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The Competitive Value of Music to Commercial Radio Stations

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  • Paul Audley
  • Marcel Boyer

Abstract

Our objective in this paper is to develop a methodology to infer from the behaviour and choices of broadcasters the competitive value they attach to the use of music, more precisely sound recordings, and to derive from such an inferred value the proper competitive copyright payments to be made to authors, composers, performers, and makers of sound recordings. We illustrate the methodology by applying it to Canadian data. The background is provided by the statement of case and supporting proof presented in the 2004 proceedings before the Copyright Board of Canada on the commercial radio tariff. The results called for a significant increase in copyright payments by Canada's commercial radio industry: the proper competitive copyright payments should be substantially more than double what the industry was paying at the time of the hearings. Nous proposons dans cet article une méthode permettant d'inférer, du comportement et des choix des diffuseurs, la valeur « concurrentielle » qu'ils accordent à la musique enregistrée et d'obtenir de cette valeur inférée les montants qu'ils devraient verser aux auteurs, compositeurs, interprètes et producteurs au chapitre des droits d'auteur. Nous appliquons la méthode sur des données canadiennes. Le cadre institutionnel de référence nous est fourni par la cause de 2004 devant la Commission du droit d'auteur du Canada relative au tarif applicable à la radio commerciale. Nos résultats montrent qu'une hausse substantielle des paiements pour droits d'auteur s'impose : ces paiements « concurrentiels » devraient être plus du double de ceux que l'industrie versait effectivement au moment des audiences de la cause.

Suggested Citation

  • Paul Audley & Marcel Boyer, 2007. "The Competitive Value of Music to Commercial Radio Stations," CIRANO Working Papers 2007s-30, CIRANO.
  • Handle: RePEc:cir:cirwor:2007s-30
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    File URL: http://www.cirano.qc.ca/files/publications/2007s-30.pdf
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    Cited by:

    1. Richard Watt, 2014. "Fair remuneration for copyright holders and the Shapley value," Chapters,in: Handbook on the Economics of Copyright, chapter 7, pages 118-128 Edward Elgar Publishing.
    2. Buda, Andrzej, 2012. "Does pop music exist? Hierarchical structure in phonographic markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(21), pages 5153-5159.
    3. Christian Handke, 2014. "Collective administration," Chapters,in: Handbook on the Economics of Copyright, chapter 11, pages 179-204 Edward Elgar Publishing.
    4. Roberto Bombana & Carla Marchese, 2014. "Designing fees for music copyright holders in radio services," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2014(2), pages 5-19.

    More about this item

    Keywords

    copyright valuation; Commercial radio; évaluation des droits d'auteur; radio commerciale;

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