Shifting Demand: Online Music Piracy,Physical Music Sales,and Digital Music Sales

Traditionally, music has been sold to consumers by recording several individual songs/tracks in physical media such as CDs and cassettes. Sales of such physical music have been declining for the past several years. Many academic studies have attributed the decline of physical music sales to online music piracy, yet some other studies have not found evidence to support a negative relationship between online music piracy and physical music sales. Interestingly and importantly, we have observed that while many of the studies that found the negative relationship between online music piracy and physical music sales used data before 2003, other studies that do not find similar results have used post-2003 data. In fact, there was a significant structural change in the music market in 2003. Legal (iTunes-like) online channels for digital music that allow consumers to buy individual tracks became available during that year. This article complements the existing literature by analyzing the impact of online music piracy and physical music sales in the presence of iTunes-like legal channels for digital music using bivariate Granger testing. Our results show that the availability of legal channels for digital music has weakened the negative effect of online music piracy on physical music sales. Moreover, in the presence of legal channels for music distribution, digital music, not online music piracy, substitutes for physical music.     

The Antecedents of Music Piracy Attitudes and Intentions

Piracy is the greatest threat facing the music industry worldwide today. This study developed and empirically tested a model examining the antecedents of consumer attitude and behavioral intention toward music piracy behavior. Two types of music piracy behavior, unauthorized duplication/download and pirated music product purchasing, were examined. Based on a field survey in Taiwan, the results showed that attributive satisfaction, perceived prosecution risk, magnitude of consequence, and social consensus are very important in influencing customers attitude and behavioral intention toward two types of music piracy behavior. In addition, singer/band idolization can affect the attitude and behavioral intention in the case of pirated music product purchasing. Perceived proximity was found to affect the attitude and behavioral intention in the case of pirated music product purchasing. However, it only influenced behavioral intention in the case of unauthorized duplication/download.Jyh-Shen Chiou (Ph.D. in Marketing, Michigan State), is professor of Marketing, Department of International Trade, College of Commerce, National Chengchi University, Taiwan. His research focuses on consumer behavior and strategic marketing. His work has been published in Information & Management, Journal of Interactive Marketing, Journal of Service Research, International Journal of Advertising, European Journal of Marketing, Psychology & Marketing, Journal of Social Psychology, Genetic, Social, and General Psychology Monographs, etc.Chien-yi Huang, Associate Professor, Department of Infant and Child Care, National Taipei College of Nursing. Sin-hui Lee, Graduate student, Department of International Trade, National Chengchi University.     

Theory of Planned Behavior and Ethics Theory in Digital Piracy: An Integrated Model

Since digital piracy has posed a significant threat to the development of the software industry and the growth of the digital media industry, it has, for the last decade, held considerable interest for researchers and practitioners. This article will propose an integrated model that combines the theory of planned behavior (TPB) and ethics theory, the two theories that are most often used in digital piracy studies. Data were obtained from university students in China, and the model was examined using the structural equation model (SEM). The results show that moral obligation and justice, derived from ethics theories and TPB variables, such as attitude, subjective norms, and perceived behavioral control, influence the behavioral intentions of individuals to commit digital piracy. The attitude of individuals toward digital piracy is also found to be influenced by perceived benefits, perceived risk, and habit.     

Investigating the Factors Influencing Digital Movie Piracy

ABSTRACT

This article closes a theoretical gap in the literature by incorporating neutralization theory, mere exposure effect, self-control theory, and the theory of planned behavior to investigate social and personal factors influencing the downloading of pirated digital movies. Research was conducted using convenience sampling in a large university in Western Australia. Data were analyzed using regression models. Habitual conduct, affect, and facilitating conditions have significant influence upon attitudes toward downloading pirated movies; conversely, self-efficacy, moral judgement, and social factors do not. In addition, attitudes toward downloading pirated movies have a significant influence upon the intention to download pirated movies. It was also found that internet usage, internet time spent and internet speed do not moderate the relationship between attitudes and intention to download pirated movies. Managers, marketers and policymakers must collaborate aggressively to combat movie piracy. Marketers and policymakers can start by creating awareness campaigns to invoke the guilt factor and provide another, cheaper alternative on the internet. In addition, the punishment should be harsher and anti-piracy agencies should be more aggressive in catching all illegal downloaders by tracking their IP addresses from the internet provider that they used.     

