Economy Profits From File-Sharing, Report Concludes

Written by Ernesto on January 19, 2009 

Commissioned by the Dutch government, a recently published report concludes that file-sharing has a positive effect on the economy, both on the long and short term. A massive 30% of the Dutch population uses file-sharing software to download music, games, movies and other forms of entertainment, which is now considered to be a ‘good thing’.

The 142 page report looks into the economic and cultural consequences of file-sharing on the music, movie and games industries. The conclusions and recommendations seem to echo some of our previous writing. While most file-sharers download mainly copyrighted files without paying for them, the overall effect on the welfare of the economy is positive.

The report, which was commissioned by the government, estimates the positive effect on the Dutch economy to be around 100 million euros a year. While it is recognized that the entertainment industry suffers some losses, these don’t outweigh the positive effects of file-sharing.

File-sharing gives people access to a wide range of cultural goods and is often used to sample content that is bought later, the report concluded. Most file-sharers would have never bought the content they downloaded, but having access to such a large media library increases the welfare of Dutch citizens, the researchers note.

The researchers further found that people who download music and movies are not buying less than people who don’t. In fact, downloaders are reported to be more frequent visitors of concerts, and game downloaders actually bought more games than those who didn’t. In the music industry, lesser-know bands profit most from file-sharing, the researchers report.

The report goes on to discuss the legal situation in the Netherlands. Downloading music and movies for personal use is currently legal under Dutch law while uploading is illegal, although most file-sharers are uncertain as to what is allowed and what is not. Although anti-piracy outfits are lobbying for harsher copyright laws, this will have little effect.

The researchers think that stricter copyright laws will not have much of an effect on the income of the entertainment industry. Most reported losses can be attributed to things other than piracy, they say. One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.

BREIN, the anti-piracy voice of the Netherlands hasn’t commented on the conclusions of the report yet, but we’re looking forward to hearing from them.

Previously: Web Sheriff Takes Down RLSLOG

Next: Largest Danish ISP Blocks The Pirate Bay

46 Responses

1 Jan 19, 2009 at 15:19 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

The fact is that this report right now is not well-known, so it might be good to publicize it, for people who are able to do such a thing. So far, I have not yet seen a single book that argues that file-sharing is positive – and this is a big problem.

2 Jan 19, 2009 at 17:43 by pink panther

In what way does having access to American pop culture increase the welfare of Dutch citizens?

3 Jan 19, 2009 at 14:06 by Jimmi

Wow, who would've thought…:D

4 Jan 19, 2009 at 14:25 by in3rtia

In before BREIN cries "It doesn't matter how good it is for the economy… that's 30% of lost sales AND BILLIONS OF DOLLARS NOT IN OUR POCKETS!!!"

5 Jan 19, 2009 at 14:28 by Spanky69

The battle continues. +1 for the file sharer :)

Follow TorrentFreak on Twitter http://twitter.com/torrentfreak

Also check out TweetDeck http://www.tweetdeck.com

6 Jan 19, 2009 at 14:30 by jasperwillem

Great article. Good to hear the govermenet gets to brigth site of sharing in in its own investigations.

7 Jan 19, 2009 at 14:37 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

8 Jan 19, 2009 at 14:38 by BREIN

No.. The Government must listen to our data! We bribed, i mean, donated a lot of money to political parties. Our data says we are loosing a lot of money. Look, right next to that bag of cash there. see!

9 Jan 19, 2009 at 14:43 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current government of the Netherlands to pay attention to this report?

10 Jan 19, 2009 at 14:47 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current legislature of the Netherlands to pay attention to this report and propose/introduce legislation in this direction?

11 Jan 19, 2009 at 14:49 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current legislature of the Netherlands to pay attention to this report and propose/introduce legislation in this direction? Perhaps there ought to be a petition to government from prominent figures.

12 Jan 19, 2009 at 20:54 by Anonymous

“By the industry’s logic, they should also outlaw those other forms of entertainment because it is making them “lose sales.”"

Exactly! A company loosing money is not justification to ban something.

13 Jan 19, 2009 at 14:57 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current legislature of the Netherlands to pay attention to this report and propose/introduce legislation in this direction?

Perhaps it might be good to create some manifesto and petition the government with it.

The fact is that this report right now is not well-known, so it might do some good for people who are able to do such a thing to publicize it. So far, I have not yet seen a single book that argues that file-sharing is positive.

14 Jan 19, 2009 at 14:57 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current legislature of the Netherlands to pay attention to this report and propose/introduce legislation in this direction?

