IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v44y2020i2d10.1007_s10824-019-09358-z.html
   My bibliography  Save this article

Why would artists favor free streaming?

Author

Listed:
  • Ramadan Aly-Tovar

    (University Paris 13 & LabEx ICCA)

  • Maya Bacache-Beauvallet

    (Institut Polytechnique de Paris)

  • Marc Bourreau

    (Institut Polytechnique de Paris)

  • Francois Moreau

    (University Paris 13 & LabEx ICCA)

Abstract

While streaming services are becoming the dominant way to consume recorded music, professional musicians remain divided in their opinion toward streaming, especially toward free (ad-supported) services that generate very low royalties. This paper is one of the first attempts to analyze empirically the drivers of the artists’ opinion on free streaming. Using survey data from more than 1100 French professional musicians, we emphasize that beyond their individual preferences, four main determinants affect the opinion of artists on free streaming: (1) Free streaming stands as a discovery tool that helps consumers to explore the music catalogue beyond stars and already well-known artists; (2) free streaming generates a positive externality on the live music market; (3) the contractual situation of the artist also matters, since the biggest recording companies obtain much more favorable conditions in revenue sharing from streaming services; (4) the opinion of artists is also shaped by the consumption habits of their fans.

Suggested Citation

  • Ramadan Aly-Tovar & Maya Bacache-Beauvallet & Marc Bourreau & Francois Moreau, 2020. "Why would artists favor free streaming?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(2), pages 255-280, June.
    • Handle: RePEc:kap:jculte:v:44:y:2020:i:2:d:10.1007_s10824-019-09358-z
    DOI: 10.1007/s10824-019-09358-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10824-019-09358-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10824-019-09358-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Kretschmer, Tobias & Peukert, Christian, 2014. "Video killed the radio star? Online music videos and digital music sales," LSE Research Online Documents on Economics 60276, London School of Economics and Political Science, LSE Library.
    4. Paul BELLEFLAMME, 2016. "The economics of digital goods: a progress report," LIDAM Reprints CORE 2819, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Tobias Kretschmer & Christian Peukert, 2020. "Video Killed the Radio Star? Online Music Videos and Recorded Music Sales," Information Systems Research, INFORMS, vol. 31(3), pages 776-800, September.
    6. Aguiar, Luis & Martens, Bertin, 2016. "Digital music consumption on the Internet: Evidence from clickstream data," Information Economics and Policy, Elsevier, vol. 34(C), pages 27-43.
    7. 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.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    9. repec:wly:soecon:v:81:2:y:2014:p:387-408 is not listed on IDEAS
    10. CARRONI Elias & PAOLINI Dimitri, 2017. "Content acquisition by streaming platforms: premium vs. freemium," LIDAM Discussion Papers CORE 2017007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Greene,William H. & Hensher,David A., 2010. "Modeling Ordered Choices," Cambridge Books, Cambridge University Press, number 9780521194204.
    12. Borja, Karla & Dieringer, Suzanne, 2016. "Streaming or stealing? The complementary features between music streaming and music piracy," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 86-95.
    13. Wlömert, Nils & Papies, Dominik, 2016. "On-demand streaming services and music industry revenues — Insights from Spotify's market entry," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 314-327.
    14. Godefroy Dang Nguyen & Sylvain Dejean & François Moreau, 2014. "On the complementarity between online and offline music consumption: the case of free streaming," Post-Print hal-00973159, HAL.
    15. Scott Hiller, R., 2016. "Sales displacement and streaming music: Evidence from YouTube," Information Economics and Policy, Elsevier, vol. 34(C), pages 16-26.
    16. Thomes, Tim Paul, 2013. "An economic analysis of online streaming music services," Information Economics and Policy, Elsevier, vol. 25(2), pages 81-91.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ellen Loots & Diana Betzler & Trine Bille & Karol Jan Borowiecki & Boram Lee, 2022. "New forms of finance and funding in the cultural and creative industries. Introduction to the special issue," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(2), pages 205-230, June.
    2. Heitmayer, Maxi, 2024. "The second wave of attention economics attention as a universal symbolic currency on social media and beyond," LSE Research Online Documents on Economics 124333, London School of Economics and Political Science, LSE Library.
    3. Frederik Juul Jensen, 2024. "Rethinking royalties: alternative payment systems on music streaming platforms," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(3), pages 439-462, September.