Digital Piracy: Factors that Influence Attitude Toward Behavior

A new form of software piracy known as digital piracy has taken the spotlight. Lost revenues due to digital piracy could reach $5 billion by the end of 2005.Preventives and deterrents do not seem to be working – losses are increasing. This study examines factors that influence an individual’s attitude toward pirating digital material. The results of this study suggest that attitude toward digital pirating is influenced by beliefs about the outcome of behavior (cognitive beliefs), happiness and excitement (affective beliefs), age, the perceived importance of the issue, the influence of significant others (subjective norms), and machiavellianism. Given these results, measures can be developed which could alter attitudes toward digital piracy. Sulaiman Al-Rafee received his Ph.D. in Information Systems from the University of Arkansas in the USA, May, 2002. He is an assistant professor of Information Systems at the department of Quantitative Methods and Information Systems at the College of Business Administration, Kuwait. He is the MIS coordinator at the department, and has taught different MIS courses within the department. His reserch interests include: ethics, behavioral psychology, software and digital piracy, user acceptance of information technology, and cross-cultural studies. Timothy Paul Cronan, Professor and M.D. Matthews Chair in Information Systems, University of Arkansas, Fayetteville, Arkansas. Dr. Cronan received the D.B.A. from Louisiana Tech University and is an active member of the Decision Sciences Institute and The Associaton for Computing Machinery. He has served as Regional Vice President and on the Board of Directors of the Decision Sciences Institute and as President of the Southwest Region of the Institute. In addition, he has served as Associate Editor for MIS Quarterly. He is currently Director of Enterprise Systems and Director of the Master of Information Systems degree programs. His research interests include information systems ethical behavior, work groups, change management, expert systems, performance analysis and effectiveness, and end-user computing. Publications have appeared in MIS Quarterly, Decision Sciences, Journal of Business Ethics, Information and Management, OMEGA The International Journal of Management Science, The Journal of Management Information Systems, Communications of the ACM, Journal of Organizational and End User Computing, Database, Journal of Research on Computing in Education, Journal of Financial Research, as well as in other journals and Proceedings of various Conferences.     

Ethical Issues in the Music Industry Response to Innovation and Piracy

The current conflict between the recording industry and a portion of its customers who are involved in illicit copying of music files arose from innovations involving the compression and electronic distribution of files over the internet. This paper briefly describes some of the challenges faced by the recording industry, and examines some of the ethical issues that arise in various industry and consumer responses to the opportunities and threats presented by these innovations. The paper concludes by highlighting the risks associated with responses that threaten further innovation, ultimately reducing the chances of finding solutions that hold appeal for all parties.     

Behavioral Model of Younger Users in M-Payment Systems

This article contributes to the research area concerned with behaviors of young users in virtual environments. More specifically, we study their purchasing behaviors on the Internet and the acceptance of the new mobile payment tools that are being used. To perform this research, a web experiment involving a new short-message-service (SMS) mobile payment system is performed. Data from young users who participate in the experiment are used to analyze a behavioral model of factors potentially influencing intentions to adopt the new mobile payment system. The analysis shows how trust, ease of use, and risk are key elements of the intention to use the new tool by persons in a young-user population. Findings and their implications for management provide companies with alternatives to seize this new business opportunity in light of new technological developments. This article is an initial study of behavioral intention with SMS mobile payment, especially among younger users.     

中国数字音乐产业知识产权治理机制构建

近年来,我国数字音乐产业发展迅速,取得了较为可观的经济和社会效益,但我国在数字音乐产业产权(版权)行使中还存在很多问题,如利益主体授权不明确,版权认定难;利益关系协调不平衡,版权费实现难;侵权事件时有发生,版权保护法律有待健全;相关技术发展滞后,产权使用缺乏有效性。文章运用博弈论方法对我国数字音乐产业自主创新知识产权治理进行模型分析,指出数字音乐产业知识产权治理机制的核心就是实现版权利益在各行为主体间的平衡,可通过管理机构、版权法、音乐市场、技术创新相结合的四位一体的方式构建。具体而言,就是构建数字音乐版权集体管理组织,提升数字音乐管理效率;健全数字音乐版权法律体系,重构利益平衡机制;完善数字音乐市场运行机制,增强数字音乐活力;注重数字音乐技术创新,不断提升核心竞争力。     

