Value added by music in public performance and home copying: economic theory and empirical applications for tariff setting
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Contents: 2. Private copying: blank carriers, technology-driven challenges
Technological changes coupled with arbitrage opportunities on the Single Market undermine revenue collection in some jurisdictions
Benchmarking breaks down if race starts to the bottom. You can adjust your tariffs to the neighbor without in-depth analysis as long your neighbor charges the right amount. ght) owners. Instead of simple benchmarking of fees, basic market variables such as quantities (number of tracks copied in homes), price variables, artist incomes should be compared in an economically meaningful way.
Estimating quantities, methodology, survey design Consumer surplus estimate requires reliable quantity estimates that can be best collected on an international basis.
Private copying: various challenges make economic assessment unavoidable. Value of intellectual property changes: technological and cultural changes modify the use of private copies. Economics deals with subjective value that is not indifferent of use. Compensation estimates must be updated when you blank carriers or copying technology enters the market.
CVM, choice modeling and hedonic pricing results Well designed economic estimates not only justify tariffs, but can create better value proposition for royalty payers. CVM surveys result in well-behaved demand curves for music in public places. Tariffs can be directly validated. Choice modeling reveals that consumers demand music and are rather insensitive to its price. Tariff levels are generally approved. Hedonic pricing reveals the different value added by different restaurants, bars, etc. – crucial for good value proposition and risk sharing with differentiated tariffs. Source: Various surveys designed by Visegrad Investments, conducted by Gfk Hungary, Universitas and Artisjus territorial representatives.
Econometric analysis differentiates high- and low-willing-to-pay customers Improving existing tariff differentiation can lead to a win-win situation. The same amount of royalty can be collected with less pain and less risk of loosing royalty payers, or even increase the number of customers who can experience high-quality 9 Economic analysis helps to create better tariff differentiation that is more accepted by payers without changing the average level of royalties, leading to less loss to royalty-free or cheap repertoire alternatives. Willingness-to-pay survey based on new hypothetical offerings reveal that better differentiated tariffs can significantly improve value proposition.
Public performance: changes in the restaurant, entertainment, retail outlet industry makes periodical tariff review necessary. The structure of restaurant, leisure and retailing changed significantly over two decades, creating chains of restaurants or retail outlets that have significant bargaining power and professional purchasing management.
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