Project Cate Exploring online piracy behaviour and attitudes in Taiwan

12th June 2014

3

Contents

•  Methodology

•  Love and Fear Online

•  Entertainment

•  Defining the Pirates

•  Pirates’ Online Behaviour

•  Pirates on Piracy : Knowledge and Attitudes

•  Drivers of Choice

•  Modifying Behaviour in Taiwan

4

Qualitative Discussion Groups

March 16-17th 2014

Methodology

Online quantitative research

23rd April – 8th May 2014

•  1200 respondents aged 18-59 •  Up-weighted to be

representative of total population •  Participation anonymous

1.  Male pirates 18-24 Persistent 2.  Male pirates 18-24 Casual 3.  M/F pirates 25-34 inc. some parents Casual 4.  Male lapsed pirates 18-24 50% of sample pre-tasked with 2 week viewing and listening diaries

5

1. LOVE AND FEAR ONLINE

6

An integral part of Taiwanese life

•  Clear benefits of social connection, entertainment and information readily articulated

•  Control, convenience, cost efficiency recognised

“Information is so fast – anything you want to find out you can find out” 18-24 Persistent

Over 75% of the population

online

“Whatever you need to search you can. You don’t need to find it out yourself” 18-24 Persistent

“Convenience is key – my time is more of a premium” 25-34 Casual

Source: Internetworldstats.com

7

1.02 1.03 1.13 1.00 0.98 1.11 0.93 0.98 0.99

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

Socialising online a prominent pastime

Reading news

Base: ALL Taiwan (1200) A2. On average day on the internet what activities do you usually do and how long?

Emailing

Social Media

Searching information

Listen to music

Average time spent in hours

1.28 1.13 1.35 1.28 1.28 1.30 1.30 1.33 1.41

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

1.65 2.58 2.37 1.69 1.49 1.28 1.18 1.03 1.47

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

1.45 1.55 1.82 1.47 1.38 1.35 1.37 1.24 1.58

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

1.19 1.93 1.76 1.06 1.02 0.97 0.77 0.87 1.00

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

8

Watching videos peaking amongst younger online users

Watching videos

Base: ALL Taiwan (1200) A2. On average day on the internet what activities do you usually do and how long?

Searching music to

download

Searching movies/TV to

download

Playing games

Other

Average time spent in hours

1.38 1.84 1.87 1.31 1.27 1.22 1.19 1.12 1.15

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

0.86 1.11 1.14 0.91 0.80 0.76 0.67 0.69 0.73

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

1.06 1.29 1.34 1.09 1.07 0.95 0.83 0.85 0.99

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

1.18 1.52 1.77 1.29 1.24 0.95 0.90 0.82 0.85

TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

0.49 0.52 0.61 0.55 0.29 0.41 0.62 0.44 0.46 TOTAL 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

9

With sunshine comes shadow

•  Negative impact of internet on life apparent

–  Time sapper –  Reduction in physical

social contact

•  ‘Dangers’ mentioned without prompting, and feared

–  Hacking + Trolling –  Viruses –  Fake goods

This is more pronounced than witnessed in qualitative research in other markets

“You plan on being there for half an hour and you realise you’ve spent 3 hours!” 18-24 Lapsed

“I don’t like it when you shop some of the things and they’re fake” 18-24 Persistent

“What I hate is unfounded criticism” 18-24 Casual

“Some people go crazy on the internet. Start false rumours and talk nonsense” 18-24 Lapsed

“It reduces contact between people, physical conversation is less” 18-24 Pirate

“I say who is your girlfriend? Me or the phone?!” 25-34 Casual

10

Viruses the number one concern

81

76

70

50

37

34

25

25

16

6

My computer can get infected with viruses

My personal details can be stolen

My computer can be hacked

I can be the target for scams

I may get into trouble for downloading / watching pirated movies, TV shows or music

My computer can be used for piracy activities

Rumours and gossip can be spread about me or by using my computer

I can be exposed to porn

I can be exposed to child porn

I have no concerns at all when going online

Base: Taiwan (1200) N11. When going online, what are your main concerns?

Main concerns when going online

11

Exposure to inappropriate content a worry for parents

68

58

54

46

43

41

My child can be exposed to high risk advertisements (eg sex, gambling, scam advertisements etc.)

My child can become the target for scams or fraud

The computer can get infected with viruses

The computer can be hacked

My child’s personal details can be stolen

Downloading / watching Illegal movie, TV and music content

Base: Children at home (513) D12A. Do your children download or stream illegal content from the internet? D12B. What are your main concerns when your child goes online?

Main concerns when your child goes online

12

2. ENTERTAINMENT

13

Actively enjoying film, TV and music

Global content mentioned and

consumed by pirates

Cinema remains popular but online on

an equal footing

Tai pop Mandopop

Those who admit to being pirates, and those who don’t, are active online viewers of movie and TV

14

10

As a population, avid consumers of movie, TV and music

25

Base: Total sample N=1200 A3: Please indicate how often, if ever, you do each of the following?

