Difference between revisions of "Towse (2020)"

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1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Towse (2020)
Title: Dealing with Digital: Economic Organisation of Streamed Music
Author(s): Towse, R.
Year: 2020
Citation: Towse, R. (2020) Dealing with Digital: Economic Organisation of Streamed Music. CIPPM/Jean Monnet Working Papers, No 1-2020
Link(s): Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: The study is supplemented with data from the Norwegian music industry regarding streaming services and streaming rates.
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
Funder(s):

Abstract

“The intervention of digital service providers (DSPs) or platforms such as Spotify, AppleMusic and Tidal supplying music streamed music has fundamentally altered the way that song-writers and recording artists are paid and the operation of copyright management organisations (CMOs). Platform economics has emerged from the economic analysis of two-and multi-sided markets, offering new insights into the way business is conducted in the digital sphere and is applied here to music streaming services. The business model for music streaming differs from previous arrangements by which the royalty paid to song-writers and performers was a percentage of sales. In the case of streamed music payment is based on revenues from both subscriptions and ad-based free services. The DSP agrees a rate per stream with the various rights holders that varies according to the deal made with each of the major record labels, with CMOs, with representatives of independent labels and with unsigned artists and songwriters with consequences for artists’ earnings. The article discusses these various strands that contribute to understanding royalty payments for streamed music in terms of platform economics, with some data and information from the Norwegian music industry giving empirical support to the analysis.”

Main Results of the Study

Despite promising to be a solution to revenue losses in the music industry, streaming has a more disruptive character.

• Underlying contractual arrangements give artists less control over the earnings from their performances, with many contracts having no formal provision for the division of streaming royalties.

• The making available right has reduced payments to performers, with a lack of clarity as to whether labels are exempt from performer equitable remuneration for streamed music.

• Most song-writers and performers have relatively low earnings, with only the superstars truly benefitting from this business model. Streaming rates are too low for most to sustain a full-time career as a recording artist (for example, a performer on Spotify would need 200,272 plays per month in order to sustain minimum wage). Despite this, music streaming platforms earn considerably more (a differential sometimes referred to as the ‘value gap’).

• The study concludes by speculating about the longevity of streaming as a business model for the music industry, with large players such as Spotify failing to make a profit, and facing increasing competition from multi-sided platforms such as Apple.

Policy Implications as Stated By Author

The study does not offer any explicit policy suggestions.



Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Green-tick.png
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

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