Superdistribution revisited empirical evidence from a music filesharing
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1 Fakultät für Betriebswirtschaft Munich School of Management Superdistribution revisited empirical evidence from a music filesharing network ODRL - Virtual Goods Conference Sophie Ahrens Institut für Wirtschaftsinformatik und Neue Medien Koblenz, 13. Oktober 2007
2 Index Motivation Research Interest Setting Design Results Related Research 1
3 Index Motivation Research Interest Setting Design Results Related Research 2
4 Motivation: Market for legal downloads Development of legal Downloads Downloads, Germany In Millions With costs For Free (homepage) For Free (p2p) Example: itunes Launch: April ,2 % market share of legal download provision in Germany 1.5 billion songs downloaded worldwide since launch Source: GfK Brennerstudie (2006), Fittkau & Maaß
5 Market overview of media distribution platforms super distribution pioneers Russian threat illegals UGC-Provider illegal peers usual suspects mobiles Independents 4
6 Index Motivation Research Interest Setting Design Results Related Research 5
7 Research Interest and Research Questions Research Interest Identification of requirements for the development of a service that allows the controlled exchange of content between peers based on the idea of Superdistribution. that is available for fixed and mobile line and for professional as well as user generated content. Research Questions the positive attitude to forwarding via Superdistribution and the positive impact of revenue splitting as an incentive among close groups of friends Test Domain Sharing Superdistribution Superdistribution & enforced monetary incentives Hypothesis: Superdistribution is the preferred technology, especially when combined with economic benefits 6
8 Index Motivation Research Interest Setting Design Results Related Research 7
9 Setup of academic research project Our Focus Center for Internet Research & Media Integration (CIM) Mission transformation of the communication industry by digital media, especially by the Internet Management Science Computer Science Communication Science Law analyses the advantages of new technologies and develops qualified business models deals with technological basics and the feasibility of new information and communication technologies addresses the social consequences of technological innovation and the user contact with these new technologies draws up current copyright, property right and liability laws as well as amendments 8
10 Organization of Research project Mode of Operation Our Focus Incentive Systems Business Models Management Science Law Regulatory Framework Computer Science Communication Science Test Environment Evaluation Market Analysis New Legislative Projects Technology Monitoring 9
11 Index Motivation Research Interest Setting Design Results Related Research 10
12 Research Design Qualitative Procedure Selection of method: triangulation of qualitative research methods Selection of persons: 33 people, natural groups Level of analysis: networks Data collection: observation: log files; interview: guided focus groups Pretest: Focus groups Pretest: Technology Experiment: Prototype acceptance Interview: Focus groups Data Analysis For the experiment every participant was equipped with a laptop and a cell phone with SIM card running the prototype software. 11
13 Prototype incorporates three basic technical concepts using OMA DRM V.2 Convergence of landline and cellular networks Domain licenses Superdistribution Source: Deutsche Telekom, IFA
14 Concepts of Superdistribution and Domain Sharing Superdistribution Domain Sharing Bonus Points Payment, License Prototype Payment, License License & Music sharing Payment, License Domain Bonus Points Payment, License 13
15 Index Motivation Research Interest Setting Design Results Related Research 14
16 Results of experiment and focus group interviews Experiment Bonus points per group Average bonus points per person Extra stimulus to perform Superdistribution , ,8 40,6 Group 1 Group 2 Group 3 Group 4 Group 5 Group total= Focus group Interview Well I don t know. It should actually go without saying that, if I buy a song, I then can play it wherever I want to. So I would, to be honest, find it pretty bad if I can only use it on the laptop for example. If it s like that, I wouldn t buy the song. A song which can t be played on other devices. And then I would have to buy it again? I wouldn t want that... if you palm such a song off on your friends. You just don t do that! It s so selfish if you only think of your bonus points, isn t it? No, I wouldn t want to profit, if someone else had to pay just because I promoted it on to him. Well, however I prefer giving friends something for free than saying Buy something, that gets me a bonus point! Domain Sharing is favored over Superdistribution Monetary incentives do not work as an incentive among private social networks 15
17 Index Motivation Research Interest Setting Design Results Related Research 16
18 Related Research Technical Superdistribution Economic Superdistribution Superdistribution (Mori / Kawahara) allows for decentral exchange of content combined with a usage based charge mechanism and a defence mechanism against interference Potato System (Nützel / Grimm) Controlled distribution of music through a link system including a remuneration system with fixed commissions for users who actively redistribute music Economic peer-to-peer concept (Gehrke/ Anding) Research of revenue sharing business models in peer-to-peer file sharing systems supersedes illegal file-sharing systems Revenue splitting (Quiring / v. Walter / Atterer) Investigation of the effects of splitting ratios on download behaviour when splitting revenues among the members of a supply chain Monetary Incentives Cognitive Dissonance (Festinger) Notion of friendship conflicts with monetary incentives Intrinsic motivation crowding out (Titmuss; Frey / Oberholzer-Gee) Intrinsic motivation is depleated by extrinsic motivation, e.g. monetary incentives. Only significant amounts of money outweigh the loss of intrinsic motivation 17
19 Fakultät für Betriebswirtschaft Munich School of Management Superdistribution revisited empirical evidence from a music filesharing network ODRL - Virtual Goods Conference Sophie Ahrens Institut für Wirtschaftsinformatik und Neue Medien Koblenz, 13. Oktober 2007
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