Digital Technology and the Allocation of Ownership in the Music Industry 1

Abstract

We apply the property rights theory of Grossman-Hart-Moore in the music industry and study the optimal allocation of copyright between the artists who create music and the labels who promote and distribute it. Digital technology opens up a role for new intermediaries. We …nd that entry of online platforms occurs only if they are su¢ ciently more productive in distribution than the incumbent label. Furthermore, entry leads to a change in bargaining positions and it can become optimal for the copyright to be shifted from the label to the artist. JEL classi…cation: D23, L22, L23, L82, L86

Cite this paper

@inproceedings{HalonenAkatwijuka2009DigitalTA, title={Digital Technology and the Allocation of Ownership in the Music Industry 1}, author={Maija Halonen-Akatwijuka and Tobias Regner}, year={2009} }