The Three-Legged Stool of Music Value: Hertzian Radio, SiriusXM, Spotify
Pricing copyrighted works or assets has always been a difficult task given the information good character of such works. Doing it in the digital era is even more challenging. This paper proposes an approach to infer the respective competitive market value of copyrights in music from choices made by operators of Hertzian radio, satellite radio (SiriusXM), and interactive music streaming services (Spotify). Although the inferred music values are rather similar, they need not be equal or even close as business models and cost structures differ significantly between those music delivery technologies. Nevertheless the results suggest that rightsholders are significantly shortchanged and poorly served by the current copyright pricing framework.