3

3

2

2

2

14

15

12

13

3

7

5

5

3

10

2

4

4

3

3

3

11

9

8

9

3

6

6

5

4

7

3

3

8

2

2

2

10

9

8

9

3

6

5

7

3

8

3

3

20

3

2

3

11

9

9

8

4

7

8

7

4

8

4

17

48

16

14

19

32

26

28

26

15

28

31

32

14

29

19

66

11

70

73

67

18

28

31

31

68

41

41

39

67

34

65

4

6

4

4

4

4

4

4

4

4

5

4

5

5

4

4

Rent a movie or TV show online

See a movie at the cinema

Purchase a movie online

Purchase a TV show (episode) online

Purchase a music track online

Download a movie online for free

Stream a movie online for free

Download a TV show (episode) online for free

Stream a TV show (episode) online for free

Buy a pay-per-view movie on pay subscription TV such as Chunghwa MOD,(i.e. where you pay a fee to watch a particular movie)

Convert a YouTube clip to MP3 (music track)

Use a USB / portable hard drive or cloud storage to share movies and TV shows with friends and family

Use a USB / portable hard drive or cloud storage to share music with friends and family

Use a VPN to access movies and TV shows overseas that are not yet available in Taiwan

Upload a clip of a movie or TV show I’ve seen to Facebook or YouTube so I can share it with others

I have purchased an USB/hard drive containing a number of movies/TV shows or music

More than once a week Once a week Every 2-3 weeks Once a month Less often Never Can’t say

15

3. DEFINING THE PIRATES

16

DIY

Download or stream

pirated content but don’t

share

Share Only

Share pirated content only.

Do not download/

stream

DIY and share

Both download / stream and

share pirated content

Casual Pirate monthly, more or less often but not

as frequently as weekly

Persistent Pirate at least weekly

Definitions for Taiwan

Active Have consumed pirated material in last

12 months

Non-pirates Say they have never

consumed pirated content

Lapsed Say they have not consumed pirated content for at least

12 months

Non-Active

17

DIY Share Only

DIY and share

Definitions for Taiwan

Other sub segments will be highlighted where appropriate – all segments data is available for music only and movies/TV only

Casual Pirate monthly, more or less often but not

as frequently as weekly

Persistent Pirate at least weekly

Active Have consumed pirated material in last

12 months

Non-pirates Say they have never

consumed pirated content

Lapsed Say they have not consumed pirated content for at least

12 months

Non-Active

18

10

21

Nearly ¾ of Taiwan’s population have participated in piracy

25

Base: Total sample N=1200

Ever done any piracy

73

27

Ever (any) Never (all)

19

10

21

Current activity levels are high

25

Base: Total sample N=1200

Ever done any piracy

16

57

27 Lapsed Active Never done any

20

10

21

Almost identical levels of incidence for movie / TV show piracy and music piracy

25

Base: Total sample N=1200

Ever done any music piracy

Ever done any movie / TV show piracy

16

49

35

Lapsed Active Never done any

18

48

35

Lapsed Active Never done any

21

10

21

In comparison with Singapore, involvement is still high

25

Base: Total sample N=1200 NB. Only using piracy activities that appear in both Singapore and Taiwan research

Ever done any music piracy

Ever done any movie / TV show piracy

18

42

40 11

39

49 16

43

41 10

39 50

22

10

21

More than half of all active pirates download and share

25

Base: Total sample N=690 ( breakdown of Active pirates base )

Active pirates

40

6

54 DIY Sharers Both

23

Segment sizes

DIY 40%

Share 6%

Both 54%

Casual 41%

Persistent 16%

Active 57%

Non-pirates 27%

Lapsed 16%

Non-Active 43%

24

DIY 40%

female, part-time, single

Share 6%

older, female, married, heavily skewed full-time workers, SES A

Both 54%

younger, male, student, single,

higher education

Casual 41%

slightly younger and male, higher

education

Persistent 16%

younger, female, student/part-time,

single, SES B

Segment profiles

Active 57%

Skewed towards: younger

Non-pirates 27%

older, male, single, lower education,

SES C

Lapsed 16%

middle aged, female, mid-level education, joint account holder

Non-Active 43%

Skewed towards: older, married, slightly lower level of education

25

4. PIRATES’ ONLINE BEHAVIOUR

26

Triggers to view / listen

Movies Social or solus

Music Solus

TV shows More sociable

Entertainment “I have wanted to watch this animation for a long time” 18-24 Persistent

Boredom relief “Just to kill travelling time” 18-24 Casual

Social connection “Watched FTV new drama ‘Dragon Dance’ with my whole family right after dinner” 24-35 Casual

Habit “I play some music to settle myself with every free time” 18-24 Casual

Relaxation “listening to different singers…helps relax oneself” 18-24 Persistent

Information

27

What fits, not what’s legal

In Taiwan, for pirates, legal and illegal coexist

Legal Illegal For MUSIC

•  Focus Group diaries revealed high consumption of TV by pirates –  Habitual viewing

(especially News) –  Social viewing –  Popular content

•  Pirated sources accessed more for solus, unplanned viewing on computer

•  Western content mentioned frequently

•  Predominantly ‘freemium’ options eg. Tune-in, Spotify, KKBox

•  But still many mentions of CD purchases of favourites

28

93

82

58

24

19

13

13

9

8

3

1

YouTube

PPS

iTunes

BitTorrent

Funshion

Fun 698

EYNY

EZTV

Megashare

The Pirate Bay

None of these

Movie and TV sources

82

29

12

9

8

7

6

1

2

1

5

Base: Movies/TV Active (580) X1A. Which of the following sites which have you heard about before? X3A. Which of the sites that you know of do you currently use (at least once in the past 3 months)?

