The “Competitive” Value of Music to Commercial Radio Stations

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The “Competitive” Value of Music to Commercial Radio Stations

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Paul Audley
Marcel Boyer ()

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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.

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Publisher Info
Paper provided by CIRANO in its series CIRANO Working Papers with number 2007s-30.

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Date of creation: 01 Dec 2007
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Handle: RePEc:cir:cirwor:2007s-30

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This paper has been announced in the following NEP Reports:

NEP-ALL-2008-01-05 (All new papers)
NEP-CUL-2008-01-05 (Cultural Economics)
NEP-MKT-2008-01-05 (Marketing)

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