As part of the AIRESS Research Seminar, Juan D. Moreno-Tornero, Professor at Pablo de Olavide University, will discuss revenue sharing on music streaming platforms on Friday, February 28th at 12:30 p.m.

Professor Moreno-Tornero will explore how revenues from music streaming subscriptions are distributed among content providers and present alternative models to better align the interests of artists, fans, and streaming services.

ABSTRACT:

We study the problem of sharing the revenues raised from subscriptions to music streaming platforms among content providers. We provide direct, axiomatic and game theoretical foundations for two focal (and somewhat polar) methods widely used in practice: pro-rata and user centric. The former rewards artists proportionally to their number of total streams. With the latter, each user’s subscription fee is proportionally divided among the artists streamed by that user. We also provide foundations for two families of methods addressing the rising concern in the music industry to explore new streaming models that better align the interests of artists, fans and streaming services. One of the families offers a natural compromise between the pro-rata and user-centric methods. The other family generalizes the user-centric method while capturing various formalizations of incentives for artists and users.