    4. Mourelatos, Evangelos & Mourelatos, Haris, 2022. "Online video sharing and revenues during the Pandemic. Evidence from musical stream data," GLO Discussion Paper Series 1050 [pre.], Global Labor Organization (GLO).
    5. Christensen, Finn, 2022. "Streaming Stimulates the Live Concert Industry: Evidence from YouTube," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    6. Mourelatos, Evangelos & Mourelatos, Haris, 2022. "Online video sharing and revenues during the Pandemic. Evidence from musical stream data," GLO Discussion Paper Series 1050, Global Labor Organization (GLO).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Peukert, 2019. "The next wave of digital technological change and the cultural industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 189-210, June.
    2. Shinichi Yamaguchi & Hirohide Sakaguchi & Kotaro Iyanaga & Hidetaka Oshima & Tatsuo Tanaka, 2023. "The impact of licensed and unlicensed free goods: an empirical analysis of music, video, and book industries in Japan," SN Business & Economics, Springer, vol. 3(3), pages 1-22, March.
    3. Christensen, Finn, 2022. "Streaming Stimulates the Live Concert Industry: Evidence from YouTube," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    4. Myounggu Lee & Hye-jin Kim, 2024. "Exploring determinants of digital music success in South Korea," Electronic Commerce Research, Springer, vol. 24(3), pages 1659-1680, September.
    5. Christian Peukert & Margaritha Windisch, 2023. "The Economics of Copyright in the Digital Age," CESifo Working Paper Series 10687, CESifo.
    6. Tobias Kretschmer & Christian Peukert, 2020. "Video Killed the Radio Star? Online Music Videos and Recorded Music Sales," Information Systems Research, INFORMS, vol. 31(3), pages 776-800, September.
    7. Carroni, Elias & Paolini, Dimitri, 2020. "Business models for streaming platforms: Content acquisition, advertising and users," Information Economics and Policy, Elsevier, vol. 52(C).
    8. Marc Ivaldi & Ambre Nicolle & Frank Verboven & Jiekai Zhang, 2024. "Displacement and complementarity in the recorded music industry: evidence from France," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(1), pages 43-94, March.
    9. Lee, Jonathan F., 2018. "Purchase, pirate, publicize: Private-network music sharing and market album sales," Information Economics and Policy, Elsevier, vol. 42(C), pages 35-55.
    10. Karla Borja & Suzanne Dieringer, 2022. "Is music piracy over? Comparing music piracy attitudes and behaviors between young generations," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(2), pages 899-924, June.
    11. Hidetaka Oshima & Shinichi Yamaguchi, 2023. "The impact of user-generated content authorization on demand in the game industry," SN Business & Economics, Springer, vol. 3(11), pages 1-26, November.
    12. Samuel Cameron, 2016. "Past, present and future: music economics at the crossroads," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(1), pages 1-12, February.
    13. Hiller R. Scott & Walter Jason M., 2017. "The Rise of Streaming Music and Implications for Music Production," Review of Network Economics, De Gruyter, vol. 16(4), pages 351-385, December.
    14. Hendrik Sonnabend, 2016. "Fairness constraints on profit-seeking: evidence from the German club concert industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 529-545, November.
    15. E. Carroni & D. Paolini, 2019. "The business model of a streaming platform," Working Paper CRENoS 201902, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    16. Tyrowicz, Joanna & Krawczyk, Michal & Hardy, Wojciech, 2020. "Friends or foes? A meta-analysis of the relationship between “online piracy” and the sales of cultural goods," Information Economics and Policy, Elsevier, vol. 53(C).
    17. Alagöz, Nazli, 2024. "Promotion and technological change in the music industry," Other publications TiSEM 511ceba0-62a0-4c60-a76c-f, Tilburg University, School of Economics and Management.
    18. Mourelatos, Evangelos & Mourelatos, Haris, 2022. "Online video sharing and revenues during the Pandemic. Evidence from musical stream data," GLO Discussion Paper Series 1050 [pre.], Global Labor Organization (GLO).
    19. Mourelatos, Evangelos & Mourelatos, Haris, 2022. "Online video sharing and revenues during the Pandemic. Evidence from musical stream data," GLO Discussion Paper Series 1050, Global Labor Organization (GLO).
    20. Shinichi Yamaguchi & Kotaro Iyanaga & Hirohide Sakaguchi & Tatsuo Tanaka, 2017. "The Substitution Effect of Mobile Games on Console Games: An Empirical Analysis of the Japanese Video Game Industry," The Review of Socionetwork Strategies, Springer, vol. 11(2), pages 95-110, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:44:y:2020:i:2:d:10.1007_s10824-019-09358-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.