Sites Heard about before

Currently Use

Igogoshare.com

29

Music sources

Base: Music Active (567) X1B. Which of the following sites which have you heard about before? X3B. Which of the sites that you know of do you currently use (at least once in the past 3 months)?

89

77

35

10

7

5

3

2

2

3

KKBox

Foxy

eMule

Spotify

Kuguo

Grooveshark

EYNY Forum

Ah Ben Forum

Kuaibo

None of these

27

15

8

4

2

3

1

1

1

52

Sites Heard about before

Currently Use

30

Discriminating between sources of content

Some ‘legal sources such as YouTube and KKBox fulfill many of these requirements – whilst legality is not a driver of choice, it is also not a barrier to choice.

FREE

Ease of use

Familiarity

Range of choice

Recency of content

Quality of content

“YouTube can quickly use keywords to search….convenient and fast” 18-24 Casual

“Funshion site, fast downloading speed and clear picture quality” 18-24 Casual

“Ah Ben Forum because they have regular updates with the latest music albums” 18-24 Persistent

“I’ve used KKBox for a long time” 18-24 Lapsed

“Downloaded from EYNY – there is a lot of drama series, movies and variety programmes in it” 18-24 Casual

31

The quality issue in Taiwan

•  Unlike other markets pirated content is believed to require a compromise on quality

–  Though free access and convenience (at home, unscheduled) are prioritised over quality by many

•  Even the most frequent pirates recognise the quality compromise

–  Chinese sites referenced

•  The main driver for ceasing piracy articulated by the lapsed

If the quality gap is widened and overtly publicised then it will force a comparison between legal and illegal content in which legal will win (now)

“I prefer to pay because the quality is better” 18-24 Casual

“We're using the computer. If we want good quality we go to the cinema” 18-24 Lapsed

“It’s easier to differentiate for movies and TV – only if you are very picky about sound quality then you’d want licensed” 24-35 Casual

32

The appeal of streaming in Taiwan

•  As in other markets streaming proving more popular

–  Immediacy and convenience appeals

–  Less perceived risk of viruses

•  However, recognition that streaming may compromise quality for movies and TV

–  If quality matters, then DDL

•  Preference for opportunities to stream while downloading afforded by some sites

“I prefer to stream online and not download. It saves time and also you won’t get a virus” 18-24 Casual

“fun 698 is the most convenient I’ve seen so far. After you’ve finished watching it shows in yellow. I watch half of it today and fall asleep and I can watch the rest tomorrow” 18-24 Persistent

33

Streaming drives frequency of movie and TV piracy

BASE: Active N=690; Persistent N=196, Casual N=494 (all that indicated they have ever done above activity) N3: Please indicate how often you do each of these activities

15

42

0 13

38

0

18

56

0

21

60

0

23

21

24

23

25

22

24

20

26

23

15

28

42

26

51 40

22

50

45

18

57

40

19

51

20 11

25 24 15

28

13 6

17 16 6

21

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Download a pirated movie from the internet

Download a pirated TV show from the internet

Use a website to stream and watch a pirated movie

on the internet

Use a website to stream and watch a pirated TV

show on the internet

At least once a week At least once a month Less often Don’t do nowadays

N=381 N=132 N=249 N=354 N=122 N=232 N=453 N=148 N=305 N=455 N=163 N=292

34

Music less defined by streaming / downloading

7

22

0

13

36

0

14

45

0

24

30

20

19

18

20

26

18

30

44

30

51

43

31

50

46

27

55

25 18

29 25 15

30

14 10 15

Active Persistent Casual Active Persistent Casual Active Persistent Casual

Downloaded a pirated music track from the internet

Streamed a pirated music track from the internet

Converted a YouTube clip to MP3 (music track)

At least once a week At least once a month Less often Don’t do nowadays

BASE: Active N=690; Persistent N=196, Casual N=494 (all that indicated they have ever done above activity) N3: Please indicate how often you do each of these activities

N=417 N=135 N=282 N=259 N=94 N=165 N=391 N=118 N=273

35

And persistent pirates love to share

7

23

0 8

21

0 12

32

0 14

34

0 8

27

0

12

13

12

16

16

16

21

25

18

22

21

22 14

17

13

41

28

46

39

30

45

44

17

60 36

27

43 44

24

51

40 36 42 37 33 39

23 26 22 28 18

35 34 32 36

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Received pirated movies & TV shows from my

friends or family through a USB / portable hard

drive

Given pirated movies & TV shows to my friends

or family through a USB / portable hard drive

Received pirated movies & TV shows from my

friends or family through cloud storages

Given pirated movies & TV shows to my friends or family through cloud

storages

Watched a pirated movie or TV show that

my friend or family showed me

At least once a week At least once a month Less often Don’t do nowadays

BASE: Active N=690; Persistent N=196, Casual N=494 (all that indicated they have ever done above activity) N3: Please indicate how often you do each of these activities

