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Why would artists favor free streaming?

Author

Listed:
  • Ramadan Aly-Tovar

    (CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord)

  • Maya Bacache-Beauvallet

    (Télécom ParisTech, ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, SES - Département Sciences Economiques et Sociales - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris)

  • Marc Bourreau

    (SES - Département Sciences Economiques et Sociales - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris, ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • François Moreau

    (CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord)

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 & François Moreau, 2020. "Why would artists favor free streaming?," Post-Print hal-02164712, HAL.
    • Handle: RePEc:hal:journl:hal-02164712
    DOI: 10.1007/s10824-019-09358-z
    Note: View the original document on HAL open archive server: https://ut3-toulouseinp.hal.science/hal-02164712v1
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    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, 2025. "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. Jhih-Hua Jhang-Li & Jyh-Hwa Liou, 2024. "An analysis of operating strategy for a video live streaming platform: advertisement, advertorial, and donation," Information Technology and Management, Springer, vol. 25(1), pages 51-68, March.
    4. 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.
    5. 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).
    6. Christensen, Finn, 2022. "Streaming Stimulates the Live Concert Industry: Evidence from YouTube," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    7. 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).

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