Media Releases

Summary of New Zealander's opinions on accessing and copying content

07 August, 2009

New Zealander’s opinions on accessing and copying content
Observations at a turning point in our digital future

August 2009

The Government is progressing legislation to address digital copyright abuse. Much debate has centred on questions around disconnection of internet accounts and a discussion between rights holders and ISPs.

Up until now, New Zealand internet users have not been asked for their opinions on copyright issues. TelstraClear was interested in understanding how many people copy content, their attitude towards doing so and their views on solutions to copyright abuse.

In an on-line survey by Baseline Consultancy in early July, more than 1,000 New Zealanders aged between 18 and 70 shared their views.

Although this research will inform TelstraClear’s submission on the proposed replacement for Section 92A of the Copyright Act, it should also be viewed in a wider context. At a time when the Government is also considering a $1.5 Billion investment in ultra-fast broadband networks, these opinions suggest New Zealand is at a turning point.

There are important issues for the entertainment industry as more New Zealanders have online access to content.

Key findings were:

• What Kiwi Internet users do: Content copying is widely, but not frequently, practiced.

All of the 1048 people sampled claimed to have copied some form of content in the previous 12 months. 46% of households interviewed have a peer-to-peer file sharing programme installed on their home computer.

Music is the most widely copied content form (82%) followed by software (49%), movies (35%), then games (31%).

About a third (32%) copy music once a month or more, with movies (16%) and games (7%) over the same duration.

• How they do it: Content copying doesn’t necessarily use the Internet and most people do so for their own use.

Only a quarter typically use file sharing sites and the content is not usually shared with others.

62% of those who copy music initially source it from the Internet, with only 26% sourcing it from file sharing sites or online storage. 24% source it from CDs or from i-tunes (23%). Music is typically copied to an MP3 format and used personally (61%) rather than shared with other people (21%).

• Their attitude: Most people believe the artist should be paid for their material and are willing to pay.

There is sympathy for artists and an appreciation for copyright ownership - just 4% believed the artists could afford to give their material away for free or that being able to access content via the Internet meant it should be for free (15%).

The big issue for many people is how much they should be expected to pay online to listen to a song or watch a movie or play a game.

There is resentment towards online sources that are no cheaper than retail CDs, even though those suppliers have no retail overheads. Simply placing content online for the same cost is not a compelling alternative to illegal downloading for the majority of respondents.

• Why they do it: New Zealanders copy content because they are tired of paying too much, waiting too long and only want to pay for what they want.

People expressed frustration at paying $30-plus for a CD that had only two good songs and a lot of fillers.

They find that some content is not available in stores. Special interest or non-current music takes a long time to be ordered from a shop and can incur extra cost. New movies can take several months to screen here, although they are available immediately via illegal online sites.

Some respondents challenged the current structure of CD prices and justify copying on the basis that not all the money goes to the artist and that to many middlemen in the distribution chain force retail prices up.

• How they justify it: People’s moral justification for copying content depends on what and how they are copying.

If people are copying a CD or DVD they bought from a shop for their own use, then relatively few believe they have broken the law. If they copy a CD/DVD provided by a friend or a file sharing site then most agree it is against the law.

There is a strong desire for a cheaper way of accessing content – people only want to pay for what they want to listen to.

People are concerned about the use of file sharing software to distribute content to others for a profit, but not for personal use.

• New Zealander’s ideas on solutions: There is no one deterrent to downloading or copying content, with more than half saying disconnection would not stop them.

Respondents view the current business model of packaging and distributing physical copies of music, movies and games as unnecessary and costly.

New Zealand’s distance from where content is made has been conquered by online access, but simply transferring content online with the same 20th century price structure isn’t acceptable.

The greatest legal deterrent (48%) was the prospect of a fine by the Police or NZ Customs, with 43% claiming disconnection from their ISP for repeat offending would also be a significant deterrent.

However, more than half claim they would not be affected by ISP disconnection and about a fifth (18%) said nothing could deter them from how they accessed copyright material.

Of parents surveyed, 47% take no active interest in the issue, while a further 47% actively check content is not being downloaded illegally (and may load filters). The remaining 6% of parents ask their children to download content for their own use.

