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Maisons de disques et artistes : convergence ou conflit d'intérêts face au numérique ?

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  • Nicolas Curien
  • François Moreau

Abstract

We model the relationship between an artist and a record company as a revenue-sharing game that stems from two complementary markets: the recorded-music market and the live-music market. Artists are heterogeneous according to their potential success as well as to the amount that live music represents in their total revenues. The model shows that: (i) the bargaining power between a record company and an artist will partially switch from the former to the latter because of the increasing value of an artist's outside options; (ii) digitization should favor the live-music market and thus mitigate the negative impact of piracy, or even reverse it for artists with a strong activity on stage; (iii) the rise of new contracts is an opportunity for both record companies and artists. Getting a share of live music revenues could make a record company profitable unlike standard contracts. Sharing their live music revenues could be a condition for some artists to release an album.

Suggested Citation

  • Nicolas Curien & François Moreau, 2009. "Maisons de disques et artistes : convergence ou conflit d'intérêts face au numérique ?," Annals of Economics and Statistics, GENES, issue 93-94, pages 183-205.
    • Handle: RePEc:adr:anecst:y:2009:i:93-94:p:183-205
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