N=328 N=98 N=230 N=239 N=91 N=148 N=183 N=69 N=114 N=133 N=56 N=77 N=431 N=121 N=310

36

Music sharing

7 21

0 8

21

0 10

27

0 14

31

0 8

27

0

15

17

14 12

13

12

21

21

21

20

21

19 16

19

15

33

21

39

44

38

47

36

27

42

38

26

49 38

23

45

45 41 47 36

28 41

33 25

37 28 22

32 38 31

40

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Received pirated music from my friends or family through a USB / portable

hard drive

Given pirated music to my friends or family

through a USB / portable hard drive

Received pirated music from my friends or family through cloud storages

Given pirated music to my friends or family

through cloud storages

Listened to a pirated music track that my

friends or family played for me

At least once a week At least once a month Less often Don’t do nowadays

BASE: Active N=690; Persistent N=196, Casual N=494 (all that indicated they have ever done above activity) N3: Please indicate how often you do each of these activities

N=317 N=101 N=216 N=243 N=89 N=154 N=174 N=67 N=107 N=137 N=62 N=75 N=374 N=112 N=262

37

19 26 28 28 15

24 16 24 20 26 15 23

8 16 16

33

5 9

3

13 10

25

2

9

-59 -44 -43

-33

-65 -50

-66 -47 -55

-38

-68 -50

Active movies/TV (N=580)

Active movies/TV (N=367)

Persistent pirates (n=162)

Persistent pirates (n=118)

Casual pirates

(N=418)

Casual pirates

(N=237)

Active Music

(N=567)

Active Music

(N=322)

Persistent pirates (N=93)

Persistent pirates (N=88)

Casual pirates

(N=474)

Casual pirates

(N=233)

%

Less often these days

More often these days About the same as 12 months ago

TW SG TW SG TW SG TW SG TW SG TW SG

Buying or watching pirated movies or TV Shows

Buying or listening to pirated music

N7(b)/N8(b): Compared with 12 months ago, would you say you are now buying or watching/listening to pirated ….movies or TV shows/music?

However, pirates do not feel their frequency rates are increasing at the rate experienced in Singapore

On average 14% of population cannot say if they are doing more, less or the same as 12 months ago for movies/TV shows. For music this is 15% of the population. SG: 14% for movies/tv shows, 10% for Music

Evidence for saturation?

38

Influences on location

•  Home preferred –  Where the need and opportunity exist

most strongly to pirate –  A ‘safe environment’ where any question

of legality is removed for many

•  The concern for pirating at work or school reveals the underlying knowledge that piracy is not desirable / legal

–  Fear of detection is greater

•  Music is slightly different –  Sourced at home does not mean

listened to at home

In diaries, almost all consumption of pirated content took place in the home, in the evening

“At school we do correct stuff. We don’t do this sort of thing at school” 18-24 Persistent

“At home you just watch it quietly. Nothing happens” 18-24 Persistent

“At work, it’s more of a public space. I think the government is more likely to check…you’re easy to find and more likely to become a target.” 18-24 Persistent

39

Movie/TV show piracy location

BASE: PERSISTENT MOVIES/TV PIRATES N=162; CASUAL MOVIES/TV PIRATES N=418 N8A2. How often you download or stream pirated music tracks from each of the following sources

28 60

13 7 17

2 3 9

0 5

13

1

23

18

26

8

10

7 7

10

6 4

7

3

44 19 55

24 17

27

18

18

18 18

16

19

5 3

6 61 56 64 72 63 76 73 64 77

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Home Work Somewhere else On the go

At least once a week At least once a month Less often Don’t do nowadays

40

Music show piracy location

BASE: PERSISTENT MOVIES/TV PIRATES N=162; CASUAL MOVIES/TV PIRATES N=418 N8A2. How often you download or stream pirated music tracks from each of the following sources

21 45

11 6 13

3 4 11

1 5

13

2

22

22

23

9

15

6 6

8

4 5

7

5

49 28 57

27

24

29

20

22

20 20

22

19

8 5 9 58 48 62 70 59 75 70 58 74

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Act

ive

Per

sist

ent

Cas

ual

Home Work Somewhere else On the go

At least once a week At least once a month Less often Don’t do nowadays

41

5. PIRATES ON PIRACY – KNOWLEDGE AND ATTITUDES

42

Pirates know what piracy is

“It’s called breaking the law” [laughter] “It’s called getting something for free” “It’s called infringement of property rights” PERSISTENT PIRATES 18-24

“Without the permission of the movie company or the music company before it is released you can already view it and listen to it. If you haven’t paid for it and view it without paying” CASUAL PIRATE 25-34

“Watching movies for free that you should have paid for. Without permission you acquire things that the ownership rights belong to others” CASUAL PIRATE 25-34

