ASCAP versus BMI (versus CBS): modeling competition between and bundling by performance rights organizations.

Bundling has been a long-standing issue in industrial organization. In recent years, bundling has gained renewed controversy as it has been employed by computer software manufacturers. This article examines BMI v. CBS (1979), which dealt with bundling by performance rights organizations (PROs). A mo...

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Bibliographic Details
Published in:Economic Inquiry Vol. 38; no. 4; pp. 579 - 591
Main Author: Kleit, Andrew N.
Format: Article
Published: Wiley-Blackwell October 2000
Subjects:
Online Access:View this record in EBSCOhost
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        atl: ASCAP versus BMI (versus CBS): modeling competition between and bundling by performance rights organizations.
      aug:
        au: Kleit, Andrew N.
      su:
        American Society of Composers Authors & Publishers
        CBS Television Network
        Product bundling
        Mathematical models of economic competition
        License agreements
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          American Society of Composers Authors & Publishers
          CBS Television Network
          Product bundling
          Mathematical models of economic competition
          License agreements
      keyword:
        American Society of Composers, Authors and Publishers -- History
        Broadcast Music, Inc. -- History
      ab: Bundling has been a long-standing issue in industrial organization. In recent years, bundling has gained renewed controversy as it has been employed by computer software manufacturers. This article examines BMI v. CBS (1979), which dealt with bundling by performance rights organizations (PROs). A model of competition between PROs using blanket licenses is presented. The usage of blanket licenses is shown to generate both higher profits for PROs and higher costs for the users of musical compositions when there are a small number of competing PROs. In addition, the model explains why blanket licenses are observed in unregulated PRO markets. (JEL L41, K21) Reprinted by permission of the publisher.
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    language: English
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