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Designing Fees for Music Copyright Holders in Radio Services

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  • Bombana, Roberto
  • Marchese, Carla

    ()

Abstract

This paper investigates which is the most desirable payment schedule, from a social welfare standpoint, for compensating IPR holders for music broadcast by radio stations. A model of a radio station that acts as a monopoly with respect to listeners and sells ads in a competitive market is presented. Two types of fees, ad valorem and per unit, are examined. Exploiting the similarity between taxes and fees, we extend results from taxation theory in two-sided markets to show that the case where only one side (i.e. advertisers) pays, while the other (the listeners) receives the service for free, di¤ers somewhat from the case thus far considered by the literature, in which both sides pay. The results mildly support the prevailing regulatory approach, based on ad valorem fees.

Suggested Citation

  • Bombana, Roberto & Marchese, Carla, 2012. "Designing Fees for Music Copyright Holders in Radio Services," POLIS Working Papers 166, Institute of Public Policy and Public Choice - POLIS.
  • Handle: RePEc:uca:ucapdv:166
    as

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    References listed on IDEAS

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    1. Hans Jarle Kind & Marko Koethenbuerger & Guttorm Schjelderup, 2010. "Tax responses in platform industries," Oxford Economic Papers, Oxford University Press, vol. 62(4), pages 764-783, October.
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    13. repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
    14. Paul Audley & Marcel Boyer, 2007. "The Competitive Value of Music to Commercial Radio Stations," CIRANO Working Papers 2007s-30, CIRANO.
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    More about this item

    Keywords

    regulation; radio; collecting agencies; IPR fees;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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