“It’s using without the permission of the original creator” CASUAL PIRATE 18-24

43

The role of legality

•  Illegality is not a spontaneous differentiator of sources –  Nor one that currently drives choice –  But sources CAN be differentiated on this basis by pirates

•  ‘Licensed’ vs ‘unlicensed’ is the commonly used terminology –  Which perhaps shows a greater understanding of the issue,

and a means of distancing their behaviour from the term ‘illegal’

44

17 17 3 5 6 8

17 21 18 19 3 5 13 17

-64 -55

-88 -78 -77 -69 -62

-48 -61 -53

-87 -77

-56 -46

-19 -28

-9 -17 -17

-23 -21

-31 -21

-28

-10 -18

-31 -37

TW SG TW SG TW SG TW SG TW SG TW SG TW SG

Most activities are considered illegal

Legal

BASE: Total sample Taiwan N=1200 N4: For each of the following, please indicate if you think it is legal, illegal or if you don’t know.

Can’t say

Illegal

Using file sharing software to

download and watch pirated movies or TV

shows from the internet without

paying, for personal use

Using file sharing software to

download and watch pirated movies

or TV shows from the internet without

paying, and then selling copies of it to

others

Using file sharing software to

download and watch pirated movies

or TV shows from the internet without paying, then giving

copies to, or sharing them with your

friends

Using a website to stream pirated

movies or TV shows on the internet for

personal use

Using file sharing software to

download and listen to pirated music tracks without

paying, for personal use

Using file sharing software to

download and listen to pirated

music tracks without paying and then selling copies

of it to others

Watching a pirated movie or TV show that someone else has downloaded

45

23 11 7 4 1 2 8 4 3

23 10 8

24 11 8 5 1 2

18 7 5

-57 -73 -75

-87 -93 -86 -74

-83 -81

-54 -72 -75

-52 -72 -74

-86 -92 -87

-46 -63

-73

-20

-16 -18 -9

-6 -12

-18 -13 -16

-23

-18 -17

-24

-17 -18 -9

-7 -11

-36

-30 -22

Personal use of pirated material the source of some confusion – the active give themselves the chance to rationalise

Legal

Can’t say

Illegal

Using file sharing software to

download and watch pirated movies or TV

shows from the internet without

paying, for personal use

Using file sharing software to

download and watch pirated movies

or TV shows from the internet without

paying, and then selling copies of it to

others

Using file sharing software to

download and watch pirated movies

or TV shows from the internet without paying, then giving

copies to, or sharing them with your

friends

Using a website to stream pirated

movies or TV shows on the internet for

personal use

Using file sharing software to

download and listen to pirated music tracks without

paying, for personal use

Using file sharing software to

download and listen to pirated

music tracks without paying and then selling copies

of it to others

Watching a pirated movie or TV show that someone else has downloaded

BASE: Lapsed=188; Non-Pirates N=322 N4: For each of the following, please indicate if you think it is legal, illegal or if you don’t know.

Active Lapsed Non- Pirates

Active Lapsed Non- Pirates

Active Lapsed Non- Pirates

Active Lapsed Non- Pirates

Active Lapsed Non- Pirates

Active Lapsed Non- Pirates

Active Lapsed Non- Pirates

46

Piracy is stealing

•  Taiwanese pirates were clear that piracy is a form of theft

–  But this is not a huge concern

•  As in other markets there is no real fear of enforcement and penalty

•  A feeling that online they can do what they choose (though paradoxically they want others to be restricted)

•  Some reconcile their activity with this perception

–  They are consumers of pirated content –  They are not stealing, just consuming

stolen goods –  In their own minds – what they do is not

that bad

“We look out for our own interests. They are not very efficient at catching those who engage in piracy. Everyone is doing it anyway” 18-24 Casual

“Just block viruses and nothing else. Anything that harms my interests. Block it” 18-24 Persistent

47

The highest level of agreement in any market to date

81 78 84 83 69

80 81 86 86 80 84 80 82 84 80

-11 -13 -8 -9 -17 -11 -13 -8 -8 -12 -10 -14 -12 -7 -9

TOTAL Male Female 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 Persistent Casual Lapsed Non pirates

%

T2B B2B

BASE: Total sample N=1200. N5: Please indicate how much you agree or disagree with the following statement..

Pirating creative content is stealing/theft

48

They can identify pirated content

•  Broad rule of thumb offered by pirating groups is online illegal, offline legal

–  Perhaps more demonstrative of their habits than the reality

•  Other markers readily identified: –  Payment - quality - availability –  Simplified chinese characters – recency of release – high

risk ads

•  Pirates know when they are pirating –  Little suggestion of confusion with pirates who identify

themselves as pirates –  However, confusion offered as an ‘excuse’ and may be a

reality for those who do not identify themselves as pirates

“[you can tell it is pirated by:] Whether you’ve paid for it or not and whether you see sex ads or not” 24-35 Casual

“If you want to watch a legal film you go to the cinema. Everything basically online is pirated” 18-24 Persistent

“If you have to pay then it’s licensed. There is usually a disclaimer at the bottom, if it’s licensed they will say that. If it’s not then they won’t say anything” 18-24 Persistent

As the quality of pirated content in Taiwan improves, pirated content will be less easily differentiated – certainly for non-pirates

49

Identifying pirated content

53

47

41

41

26

22

The music tracks tends to be poor quality

It's free

There is content not yet available in the music stores

Most online sources are illegal

There is content not yet available on iTunes or similar

paid-websites

There is a wide choice available

Base: Movies/TV Active (580) / Music Active (567) X5A. Which of the following indicate that the movie/TV content is likely pirated (illegal)? X5B. Which of the following indicate that the music content is likely pirated (illegal)?

