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Industry Canada > Intellectual Property > Intellectual Property Policy Directorate > Documents of Interest > Copyright, Economic Impact Studies > The Impact of Music Downloads and P2P File-Sharing on the Purchase of Music: A Study for Industry Canada

Intellectual Property Policy

The Impact of Music Downloads and P2P File-Sharing: Appendix 5

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Appendix 5: 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 -0.043 -1.38   -0.002 -0.50   -0.004 -0.75  
Number of P2P 0.088 0.43   -0.004 -0.14   0.002 0.05  
Number of CDs ripped 1.586 3.87 *** 0.229 4.57 *** 0.340 4.53 ***
Number of promotional 0.463 1.25   0.078 2.15 ** 0.114 1.98 **
Number from private web -0.309 -0.85   0.000 0.01   -0.018 -0.27  
Number of copied MP3s -0.055 -0.15   -0.007 -0.18   -0.012 -0.21  
Number of DVDs 0.442 1.87 * 0.057 2.24 ** 0.086 2.18 **
Number of videogames 0.144 0.45   0.016 0.47   0.024 0.45  
Number of cinema tickets 0.408 2.46 ** 0.046 2.18 ** 0.073 2.37 **
Number of concert tickets 0.002 0.01   0.003 0.12   0.005 0.12  
Income 10 to 20 -0.716 -0.97   -0.062 -0.63   -0.105 -0.73  
Income 20 to 40 -0.308 -0.46   -0.063 -0.72   -0.086 -0.66  
Income 40 to 60 -0.467 -0.65   -0.051 -0.55   -0.081 -0.58  
Income 60 plus 0.235 0.33   0.029 0.33   0.046 0.35  
Quality increase 1.065 1.96 ** 0.109 1.79 * 0.172 1.89 *
Quality decrease -0.562 -1.18   -0.105 -1.74 * -0.148 -1.66 *
Interest very strong -0.184 -0.44   0.024 0.46   0.020 0.26  
Interest somewhat strong 0.448 0.87   0.121 1.99 ** 0.160 1.76 *
Interest moderate -0.012 -0.03   0.035 0.69   0.041 0.54  
Interest somewhat low 0.304 0.58   0.110 1.25   0.140 1.13  
Internet: very skilled 0.924 1.62   0.171 2.58 *** 0.242 2.40 **
Internet: skilled 0.244 0.69   0.139 2.28 ** 0.171 2.05 **
Internet: somewhat skilled -0.080 -0.27   0.025 0.60   0.023 0.39  
Internet: not very skilled 0.183 0.62   0.011 0.30   0.022 0.39  
Age 15 to 19 -0.673 -0.75   -0.148 -1.40   -0.201 -1.27  
Age 20 to 24 0.238 0.21   -0.140 -1.29   -0.145 -0.85  
Age 25 to 34 -1.110 -1.73 * -0.072 -0.80   -0.138 -1.07  
Age 35 to 44 -0.841 -1.47   -0.117 -1.43   -0.171 -1.46  
Age 45 to 54 -0.685 -1.54   -0.053 -0.67   -0.094 -0.86  
Age 55 to 64 -0.388 -0.75   -0.095 -1.36   -0.126 -1.24  
Gender (men=0, women=1) 0.110 0.34   0.026 0.61   0.034 0.54  
Region (Quebec=0, rest=1) 0.151 0.50   0.018 0.49   0.026 0.48  
Constant 0.248 0.29   -0.062 -0.50   -0.059 -0.34  
 
Number of observations   1,388     1,388     1,388  
Population size 15,332,753 15,332,753 15,332,753
F-value   2.48 ***   4.42 ***   4.03 ***
R-square   0.09     0.15     0.14  
Appendix 5: 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 0.000 0.10   0.000 0.10  
Number of P2P 0.009 1.17   0.007 1.01  
Number of CDs ripped 0.048 4.22 *** 0.040 4.18 ***
Number of promotional 0.017 1.81 * 0.016 1.89 *
Number from private web 0.011 0.66   0.007 0.51  
Number of copied MP3s 0.002 0.22   0.003 0.28  
Number of DVDs 0.011 1.22   0.010 1.26  
Number of videogames 0.005 0.40   0.005 0.45  
Number of cinema tickets 0.020 1.88 * 0.018 1.92 *
Number of concert tickets 0.007 0.58   0.006 0.60  
Income 10 to 20 -0.036 -0.60   -0.022 -0.41  
Income 20 to 40 -0.054 -0.99   -0.042 -0.85  
Income 40 to 60 -0.035 -0.60   -0.024 -0.46  
Income 60 plus -0.012 -0.20   0.001 0.02  
Quality increase 0.039 1.49   0.039 1.65 *
Quality decrease -0.030 -0.92   -0.024 -0.78  
Interest very strong 0.160 1.67 * 0.197 1.56  
Interest somewhat strong 0.217 2.04 ** 0.265 1.83 *
Interest moderate 0.174 1.68 * 0.222 1.58  
Interest somewhat low 0.181 1.33   0.252 1.30  
Internet: very skilled 0.290 4.50 *** 0.362 3.98 ***
Internet: skilled 0.288 4.81 *** 0.347 4.12 ***
Internet: somewhat skilled 0.154 2.88 *** 0.192 2.70 ***
Internet: not very skilled 0.160 2.55 ** 0.206 2.41 **
Age 15 to 19 -0.058 -1.03   -0.055 -0.95  
Age 20 to 24 -0.063 -1.14   -0.058 -1.04  
Age 25 to 34 -0.018 -0.28   -0.021 -0.30  
Age 35 to 44 -0.040 -0.61   -0.038 -0.55  
Age 45 to 54 -0.009 -0.13   -0.005 -0.07  
Age 55 to 64 -0.051 -0.79   -0.048 -0.71  
Gender (men=0, women=1) 0.031 1.53   0.026 1.43  
Region (Quebec=0, rest=1) -0.013 -0.62   -0.008 -0.42  
Constant -3.073 -4.38 *** -6.287 -3.98 ***
 
Number of observations   1,390     1,390  
Population size 15,351,877 15,351,877
F-value   4.41 ***   3.74 ***
R-square   -     -  

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Date Modified: 2009-03-10

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