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.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