Music pirated illegal

66

64

57

43

36

33

There is content not yet available in the cinemas

The movie / show tends to be poor quality

Subtitles are in simplified Chinese characters

It's free

Most online sources are illegal

Voice overs have a non-Taiwanese accent

Movie/TV pirated illegal

50

Piracy damages

•  The Taiwanese pirates were informed about the potential impact of piracy on individuals, industry and Taiwanese creativity

–  Again, an impact they manage to uncouple from their behaviour

•  The potential personal damage, or impact on viewing experience does resonate more strongly

“Box office incomes will drop. Viewership rates will drop. They will earn less money. Advertisers will invest less money” 18-24 Persistent

“The movie companies are [most affected] and that affects a whole range of people under them” 18-24 Casual

“If the market keeps shrinking then the Taiwan celebrities will go outside… when I go to China the programmes are better than Taiwan” 25-34 Casual

“[Piracy leads to] a place where there are no good creations anymore. Creators will no longer have the passion to create content” 18-24 Casual

“If you get caught you have to bear legal responsibility” Lapsed

“The bigger problem is being sued by the original creator” 25-34 Casual

51

It’s damaging

It damages Taiwan’s creative

industries

74 72 79 75

-15 -18 -10 -10 %

Top 2 Box Bottom 2 Box

It creates financial losses to the

creative industries in Taiwan

73 71 78 75

-15 -19 -10 -11 %

It creates job losses in creative

industries in Taiwan

69 67 73 71

-18 -22 -13 -14 %

It damages Taiwanese moral

values

71 69 78 73

-17 -21 -11 -11

TOTAL Active Lapsed Non-pirates

%

52

But pirates fail to own their involvement in the issue

“I am participating but I don’t care” 18-24 Casual

“Yes I’m participating but I’m not breaking the law…we’re indirect participants. We’re second hand but not first hand. On the boundary line. It doesn’t count” 18-24 Casual

“I use piracy but I don’t do piracy” 18-24 Persistent

[Sharing pirated content] “if you don’t give it it’s not illegal. We [receiving] are the victim” 18-24 Persistent

I don’t think I contribute to the problem of piracy

50 48 43 50 52

-34 -38 -45 -35 -29

TOTAL Active Persistent Casual Non-Active

%

Top 2 Box Bottom 2 Box

Able to justify their actions to themselves – consciously distance their behaviour from their knowledge

53

6. DRIVERS OF CHOICE

54

What pirates say influences their behaviour

“Sometimes I look online and it’s already in the US but not Taiwan so I go and look for it” 24-35 Casual

“It’s free and you can even make money out of it” 18-24 Persistent

Free and

available

Unwillingness to wait

Lack of legal options

55

Reasons Active pirates watch pirated movies & TV shows (spontaneous)

36

20

8

9

3

9

8

16

7

Free/ Cost less money

Convenient

Fast to get

I just want to watch/Try out

It's for personal use only

Not available in TW

Catch up on missed TV show/movie

Other

No answer

BASE: SAMPLE N=580 N6c Which of these, if any, are reasons why you watch pirated movies or TV shows ? (open ended question, multiple response)

56

Reasons Active pirates download and listen to illegally obtained music (spontaneous)

47

15

5

8

3

4

8

12

10

Free/ Cost less money

Convenient

Fast to get

I just want to listen to music/Try out

It is for personal use only

Not available in TW

I only like one or a few songs of the album

Other answer

No answer

BASE: SAMPLE N=567 N7d What are your main reasons for downloading or streaming pirated music? (open ended question, multiple response)

57

Reasons for watching pirated movies & TV shows

59

64

90

44

83

48

25

55

55

54

89

48

70

48

18

46

I look for a movie legally online first but I can’t find it

I look for the TV show series legally online first but I can’t find it

Because it’s free

I prefer to sample a TV show series or movie first and then I will pay for it

I want to get it as soon as possible

I’m not aware of any alternatives

I choose to download a pirated version to avoid censorship

Because there are no enforced laws in place to stop me

Persistent Pirates Casual Pirates

BASE: SAMPLE N=580 N7a Which of these, if any, are reasons why you watch pirated movies or TV shows ?

