Economic Analysis of the Language Quotas for Polish Songs on the Radio

Abstract

The main aim of the paper is economic analysis of the legislation which sets language quotas for music radio stations in Poland. The first part of the paper briefly characterizes the economic properties of radio. The second section presents the complex relationship between the radio and the recording industry. The third part concentrates on presenting language quota laws which exist in other countries. The fourth part deals with the economic analysis of the language quota legislation. It contains a simple cost benefit analysis of language quotas laws and shows why it may not be efficient, from an economic point of view, to have such legislation in place. The fifth section of the paper shows that the question of intervention in the radio market could be also seen from other perspectives. It argues that if the legislators want to enhance market diversity (development of radio stations with diversified repertoire), they should consider introducing quotas based on the criterion of music genre.

Keywords: radio, music industry, record labels, law and economics, regulation, language quotas

JEL Classification: K23, L82, Z1