Faddists,Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response |
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| Authors: | Martin Richardson Simon Wilkie |
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| Institution: | 1. Research School of Economics, College of Business and Economics, The Australian National University, Canberra, ACT, Australia;2. Department of Economics, Dornsife College of Letters, Arts and Sciences, University of Southern California, Los Angeles, CA, USA |
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| Abstract: | This paper constructs a model of the recorded music market to investigate the consequences of local content requirements in broadcasting for the “internationalization” of domestic music. It models the entry decisions of bands, the contracting decisions of record companies, the airplay decisions of radio stations and the radio listening and recording purchasing decisions of consumers. The paper shows that a local content quota leads, perversely, to the increased internationalization of domestic music. A quota that also requires increased broadcasting of “new” music yields an additional welfare loss but does nothing to a record company's incentives to sign up new bands. |
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