Newswise — Lawsuits, privacy issues and anti-piracy software have made downloading music, videos and other intellectual property daily news. University of Arkansas researchers Norma Mendoza and Jennifer Christie found 54 percent of respondents in a recent study thought that downloading copyrighted materials was not unethical, even if it was illegal.

"We are seeing the effect of the digital mode of distribution," explained Mendoza, assistant professor of marketing and logistics in the Walton College of Business. "Most respondents said that they never shoplift, but nearly 71 percent had downloaded copyrighted materials. The online environment is different from face-to-face. Most people who download this material believe that they won't get caught."

To examine consumer perceptions, ethical issues and the viability of subscription models, Mendoza; Jennifer Christie, assistant professor of marketing at the University of Dayton; and Don Cook, assistant professor of marketing at Georgia State University, conducted a survey of 82 college students. They presented their results at the 2003 Marketing and Public Policy Conference in Washington, D.C.

The researchers wanted to know if consumers saw intellectual property (IP) in the digital environment differently from other common forms of IP, like books or videos. The students completed a survey regarding the frequency with which they downloaded IP from the Internet and their attitudes about the practice. A second issue explored was the consumer's willingness to pay for access to the same content.

Of the 70.7 percent of respondents who downloaded IP, 81 percent downloaded music, 29 percent downloaded video clips, 12 percent downloaded software, 10 percent downloaded books and 5 percent downloaded games. Of those who downloaded any IP, 54 percent said it was not unethical. Reasons included personal use (9 percent), internet content is in the public domain (16 percent), companies overcharge/costs are too high (13.6 percent) and big artists make enough money (11.4 percent). And 18.2 percent equated it to borrowing from a friend.

However, of respondents who specifically downloaded music, 57 percent said the practice was ethical and 23 percent said it was like borrowing from a friend. Increased numbers said the companies overcharged (23 percent) and artists made enough money (15 percent). A few compared it to recording from the radio (8 percent) and 8 percent said it was ethical if it was being used to sample and define preferences before buying.

"This is a situation where access has evolved faster than ethical attitudes," said Christie. "It takes time to mold attitudes. The medium is still evolving and it will be a while before attitudes solidify."

When asked if free Internet access to IP affected their buying habits, 66 percent of those who downloaded IP agreed, as did 89 percent of music downloaders. Specifically, of those who download music, 18 percent say they no longer buy music, 21 percent burn their own CDs, 45 percent buy fewer CDs, 3 percent only buy what they cannot find on the Internet and 15 percent use it to sample before buying.

"One of the things we saw clearly was cynicism and a desire to get something from the system," explained Christie. "Many said that they thought fans were 'entitled' to the music because it increases the artist's fan base. It's not like plagarism, because they aren't passing it off as their work. They see it more like sharing with a friend."

Of those who downloaded any IP, 46 percent said it was unethical, but only 43 percent of music downloaders felt it was unethical. Both groups had similar reasons, including not paying for someone's work (35 percent), lack of consent by copyright owner (32 percent), effect on artist's livelihood (17 percent) and considered it stealing (16 percent). However, when asked if they would be willing to pay a fee to access Internet IP content, 70 percent of those who consider file swapping unethical said yes, as did 54 percent of those who said it was ethical agreed.

"If a subscription-based system is going to be successful, it must address the perceptual issue of fairness," Mendoza said. "For example, the Apple music site charges a modest fee per song, allows the person to share the downloaded music with three friends and doesn't charge a monthly fee. It has been much more successful that those that charge a fixed monthly fee or that encode copy-protection software."

Although some people believe that the movie industry will encounter the same widespread problems as the music industry, Mendoza does not agree. She notes that people are accustomed to paying for movies " in the theater, movie rentals, on pay-per-view or premium movie channels " which will factor into their perception of fairness.

MEDIA CONTACT
Register for reporter access to contact details
CITATIONS

2003 Marketing and Public Policy Conference