Fairness and royalty payment system on music streaming platforms



Fairness and royalty payment system on music streaming platforms

Prof. François Moreau

University Sorbonne Paris Nord

François Moreau currently works at the CEPN Centre d'Economie de l'Université Paris-Nord (UMR CNRS 7234) from Université Paris 13. His research field deals with creative economics and digital economics. He also belongs to the LabEx ICCA (Laboratoire d'Excellence Industries Culturelles et Création Artistique).


Analyst DELab UW


We stu­dy the con­se­qu­en­ces of the imple­men­ta­tion of a new pay­ment sys­tem in the music stre­aming mar­ket. Inste­ad of pooling all the sub­scrip­tion reve­nu­es and remu­ne­ra­ting arti­sts accor­ding to the­ir num­ber of stre­ams, an alter­na­ti­ve pay­ment sys­tem con­si­sts in adop­ting a user-cen­tric per­spec­ti­ve and splits the sub­scrip­tion fee of each user among the arti­sts she listens to pro­por­tio­nal­ly to the num­ber of stre­ams. Besi­des being fairer becau­se it is more in line with each consumer’s pre­fe­ren­ces, such a new pay­ment could impact three other dimen­sions of fair­ness in the music indu­stry: the reve­nue yields from acti­ve vs. pas­si­ve stre­ams, the star sys­tem that exi­sts despi­te suc­cess is known to be discon­nec­ted from the dif­fe­ren­ce in talent, and the possi­ble bias that exi­sts in recom­men­da­tion sys­tems. Using data pro­vi­ded by a leading music stre­aming plat­form in Fran­ce from more than 140,000 uni­que users during six mon­ths (427 mil­lion stre­ams) we show that a user-cen­tric pay­ment sys­tem will not only be fairer becau­se con­su­mers’ cho­ices will be bet­ter ali­gned with reve­nue sha­ring but also becau­se a user-cen­tric pay­ment sys­tem (i) would favor acti­ve stre­ams at the expen­se of pas­si­ve ones, (ii) would redu­ce the advan­ta­ge of super­stars and (iii) would mode­ra­te the rela­ti­ve advan­ta­ge of major labels in cura­ted streams.

A series of Polish-language meetings during which researchers and guest speakers look at issues related to digital transformation, new technologies, innovation and digital research methods.

The aim of the "Digitisation under the closer look of science" seminars is to build cooperation between academia, the public sector and business. Scientists share their research findings and have the opportunity to discuss them with experts. The results of their work are available on the DELab UW website.

Fairness and royalty payment system on music streaming platforms
University Sorbonne Paris Nord
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