Abstract:

The intervention of digital service providers （DSPs） or platforms such as Spotify，

Apple Music and Tidal supplying streamed music has fundamentally altered the way that song

writers and recording artists are paid and the operation of copyright management organisations

（CMOs）. Platform economics has emerged from the economic analysis of two- and multi

sided markets， offering new insights into the way business is conducted in the digital sphere

and is applied here to music streaming services. The business model for music streaming differs

from previous arrangements by which the royalty paid to song-writers and performers was a

percentage of sales. In the case of streamed music payment is based on revenues from both

subscriptions and ad-based free services. The DSP agrees a rate per stream with the various

rights holders that varies according to the deal made with each of the major record labels， with

CMOs， with representatives of independent labels and with unsigned artists and songwriters with

consequences for artists’ earnings. The article discusses these various strands that contribute to

understanding royalty payments for streamed music in terms of platform economics， with some

data and information from the Norwegian music industry giving empirical support to the analysis.

Key words:

Digital streamed music Platform economics Economic organization Music royalty

CLC Number: 

• G237