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MusicDish / Indie Music Forum SDMI Survey Sponsored by Results from survey conducted on October 8 to November 2, 1999. Number of respondents: 92 - (Second SDMI survey) Results from first SDMI survey conducted in July/August, 1999. For more information on the Secure Digital Music Initiative, download a MusicDish special report in pdf. ______________________________________ 1. What is your position in the music industry? (votes) (%raw) (%round) Musician 27 29.34% 29% Songwriter 19 20.65% 21% Label Owner 8 8.69% 9% Executive 7 7.60% 8% Manager 6 6.52% 7% Fan 5 5.43% 5% Media 4 4.34% 4% Web Developer 4 4.34% 4% Producer 4 4.34% 4% Consultant 2 2.17% 2% Other 2 2.17% 2% Tech/Engineer 1 1.08% 1% Promoter 1 1.08% 1% Agent 1 1.08% 1% Sales 1 1.08% 1% Total % 99.91 99 ______________________________________ 2. Do you or your organization distribute music online? (votes) (%raw) (%round) Yes 60 65.21% 65% No 32 34.78% 35% Total % 99.99 100 ______________________________________ 3. If yes, in which format(s) do you distribute music online? multiple choice question (votes) (%raw) (%round) mp3 70 41.17% 41% RealAudio 52 30.58% 31% wav 20 11.76% 12% Other 12 7.05% 7% Liquid Audio 6 3.52% 4% shockwave 4 2.35% 2% MS Audio 3 1.76% 2% aiff 2 1.17% 1% AVI 1 0.58% 1% Total % 99.94 101 ______________________________________ 4. To what extent do you presently use encryption, watermarking or secure systems to distribute your music online? (votes) (%raw) (%round) Not at all 76 82.60% 83% Used for some distributed music 11 11.95% 12% Used for all distributed music 5 5.43% 5% Total % 99.98 100 ______________________________________ 5. Has the lack of a uniform secure distribution system limited your distribution of music online? (votes) (%raw) (%round) No 46 50% 50% Uncertain 24 26.08% 26% Yes 22 23.91% 24% Total % 99.99 100 ______________________________________ 6. How important is SDMI's work to your business/career plan? (Rate from 1-5, 1 being not at all important & 5 being very important) (votes) (%raw) (%round) 1 33 35.86% 36% 3 23 25% 25% 2 13 14.13% 14% 5 12 13.04% 13% 4 11 11.95% 12% Total % 99.98 100 ______________________________________ 7. Do you feel that SDMI has furthered the objectives of the RIAA or the industry as a whole? (votes) (%raw) (%round) Uncertain 54 58.69% 59% RIAA 19 20.65% 21% Industry as a whole 14 15.21% 15% Other 5 5.43% 5% Total % 99.98 100 ______________________________________ 8. Do you view the major labels' concession on SDMI-compliant players being able to play non SDMI-compliant content produced before Phase II implementation as a sign of a new approach to digital music? (votes) (%raw) (%round) Yes 33 35.86% 36% No 32 34.78% 35% Uncertain 27 29.34% 29% Total % 99.98 100 ______________________________________ 9. Do you feel that the SDMI decision making process, not being open to the public, press or interested parties, has a detrimental or positive impact on the group's work? (votes) (%raw) (%round) Detrimental 59 64.13% 64% Uncertain 26 28.26% 28% Positive 7 7.60% 8% Total % 99.99 100 ______________________________________ 10. Do you feel that the minimum membership fee of $10,000 significantly restricts broad participation of industry players? (votes) (%raw) (%round) Yes 83 90.21% 90% No 5 5.43% 5% Uncertain 4 4.34% 4% Total % 99.98 99 ______________________________________ 11. Do you feel that firms that are not members of SDMI will have sufficient incentives to make their portable digital music players (PDMPs) SDMI-compliant? (votes) (%raw) (%round) No 47 51.08% 51% Uncertain 26 28.26% 28% Yes 19 20.65% 21% Total % 98.91 99 ______________________________________ 12. If manufacturers of PDMPs incorporate SDMI technology in their products, will you be more or less likely to distribute SDMI-compliant content? (votes) (%raw) (%round) Uncertain 38 41.30% 41% More likely 34 36.95% 37% Less Likely 20 21.73% 22% Total % 99.98 100 The Portable Device Specifications' proposed default Usage Rule would allow users to make no more than four (4) usable copies of a recording, of which three (3) may be transfered to other SDMI-compliant devices. In order to make more copies, the original source must be recopied producing again 4 usable copies. 13. Considering consumers presently have no technical limits as to the manner in which they may copy music, do you feel that this rule will have a negative impact on consumer demand for SDMI-compliant applications? (votes) (%raw) (%round) Yes 48 52.17% 52% Uncertain 25 27.17% 27% No 19 20.65% 21% Total % 99.99 100 ______________________________________ 14. As a copyright holder, would you keep the usage rule at the default setting or permit more/less reproduction? (votes) (%raw) (%round) Default setting 28 30.43% 30% Unlimited copies 26 28.26% 28% Less than 4 copies 24 26.08% 26% More than four copies 14 15.21% 15% Total % 99.98 99 SDMI-compliant PDMPs will incorporate a unique ID used to enforce the Usage Rules specified by the copyright holder. 15. Do you feel this raises valid privacy concerns? (votes) (%raw) (%round) Yes 47 51.08% 51% No 32 34.78% 35% Uncertain 13 14.13% 14% Total % 99.99 100 ______________________________________ 16. Do you feel that it will raise concerns among consumers and affect the sale of SDMI-compliant PDMPs? (votes) (%raw) (%round) Raise concerns & impact sales 50 54.34% 54% Raise concerns but no impact on sales 30 32.60% 33% Will not raise concerns 12 13.04% 13% Total % 99.98 100 ______________________________________ 17. Do you feel that the two-phase approach being proposed by SDMI will lead to consumer confusion? (votes) (%raw) (%round) Yes 72 78.26% 78% Uncertain 12 13.04% 13% No 8 8.69% 9% Total % 99.99 100 ______________________________________ 18. Do you believe that this will provide an incentive for companies to place significant resources in getting consumers to upgrade their PDMPs from Phase 1 to Phase 2? (votes) (%raw) (%round) No 31 33.69% 34% Uncertain 31 33.69% 34% Yes 30 32.60% 33% Total % 99.98 101 ______________________________________ 19. Do you feel consumers will have an incentive to upgrade their PDMPs to Phase 2, and if so, at what cost? (votes) (%raw) (%round) Yes, but at no cost 31 33.69% 34% No 30 32.60% 33% Yes, if cheap and easy to install chip upgrade 27 29.34% 29% Yes, willing to buy new PD 4 4.34% 4% Total % 99.97 100 -- Surveys Index

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