The Music Value Gap and the Cross Subsidy to The Information and Communications Technology (ICT) Industry from The Recorded Music Industry in Canada

G. Barker
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Abstract

This paper develops measures of both:

- The extent of the value gap in Canada’s recorded music industry, and
- The size of the cross subsidy from Canada’s recorded music industry to internet service providers (ISPs) and other actors in the Information and Communication Technology (ICT) industry.

These outcomes are both the result of decisions to adopt a weak copyright liability regime for the Internet in Canada that creates immunities from copyright liability for ISPs and ICT infrastructure firms.

On the value gap in Canada’s recorded music industry, previous work has measured the gap between actual Canadian recorded music revenues and what they would have been had they kept up with Canadian inflation and GDP growth:

• By 2017 the annual recorded music value gap was over Cd$1.6 billion.
• The cumulative total Canadian recorded music value gap since 1997, or total lost, or foregone revenues in Canada over the twenty-year period, is around $19.3 billion.
• The average annual increase in the music industry Value Gap from 1997 to 2017 in Canada was $82 million per annum and
• The value gap has continued to grow, despite growth in streaming music revenues driving a slight increase in nominal revenues. Growth Canadian music market is still less than the rate of inflation and real GDP growth rate in the rest of the economy.

On the cross subsidy from Canada’s recorded music industry to Internet service providers (ISPs) and other actors in the Information and Communication Technology (ICT) industry this paper shows:

- The cross subsidy from the recorded music industry in Canada to online Ad networks’ advertising revenues was around CAD 82 million per annum in 2017. This is the estimated revenues of online Ad Networks derived from unauthorised music acquisition activity in 2017.

- The cross subsidy from the recorded music industry in Canada to internet infrastructure services firms is estimated to be as high as CAD 2.1 billion per annum in 2017. This is based on the total amount of internet services revenues that might be attibuted to unauthorised file sharing of copyright content.
加拿大音乐产业对信息和通信技术(ICT)产业的价值差距和交叉补贴
本文发展了两方面的措施:-加拿大录制音乐产业价值差距的程度,以及-加拿大录制音乐产业对互联网服务提供商(isp)和信息和通信技术(ICT)行业其他参与者的交叉补贴的规模。这些结果都是加拿大决定对互联网采取薄弱的版权责任制度的结果,该制度为互联网服务提供商和信息通信技术基础设施公司创造了版权责任豁免。关于加拿大录制音乐行业的价值差距,之前的工作已经测量了加拿大实际录制音乐收入与加拿大通货膨胀和GDP增长之间的差距:•到2017年,年度录制音乐价值差距超过16亿美元。•自1997年以来,加拿大录制音乐的累计总价值差距,或加拿大在20年期间的总损失或放弃收入,约为193亿美元。•从1997年到2017年,加拿大音乐产业价值差距的平均年增长率为8200万美元。•尽管流媒体音乐收入的增长推动了名义收入的小幅增长,但价值差距仍在继续增长。加拿大音乐市场的增长率仍然低于其他经济领域的通货膨胀率和实际GDP增长率。关于加拿大录制音乐行业对互联网服务提供商(isp)和信息和通信技术(ICT)行业的其他参与者的交叉补贴,本文显示:- 2017年加拿大录制音乐行业对在线广告网络广告收入的交叉补贴约为每年8200万加元。这是2017年在线广告网络从未经授权的音乐获取活动中获得的估计收入。-据估计,2017年加拿大录制音乐行业对互联网基础设施服务公司的交叉补贴每年高达21亿加元。这是基于互联网服务收入的总额,这些收入可能归因于未经授权的文件共享版权内容。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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