Perhaps it might be good to create some manifesto and petition the government with it.

The fact is that this report right now is not well-known, so it might do some good for people who are able to do such a thing to publicize it. So far, I have not yet seen a single book that argues that file-sharing is positive.

15 Jan 19, 2009 at 14:57 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current legislature of the Netherlands to pay attention to this report and propose/introduce legislation in this direction?

Perhaps it might be good to create some manifesto and petition the government with it.

The fact is that this report right now is not well-known, so it might be good to publicize it, for people who are able to do such a thing. So far, I have not yet seen a single book that argues that file-sharing is positive.

16 Jan 19, 2009 at 14:59 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

Perhaps it is time for the current legislature of the Netherlands to pay attention to this report and propose/introduce legislation in this direction?

Perhaps it might be good to create some manifesto and petition the government with it.

The fact is that this report right now is not well-known, so it might be good to publicize it, for people who are able to do such a thing. So far, I have not yet seen a single book that argues that file-sharing is positive, and this is definitely a problem.

17 Jan 19, 2009 at 15:00 by Roze

One of the main reasons for the loss in sales for the music industry, is competition with other forms of entertainment.
By the industry's logic, they should also outlaw those other forms of entertainment because it is making them "lose sales."

The fact is that this report right now is not well-known, so it might be good to publicize it, for people who are able to do such a thing. So far, I have not yet seen a single book that argues that file-sharing is positive.

18 Jan 19, 2009 at 15:16 by santoscrew

the report (http://tno.nl/content.cfm?context=markten&con...looks interesting. im gonna have to read it

19 Jan 19, 2009 at 15:35 by Spanky69

It's the same link that's posted at the beginning of the article.

20 Jan 19, 2009 at 16:19 by mister_playboy

Glad to hear some people are interested in actually studying the filesharing community and that they have motives other than maximizing profit and maintaining the status quo at all costs.

21 Jan 19, 2009 at 16:24 by EZEE

Bet the outcome of this study had morons from the MAFIAA reaching for anti-acid pills,
all their hard work of spin and lies officially debunked not by some 'terrorist funded breakaway free thinkers' but by the very govt that they are so desperately bribing and lobbying.

Guys, if you can… take autographs and pictures of these people working at anti-piracy organizations, they are going to be worth quite a bit soon… they always do when a particular segment has gone extinct!

Say hello to the Dodo for us Mr. MAFIAA man!

Cheers!
http://www.eZee.se

22 Jan 19, 2009 at 16:38 by Roze

Now, all that is needed is for a book to be published that will argue the case for file-sharing. No such book exists yet, and it is important that one does exist because otherwise, there will be no case made for file-sharing. Preferably, this book would be written by someone who is more knowledgeable than myself.

23 Jan 19, 2009 at 16:39 by Roze

Now, after the study is concluded, there ought to be a book published (written by someone more knowledgeable than myself, preferably) to make the case for file-sharing, so that there will be a definitive case for file-sharing.

24 Jan 19, 2009 at 16:54 by Oli

i dunno.
in my opinion they don't lost anything because those 30% who downloaded that stuff wouldn't buy it if they couldn't download it.

25 Jan 19, 2009 at 18:06 by dxtr

Wow! I never knew that I had been contributing to the growth of my country's economy since age 10! That is so cool!
http://stuckinframes.blogspot.com

26 Jan 19, 2009 at 18:58 by Fancy Pants

This should teach the (non-) organisations like RIAA, MPAA, BRIEN, etc, etc to look before they leap, they might find they've actually walked the plank of their own accord.

27 Jan 19, 2009 at 19:23 by RoestVrijStaal

Here is another mirror of the report.
For this mirror you shouldn't have a account (in compare with the link in the blogpost).
http://www.ez.nl/dsresource?objectid=161961&t...

Shame that Kazaa and TorrentSpy were mentioned in the report. They are both dead.

I hope the Dutch gov take the report serious and change the rules of file sharing on base of the report.

28 Jan 19, 2009 at 20:31 by in3rtia

*whoosh*

Was being facetious. :p

29 Jan 19, 2009 at 21:10 by mafiaas death rattle

We all new this already, the whole "try before you buy" thing is one of reasons why most people torrent, torrenting helps weed out the companies releasing crappy content so our money is well spent & not wasted. Best thing the dutch gov could've done to show what liars the mpaa/riaa are, great to see their reputation is just getting worse, soon they will be extinct so then artists & consumers will be truly free

30 Jan 19, 2009 at 21:20 by asdjkl

in3rtia, you forgot all those poor artists who can't make any money… and further on, think about all the JOBS that will be lost!!!

