Internet pirates 'pour £200m into music industry'

Published on Sunday 1 November 2009 21:13

ILLEGAL music downloaders, the villains of recording industry campaigns and the targets of new internet piracy laws, spend more on official releases than those who obey the law, a new survey has found.

The think-tank Demos found that people who download or swap files online for free also spend an average of 77 a year on legitimate sales, ploughing more than 200 million a year into the music industry. Those who do not swap files spend only 44 a year on average.

Experts suggested the findings could undermine the UK government's new hardline stand on illegal film and music downloads.

Last week, Business Secretary Lord Mandelson said he was pushing ahead with measures in the new Digital Economy legislation to cut off the internet connections of people who are persistently accused of breaking the rules.

While internet service providers have pledged to fight the measures in the courts, the music industry has been demanding the UK follow the lead of countries like France, with a "three strikes" law for those accused.

The Demos survey showed that nearly two-thirds of people who admit downloading music illegally said that new and cheaper music services would encourage them to stop.

The Digital Economy bill is expected to reach parliament later this month, promising to create a "robust legal and regulatory framework to combat illegal file sharing".

The 42 per cent of people who admitted breaking the law said they did so to "try before you buy", suggesting that file-sharing may encourage sales.

The survey suggested that by lowering the price of music available online to 45p per track – compared to between 59p and 99p on iTunes – providers would double interest in legal sales.

Demos researcher Peter Bradwell said: "This research demonstrates that cutting off file-sharers may not be the best solution for the government if they are intent on helping the music industry. Politicians and music companies need to wake up to the changing nature of music consumption and embrace the demand for new business models that offer lower prices and easier access to music."

Just over 1,000 people aged between 18 and 50 were quizzed last month for the survey.

A spokesman for the BPI, representing the British recording industry, said: "I don't think any store can be set by the findings. If file-sharing encouraged the consumption or purchase of music, then we would be seeing revenue figures to match the scale of file-sharing, and you don't."