.23   -0.082 -0.38  
Income 20 to 40 0.843 0.55   0.087 0.72   0.126 0.64  
Income 40 to 60 1.071 0.76   0.150 1.25   0.207 1.08  
Income 60 plus 1.112 0.88   0.159 1.39   0.215 1.20  
Quality increase -0.550 -0.58   0.007 0.12   -0.028 -0.27  
Quality decrease 1.458 0.99   0.074 1.05   0.149 1.02  
Interest very strong 5.760 3.70 *** 0.532 3.73 *** 0.877 4.03 ***
Interest somewhat strong 3.157 2.49 *** 0.427 3.08 *** 0.621 3.09 ***
Interest moderate -0.087 -0.08   0.144 1.05   0.140 0.73  
Interest somewhat low -1.423 -1.00   -0.012 -0.08   -0.099 -0.42  
Internet: very skilled -3.059 -1.49   -0.150 -1.34   -0.329 -1.48  
Internet: skilled -5.447 -3.01 *** -0.214 -2.12 ** -0.524 -2.65 ***
Internet: somewhat skilled -3.324 -1.88 * -0.104 -1.03   -0.297 -1.52  
Internet: not very skilled -5.205 -3.03 *** -0.241 -2.31 ** -0.541 -2.78 ***
Age 15 to 19 3.075 1.87 * 0.165 1.35   0.351 1.68 *
Age 20 to 24 3.024 1.88 * 0.188 1.55   0.375 1.82 *
Age 25 to 34 5.036 2.72 *** 0.236 1.91 * 0.532 2.44 **
Age 35 to 44 5.184 2.73 *** 0.298 2.45 *** 0.599 2.74 ***
Age 45 to 54 3.770 2.62 *** 0.250 2.20 ** 0.474 2.50 ***
Age 55 to 64 4.432 2.72 *** 0.266 2.27 ** 0.521 2.61 ***
Gender (men=0, women=1) -1.241 -1.74 * -0.090 -1.95 ** -0.169 -1.99 **
Region (Quebec=0, rest=1) -1.683 -2.12 ** -0.102 -2.23 ** -0.200 -2.29 **
Constant 4.971 1.80 * 1.522 6.60 *** 2.005 5.36 ***
 
Number of observations   1,459     1,459     1,459  
Population size 15,962,300 15,962,300 15,962,300
F-value   5.29 ***   7.63 ***   6.86 ***
R-square   0.22     0.23     0.23  
Table 4.1: Determinants of CD album purchases in the Canadian population for the year 2005 (continued)
Dependent variables Number of CD albums Number of CD albums
Estimation model Poisson Negative binomial
Independent variables M.E. t-value sig M.E. t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. Marginal effects (M.E.) are given with the t statistics of the underlying coefficients. M.E. are calculated at the means of the regressors in the case of continuous data and for discrete change from 0 to 1 in the case of dichotomous variables. The number of observations is smaller than the total number of respondents in the survey due to missing values; e.g. Price of CDs was answered by 1,575 survey participants.
Source: own calculations based on Decima Research survey.
