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A consumer survey reveals the entrenched state of consumer practice and opinion in relation to the downloading of online content without payment, and the correlative difficulties faced by copyright owners.

A recent consumer survey (the Olswang Consumer Survey 2007, conducted in partnership with YouGov) has revealed that there is a greater demand for media rich content as consumers are becoming increasingly connected by using a range of devices both at home and on the move that facilitate internet access. However, the survey suggests further that there has not been a corresponding increase in willingness to pay for such content.

The survey sampled the attitudes of more than 1,500 18-55 year old British consumers, and around 250 13-17 year olds. It reveals that true convergence is starting to take hold as a large number of households have networks installed and the computer is becoming an entertainment device.

Every month, over 30% of respondents stream or download movies and TV content, and even greater numbers watch the range of free content that is already available. The statistics indicate the following usage by respondents:

YouTube (and other similar sites) – 63%

Streaming music – 42%

Podcasts – 33%

This has intensified demand for free content, and the results indicate that free content is being consumed by approximately three times as many people as paid content.

This presents new challenges for broadcasters, rights holders and service providers who are keen to target these consumers, but need to overcome the issue of reluctance to pay. The survey provides strong endorsement for making advertising, rather than payment, the business model for online content. To secure free content consumers are willing to tolerate online advertisements (which they would ordinarily actively avoid).

The survey reveals a continuing trend in which consumers are even more determined to not pay for online content. Only 12% of those individuals surveyed responded that they either already pay or are willing to pay for downloaded or streamed movies or TV shows, whilst 49% responded that they will download content only if it is free.

The survey further revealed a degree of confusion surrounding what content consumers are legally allowed to use on their home computers. 71% of people believe that once they have bought some content, they should have the freedom to transfer that content between all personal devices.

Consequently, copyright owners face a difficult task in their attempts to persuade consumers that rules on content use, enforced by Digital Rights Management, are fair and justified.