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Did streaming change the way artists got their revenue and if so, in what ways did it affect them?

Student: Kuznetsov Anton

Supervisor: Peio Zuazo-Garin

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2021

The long-term consequences of including streaming services in the music industry's distribution mix are unknown and contentious. Free streaming, in particular, has the potential to attract customers who have been inactive for an extended period of time or have primarily obtained music illegally. As a result of the availability of access services, some industry representatives believe that their availability has the potential to broaden the market in general. For example, streaming services may be a more appealing legal substitute for illegal file sharing than traditional media downloads and uploads. Additionally, consumers are likely to want to sample music prior to making a purchase because it is a pleasurable experience and to alleviate the uncertainty associated with unobservable product quality. Thus, streaming services can be used as an easy way to sample new music. In this work, I used a theoretical model to examine the entry of streaming services into the space of the music industry previously occupied by only the label, and the effect this had on the income of the artists and the label itself.

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