Price of CDs -0.008 -0.08   0.002 0.02  
P2P (yes/no) -1.619 -2.01 ** -0.948 -1.40  
Rip CD (yes/no) 2.780 2.50 *** 2.440 2.67 ***
Promotional (yes/no) -0.313 -0.41   -0.620 -0.88  
Private Web (yes/no) 4.300 3.49 *** 3.686 2.85 ***
Copy MP3 (yes/no) -2.007 -2.64 *** -1.648 -2.45 ***
Purchased MP3s (yes/no) 0.235 0.29   0.398 0.55  
Number of DVDs 0.701 2.35 ** 0.694 2.95 ***
Number of videogames 1.354 3.61 *** 1.018 3.10 ***
Number of cinema tickets 0.380 1.21   0.444 1.66 *
Number of concert tickets 1.946 4.42 *** 1.518 4.17 ***
Income 10 to 20 -1.208 -0.76   -0.897 -0.58  
Income 20 to 40 0.416 0.26   0.720 0.48  
Income 40 to 60 0.904 0.63   1.167 0.83  
Income 60 plus 0.868 0.66   1.322 1.02  
Quality increase -0.359 -0.51   -0.480 -0.78  
Quality decrease 1.263 1.30   0.970 1.13  
Interest very strong 8.081 3.78 *** 8.793 4.26 ***
Interest somewhat strong 5.944 2.94 *** 6.565 3.31 ***
Interest moderate 1.651 0.91   2.231 1.24  
Interest somewhat low -0.685 -0.34   0.278 0.14  
Internet: very skilled -3.080 -2.14 ** -2.380 -1.83 *
Internet: skilled -4.424 -3.41 *** -3.416 -2.98 ***
Internet: somewhat skilled -2.820 -2.11 ** -1.950 -1.64 *
Internet: not very skilled -4.288 -3.54 *** -3.515 -3.20 ***
Age 15 to 19 4.670 2.44 ** 3.122 1.93 **
Age 20 to 24 5.003 2.61 *** 2.870 1.79 *
Age 25 to 34 6.328 3.03 *** 3.944 2.24 **
Age 35 to 44 6.742 3.36 *** 4.412 2.76 ***
Age 45 to 54 5.476 3.14 *** 3.360 2.27 **
Age 55 to 64 6.353 3.05 *** 4.006 2.42 **
Gender (men=0, women=1) -0.889 -1.39   -1.046 -1.87 *
Region (Quebec=0, rest=1) -1.389 -1.95 ** -1.862 -2.98 ***
Constant 1.491 4.83 *** 1.535 5.57 ***
 
Number of observations   1,459     1,459  
Population size 15,962,300 15,962,300
F-value   8.96 ***   9.03 ***
Table 4.2: Determinants of MP3 purchases in the Canadian population for the year 2005
Dependent variables Number of MP3s Log no of MP3s Square root no of MP3s
Estimation model OLS OLS OLS
Independent variables b t-value sig b t-value sig b t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. The number of observations is smaller than the total number of respondents in the survey due to missing values; e.g. Price of CDs was answered by 1,575 survey participants.
Source: own calculations based on Decima Research survey.
Price of CDs -0.054 -1.66 * -0.002 -0.61   -0.006 -0.92  
P2P (yes/no) 1.154 2.19 ** 0.141 2.15 ** 0.222 2.29 **
Rip CD (yes/no) 1.958 3.74 *** 0.282 4.34 *** 0.420 4.34 ***
Promotional (yes/no) -0.183 -0.29   0.002 0.02   -0.009 -0.08  
Private Web (yes/no) -0.601 -0.88   -0.002 -0.01   -0.039 -0.26  
Copy MP3 (yes/no) -0.416 -0.79   -0.031 -0.48   -0.056 -0.59  
Number of DVDs 0.401 1.77 * 0.058 2.30 ** 0.085 2.19 **
Number of videogames 0.121 0.41   0.009 0.26   0.015 0.28  
Number of cinema tickets 0.454 2.79 *** 0.047 2.23 ** 0.077 2.50 ***
Number of concert tickets -0.011 -0.05   0.009 0.32   0.010 0.24  
Income 10 to 20 -0.631 -0.86   -0.073 -0.75   -0.112 -0.78  
Income 20 to 40 -0.219 -0.33   -0.068 -0.79   -0.086 -0.68  
Income 40 to 60 -0.017 -0.02   0.000 0.00   0.000 0.00  
Income 60 plus 0.380 0.55   0.021 0.24   0.046 0.36  
Quality increase 1.173 2.10 ** 0.113 1.77 * 0.184 1.91 *
Quality decrease -0.562 -1.22   -0.109 -1.82 * -0.152 -1.72 *
Interest very strong 0.164 0.39   0.057 1.04   0.075 0.93  
Interest somewhat strong 0.484 0.94   0.123 1.98 ** 0.165 1.78 *
Interest moderate -0.053 -0.13   0.021 0.40   0.024 0.30  
