The commercial, market-based value of the ability to play music copied from CD as a feature on MP3 players, phones and tablets.

The research has been published in response to the Government’s request for evidence on the impact of proposals to change the UK’s copyright system.

Undertaken by Oliver & Ohlbaum, the research clearly demonstrates that being able to play music copied from CDs is the feature that consumers prize when they are in the market to buy a new device.

Most interestingly, the research was able to determine how that feature translates into pounds and pence in today’s market.

The headline findings are as follows:

For MP3 players, “playing music copied from CD” is worth:

44% (£21.00) of a basic MP3 player (costing £47.45)

53% (£65.17) of a mid-range MP3 player (costing £122.95)

32% (£80.00) of a top-end MP3 player (costing £247.14)

For smartphones, “playing music copied from CD” is worth:

2.59% (£6.67) of a basic smartphone (costing £257.46)

4.13% (£23.60) of a top smartphone (costing £571.33)

For Tablets, “Playing music copied from CD” is worth:

6.7% (£33.50) of a tablet (costing £499.79)

The analysis also identifies the commercial value ascribed to locker-based cloud storage of music.

Personal documents and files, like irreplaceable family photos, rank highest for consumers. But music is the next most important thing to consumers to back-up to commercial cloud services.

72% of respondents consider their digital music collection as their most valuable commercial data of any type, ahead of film, ebooks, and video games.

The research and analysis was carried out by Oliver & Ohlbaum (O&O).

O&O are leading experts in conjoint analysis and this methodology is recognised as “especially appropriate if a policy maker seeks to understand the value of particular or individual characteristics of a good and how that characteristic relates to others.” The conjoint analysis was peer reviewed by a leading academic at Newcastle University who has previous experience and expertise of research using this form of methodology, with whom neither UK Music nor O&O had any previous relationship. The data we present here is the most rigorous, market-tested, academically-verified method of determining the value of devices which can be directly attributed to play music copied from CDs.

UK Music is urging Government to incorporate this data into a proper cost and benefits analysis, so that the true economic impact of changes to the UK copyright framework can be established.

Source: UK Music