Gomez and Martens (2015)
Contents
Source Details
Gomez and Martens (2015) | |
Title: | Language, Copyright and Geographic Segmentation in the EU Digital Single Market for Music and Film |
Author(s): | Gomez, E., Martens, B. |
Year: | 2015 |
Citation: | Gómez, Estrella and Martens, Bertin, Language, Copyright and Geographic Segmentation in the EU Digital Single Market for Music and Film (May 6, 2015). JRC/IPTS Digital Economy working paper 2015-04. |
Link(s): | Open Access |
Key Related Studies: | |
Discipline: | |
Linked by: | Aufderheide and Jaszi (2004) |
About the Data | |
Data Description: | Data are derived from the Apple iTunes country stores in 27 EU Member States in order to measure geographical market segmentation in supply (availability), demand (sales) and prices across the EU for downloadable digital music and film. |
Data Type: | Secondary data |
Secondary Data Sources: | |
Data Collection Methods: | |
Data Analysis Methods: | |
Industry(ies): | |
Country(ies): | |
Cross Country Study?: | Yes |
Comparative Study?: | Yes |
Literature review?: | No |
Government or policy study?: | No |
Time Period(s) of Collection: |
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Funder(s): |
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Abstract
The EU seeks to create a seamless online Digital Single Market for media products such as digital music and film. The territoriality of the copyright regime is often perceived as an obstacle that induces geographical segmentation. This paper provides empirical evidence on the extent of market segmentation in the EU on the supply and demand side and measures the contribution of several drivers of this market segmentation. We use data from the Apple iTunes country stores in 27 EU Member States to measure geographical market segmentation in supply (availability), demand (sales) and prices across the EU for downloadable digital music and film. We find that availability of EU media products across country stores in the EU is hovering around 80% for music and 40% for films. Recent industry initiatives to reduce the transaction costs of making digital music available across borders have resulted in a reasonably wide availability though still short of the 100% mark. Consumer preference variables such as cultural proximity, a shared language or border and inherent preferences for home market products are the main drivers for the observed geographical market segmentation in demand patterns, both for music and film. Supply side factors including copyright-related trade costs probably still play a role in music though we can only infer this indirectly in the absence of data on copyright licensing arrangements at product level. Commercial strategies and territorial restrictions in distribution agreements reduce film availability, more so than copyright issues. We also find evidence of price differentiation across iTunes EU country stores.
Main Results of the Study
This paper provides empirical evidence on the extent of market segmentation in the EU on the supply and demand side and measures the contribution of several drivers of this market segmentation. More specifically, it shows that:* Availability of EU media products across country stores in the EU is hovering around 80% for music and 40% for films.* Recent industry initiatives to reduce the transaction costs of making digital music available across borders have resulted in a reasonably wide availability though still short of the 100% mark.* Consumer preference variables such as cultural proximity, a shared language or border and inherent preferences for home market products are the main drivers for the observed geographical market segmentation in demand patterns, both for music and film.* Supply side factors including copyright-related trade costs probably still play a role in music though we can only infer this indirectly in the absence of data on copyright licensing arrangements at product level.* Commercial strategies and territorial restrictions in distribution agreements reduce film availability, more so than copyright issues.
Policy Implications as Stated By Author
Coverage of Study
Datasets
Sample size: | 27 |
Level of aggregation: | Country |
Period of material under study: | 2013 |