Interest somewhat low 0.133 0.25   0.074 0.83   0.090 0.72  
Internet: very skilled 1.078 1.92 * 0.181 2.60 *** 0.259 2.50 ***
Internet: skilled 0.293 0.84   0.150 2.43 ** 0.185 2.20 **
Internet: somewhat skilled -0.038 -0.13   0.026 0.65   0.027 0.47  
Internet: not very skilled 0.093 0.31   0.005 0.13   0.010 0.18  
Age 15 to 19 -0.712 -0.83   -0.145 -1.39   -0.199 -1.28  
Age 20 to 24 0.329 0.30   -0.140 -1.30   -0.137 -0.81  
Age 25 to 34 -1.109 -1.81 * -0.096 -1.04   -0.164 -1.26  
Age 35 to 44 -1.008 -1.74 * -0.122 -1.48   -0.186 -1.58  
Age 45 to 54 -0.730 -1.61   -0.053 -0.64   -0.095 -0.86  
Age 55 to 64 -0.357 -0.67   -0.092 -1.31   -0.119 -1.17  
Gender (men=0, women=1) 0.095 0.30   0.025 0.58   0.032 0.52  
Region (Quebec=0, rest=1) 0.044 0.13   0.020 0.52   0.023 0.40  
Constant 0.221 0.25   -0.073 -0.57   -0.073 -0.40  
 
Number of observations   1,458     1,458     1,458  
Population size 15,984,496 15,984,496 15,984,496
F-value   2.49 ***   4.52 ***   4.08 ***
R-square   0.08     0.12     0.11  
Table 4.2: Determinants of MP3 purchases in the Canadian population for the year 2005 (continued)
Dependent variables Purchased MP3s (yes/no) Purchased MP3s (yes/no)
Estimation model Probit Logit
Independent variables M.E. t-value sig M.E. t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. Marginal effects (M.E.) are given with the t statistics of the underlying coefficients. M.E. are calculated at the means of the regressors in the case of continuous data and for discrete change from 0 to 1 in the case of dichotomous variables. The number of observations is smaller than the total number of respondents in the survey due to missing values; e.g. Price of CDs was answered by 1,575 survey participants.
Source: own calculations based on Decima Research survey.
Price of CDs 0.001 0.52   0.001 0.53  
P2P (yes/no) 0.063 2.59 *** 0.053 2.41 **
Rip CD (yes/no) 0.140 5.43 *** 0.128 5.20 ***
Promotional (yes/no) -0.008 -0.33   -0.008 -0.38  
Private Web (yes/no) 0.015 0.43   0.014 0.45  
Copy MP3 (yes/no) 0.024 1.00   0.022 1.03  
Number of DVDs 0.009 0.98   0.009 1.18  
Number of videogames 0.005 0.35   0.004 0.35  
Number of cinema tickets 0.019 1.82 * 0.018 1.91 *
Number of concert tickets 0.007 0.64   0.007 0.66  
Income 10 to 20 -0.055 -1.13   -0.051 -1.22  
Income 20 to 40 -0.068 -1.47   -0.063 -1.58  
Income 40 to 60 -0.033 -0.67   -0.033 -0.76  
Income 60 plus -0.025 -0.50   -0.024 -0.55  
Quality increase 0.048 1.81 * 0.044 1.84 *
Quality decrease -0.030 -0.98   -0.024 -0.86  
Interest very strong 0.145 1.55   0.172 1.41  
Interest somewhat strong 0.210 2.01 ** 0.248 1.75 *
Interest moderate 0.140 1.41   0.180 1.35  
Interest somewhat low 0.132 1.01   0.174 1.00  
Internet: very skilled 0.263 4.05 *** 0.324 3.64 ***
Internet: skilled 0.278 4.42 *** 0.328 3.86 ***
Internet: somewhat skilled 0.145 2.62 *** 0.180 2.53 ***
Internet: not very skilled 0.185 2.85 *** 0.242 2.75 ***
Age 15 to 19 -0.069 -1.24   -0.064 -1.11  
Age 20 to 24 -0.068 -1.24   -0.061 -1.10  
Age 25 to 34 -0.039 -0.60   -0.039 -0.59  
Age 35 to 44 -0.043 -0.68   -0.039 -0.57  
Age 45 to 54 -0.020 -0.29   -0.016 -0.22  
Age 55 to 64 -0.053 -0.82   -0.049 -0.72  
Gender (men=0, women=1) 0.046 2.32 ** 0.041 2.24 **
Region (Quebec=0, rest=1) -0.009 -0.46   -0.006 -0.31  
Constant -3.135 -4.66 *** -6.216 -4.09 ***
 
Number of observations   1,458     1,458  