促进我国数字音乐产业发展的对策分析

数字音乐分为在线音乐和无线音乐两大类,由于它成本低、无实物载体、传播迅捷,因而引发了一场数字技术对传统音乐产业的深层次变革,例如:音乐的制作成本、商品形态、销售渠道、消费方式、赢利模式等都发生了翻天覆地的变化。数字音乐产业在发展过程中也遭遇了瓶颈,存在着盗版猖厥、生产企业良莠不齐、收支失衡、付费繁琐等问题,据此提出了相应的对策。     

The Impact of National Culture on Software Piracy

This paper examines the impact of the level of economic development, income inequality, and five cultural variables on the rate of software piracy at the country level. The study finds that software piracy is significantly correlated to GNP per capita, income inequality, and individualism. Implications for anti-piracy programs and suggestions for future research are developed.     

Erratum to: Exploring Factors Affecting Digital Piracy Using the Norm Activation and UTAUT Models: The Role of National Culture

The model emphasizes the ethical dynamics of compassion in hospitality settings by suggesting that under an organizational ethical climate, the hotel staff will be more morally aware of peers’ pain and suffering, and motivated to participate in delivering compassion. Based on the positive psychology focus on compassion as individual states and traits supporting interpersonal dealings, the paper operationalizes compassion based on four individual factors involved in the compassionate process: (a) empathic concern, or an other-oriented emotional response elicited by and congruent with the perceived welfare of a person in need; (b) mindfulness, a state of consciousness in which attention is focused on present-moment phenomena occurring both externally and internally; (c) kindness, or understanding the pain or suffering of others; and (d) common humanity, or seeing others’ experiences as part of the larger human experience. Data were collected from 280 employees at ten hotels in the Canary Islands (Spain). With the exception of self-interest, results of multiple linear regressions demonstrate that each of the six interpreted factors of ethical climate has substantive effects on any of the studied elements of staff compassion. The egoistic-related and principle-related climate factors generated a more consistent and intense compassionate reaction, suggesting that the staff is moved to act out of compassion either to assure that the team succeeds or to support each other out of moral obligation.     

基于行为经济理论的个人偷逃税模型

偷逃税问题的分析框架由Allingham和Sandmo最先提出,它的核心是期望效用最大化,一直占据着偷逃税理论研究的主流.然而,基于期望效用理论的偷逃税研究并不能很好解释现实.本文摒弃传统的期望效用分析工具,采用行为经济理论中Kahneman和Tversky的前景理论,对个人的偷逃税行为进行了分析.结果显示,相对经典A-S模型,新模型较好解释了税率对逃税行为的影响.     

基于多属性模糊决策的行为投资组合优化模型

Simon认为经典决策理论的假定过分地严格,在实际中往往难以满足。运用上、下偏矩的方法来估计未来财富不低于渴求水平的概率,并基于多属性模糊决策方法构建两个心理帐户的行为投资组合优化模型。模型中融入了不同质投资者的真实情感、信念及认知状态,实证分析的结果表明该模型具有很强的实用性和包容性。     

Reflecting on the Common Discourse on Piracy and Intellectual Property Rights: A Divergent Perspective

The common discourse on intellectual property rights rests mainly on utilitarian ground, with implications on the question of justice as well as moral significance. It runs like this: Intellectual property rights are to reward the originators for his/her intellectual labour mainly in monetary terms, thereby providing incentives for originators to engage in future innovative labouring. Without such incentives, few, if not none, will engage in creative activities and the whole human community will, thereby, suffer because of reduced inventions. However, such utilitarian argument on piracy as de-motivation may not be necessarily justified. In fact, intellectual property arrangement is one among different institutions concerning how the society may handle new ideas and creative works. In reality, private ownership over one’s intellectual product is merely a modern western concept that is being ‹advertised’ as being normative, which, by itself, is highly debatable. Alarming still, such normative argument assumes both justness and moral dimensions. This article will analyse whether such argument is philosophically sound.     

