nep-cul New Economics Papers
on Cultural Economics
Issue of 2023‒12‒04
three papers chosen by
Roberto Zanola, Università degli Studi del Piemonte Orientale

  1. Rethinking royalties - Alternative payment systems on music streaming platforms By Frederik Juul Jensen
  2. NFTs (Non-Fungible Tokens) - Funktion und Potenzialanalyse By Anderie, Lutz
  3. Enter Stage Left: Immigration and the American Arts By K. Pun Winichakul; Ning Zhang

  1. By: Frederik Juul Jensen (Université Sorbonne Paris Nord, CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord)
    Abstract: Music streaming changed the recorded music industry's business model from individual product sales to unlimited on-demand access subscriptions. The streaming platforms experienced strong growth during the 2010s and now drive most of the industry's revenue, up to 90% in the most mature markets. The payment system for rights holders has remained unchanged. Many industry stakeholders criticise the system's alleged unfairness, and artist organisations, independent labels and major labels all propose different ideas to 'fix' the music streaming payment system. The current 'Pro Rata' payment system pools all subscription fees, with each rights holder receiving a payment proportional to their share of the accumulated number of streams. The system does not look to align the individual users' payments with their actual musical preferences and consumption. Therefore, this paper defines the problem of the current music streaming payment system as its allocation of equal value on all streams. The paper proposes a framework to systematically evaluate alternative payment systems inspired by policy analysis and planning. It additionally contributes with a structured evaluation of six alternative payment systems that rethinks how streams are calculated and remunerated to restore the price discrimination between different listening behaviours. The paper finds that developing a mixture of the alternative systems can likely solve many of the current system's challenges.
    Keywords: Recorded music industry digitisation business models, Recorded music industry, digitisation, business models
    Date: 2023–09–05
  2. By: Anderie, Lutz
    Abstract: Das vorliegende Working Paper erläutert die aktuelle Relevanz von NFTs (Non-Fungible Tokens) und dem Metaverse in der Forschung und Industrie. Dabei wird betont, dass diese Begriffe häufig als "Buzzwords" dienen und sowohl bei professionellen Investoren als auch bei jungen Menschen eine Mischung aus Begeisterung, Enttäuschung und der Furcht, etwas Wichtiges zu verpassen, hervorrufen. Im Jahr 2021 wurden 41 Milliarden US-Dollar in NFTs in verschiedene Produktkategorien investiert, jedoch verzeichnete der NFT-Markt im Jahr 2022 erhebliche Rückgänge, die teilweise auf die Volatilität von Kryptowährungen zurückzuführen sind. NFTs (Non-Fungible Tokens) werden als digitale Zertifikate definiert, die das Eigentum an einzigartigen, nicht austauschbaren Vermögenswerten dokumentieren, im Gegensatz zu fungiblen Tokens. Das Working Paper erläutert, wie NFTs durch Social-Media-Marketing an Aufmerksamkeit gewonnen haben und im Gaming-Bereich getestet wurden, wobei sie von den technologischen Innovationen und digitalen Vermögensmarktplätzen der Spielebranche profitierten. Darüber hinaus haben NFTs auch in der Kunstwelt und anderen Branchen an Bedeutung gewonnen. Der Text basiert auf der Hypothese, dass NFTs zukünftig eine zentrale Rolle in den Marktplätzen des Metaverse spielen könnten, wie in einem korrelierenden Working Paper der Frankfurt University of Applied Sciences dargelegt. Insgesamt behandelt der Text eine Vielzahl von Themen, darunter die Bedeutung von NFTs, Blockchain und Kryptowährungen, die Interoperabilität von NFTs sowie praktische Anwendungsbeispiele und empirische Nachweise aus verschiedenen Branchen. Ein umfangreiches Literaturverzeichnis rundet den Text ab und bietet weiterführende Referenzen zu den behandelten Themen.
    Abstract: The present working paper explains the current relevance of NFTs (Non-Fungible Tokens) and the Metaverse in research and industry. It emphasizes that these terms often serve as "buzzwords" and elicit a mixture of excitement, disappointment, and the fear of missing out among both professional investors and young individuals. In 2021, $ 41 billion was invested in NFTs across various product categories, but the NFT market experienced significant declines in 2022, partially attributable to the volatility of cryptocurrencies. NFTs (Non-Fungible Tokens) are defined as digital certificates that document ownership of unique, non-exchangeable assets, in contrast to fungible tokens. The working paper explains how NFTs gained attention through social media marketing and were tested in the gaming industry, benefiting from technological innovations and digital asset marketplaces in the gaming sector. Furthermore, NFTs have also gained significance in the art world and other industries. The text is based on the hypothesis that NFTs could play a central role in the marketplaces of the Metaverse in the future, as outlined in a corresponding working paper from the Frankfurt University of Applied Sciences. Overall, the paper covers a variety of topics, including the importance of NFTs, blockchain, and cryptocurrencies, the interoperability of NFTs, as well as practical examples and empirical evidence from various industries. An extensive bibliography completes the text and provides further references to the discussed topics.
    Keywords: Informatik, Metaversum, Non-Fungible Token
    Date: 2023
  3. By: K. Pun Winichakul; Ning Zhang
    Abstract: To what extent have immigrants contributed to the growth of the United States arts sector? In this paper, we explore the impact of immigration during the Age of Mass Migration on the development of the arts in the U.S. over the past century. In the short run, our results suggest that immigration helped produce greater numbers of native artists. Over a century later, the bene fits to the arts persist. Counties with greater historical immigration house more arts businesses and nonprofit organizations that generate more revenue, employ a larger proportion of the community, and earn more federal arts grants. When considering potential mechanisms, our analysis suggests that greater interaction between the aggregate immigrant population and natives led to increased exposure to new arts experiences and ideas, creating arts markets that persisted in the long run. This channel is further supported by positive links between the presence of immigrants from certain countries of origin and the growth of art forms popular in those countries, and evidence of long-run benefits to the arts that cannot be attributed to higher income in a causal mediation analysis. Altogether, our results highlight the important role that immigrants played in the development of the arts in America.
    Date: 2022–12–06

This nep-cul issue is ©2023 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.