PowerPoint-presentatie

Erik Hitters & Wes WierdaExpanding Isomorphism; the case of the DUTCH Music Publishing Industry

Erasmus Research Centre for Media, Communication and Culture

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Music Publishers: Terra Incognita of the music industry Historic development of the Dutch publishing industryIndustry regimesIsomorphistic tendencies

Until todays digital era, music publishers surprisingly survived largely unnoticed. The Italian composer Franco Fabbri (1991) identified the music publishing industry as the Dark side of the music industry. Especially in scientific analyses, publishers are rarely the centre of attention. We will try to explain the significance and behavior of the music publishing industry by analyzing the Dutch market from the beginning of the recognition of the authoring right in 1912. What are the main drivers of the market transformation of the music publishing industry and how can we explain their relative obscurity?

2Music Publishers

3Attributes of the MPIPartially owns the right to exploit compositionsA music publisher's business concept is to control an intellectual property portfolio, and to license songs from this portfolio to several clients (Leyshon, 2001)Speculative asset (Caves, 2000)Operations spread far beyond the music industrys value chainGatekeeping functions

4Music publishing in the context of the cultural industries value chain

5Gatekeeping functions of music publishers6Legal basis: Berner Convention 1889 & Authoring Right 1912Dominance of sheet music until 1950 1913 Dutch Collecting Societies 2/3 author 1/3 music publisher

2. Music publishers are rights specialists

My argument: Throughout history MPI has become used to internal and external threaths (eg. copying). Their relative invisibility is essential for their continued success

7Theoretical Framework: Dynamic Market Transformation ModelEconomic ConditionsMusic cultureSource: Wierda & Hitters 201386 regimes of the dutch music publishing industry

1. Edition Papier 2. Music Publishers United 3. Crisis, war and resurrection 4. Music genre revolution 6. Rights industry Renaissance (1912- 1929) (before 1912) (1929- 1950) (1952- 1980) (1984- 1998 ) 5. Oligopoly & catalogue value (1998- now ) Legal Technology Economics Culture Technology Technology Regime name Driver Time 9Incasso Buma Stemra in miljoen (1950-1980). Bron: F. van Bronswijk , Witbraad, 2007)Music genre revolution 1950-1980Figuur 8.2 shows te frist revival of record sales by rock-n-roll around 1958. Tot de economische crisis van 1973 zijn de incasso-opbrengsten van het uitvoerend recht hoger dan het mechanische; daarna stijgen de opbrengsten door de platenverkoop fors door. Componisten en uitgevers zien rond die periode de inkomsten sterk stijgen. Door de toegenomen baten wordt Nederland ook interessanter voor de grote buitenlandse ondernemingen. Begin jaren 80 is de buitenlandse inmenging in de Nederlandse Muziekmarkt een feit (Witbraad, 2008).

For example, music publishers of the 70s showed such opportunistic isomorphism by means of legal mechanisms such as fund blocking, imposing their practices upon users and composers. As a reaction, they were forced to a behavioural adjustment by the major recording companies, through which the Dutch publishing industry was forced to fair trade.

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Oligopoly and catalogue value 1980-1998Incasso Buma Stemra (1981-2000)

Bron: F. van Bronswijk Buma-Stemra 1930-1965, C. Witbraad. Buma/Stemra sedert 1913

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Rights industry renaissance 1998 -

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Performing & mechanical rights 2010-2014(source annual report Buma/Stemra, 2015) 153. Isomorphistic tendencies in the MPI

Theoretically informed by the logics of institutional behavior (Di Maggio & Powell, 1983)Coercive isomorphismboth formal and informal pressures exerted on organizations by other organizations and by cultural expectations from societyMemitic isomorphismtendency of an organization to imitate another organization's structure, as a result of uncertainty Normative isomorphismprofessionalization as the collective struggle of members of an occupation

16Specific MP Industries conditionsThe abundance of supply and scarcity of demand The power position of gatekeepers (Negus, 2002; Peterson & Berger, 1975).General lack of transparency about the intermediary position of music publishers, deals and connectionsRelative obscurity: both among users, composers and other parts of the music industries there is little knowledge about music publishingEntrepreneurial drive to maximise rights revenues

17Isomorphistic industry processThis behavior may be explained partly by the neo-institutional theory of Dimaggio and Powell (1983). Their mechanism of isomorphic behavior remarkably supports the unconscious conduct of the music publishing industry in the former century. We suggest to enrich this theory by introducing the concept of opportunistic isomorphism. On the one hand this is related to a characteristic attribute of the creative industries: the abundance of supply and scarcity of demand, which strengthens the power position of gate keepers (Negus, 1999; Peterson & Berger, 1975). On the other hand, there is a general lack of transparency about the intermediary position of music publishers within the value network of the music industry. Both among users, composers and other parts of the music industries there is little knowledge about music publishing. The sheltered position of publishing companies allowed them to explore boundaries. Music publishers seek, as legal innovators, to acquire a part of royalties in order to maximise their own revenue, which in itself is a legitimate entrepreneurial aim. The tendency to push back the frontiers of what is ethically acceptable, however, can harm music publishing, as well as the revenues of the industry as a whole. As a result mimetic isomorphic behaviour, a trade practice of industry peers came into being. Time and again, publishers lost sight of their original role and function, while legitimizing their remuneration vis-a-vis composers and users.

18When does Opportunistic Isomorphism appear? In a non-transparent marketIn an oligopolistic industryIn a legally complex environment for both consumers and the industry itself.Exploring and sometimes pushing back of (ethical) boundaries

19Concluding remarks..Music publishers always operated as rights exploiters and legal innovators The music publishing business forms recognizable patterns over time. They have secured their position in the value creating ecology of the music businessThe sheltered position of publishing companies allows them to explore/push back boundaries. But: Publishers are still fairly well off, despite shrinking market Opportunistic isomorphism may harm the music industryCopyrights may serve as a protection for creatives / public intervention needed20