Timing Movie Release on the Internet in the Context of Piracy

Offering movies on the Internet is one way of combating the issue of online movie piracy, although the tradeoff is the cannibalization of the more revenue-generating channels. Given this tradeoff and the rather unique “staggered window distribution” mechanism followed by the movie industry, this article addresses the problem of when the studio owner should release the movie online to maximize the entire revenue stream of that movie. A general modeling approach that assumes an exponential demand function and fixed release times in the remaining channels is provided. Detailed illustration using three different movie types demonstrates that a high revenue-generating movie should be released online just prior to its home video release, while the online release of an average or below-average movie should coincide with their withdrawal from the theaters. Sensitivity analyses of the results are also displayed and give the circumstances under which a different online release time is warranted. The analysis suggests, among other things, that if a movie has an excellent opening strength and is able to sustain its revenues quite well, it would be more profitable to release the movie online a few weeks before it is withdrawn from the theaters. Additionally, the standard outcomes generated by the model are found to be sensitive to any online per-unit price change.     

Telecommunications Consumers: A Behavioral Economic Analysis

This article offers a commentary on consumer behavior in modern telecommunications markets, based on advances in behavioral economics. An original analysis of the decision‐making environment faced by telecommunications consumers identifies four specific properties of the market, of which rapid technological change is just one. The core argument is that this combination of properties, which is unique to telecommunications, is likely to foment decision‐making biases established by behavioral economics. This central insight is used to address two issues of concern from a pro‐consumer perspective: low levels of switching between providers and failure to select optimum tariffs. Competing explanations for low switching and accumulating evidence of consumer detriment in tariff choice are outlined. The commentary concludes by considering ways that consumers might be helped to meet the challenges identified.     

Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa

In the current efforts of harmonizing the standards and enforcement of IPRs protection worldwide, this paper explores software piracy trajectories and dynamics in Africa. Using a battery of estimation techniques that ignore as well as integrate short-run disturbances in time-dynamic fashion, we answer the big questions policy makers are most likely to ask before harmonizing IPRs regimes in the battle against software piracy. Three main findings are established. (1) African countries with low software piracy rates are catching-up their counterparts with higher rates; implying despite existing divergent IPRs systems, convergence in piracy rate could be a genuine standard-setting platform. (2) Legal origins do not play a very significant role in the convergence process. (3) A genuine timeframe for standardizing IPRs laws in the fight against piracy is most likely between a horizon of 4–8 years. In other words, full (100 %) convergence within the specified horizon will mean the enforcements of IPRs regimes without distinction of nationality and locality. Policy implications and caveats are discussed.     

Shaping of Moral Intensity Regarding Software Piracy: A Comparison Between Thailand and U.S. Students

Software piracy is a major global concern forbusinesses that generate their revenues throughsoftware products. Moral intensity regardingsoftware piracy has been argued to be relatedto the extent of software piracy. Anunderstanding of the development of moralintensity regarding software piracy inindividuals would aid businesses in developingand implementing policies that may help themreduce software piracy. In this research westudied the similarities and differences indevelopment of moral intensity regardingsoftware piracy among university students intwo different cultures, the U.S. and Thailand. In particular, we studied the influence of theimmediate community of individuals, such asother students, faculty, and other universityemployees, on the development of moralintensity regarding software piracy of the twogroups of students. Results indicate that, ingeneral, there are significant differences inmoral intensity regarding software piracybetween students from the US and Thailand, andthat gender differences also exist. Though theeffect of the immediate community on theself-perception of moral intensity regardingsoftware piracy of students was significant,there appears to be very little significantdifferences in this effect between the studentsin the two different countries studied. Thefindings have implications for teachingbusiness ethics, and for developing andimplementing policies to curb global softwarepiracy.     

A World of Love 2008 Music Grand Ceremony

Under the guidance of the theme slogan of the 29th Olympic Games - One World One Dream, with dream, love and dedication as its theme, the 2008 Music Grand Ceremony ＆ 1000 People Charity Concert on 100 days cotmtdown to Paralympic Gamesis officiaily launched on December 22, 2007. The 2008 Music Grand Ceremony is sponsored by China Disabled Persons＇ Federation, and co-hosted by National Paralympic Committee of China,