Price and Volume Measures in Digitalisation Era
The Eurostat advisory group discussed price and volume measures in times of digitalisation, focusing on service activities and key aspects like digital services, cloud computing, streaming, and more. Recommendations and best practices were shared, with a special emphasis on the impact of digitalisation on economic indicators.
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Presentation Transcript
Price and volume measures in times of digitalisation SNA Advisory Expert Group 5-7 December 2017 Eurostat
Eurostat TF on Price and Volume Measures for Service Activities in the middle of its work Final report foreseen in June next year Recommendations and best practices for P&V measures Members: CZ, DE, DK, FI, NL, NO, RO, SE, SI, UK, ECB and OECD Digitalisation is one very important aspect! Eurostat
Issues to be discussed Digital services Streaming Cloud computing Bundling E-platforms: example of Uber Substitution bias Eurostat
Streaming Most relevant for motion picture, video, television programmes, music, audio content, and software Relevant feature: provider acquires for specific content (information products) the reproduction and distribution rights for this content The customer acquires the right to use this content in a specific way/for specified time span Examples: Spotify (audio), Netflix (motion picture/video) Eurostat
Streaming, cont. Streaming services already in many CPIs, but not in PPIs New COICOP to introduce separate sub-class for "subscription to audio-visual content, streaming services and rentals of audio-visual content" (excludes online games) Is the change in the offer of media content a quality change? Eurostat
Cloud Computing Users can be private households or corporations Services: digital storage space, computer processing power or specific software applications No known available price indices yet Supplier and user of the cloud service can be located in different countries In new COICOP: "Internet access provision services and net storage services" (excludes online software) Eurostat
Bundling of information and communication services Bundles get more and more common, very dynamic market, bundles change constantly CPIs are available (HICP recommendation for bundles), follow standard contract (call plan) for bundles Eurostat Handbook: create special product groups for bundles -> practice in HICP and to be introduced in new COICOP Quality change 7 Eurostat
E-platforms: example of Uber Different perspectives: Company: technology platform Driver: employer or job provider Consumer: taxi service Economically speaking: intermediation services -> NACE 79.90: Other reservation services and related activities Only applicable to Dutch unit?
E-platforms: Uber, cont. Different recording options: Taxi company with self-employed drivers Taxi company with employees Uber provides intermediation services to the taxi driver Uber provides intermediation services to households Split the transaction in taxi service and intermediation service Uber as intermediation service producing taxi services Also: Uber as retailer/merchanter of taxi services? 9 Eurostat
E-platforms: Uber, cont. Tentative conclusions: Third option most in line with NACE and with deflation methods for consumption and output Include Uber in taxi CPIs Include Uber in PPIs for reservation services (follow fee %) 10 Eurostat
Substitution bias E.g.: how to include Uber in CPI? Direct comparison with taxi services -> price declines No comparison with taxi services -> volume declines Similar issue to "outlet substitution bias", e.g. for e-commerce Digitalisation has put this back on agenda A standard assumption in price statistics: higher price = higher quality. But new digital products are often cheaper and better (?). 11 Eurostat
AEG is requested to provide their views on Price and volume measurement of digital services Treatment of e-platforms Substitution bias Eurostat