NB. Context: Pirates tend not to actively seek legal content before resorting to illegal

58

Most agree there are sufficient  op,ons  to  legally  obtain…

.. and watch TV shows, (eg. via

legal sites, iTunes and through set

top boxes)

72 72 77 71

-16 -19 -12 -12 %

Top 2 Box Bottom 2 Box

.. and watch movies (eg. via legal websites,

iTunes and through set top

boxes)

61 63 63 57

-27 -28 -21 -27 %

.. and listen to music (eg. via legal websites, KKBox, Spotify)

74 73 78 75

-17 -20 -12 -13

TOTAL Active Lapsed Non-pirates

%

59

Unconscious and unspoken influences

37 36 38 40 38 41 37 33 38 32 35 48 37 35 30

-47 -48 -46 -42 -42 -41 -50 -51 -50 -50 -56 -39 -48 -46 -51

TOTAL Male Female 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 Persistent Casual Lapsed Non pirates

%

T2B B2B

Self interest Impulse and habit

A risk worth taking

Get what I want when I want it

Pleasure vs risk of virus or detection

Unchecked and ingrained

If you do it, the chance you will

get caught is very small

60

7. NEXT STEPS FOR THE NETIZENS OF TAIWAN

61

Legal content Pirated content

PROS

Current considerations for consumers of online content

•  Free •  Easy to access •  Recent content •  Personal control over schedule

•  Safer •  Good quality •  Legal •  Supporting artists and their industry

Currently no active preference for legal content for majority of pirates

CONS

•  Danger of viruses and exposure •  Poor quality •  Illegal •  Damaging to artists and industry

•  Costly •  Perceived to be harder to find •  Older content •  Controlled release

62

Adored in Taiwan by

pirates - meets all needs

FREE

RECENT CONTENT

INSTANT QUALITY

ADDED VALUE

EASY TO USE

Legal can be very successful

“Simple but sophisticated” 25-34 Casual

“Many activities – a singer may go online and play their favourite songs or open a chat room” 25-34 Casual

But not enough to prevent use of other illegal sources

CONVENIENT

“If KKbox had movies then I think it might stop [Piracy]” 25-34 Casual

63

How consumers claim their behaviour has been influenced…

52 70 77 71

49 67 73 75 76

65 63

I’m worried about being caught

Pirated movies and TV shows

are poor quality

I’m worried about getting viruses on

my computer

I’m worried about being victim of scams, fraud or

identity theft

It takes too long to download off

the internet

After thinking about it I have

actively decided not to do it

There are more legal options available so I don’t need to

I am more aware of the negative

consequences of piracy

Because it’s the wrong thing to do

I don’t have time to search for

pirated content

Because I watch less movies and

TV shows nowadays

REASONS BUY / WATCH PIRATED MOVIE/TV SHOWS NO LONGER AMONGST LAPSED PIRATES (%)

54

78 70

48

70 78 75 80

68 65

I’m worried about being caught

I’m worried about getting viruses on

my computer

I’m worried about being victim of scams, fraud or

identity theft

It takes too long to download off the

internet

After thinking about it I have actively

decided not to do it

There are more legal options

available so I don’t need to

I am more aware of the negative

consequences of piracy

Because it’s the wrong thing to do

I don’t have time to search for pirated

content

Because I listen to less music nowadays

REASONS NO LONGER LISTEN TO PIRATED MUSIC AMONGST LAPSED PIRATES (%)

Fear

Guilt

Opportunity

64

Social Acceptability/Impact

Personal Attitude/Knowledge/Experience

Environmental Access + Opportunity

Conditions for change

Potential influences on piracy behaviour

Behavioural Goal: Decrease consumption of illegal content Increase access and consumption of legal content

1.  Fewer pirated sites 2.  More legal options

1.  Ownership of behaviour + connection with beliefs

2.  Awareness of legal alternative 3.  Positive legal experience vs

illegal

1.  Piracy not a social norm 2.  Concern for future of

industry + employees

Agents of change

Legislation: restrict access to illegal sites Investment: quality legal alternatives

Communication: negative associations, quality legal experiences Education: role of legal Investment: promotion of legal alternatives

Legislation: to restrict access and marginalise behaviour Communication/Education: impact of actions on others

Responsibility •  Government/ courts •  Industry

•  Industry •  Community

•  Government/ courts •  Industry •  Community

Behavioural influences

65

Legislative agents of change

•  In Taiwan, internet law enforcement is known and accepted as a means of protecting netizens

•  Whilst likelihood of getting caught is not perceived to be high – enforcement of laws once caught are credible

“In Taiwan I think they have a special police for IP rights. They use the IP address” 18-24 Persistent

“If you do something online today, if it’s downloading content then nobody will find you. But if it’s something else you’ll get caught straightway – like scamming” 18-24 Lapsed

14 15 13 11 11 24 16 10 11 15 11

-71 -72 -71 -73 -70 -62 -75 -76 -76 -68 -75

TOTAL Active Non-Active

18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

%

Top 2 Box Bottom 2 Box

If you do get caught, nothing

much will happen to you

66

Which would be most effective?

