Abstract The emergence of new technologies such as mp3 and music streaming, and the accompanying digital transformation of the music industry, have led to the shift and change of the entire music industry’s value chain. While music is increasingly being consumed through digital channels, the number of empirical studies, particularly in the field of music copyright in the digital music industry, is limited. Every year, rightsholders of musical works, valued 2.5 billion dollars, remain unknown. The objectives of this study are twofold: First to understand and describe the structure and process of the Dutch music copyright system including the most relevant actors within the system and their relations. Second to apply evolutionary economics approach and Values Sensitive Design method within the context of music copyright through positive-empirical perspective. For studies of technological change in existing markets, the evolutionary economics literature provides a coherent and evidence-based foundation. The actors are generally perceived as being different, for example with regard to their access to information, their ability to handle information, their capital and knowledge base (asymmetric information). Also their norms, values and roles can differ. Based on an analysis of documents and held expert interviews, we find that the collection and distribution of the music copyright money is still based on obsolete laws, neoclassical paradigm and legacy IT-system. Finally, we conclude that the rightsholders are heterogenous and have asymmetrical information and negotiating power. The outcomes of this study contribute to create a better understanding of impact of digitization of music copyright industry and empower the stakeholders to proceed from a more informed perspective on redesigning and applying the future music copyright system and pre-digital norms and values amongst actors.
There is a need for modernizing the Dutch collective management system of music copyright to match the rapidly changing digital music industry. Focusing on the often-neglected human values aspect, this study, part of a larger PhD research, examines the value preferences of music rights holders: creators and publishers. It aims to advise on technological redesign for music copyright management system and contribute to discussions on equitable collective management. Building upon prior research, which comprehensively analyzed the Dutch music copyright system and identified key stakeholders, this paper analyses 24 interviews with those key stakeholders to identify their values and potential value tensions. Initial findings establish a set of shared values, crucial for the next phases of the study –values operationalization. This research makes a academic contribution by integrating the Value Sensitive Design (VSD) approach with Distributive Justice Theory, enriching VSD's application and enhancing our understanding of the Economics of Collective Management (ECM).
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There is a lack of interest and empirical analysis in the existing literature on composers’ relations with their publishers and the role of Collective Management Organizations (CMOs) within the system of music copyright. The purpose of this paper is to explore and understand the influence of digitization within the music industry on the copyright enforcement in the Netherlands and on rights holders and the CMOs. Also to explore and understand how their mutual relationships are affected by digitization of the music industry. A qualitative analysis was done by reviewing scientific literature, performing a documents analysis and doing open interviews. In the existing economics of copyright literature, the main focus is set on transaction costs, efficiency and welfare topics. The findings can be used to understand and model how rights holders and CMOs cope with the digitization and contribute to the policy makers and economic actor’s discussion about future improvement of the copyright enforcement system.
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