The legal and technological battle in the music industry: Information-push versus information-pull technologies

Duchêne, Anne; Waelbroeck, Patrick

doi:10.1016/j.irle.2007.01.008

Cited by 42 publications

(19 citation statements)

References 5 publications

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“…Therefore unless price is carefully considered, there may be even further decline in music sales. Duchene and Waelbroeck (2006) claimed that the role of record companies is already being significantly reduced due to some of the new emerging business models, such as those based on cross-platforms like KaZaA, who actually work together with record companies to create new vehicles to reach mass markets. Therefore peer-to-peer networks are playing the role of advertisers, whilst record companies are in fact becoming basic distributors.…”

Section: The Bad (Record Industry Dies Slowly)mentioning

confidence: 99%

“…Therefore peer-to-peer networks are playing the role of advertisers, whilst record companies are in fact becoming basic distributors. Duchene and Waelbroeck (2006) cited the example of the website MP3.com, which has been using data collected on its consumers to provide record companies with information and advice on the creation of new marketing strategies.…”

Section: The Bad (Record Industry Dies Slowly)mentioning

confidence: 99%

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Is the music industry stuck between rock and a hard place? The role of the Internet and three possible scenarios

Warr

Goode²

2011

Journal of Retailing and Consumer Services

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DisclaimerThe University of Gloucestershire has obtained warranties from all depositors as to their title in the material deposited and as to their right to deposit such material.The University of Gloucestershire makes no representation or warranties of commercial utility, title, or fitness for a particular purpose or any other warranty, express or implied in respect of any material deposited.The University of Gloucestershire makes no representation that the use of the materials will not infringe any patent, copyright, trademark or other property or proprietary rights.The University of Gloucestershire accepts no liability for any infringement of intellectual property rights in any material deposited but will remove such material from public view pending investigation in the event of an allegation of any such infringement. PLEASE SCROLL DOWN FOR TEXT.This is a peer-reviewed, post-print (final draft post-refereeing) version of the following published document: DisclaimerThe University of Gloucestershire has obtained warranties from all depositors as to their title in the material deposited and as to their right to deposit such material.The University of Gloucestershire makes no representation or warranties of commercial utility, title, or fitness for a particular purpose or any other warranty, express or implied in respect of any material deposited.The University of Gloucestershire makes no representation that the use of the materials will not infringe any patent, copyright, trademark or other property or proprietary rights.The University of Gloucestershire accepts no liability for any infringement of intellectual property rights in any material deposited but will remove such material from public view pending investigation in the event of an allegation of any such infringement. The Internet through the world-wide-web has well and truly opened 'Pandora's Box' as far as the record industry is concerned, and there is no going back. The extensive use of illegal filesharing and illegal downloads of music tracks (totally for free) threatens the very survival of the record industry as we know it. Furthermore this behaviour threatens the very livelihoods of the employees, artists, and bands who work within the record industry. This paper reviews the current situation and then offers three possible scenarios for the future of the record industry (The Good, The Bad, and The Ugly). Firstly, The Good, where the record industry survives; secondly, The Bad where the record industry dies a slow death; and finally The Ugly, where the record industry dies very quickly. The consideration of several key factors involved will help the industry to focus on maintaining The Good.

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Section: The Bad (Record Industry Dies Slowly)mentioning

confidence: 99%

Section: The Bad (Record Industry Dies Slowly)mentioning

confidence: 99%

Is the music industry stuck between rock and a hard place? The role of the Internet and three possible scenarios

Warr

Goode²

2011

Journal of Retailing and Consumer Services

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“…Peitz and Waelbroeck (2005) develop such a theoretical model which predicts that free-of-charge listening may let the profits of music labels increase. Duchêne and Waelbroeck (2006) called such a strategy of the music industry where music listeners expend effort to acquire information about music which can lead to a purchase decision an 'information-pull technology'. A further approach, emphasizing the benefits of free-of-charge music listening, is provided by Gayer and Shy (2005) who argue that network effects can be related to the music market.…”

Section: Related Literaturementioning

confidence: 99%

An Economic Analysis of Online Streaming: How the Music Industry Can Generate Revenues from Cloud Computing

Thomes¹

2011

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:http://ftp.zew.de/pub/zew-docs/dp/dp11039.pdf Nontechnical SummaryMusic can be characterized as an information good and is therefore amenable to digitalization and copying through online sharing networks. Chances and risks arise from digitalization for the producers and right owners of these goods. Digital piracy is accountable for massive losses in revenues of the music industry which is induced to search for new sources of income in the era of digitalization. This work intends to provide a theoretical analysis of a business model which offers the requested music as a so called stream to potential customers. The origin of such model is a conception which allows for consumption of music without physical possession of the music file. Therefore music will be stored on a server and can be listened on demand by consumers. Such a business model is generally funded through two sources. On the one hand, customers who made a subscription are allowed for legal free of charge listening. Funds are generated through commercial breaks between the particular songs (analogous to free TV). On the other hand, 'flat-rate contracts' are offered to customers allowing for unlimited and ad-free access to the musical content after the payment of a monthly blanket fee. Within the framework of such a business model and under consideration of a monopolistic market structure, the investigation yields the following results. Advertising funding may generate high revenues provided that customers feel lowly disturbed by commercial breaks. In this case, it will be optimal for the provider to chose a high 'flat-rate price' in order to factitiously excite free of charge demand and therefore to capture higher, advertising created rents at customers' costs. If consumers are given the alternative to illegally share music through 'peer-to-peer file sharing networks', one can investigate that prosecution for illegal file-sharing appears as a rent allocation mechanism between the monopolist and music consumers. At this juncture, an increasing law enforcement causes a decreasing consumer surplus. However, an intensified legal prosecution does not necessarily lower welfare. On the contrary, from a certain level of legal prosecution, sharply increasing equilibrium profits of the monopolist offset and overcompensate decreasing consumer surplus and let welfare increase. Abstract This paper investigates the upcoming business model of online streaming se...

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“…To the extent that duplicated material available through file sharing is a substitute to legal purchases, economic theory predicts a negative relationship. Theoretical research, however, shows that there are potential mechanisms that may induce an opposite effect, i.e., the sampling effect, where piracy may provide a sampling opportunity for consumers and raise the willingness to pay for goods that they know match their preferences better (Takeyama, 1994, andDuchene andWaelbroeck, 2006). The direction of the relationship is therefore an open empirical issue.…”

Section: Introductionmentioning

confidence: 99%

Piracy and music sales: The effects of an anti-piracy law

Adermon

Liang

2014

Journal of Economic Behavior & Organization

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The implementation of a copyright protection reform in Sweden in April 2009 suddenly increased the risk of being caught and punished for illegal file sharing. This paper investigates the impact of the reform on illegal file sharing and music sales using a differencein-differences approach with Norway and Finland as control groups. We find that the reform decreased Internet traffic by 16% and increased music sales by 36% during the first six months. Pirated music therefore seems to be a strong substitute to legal music. However, the reform effects disappeared almost completely after six months, likely because of the weak enforcement of the law.

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The legal and technological battle in the music industry: Information-push versus information-pull technologies

Cited by 42 publications

References 5 publications

Is the music industry stuck between rock and a hard place? The role of the Internet and three possible scenarios

Is the music industry stuck between rock and a hard place? The role of the Internet and three possible scenarios

An Economic Analysis of Online Streaming: How the Music Industry Can Generate Revenues from Cloud Computing

Piracy and music sales: The effects of an anti-piracy law

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