Population size 15,984,496 15,984,496
F-value   4.94 ***   4.20 ***
Table 4.3: Determinants of CD album purchases in the sub-sample of P2P downloaders for the year 2005
Dependent variables Number of CD albums Log Number of CD albums Square root no of CD albums
Estimation model OLS OLS OLS
Independent variables b t-value sig b t-value sig b t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. All estimation are based on the sub-sample of P2P downloaders only. There are 1,005 P2P downloaders in the survey. The number of observations in the regressions is 458 due to further missing values; e.g. only 759 participants gave information regarding the use of MP3 players. Furthermore, 246 observations were dropped from the regression. These are cases where participants answered that they downloaded from P2P networks yet estimated their number of downloads as zero.
Source: own calculations based on Decima Research survey.
Price CD albums 0.021 0.12   -0.007 -0.60   -0.005 -0.24  
Album too expensive -0.036 -1.89 * -0.003 -2.34 ** -0.005 -2.22 **
Number P2P 1.238 2.04 ** 0.094 2.50 ** 0.169 2.37 **
Number CDs ripped 3.536 4.10 *** 0.195 4.74 *** 0.401 4.65 ***
Number promotional sites -0.544 -1.19   -0.013 -0.50   -0.043 -0.82  
Number private websites 1.966 1.45   0.075 1.63 * 0.186 1.60  
Number MP3s copied -0.261 -0.45   -0.022 -0.67   -0.036 -0.57  
Number of MP3s purchased 0.299 0.54   0.039 1.06   0.060 0.88  
Number DVDs 0.066 0.14   0.027 0.89   0.030 0.53  
Number videogames 1.146 1.70 * 0.090 2.31 ** 0.156 2.06 **
Number cinema tickets 0.827 1.33   0.054 1.18   0.103 1.28  
Number concert tickets 1.272 1.29   0.082 1.66 * 0.153 1.52  
Not elswhere available 0.032 1.71 * 0.003 2.20 ** 0.005 2.06 **
Not whole album -0.018 -0.92   -0.001 -0.53   -0.002 -0.86  
MP3 player ownership -2.598 -1.98 ** -0.160 -1.97 ** -0.307 -2.03 **
Hear before buying 0.022 1.41   0.002 1.71 * 0.003 1.60  
Income 10 to 20 1.622 0.46   0.161 0.65   0.232 0.53  
Income 20 to 40 -0.713 -0.36   0.117 0.63   0.067 0.23  
Income 40 to 60 0.761 0.37   0.109 0.58   0.140 0.47  
Income 60 plus 0.984 0.49   0.147 0.79   0.197 0.67  
Quality increased -0.106 -0.09   0.122 1.44   0.108 0.69  
Quality decreased 1.824 0.89   0.129 1.22   0.205 0.96  
Interest very strong 5.674 1.61   0.250 1.10   0.631 1.53  
Interest somewhat strong 4.424 1.60   0.172 0.85   0.469 1.35  
Interest moderate 1.189 0.40   -0.094 -0.45   0.013 0.04  
Interest somewhat low -3.580 -0.96   -0.329 -1.35   -0.512 -1.17  
Internet: very skilled 3.780 0.80   0.518 1.76 * 0.708 1.33  
Internet: skilled 4.899 1.06   0.532 1.89 * 0.781 1.54  
Internet: somewhat skilled 4.735 1.02   0.596 2.06 ** 0.837 1.61  
Internet: not very skilled 1.907 0.39   0.261 0.84   0.329 0.59  
Age 15 to 19 -1.374 -0.30   -0.151 -0.58   -0.249 -0.50  
Age 20 to 24 -1.584 -0.38   -0.095 -0.39   -0.193 -0.42  
Age 25 to 34 -0.608 -0.14   0.054 0.21   0.023 0.05  
Age 35 to 44 1.038 0.27   0.099 0.43   0.144 0.33  
Age 45 to 54 1.101 0.24   0.051 0.21   0.102 0.21  
Age 55 to 64 0.255 0.05   0.178 0.56   0.182 0.30  
Gender (men=0, women=1) -1.955 -1.74 * -0.017 -0.23   -0.145 -1.04  
Region (Quebec=0, rest=1) -1.167 -1.05   -0.134 -1.81 * -0.208 -1.52  
Constant -3.209 -0.43   1.043 2.22 ** 1.063 1.23  
 
Number of observations n   458     458     44582  
Population N 3,113,998 3,113,998 3,113,998
F-statistic   5.67 ***   10.04 ***   7.82 ***