Three main themes emerged on how to reconcile the financial needs of artists with consumers’ expectations for affordable, new and rare content:

1. Building a stronger direct connection between the artist and end consumer, reducing the old-world overheads and online purchase price.

2. Provide a try-before-you-buy mechanism. For example, tier access with free low-res/low-hi fi video and music and pay access for high quality versions. Content supported by advertising and user/fan supported content generation were also suggested.

3. Change the scope of the Copyright laws, focussing the law on people who seek to make a profit from the illegal copying and on-selling of content.

Sample characteristics

Sex %
Male 49%
Female 51%

Age

Options %
18 - 24 years 27%
25 - 29 years 16%
30 - 34 years 13%
35 - 39 years 11%
40 - 44 years 9%
45 - 49 years 8%
50 - 54 years 6%
55 - 59 years 4%
60 - 69 years 4%
70 years and over 2%
BASE : 1048

Household income from all sources, before tax.
%
Less than $30,000 15
$30,000 - $49,999 17
$50,000 - $69,999 17
$70,000 - $99,999 19
$100,000 or more 21
Don't know 12
Base : 1048

Household type
%
Couple with no children 13
Couple with children at home 44
Couple with children who have left home 7
Single parent with children at home 10
Single person living alone [including divorced or widowed] 5
Single person sharing with friends 12
Other 9
Base 1048

Verbatim quotes – a selection

“The record industry needs a major shakeup - the current approach is like trying to stop an avalanche with a stick. I don't have a solution but whatever it is, the artists will get much closer to their audiences and will get paid, but the record companies and intermediaries will not be necessary and will not survive.”

“I believe that consumers need to stop viewing music as a human right - it isn't - it's a commodity. Particular songs and scores are a form of property belonging to the artist, and it is right that we (the public) should pay for the right to listen to it”

“I don't like paying full price for an album with only one good song. There are many people that are ethical downloaders, I download a CD to try it, if I like it I will buy it to support the artist, if it is rubbish I delete it as I do not consider it worth my money. Times have changed, one decent song and a whole lot of fillers are not enough to fork out my hard earned cash for”

“Currently buying a CD online is similar in price to downloading it from iTunes. Given that downloading it doesn't involve the overheads of a physical store, or the creation of CDs and packaging, it seems hard to justify this. There is little motivation to go out and buy the CD, or download it legally, if it can be downloaded for free.”

“In the past, recording companies, publishing companies etc. were all very important to allow artists to reach customers. In today's world however, we are rapidly finding that artists can very easily find customers independently. I think there is a growing perception that most of the money you pay when you buy an album is not going to go anywhere near the artists, and I think a lot of people resent that, I would count myself among them.”

“I know that there are things that will never be available in NZ through stores, therefore I look for that content elsewhere. An example of this is British content which will never be shown on NZ television. Same kind of thing with obscure music that NZ does not buy through retail. I think there needs to be a massive restructuring and a look at the kinds of things that are available legally and keep in mind that the retail section is so limited here in NZ. “

“I mean, I really think that to enforce laws against copying material would be far too big a job because virtually everyone with a computer does it.”

“The fact is that technology is changing too fast, and using the State to enforce old copyright laws in a new environment is an exercise in futility.”

“The creator has for a fixed period of time exclusive ownership to profit on the content, but at some point in the future it is expected that copyright expires and the content enters the public domain. Right now I consider that owners, publishers and middlemen are actively extending their rights beyond what is fair using obnoxious tools like DRM etc....so they are not playing fair, therefore they have abused consumer rights and I lose interest in being fair to them myself.”

Survey background

Baseline Consultancy surveyed a 50:50 quota of parents and non-parents, with field work undertaken July 4-9 by Buzz Channel. An online methodology was chosen because of the subject matter and need to talk to younger consumers.

The names and contact information of respondents (including IP addresses) were not recorded, assuring complete privacy. Respondents were randomly selected and are customers of a number of ISPs.

TelstraClear undertook the survey in the interests of its customers and to inform its submission on the proposed replacement to Section 92A of the Copyright Act.

TelstraClear has taken other directs steps in its customers interests, including proactive advice on cyber bullying and cooperation with the Department of Internal Affairs on blocking access to known child sex abuse sites.

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