31 Jan 19, 2009 at 21:51 by Anonymous

Were you joking? Because, if you weren't, remember!!! How are poor artists supposed to make money through selling CDs in the first place, especially if they sign on with a recod label?

32 Jan 19, 2009 at 23:55 by hellochris

For those of you who can read Dutch, I downloaded the report and am willing to e-mail it to you. You can reach me at: hellochris@live.nl for a request.

33 Jan 20, 2009 at 01:39 by yhj

"While it is recognized that the entertainment industry suffers some losses, these don’t outweigh the positive effects of file-sharing."

So, hurting one group of people so it benefits the majority is good, right?

Slavery, anyone?

34 Jan 20, 2009 at 03:09 by Roze

You mean, more like abolitionism. Abolitionism harmed a whole lot of slave owners who lost their slaves, but all the slaves became free, which was, in general, good for the economy of the south.

35 Jan 20, 2009 at 03:10 by Roze

You mean, more like abolitionism. Abolitionism harmed the slave owners who lost their slaves, but all the slaves became free, which was, in general, good for the economy of the south.

36 Jan 20, 2009 at 03:11 by Roze

You mean, more like abolitionism. Abolitionism harmed the slave owners who lost their slaves, but all the slaves became free, which was, in general, good for the economy of the south.

What do you suggest anyway? Harming the majority (almost everyone) to benefit one group of people (the MAFIAA &c.)?

37 Jan 20, 2009 at 03:56 by flandre

Eat shit and die, you MAFIAA fuck.

38 Jan 20, 2009 at 03:58 by alice

Care to cite any data that shows that any sales were lost, hmm?

39 Jan 20, 2009 at 04:27 by Merlin

Hey, you RIAA advocate, why don't you do humanity a favor and jump off a cliff? Humanity clearly doesn't need any more pieces of shit like you.

40 Jan 21, 2009 at 02:27 by justapoint

Of course it's great for the economy. The Netherlands isn't an entertainment machine: the Dutch are ripping media that would have profited artists/companies in Other countries.

Of course sales are lost. Just about the time file-sharing became user-friendly via Napster (1999-2001), physical CD sales peaked and started declining. While online digital sales have climbed rapidly, they really don't make up for declining CD sales.

I download free music and would stop if the consequences were harsh enough, which they never will be because the there's too many 'of us'. Cops don't go after drivers that speed about 5 miles an hour: it would be prohibitively burdensome. When the concepts of digital file as individual product (as opposed to a harmless copy) penetrates our moral compass, we might care to stop illegally downloading. That I can't see happening however

41 Jan 21, 2009 at 02:32 by John Savage

Sounds justified to me it does! LOL

RT
http://www.web-privacy.pro.tc

42 Jan 21, 2009 at 11:43 by Hans

The guys that wrote this report need a few lessons on P2P. The report refers to scamsites like emule.com and fake sites like torrentspy.nl. And eMule the second most used P2P-program? Every torrentfreak knows this can't be right!

Check http://www.digimuziek.nl/nieuws/?p=101(Dutch)

43 Jan 21, 2009 at 16:58 by n3l87

Exactly right. If the book doesn't exist, how will the judge be able to throw it at the RIAA/MPAA reps?

44 Jan 21, 2009 at 17:05 by n3l87

Hey hey. Be nice. Everyone is allowed their opinion.

I do agree with Roze, though. If one group has to get hurt, I'd rather it be the minority rather then all of us. And what they are doing right now is hurting the majority, with all their bullshit lawsuits.

Think about it: Clogging the courts with these civil proceedings about copyright infringement, when the courts are already clogged with other types of proceedings (in-trading stock holders, murderers, etc…. you know, the important stuff)… well that there just seems damn foolish… Kind of like sending more shit down the toilet when it's already clogged with shit. Guess what happens? It overflows and everyone loses. Especially you.

45 Jan 22, 2009 at 14:42 by poor industry

I have yet to see the MAFIAA prove in court that they are “losing” any money at all. And the simple fact that they are making more PROFIT then ever, according to their own figures even, doesn’t really help their case.

46 Jan 26, 2009 at 03:08 by

"Everyone is allowed their opinion."
That also includes the opinion that some other "human" is a scum of the earth and that humanity would be better without him/her.

Responses are closed

All remaining responses will continue to be archived. Use the TorrentFreak forums if you want to discuss something.