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The Music Industry in the Digital Era: Toward New Contracts

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  • Nicolas Curien
  • Francois Moreau
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    Abstract

    Digital piracy, although negatively altering the recorded music market, has a positive impact on other segments of the music market, such as live music or ancillary goods, because it generates a positive externality benefiting those activities. Through a 2-player strategic game between a record company and an artist, this study shows that a renegotiation of music contracts could allow the internalizing of this positive externality, while being welfare-improving for both record companies and artists. This study also shows, however, that pervasive piracy is not desirable for an artist.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Media Economics.

    Volume (Year): 22 (2009)
    Issue (Month): 2 ()
    Pages: 102-113

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    Handle: RePEc:taf:jmedec:v:22:y:2009:i:2:p:102-113

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    Web page: http://www.tandfonline.com/HMEC20

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    Cited by:
    1. Philipp Mandel & Bernd Suessmuth, 2012. "Determinants of Digital Piracy: A Re-examination of Results," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(4), pages 394-413, July.
    2. Ralf Dewenter & Justus Haucap & Tobias Wenzel, 2012. "On File Sharing With Indirect Network Effects Between Concert Ticket Sales and Music Recordings," Journal of Media Economics, Taylor & Francis Journals, vol. 25(3), pages 168-178, September.
    3. Antoine Blanc & Isabelle Huault, 2011. "Against the Digital Revolution?," Post-Print halshs-00685464, HAL.
    4. Joshua S. Gans, 2014. "“Selling Out” and the Impact of Music Piracy on Artist Entry," NBER Working Papers 20162, National Bureau of Economic Research, Inc.

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