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Piracy and creation: the case of the music industry

Author

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  • Maya Bacache-Beauvallet

    ()

  • Marc Bourreau

    ()

  • François Moreau

    ()

Abstract

In this paper we propose a model which shows that the impact of copyright infringement on music artists depends on the type of revenue that they receive (royalties from record companies, profits for self-released artists, revenues from live concerts). We then test the hypotheses derived from the model on a dataset consisting of a survey of 710 artists representative of the whole population of French professional musicians. The results are consistent with our model in so far as: (i) those artists with a recording contract who do more live performances are more tolerant of piracy; and (ii) self-released artists are less tolerant of piracy, and that their attitude is therefore closer to that of record companies. Copyright Springer Science+Business Media, LLC 2015

Suggested Citation

  • Maya Bacache-Beauvallet & Marc Bourreau & François Moreau, 2015. "Piracy and creation: the case of the music industry," European Journal of Law and Economics, Springer, vol. 39(2), pages 245-262, April.
  • Handle: RePEc:kap:ejlwec:v:39:y:2015:i:2:p:245-262
    DOI: 10.1007/s10657-012-9360-1
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    References listed on IDEAS

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    1. 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.
    2. Nicolas Curien & François Moreau, 2009. "Maisons de disques et artistes : convergence ou conflit d'intérêts face au numérique ?," Annals of Economics and Statistics, GENES, issue 93-94, pages 183-205.
    3. Stan J. Liebowitz, 2008. "Research Note--Testing File Sharing's Impact on Music Album Sales in Cities," Management Science, INFORMS, vol. 54(4), pages 852-859, April.
    4. repec:adr:anecst:y:2009:i:93-94:p:09 is not listed on IDEAS
    5. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
    6. Mortimer, Julie Holland & Nosko, Chris & Sorensen, Alan, 2012. "Supply responses to digital distribution: Recorded music and live performances," Information Economics and Policy, Elsevier, vol. 24(1), pages 3-14.
    7. Bhattacharjee, Sudip & Gopal, Ram D & Lertwachara, Kaveepan & Marsden, James R, 2006. "Impact of Legal Threats on Online Music Sharing Activity: An Analysis of Music Industry Legal Actions," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 91-114, April.
    8. Stan J. Liebowitz & Richard Watt, 2006. "How To Best Ensure Remuneration For Creators In The Market For Music? Copyright And Its Alternatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 513-545, September.
    9. Joel Waldfogel, 2012. "Copyright Protection, Technological Change, and the Quality of New Products: Evidence from Recorded Music since Napster," Journal of Law and Economics, University of Chicago Press, vol. 55(4), pages 715-740.
    10. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115, pages 1-42.
    11. Ram D. Gopal & G. Lawrence Sanders, 2006. "Do Artists Benefit from Online Music Sharing?," The Journal of Business, University of Chicago Press, vol. 79(3), pages 1503-1534, May.
    12. Duchene, Anne & Waelbroeck, Patrick, 2006. "The legal and technological battle in the music industry: Information-push versus information-pull technologies," International Review of Law and Economics, Elsevier, vol. 26(4), pages 565-580, December.
    13. Gayer, Amit & Shy, Oz, 2006. "Publishers, artists, and copyright enforcement," Information Economics and Policy, Elsevier, vol. 18(4), pages 374-384, November.
    14. Juan Montoro-Pons & Manuel Cuadrado-García, 2011. "Live and prerecorded popular music consumption," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(1), pages 19-48, February.
    15. Nicolas Curien & Francois Moreau, 2009. "The Music Industry in the Digital Era: Toward New Contracts," Journal of Media Economics, Taylor & Francis Journals, vol. 22(2), pages 102-113.
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    Citations

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    Cited by:

    1. Bazen, Stephen & Bouvard, Laurence & Zimmermann, Jean-Benoît, 2015. "Musicians and the Creative Commons: A survey of artists on Jamendo," Information Economics and Policy, Elsevier, vol. 32(C), pages 65-76.
    2. Éric Darmon & Thomas Le Texier, 2014. "Private or Public Law Enforcement? The Case of Digital Piracy Policies with Non-monitored Illegal Behaviors," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201403, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    3. Stephen Bazen & Laurence Bouvard & Jean-Benoît Zimmermann, 2014. "«Jamendo: The Heartbeat of Free Music!» Musicians and the Creative Commons," Working Papers halshs-01081398, HAL.
    4. Godefroy Nguyen & Sylvain Dejean & François Moreau, 2014. "On the complementarity between online and offline music consumption: the case of free streaming," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 315-330, November.

    More about this item

    Keywords

    Copyright; Piracy; Music industry; Artists; K42; L82; O34;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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