Back in January, a coalition of companies and organizations with ties to the entertainment industries called on local telecoms regulator CRTC to implement a national website blocking regime.
Under the banner of Fairplay Canada, members including Bell, Cineplex, Directors Guild of Canada, Maple Leaf Sports and Entertainment, Movie Theatre Association of Canada, and Rogers Media, spoke of an industry under threat from marauding pirates. But just how serious is this threat?
The results of a new survey commissioned by Innovation Science and Economic Development Canada (ISED) in collaboration with the Department of Canadian Heritage (PCH) aims to shine light on the problem by revealing the online content consumption habits of citizens in the Great White North.
While there are interesting findings for those on both sides of the site-blocking debate, the situation seems somewhat removed from the Armageddon scenario predicted by the entertainment industries.
Carried out among 3,301 Canadians aged 12 years and over, the Kantar TNS study aims to cover copyright infringement in six key content areas – music, movies, TV shows, video games, computer software, and eBooks. Attitudes and behaviors are also touched upon while measuring the effectiveness of Canada’s copyright measures.
General Digital Content Consumption
In its introduction, the report notes that 28 million Canadians used the Internet in the three-month study period to November 27, 2017. Of those, 22 million (80%) consumed digital content. Around 20 million (73%) streamed or accessed content, 16 million (59%) downloaded content, while 8 million (28%) shared content.
Music, TV shows and movies all battled for first place in the consumption ranks, with 48%, 48%, and 46% respectively.
According to the study, the majority of Canadians do things completely by the book. An impressive 74% of media-consuming respondents said that they’d only accessed material from legal sources in the preceding three months.
The remaining 26% admitted to accessing at least one illegal file in the same period. Of those, just 5% said that all of their consumption was from illegal sources, with movies (36%), software (36%), TV shows (34%) and video games (33%) the most likely content to be consumed illegally.
Interestingly, the study found that few demographic factors – such as gender, region, rural and urban, income, employment status and language – play a role in illegal content consumption.
“We found that only age and income varied significantly between consumers who infringed by downloading or streaming/accessing content online illegally and consumers who did not consume infringing content online,” the report reads.
“More specifically, the profile of consumers who downloaded or streamed/accessed infringing content skewed slightly younger and towards individuals with household incomes of $100K+.”
Licensed services much more popular than pirate haunts
It will come as no surprise that Netflix was the most popular service with consumers, with 64% having used it in the past three months. Sites like YouTube and Facebook were a big hit too, visited by 36% and 28% of content consumers respectively.
Overall, 74% of online content consumers use licensed services for content while 42% use social networks. Under a third (31%) use a combination of peer-to-peer (BitTorrent), cyberlocker platforms, or linking sites. Stream-ripping services are used by 9% of content consumers.
“Consumers who reported downloading or streaming/accessing infringing content only are less likely to use licensed services and more likely to use peer-to-peer/cyberlocker/linking sites than other consumers of online content,” the report notes.
Attitudes towards legal consumption & infringing content
In common with similar surveys over the years, the Kantar research looked at the reasons why people consume content from various sources, both legal and otherwise.
Convenience (48%), speed (36%) and quality (34%) were the most-cited reasons for using legal sources. An interesting 33% of respondents said they use legal sites to avoid using illegal sources.
On the illicit front, 54% of those who obtained unauthorized content in the previous three months said they did so due to it being free, with 40% citing convenience and 34% mentioning speed.
Almost six out of ten (58%) said lower costs would encourage them to switch to official sources, with 47% saying they’d move if legal availability was improved.
Canada’s ‘Notice-and-Notice’ warning system
People in Canada who share content on peer-to-peer systems like BitTorrent without permission run the risk of receiving an infringement notice warning them to stop. These are sent by copyright holders via users’ ISPs and the hope is that the shock of receiving a warning will turn consumers back to the straight and narrow.
The study reveals that 10% of online content consumers over the age of 12 have received one of these notices but what kind of effect have they had?
“Respondents reported that receiving such a notice resulted in the following: increased awareness of copyright infringement (38%), taking steps to ensure password protected home networks (27%), a household discussion about copyright infringement (27%), and discontinuing illegal downloading or streaming (24%),” the report notes.
While these are all positives for the entertainment industries, Kantar reports that almost a quarter (24%) of people who receive a notice simply ignore them.
Once upon a time, people obtaining music via P2P networks was cited as the music industry’s greatest threat but, with the advent of sites like YouTube, so-called stream-ripping is the latest bogeyman.
According to the study, 11% of Internet users say they’ve used a stream-ripping service. They are most likely to be male (62%) and predominantly 18 to 34 (52%) years of age.
“Among Canadians who have used a service to stream-rip music or entertainment, nearly half (48%) have used stream-ripping sites, one-third have used downloader apps (38%), one-in-seven (14%) have used a stream-ripping plug-in, and one-in-ten (10%) have used stream-ripping software,” the report adds.
Set-Top Boxes and VPNs
Few general piracy studies would be complete in 2018 without touching on set-top devices and Virtual Private Networks and this report doesn’t disappoint.
More than one in five (21%) respondents aged 12+ reported using a VPN, with the main purpose of securing communications and Internet browsing (57%).
A relatively modest 36% said they use a VPN to access free content while 32% said the aim was to access geo-blocked content unavailable in Canada. Just over a quarter (27%) said that accessing content from overseas at a reasonable price was the main motivator.
One in ten (10%) of respondents reported using a set-top box, with 78% stating they use them to access paid-for content. Interestingly, only a small number say they use the devices to infringe.
“A minority use set-top boxes to access other content that is not legal or they are unsure if it is legal (16%), or to access live sports that are not legal or they are unsure if it is legal (11%),” the report notes.
“Individuals who consumed a mix of legal and illegal content online are more likely to use VPN services (42%) or TV set-top boxes (21%) than consumers who only downloaded or streamed/accessed legal content.”
Kantar says that the findings of the report will be used to help policymakers evaluate how Canada’s Copyright Act is coping with a changing market and technological developments.
“This research will provide the necessary information required to further develop copyright policy in Canada, as well as to provide a foundation to assess the effectiveness of the measures to address copyright infringement, should future analysis be undertaken,” it concludes.
The full report can be found here (pdf)