R-square   0.30     0.30     0.31  
Table 4.3: Determinants of CD album purchases in the sub-sample of P2P downloaders for the year 2005 (continued)
Dependent variables Number of CD albums Number of CD albums
Estimation model Poisson Negative binomial
Independent variables M.E. t-value sig M.E. t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. All estimation are based on the sub-sample of P2P downloaders only. There are 1,005 P2P downloaders in the survey. The number of observations in the regressions is 458 due to further missing values; e.g. only 759 participants gave information regarding the use of MP3 players. Furthermore, 246 observations were dropped from the regression. These are cases where participants answered that they downloaded from P2P networks yet estimated their number of downloads as zero. M.E. are calculated at the means of the regressors in the case of continuous data and for discrete change from 0 to 1 in the case of dichotomous variables.
Source: own calculations based on Decima Research survey.
Price CD albums 0.021 0.15   0.012 0.10  
Album too expensive -0.031 -2.10 ** -0.032 -2.65 ***
Number P2P 1.092 2.34 ** 1.212 2.94 ***
Number CDs ripped 2.525 5.28 *** 2.352 5.42 ***
Number promotional sites -0.325 -1.00   -0.212 -0.74  
Number private websites 0.790 1.72 * 0.737 1.59  
Number MP3s copied -0.444 -1.21   -0.332 -0.94  
Number of MP3s purchased 0.339 0.82   0.465 1.11  
Number DVDs 0.060 0.16   0.120 0.38  
Number videogames 1.108 2.29 ** 1.012 2.38 **
Number cinema tickets 0.852 1.61   0.918 1.82 *
Number concert tickets 1.028 1.57   0.905 1.68 *
Not elsewhere available 0.035 2.44 ** 0.036 2.63 ***
Not whole album -0.015 -1.02   -0.017 -1.26  
MP3 player ownership -2.141 -2.10 ** -1.851 -1.91 *
Hear before buying 0.016 1.30   0.013 1.15  
Income 10 to 20 1.712 0.49   1.501 0.46  
Income 20 to 40 -0.802 -0.40   -0.172 -0.09  
Income 40 to 60 0.458 0.22   0.190 0.09  
Income 60 plus 0.594 0.30   0.881 0.45  
Quality increased -0.076 -0.07   0.458 0.47  
Quality decreased 0.843 0.64   0.379 0.32  
Interest very strong 6.591 2.31 ** 7.054 2.85 ***
Interest somewhat strong 5.914 2.29 ** 5.876 2.46 ***
Interest moderate 1.861 0.69   2.307 0.98  
Interest somewhat low -2.223 -0.82   -1.599 -0.63  
Internet: very skilled 4.682 0.86   3.168 0.66  
Internet: skilled 1.05   3.921 0.80    
Internet: somewhat skilled 6.149 1.05   4.889 0.94  
Internet: not very skilled 2.434 0.42   0.980 0.19  
Age 15 to 19 -0.937 -0.27   -1.536 -0.50  
Age 20 to 24 -1.256 -0.40   -1.040 -0.36  
Age 25 to 34 -0.355 -0.10   -0.111 -0.04  
Age 35 to 44 1.031 0.33   0.608 0.22  
Age 45 to 54 0.924 0.26   0.206 0.07  
Age 55 to 64 -0.358 -0.09   0.725 0.18  
Gender (men=0, women=1) -1.694 -1.70 * -1.389 -1.62 *
Region (Quebec=0, rest=1) -0.992 -1.01   -1.918 -2.09 *
Constant 0.857 1.35   0.991 1.69 *
 
Number of observations n   458     458  
Population N 3,113,998 3,113,998
F-statistic   19.77 ***   15.09 ***
Table 4.4: Determinants of MP3 purchases in the sub-sample of P2P downloaders for the year 2005
Dependent variables Number of MP3s Log no of MP3s Square root no of MP3s
Estimation model OLS OLS OLS
Independent variables b t-value sig b t-value sig b t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. All estimation are based on the sub-sample of P2P downloaders only. There are 1,005 P2P downloaders in the survey.
