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

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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	***

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