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The Music Industry in the Digital Era: Toward New Contracts

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  • Nicolas Curien
  • Francois Moreau

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.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:jmedec:v:22:y:2009:i:2:p:102-113
    DOI: 10.1080/08997760902900254
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Dewenter, Ralf & Haucap, Justus & Wenzel, Tobias, 2009. "Indirect network effects with two salop circles: the example of the music industry," FAU Discussion Papers in Economics 09/2009, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    5. Antoine Blanc & Isabelle Huault, 2011. "Against the Digital Revolution?," Post-Print halshs-00685464, HAL.
    6. Gans, Joshua S., 2015. "“Selling Out” and the impact of music piracy on artist entry," Information Economics and Policy, Elsevier, vol. 32(C), pages 58-64.
    7. 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.
    8. Mandel Philipp & Süssmuth Bernd, 2012. "Determinants of Digital Piracy: A Re-examination of Results," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(4), pages 394-413, August.
    9. Mustonen, Mikko, 2019. "Direct publishing and the bargaining between the author and the publisher," Information Economics and Policy, Elsevier, vol. 48(C), pages 40-47.
    10. Christensen, Finn, 2022. "Streaming Stimulates the Live Concert Industry: Evidence from YouTube," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    11. Stephen Bazen & Laurence Bouvard & Jean-Benoît Zimmermann, 2014. "«Jamendo: The Heartbeat of Free Music!» Musicians and the Creative Commons," Working Papers halshs-01081398, HAL.
    12. 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.
    13. Warr, Richard & Goode, Mark M.H., 2011. "Is the music industry stuck between rock and a hard place? The role of the Internet and three possible scenarios," Journal of Retailing and Consumer Services, Elsevier, vol. 18(2), pages 126-131.

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