The number of observations in the regressions is 458 due to further missing values; e.g. only 759 participants gave information regarding the use of MP3 players. Furthermore, 246 observations were dropped from the regression. These are cases where participants answered that they downloaded from P2P networks yet estimated their number of downloads as zero.
Source: own calculations based on Decima Research survey.
Price CD albums -0.283 -1.99 ** -0.032 -2.20 ** -0.050 -2.18 **
Album too expensive -0.015 -0.86   -0.001 -0.42   -0.002 -0.57  
Number P2P -0.183 -0.43   -0.036 -0.76   -0.049 -0.68  
Number CDs ripped 1.243 2.09 ** 0.147 2.24 ** 0.230 2.23 **
Number promotional sites -0.039 -0.09   0.029 0.71   0.033 0.50  
Number private websites -1.133 -1.72 * -0.102 -1.51   -0.177 -1.70 *
Number MP3s copied 0.524 0.78   -0.015 -0.28   0.012 0.13  
Number DVDs -0.149 -0.37   0.027 0.61   0.023 0.33  
Number videogames 0.910 1.08   0.044 0.71   0.091 0.85  
Number cinema tickets 2.166 3.57 *** 0.247 4.18 *** 0.389 4.11 ***
Number concert tickets -0.052 -0.11   0.000 -0.01   -0.003 -0.04  
Not elsewhere available 0.005 0.33   0.002 0.88   0.002 0.74  
Not whole album 0.006 0.41   0.000 0.07   0.001 0.21  
MP3 player ownership -0.030 -0.03   0.172 1.22   0.194 0.89  
Hear before buying 0.032 1.98 ** 0.003 1.96 ** 0.005 2.00 **
Income 10 to 20 -0.566 -0.37   -0.163 -0.79   -0.201 -0.68  
Income 20 to 40 0.710 0.48   -0.096 -0.48   -0.064 -0.22  
Income 40 to 60 0.267 0.18  -0.002 -0.01   0.019 0.06  
Income 60 plus 1.996 1.39   0.117 0.61   0.243 0.88  
Quality increased 3.329 1.79 * 0.133 0.86   0.316 1.24  
Quality decreased -2.383 -2.49 ** -0.327 -2.67 *** -0.484 -2.66 ***
Interest very strong 0.386 0.15   -0.011 -0.03   -0.003 -0.01  
Interest somewhat strong 0.279 0.10   0.006 0.02   0.017 0.03  
Interest moderate 0.989 0.41   0.045 0.13   0.099 0.19  
Interest somewhat low 2.161 0.47   0.306 0.47   0.449 0.47  
Internet: very skilled 1.814 0.79   0.157 0.70   0.276 0.77  
Internet: skilled 1.803 0.79   0.206 0.93   0.327 0.92  
Internet: somewhat skilled 0.850 0.39   0.083 0.37   0.140 0.40  
Internet: not very skilled 0.873 0.32   0.178 0.67   0.239 0.58  
Age 15 to 19 -5.417 -0.98   -0.599 -0.93   -0.950 -0.97  
Age 20 to 24 -3.234 -0.69   -0.506 -0.82   -0.736 -0.80  
Age 25 to 34 -5.006 -0.95   -0.436 -0.68   -0.742 -0.77  
Age 35 to 44 -3.188 -0.65   -0.331 -0.54   -0.530 -0.57  
Age 45 to 54 -4.335 -0.90   -0.555 -0.90   -0.843 -0.92  
Age 55 to 64 -4.218 -0.83   -0.587 -0.90   -0.886 -0.91  
Gender (men=0, women=1) 0.185 0.19   0.086 0.78   0.110 0.66  
Region (Quebec=0, rest=1) -0.943 -1.01   -0.117 -1.19   -0.182 -1.19  
Constant 2.567 0.42   0.485 0.61   0.667 0.56  
 
