The Numbers. Selling Songs for a Song? Scrutinizing the Streaming Model
by: Michael Driscoll
Mar 28, 2015
Click here to view the full article on WSJ.com
TOPICS: Contracts
SUMMARY: The Numbers: Ever since Spotify put a number on the price of one stream of a song, the music industry has debated whether the figure is fair.
CLASSROOM APPLICATION: Students can evaluate the royalties earned by artists from compact disc sales and streaming services. One interesting point in the article is in the comparison of artist royalties from compact disc sales and streaming on a per listen basis. Furthermore, an interesting question is whether streaming services expand the market of listeners who pay for music or whether these services steal customers from the markets for downloads and CD sales.
QUESTIONS:
1. (Introductory) Use the data in the article to calculate the number of listens (i.e., a break-even point) in which the royalties generated from streaming music equals the royalties generated from compact disc sales.
2. (Advanced) Does music streaming expand the market of paid listeners? Discuss the empirical issue of whether streaming services expand the market of listeners who pay for music or whether these services steal customers from the markets for downloads and CD sales.
3. (Advanced) Explain whether the comparison of the royalties from streaming music and compact disc sales be on a song-to-song basis.
by: Michael Driscoll
Mar 28, 2015
Click here to view the full article on WSJ.com
TOPICS: Contracts
SUMMARY: The Numbers: Ever since Spotify put a number on the price of one stream of a song, the music industry has debated whether the figure is fair.
CLASSROOM APPLICATION: Students can evaluate the royalties earned by artists from compact disc sales and streaming services. One interesting point in the article is in the comparison of artist royalties from compact disc sales and streaming on a per listen basis. Furthermore, an interesting question is whether streaming services expand the market of listeners who pay for music or whether these services steal customers from the markets for downloads and CD sales.
QUESTIONS:
1. (Introductory) Use the data in the article to calculate the number of listens (i.e., a break-even point) in which the royalties generated from streaming music equals the royalties generated from compact disc sales.
2. (Advanced) Does music streaming expand the market of paid listeners? Discuss the empirical issue of whether streaming services expand the market of listeners who pay for music or whether these services steal customers from the markets for downloads and CD sales.
3. (Advanced) Explain whether the comparison of the royalties from streaming music and compact disc sales be on a song-to-song basis.
Reviewed By: James Dearden, Lehigh University
No comments:
Post a Comment