Why would artists favor free streaming?

Ramadan Aly-Tovar, Maya Bacache-Beauvallet, Marc Bourreau and François Moreau
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Ramadan Aly-Tovar: CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord
Authors registered in the RePEc Author Service: Ramadan Jose Aly Tovar ()

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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.

Date: 2020
Note: View the original document on HAL open archive server: https://ut3-toulouseinp.hal.science/hal-02164712v1
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Published in Journal of Cultural Economics, 2020, 44, pp.255-280. ⟨10.1007/s10824-019-09358-z⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02164712

DOI: 10.1007/s10824-019-09358-z

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