Number of observations n   458     458     458  
Population N 3,113,998 3,113,998 3,113,998
F-statistic   1.47 **   3.01 ***   2.76 ***
R-square   0.13     0.17     0.16  
Table 4.4: Determinants of MP3 purchases in the sub-sample of P2P downloaders for the year 2005 (continued)
Dependent variables Purchased MP3s (yes/no) Purchased MP3s (yes/no)
Estimation model Probit Logit
Independent variables M.E. t-value sig M.E. t-value sig
* p<0.10; ** p<0.05; *** p<0.01. All regressions are estimated with a constant. Marginal effects (M.E.) are given with the t statistics of the underlying coefficients. M.E. are calculated at the means of the regressors in the case of continuous data and for discrete change from 0 to 1 in the case of dichotomous variables.
The number of observations in the regressions is 458 due to further missing values; e.g. only 759 participants gave information regarding the use of MP3 players. Furthermore, 246 observations were dropped from the regression. These are cases where participants answered that they downloaded from P2P networks yet estimated their number of downloads as zero. Variables measuring the interest in music and age of participants are omitted from the regression due to problems of multicollinearity.
Source: own calculations based on Decima Research survey.
Price CD albums -0.017 -2.93 *** -0.017 -2.85 ***
Album too expensive 0.000 0.58   0.000 0.61  
Number P2P -0.005 -0.26   -0.005 -0.32  
Number CDs ripped 0.060 2.51 *** 0.057 2.39 **
Number promotional sites 0.020 1.30   0.021 1.36  
Number private websites -0.034 -1.39   -0.034 -1.40  
Number MP3s copied -0.012 -0.74   -0.014 -0.86  
Number DVDs 0.026 1.57   0.024 1.50  
Number videogames 0.033 1.55   0.032 1.57  
Number cinema tickets 0.088 3.98 *** 0.082 3.76 ***
Number concert tickets 0.014 0.56   0.017 0.69  
Not elsewhere available 0.001 1.42   0.001 1.44  
Not whole album 0.000 -0.05   0.000 -0.15  
MP3 player ownership 0.165 3.68 *** 0.162 3.53 ***
Hear before buying 0.001 1.56   0.001 1.54  
Income 10 to 20 0.098 0.71   0.119 0.77  
Income 20 to 40 -0.034 -0.34   -0.035 -0.36  
Income 40 to 60 0.043 0.42   0.046 0.44  
Income 60 plus 0.124 1.34   0.125 1.35  
Quality increased 0.020 0.40   0.022 0.46  
Quality decreased -0.147 -2.67 *** -0.135 -2.48 ***
Internet: very skilled 0.137 0.60   0.232 0.85  
Internet: skilled 0.176 0.75   0.279 0.97  
Internet: somewhat skilled 0.131 0.54   0.228 0.76  
Internet: not very skilled 0.116 0.42   0.201 0.58  
Gender (men=0, women=1) 0.130 2.81 *** 0.127 2.73 ***
Region (Quebec=0, rest=1) -0.164 -3.60 *** -0.147 -3.18 ***
Constant -2.103 -2.28 *** -4.270 -2.25 ***
 
Number of observations n   474     474  
Population N 3,256,621 3,256,621
F-statistic   3.27 ***   2.59 ***
FirstPreviousNext