Legislative agents of change considered effective

BASE: Total sample N=1200. D13. Which of the following measures do you think would be the most effective in reducing illegal download behaviour

30

17

17

10

8

5

4

4

3

2

Blocking of sites that profit from pirated content

Proof that downloading pirated content heightens exposure to viruses or other malware on your computer

A guaranteed fine or penalty

Evidence that piracy sites expose children to high risk advertising such as graphic sexual ads, malware ads or

Knowing someone who has been caught and fined

Your ISP slows down (throttles) your service if you are downloading excessively

ISP disconnects your service if you are downloading excessively

A warning letter from your ISP

A official visit from a copyright infringement official

Knowing someone who has been caught

%

67

And supported – by pirates and non pirates

BASE: Total sample N=1200. N5: Please indicate how much you agree or disagree with the following statement..

67 63 72 55 50 61 69 74 75 78 74

-20 -25 -13 -29 -32 -23 -21 -14 -14 -8 -14

TOTAL Active Non-Active

18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

%

Top 2 Box Bottom 2 Box The internet

requires more regulation to

prevent individuals from downloading or

streaming pirated content

63 61 67 55 51 59 62 67 72 73 73

-20 -23 -16 -23 -29 -23 -27 -16 -15 -14 -15

TOTAL Active Non-Active

18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

%

Taiwan’s courts should be

allowed to decide to block overseas

websites that profit from pirated

content

68

How do Taiwan netizens view regulation and blocking?

•  Regulation already expected and accepted for online protection in Taiwan

•  Blocking of pirated content considered inconvenient and irritating but life will go on

“I’ve no idea if Taiwan’s internet is regulated or not. It probably is but we don’t feel it!!” 18-24 Persistent

“We’re not supposed to be doing it.. So what can I do. I’d feel it’s none of your damn business” 18-24 Casual

“Some people would complain. We won’t” 24-35 Casual

“I’d feel, Oh it’s blocked! Disappointed but accept it. Nothing we can do about it. All we can do is go to the cinema” 18-24 Casual

The apathy that relates to the pirating of movies extends for many to the restriction of access

69

Awareness of the TIPO 2013: The proposed blockade of foreign websites infringing

copyrights in Taiwan

Of those who had heard – most could not remember what TIPO 2013 was about – of all respondents less than 1% mentioned restriction of internet freedom

Low recall of TIPO blocking announcement

10

90

Yes

No

Base: Taiwan (1200) D14. Are you aware of the TIPO 2013 The proposed blockade of foreign websites infringing copyrights in Taiwan?

70

Communication and education as agents of change

The opportunity to highlight the negative experience of piracy

Safety of children online

Viruses Personal exposure

(hacking, trolling etc)

High risk advertising

71

Pirates admit exposure to high risk advertising

65

40

39

38

26

15

Sex industry advertisements

Online gambling advertisements

Scam advertisements (e.g. Weight loss)

Software and \ or anti-virus advertisements

Other advertisements

None \ can’t say

44

6

9

21

Base: Taiwan (878) N13. When viewing websites where you can access pirated content, what kind of ads or pop-ups do you see, even if only a little, on these websites + N14. Which of these types of ads do you see the most on websites where you can access pirated content

Most seen %

10

10

72

Lack of parental awareness and control

68

58

54

46

43

41

My child can be exposed to high risk advertisements (eg sex,

gambling, scam advertisements etc.)

My child can become the target for scams or fraud

The computer can get infected with viruses

The computer can be hacked

My child’s personal details can be stolen

Downloading / watching Illegal movie, TV and music content

11

71

18

Yes No Don't know

Base: Children at home (513) D12A. Do your children download or stream illegal content from the internet? D12B. What are your main concerns when your child goes online?

Children download or stream illegal content

from the internet

Main concerns when your child goes online

73

Responsibility for preventing piracy?

65

59

49

41

34

24

21

12

Individuals - by choosing not to buy or watch pirated material

Internet service providers

The government

Search engines (Google, Yahoo!, Baidu etc.)

The movie, TV and music industries

Schools & universities

The courts

I do not know who is responsible for limiting piracy online

35

20

12

6

4

1

1

21

BASE: ALL SAMPLE N=1200; N12A. Which of the following, if any, do you personally think has a role to play in preventing online piracy? + N12B. And which one of these do you think has the biggest role to play in preventing online piracy?

Biggest role %

74

Social Acceptability/Impact

Personal Attitude/Knowledge/Experience

Environmental Access + Opportunity

Conditions for change

What could influence Taiwan netizens change in behaviour?

Behavioural Goal: Decrease consumption of illegal content Increase access and consumption of legal content

1.  Fewer pirated sites 2.  More legal options

1.  Ownership of behaviour + connection with beliefs

2.  Awareness of legal alternative 3.  Positive legal experience vs

illegal

1.  Piracy not a social norm 2.  Concern for future of

industry + employees

Agents of change

Legislation: restrict access to illegal sites Investment: quality legal alternatives

Communication: negative associations, quality legal experiences Education: role of legal Investment: promotion of legal alternatives

Legislation: to restrict access and marginalise behaviour Communication/Education: impact of actions on others

Responsibility •  Government/ courts •  Industry

•  Industry •  Community

•  Government/ courts •  Industry •  Community

Behavioural influences