Want to prosecute people who are downloading files illegally? Well, if you fine them, you might be taking money out of the hands of your best customers, a new survey shows.
It's not the first such survey to come to this conclusion. However, it is the latest.
The study, published on Sunday by U.K. think tank Demos, surveyed 1,008 people aged between 18 and 50 last month. It found that those who admit to illegally downloading music spent an average of £77 a year on music, which is £33 more than those who claim that they never do so.
The British Phonographic Industry estimates that seven million U.K. users download files illegally annually, which will cost the industry £200 million this year. Assuming, however, that the survey held true, the extra £33 spent annually by each of those seven million would add up to £231 million. Hey, that's a profit of £31 million!
Seriously, the study also noted that lowering the price for legally downloaded music could result in a significant decrease in illegal downloads. The sweet spot would seem to be 45p per track. Currently, tracks on iTunes run between 59p and 99p; the survey indicated that sales could double at that price.
Naturally, the music industry wasn't too impressed with the survey. Recent proposals, include a "three strikes, you're out" policy which would terminate broadband service if consumers fail to respond to warning letters; the industry believes this will deter illegal downloaders.
Meanwhile, some, including Forrester Research, have a different view. Mark Mulligan of Forrester Research said, "The people who file-share are the ones who are interested in music. They use file-sharing as a discovery mechanism. We have a generation of young people who don't have any concept of music as a paid-for commodity. You need to have it at a price point you won't notice."
This same argument has been made for downloaders of other material, such as PC games; many say they download as a sort of "try and buy" method. In terms of this survey, 83% said they buy more music as a result, and 42% said they did so to "try before you buy."
Of course, this doesn't change the fact that illegal downloading is still stealing. It is evident, however, that many younger people just don't see it that way.
The iPhone has finally reached China, or should I say, the iPhone has finally officially reached China. There were plenty of unlocked iPhones invading China's GSM Networks, but only Friday was it on the China Unicom network.
The first shipments manufactured for China Unicom, however, are missing wi-fi. It wasn't until May, after manufacturing of the device had begun, that Beijing lifted the existing wi-fi ban on devices.
This will create problems for China Unicom, which has reportedly contracted with Apple for 5 million iPhones. China Unicom hopes to have wi-fi in the next batch of iphones it receives from Apple, saying: "We are talking with Apple and expect the problem to be solved by the end of this year."
Until then, though, what? China Unicom also is at a price disadvantage: unlocked grey import iPhones (with wi-fi, no less) cost around 5,700 yuan ($835) in China’s street markets, while China Unicom charges from 4,999 yuan ($730) to 6,999 yuan ($1,025) for the high-end, 32 GB iPhone 3GS.
Hmmm. An unlocked iPhone for less money, or official iPhone, tied to one carrier, for more money. Which would you choose? To be honest, even with the wi-fi feature, the fact that the unlocked iPhone goes for less creates an issue for Apple, as well as China Unicom.
In other countries, unlocked iPhones go for more, and far more than a locked version. This backwards set-up in China may prove to be difficult to overcome.
Google Earth is probably the first and only desktop application to have AdSense Ads. These ads are is now showing in at least two different places inside the application:
Figure A: When you search for a location or business, the ads are displayed in the search results itself.
I find this interesting because Google policies strictly don’t allow software developers to integrate AdSense ads in their desktop applications. If that policy changes, we could see more and more of Office 2010 Starter or FeedDemon like applications that are completely free to the end-user but supported by web advertising.
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