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Say That Again

Say That Again

by Mike Masnick


Filed Under:
bill thompson, debates, facts, geoff talor, music industry, recording industry, studies

Companies:
bpi, virgin media



Recording Industry Now Making Up Facts To Support Having ISPs Police File Sharing

from the please-try-again dept

A whole bunch of folks have sent in the "debate" that was held on the BBC website last week, starting with regular columnist Bill Thompson trashing Virgin Media, a UK-based broadband provider, for agreeing to send out warning "notices" to folks that the entertainment industry claims are file sharing. Thompson explains that he's been known to use BitTorrent to get a copy of a TV show he missed on TV and forgot to record on his DVR, wondering why this should be a problem. He also mentions: "Evidence that heavy downloaders are also heavy music purchasers doesn't seem to have made any difference to the BPI's approach either, and instead of finding new business models they hold on to the old ways of working."

The response came from BPI's chief exec Geoff Taylor, who responds by suggesting that Thompson's column is ill-informed, and thus, supports this "education" effort by Virgin Media. He also suggests that the entertainment industry is wholeheartedly embracing new business models and its folks like Thompson who are the dinosaurs. Finally, he completely contradicts Thompson when he claims: "Independent research has shown time after time that people who download illegally generally spend less on music than people that don't, which undermines investment in new music."

Well, as the joke goes, everyone's entitled to their own opinions -- but not their own facts. And, in this case, it would appear that it's BPI's Geoff Taylor who's got his facts screwed up. The "new" business models that he talks about were hardly the result of a forward-thinking entertainment industry, but one that was dragged kicking and screaming into a new era, and has resisted every innovation at every turn -- and is still doing so. The real kicker, though, is his claim that independent studies say that those who use file sharing spend less on music. That's simply untrue. Study after study after study after study after study after study has shown the exact opposite -- noting that people who file share tend to be bigger music fans, and are more likely to spend on music.

Most of those studies were easily found doing a basic Google search. So how about a Google search in order to find all that research insisting that file sharing makes people spend less on music? The only result I could find was to BPI's own page where it claims "The overwhelming majority of reputable third party research shows that illegal file-sharing has been a key factor in the recording industry's 22% worldwide sales declines between 1999 and 2004" and then quotes the IFPI as its source (hardly an unbiased party). That page then does link to other research. Amusingly, though, it includes some of the same research mentioned above -- and either twists the results or claims that the research was "debunked," when in most cases it had not been.

In some cases, the results are positively hilarious. Take, for example, the way the BPI spins one study that says the exact opposite of what it claims: "EMR concluded that heavy music buyers are also heavy filesharers. In other words, filesharing threatens the music business' biggest customers." See how that works? When the study says that fileshares are the biggest music buyers, BPI uses it to note that file sharing "threatens the music business' biggest customers," rather than realizing that perhaps file sharers are also spending more money on music. Many of the other studies it quotes are the long-debunked stories that count every download as a "loss," which then are used to show huge "losses" in CD sales that never would have happened in the first place. The BPI is making up its own facts here. This round goes to Bill Thompson.

25 Comments | Leave a Comment..

 
News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
file sharing, isps, uk

Companies:
ifpi, virgin media



Virgin Agrees To Be IFPI's Copyright Cop

from the but-why? dept

Back in February, there were reports that the entertainment industry had somehow convinced the UK gov't that the "file sharing issue" should be the responsibility of ISPs, rather than the record labels whose obsolete business model caused the problem in the first place. The UK gov't then issued a very public threat that ISPs had better start kicking file sharers off the internet, or it would pass a law requiring them to do so. It appears that rather than push back, Virgin Media has jumped right in and will start kicking those accused of unauthorized sharing off their system using a "three strikes" policy. Of course, some might find this a bit ironic, considering that part of Virgin's entire marketing campaign was around how you could get free stuff via its internet connection. In the meantime, it's still not clear why ISPs should be responsible for propping up a different industry's business model.

17 Comments | Leave a Comment..

 
(Mis)Uses of Technology

(Mis)Uses of Technology

by Mike Masnick


Filed Under:
advertising, clickstream data, isps

Companies:
bt, carphone warehouse, virgin media



UK ISPs To Start Tracking Your Surfing To Serve You Ads

from the pirvacy-please dept

For years now, ISPs have been searching for alternative revenue streams to avoid just being "dumb pipes." A few years ago, they picked up on the fact that they have a tremendous amount of data about what you (yes, you!) do online. A bunch of ISPs then started selling your clickstream data to companies that could do something useful with it (though, those ISPs probably neglected to tell you they were doing this). Late last year, we heard about a company that was trying to work with ISPs to make use of that data themselves to insert their own ads based on your surfing history -- and now we've got the first report of some big ISPs moving into this realm. Over in the UK three big ISPs, BT, Carphone Warehouse and Virgin Media have announced plans to use your clickstream data to insert relevant ads as you surf through a new startup called Phorm.

While Phorm claims that it keeps your data private "by tracking individual users with an assigned number only," that's hardly assuring. After all, remember that both AOL and Netflix have released similar anonymized data where identifying info was replaced with an assigned number... and it didn't take long for both sets of data to be de-anonymized. While it's no surprise that ISPs would want to get into the advertising business, and to think that they could better target ads thanks to their knowledge of your entire surfing history, it's going to freak some people out (and potentially cause some serious privacy problems). All the more reason to figure out how encrypt your traffic and hide your activities from your ISP.

32 Comments | Leave a Comment..

 
(Mis)Uses of Technology

(Mis)Uses of Technology

by Mike Masnick


Filed Under:
false advertising, traffic shaping, uk

Companies:
bt, plusnet, virgin media



Traffic Shaping In The UK: Who's Honest And Who's Not...

from the sound-familiar? dept

While we've mostly been focused on the debates over traffic shaping and false advertising in the US with the likes of Comcast and Verizon in the US, there's an interesting parallel over in the UK. Just like Verizon, it appears that Virgin Media's broadband offering is advertised as unlimited, even as the reality suggests quite differently. It's "unlimited within a fair-usage limit." That sounds like "limited" to me. In fact, the article notes, a Virgin Media user paying for unlimited service could find his bandwidth suddenly capped after just 20 minutes of straight downloading. That seems like quite a limit.

Much more interesting, however, is the story of Plusnet, an ISP that was recently bought by BT. It does traffic shaping, but unlike just about every other ISP, is incredibly honest and upfront about what it's doing. This is exactly what many people have been telling Comcast it should do. There are supporters of Comcast's efforts who insist that if Comcast did such a crazy thing as to actually tell its customers what it's doing, it would ruin the whole plan. However, the details from Plusnet show that's not the case at all. Plusnet makes it very clear what it's doing, explains to users what to expect, and even helps them understand when it makes more sense to use high bandwidth applications. According to the few supporters of Comcast out there, this would never work -- and yet, it clearly does work for Plusnet. Not only that, the article notes that Plusnet's customer satisfaction rating has been growing steadily. So, once again, we'll ask what could possibly be wrong with Comcast telling the truth about the fact that it's using traffic shaping to prevent certain actions?

21 Comments | Leave a Comment..

 
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