Language, Copyright and Geographic Segmentation in the EU Digital, Single Market for Music and Film

18 Pages Posted: 13 Sep 2018

See all articles by Estrella Gomez Herrera

Estrella Gomez Herrera

European Union - Institute for Prospective Technological Studies (IPTS)

Bertin Martens

Joint Research Centre

Date Written: September 4, 2018

Abstract

The EU seeks to create a seamless online Digital Single Market for media products such as digital music and film. The territoriality of the copyright regime is often perceived as an obstacle that induces geographical segmentation. This paper provides empirical evidence on the extent of market segmentation in the EU on the supply side and measures the contribution of several drivers of this segmentation. We use data from the Apple iTunes country stores in 27 EU Member States. We find that availability of EU media products across country stores in the EU is hovering around 80 per cent for music and 40 per cent for films. Recent industry initiatives to reduce the transaction costs of making digital music available across borders have resulted in a reasonably wide availability though still short of the 100 per cent mark. Supply side factors including copyright-related trade costs probably still play a role in music though we can only infer this indirectly in the absence of data on copyright licensing arrangements at product level. Commercial strategies and territorial restrictions in distribution agreements reduce film availability, more so than copyright issues. We also find evidence of price differentiation across iTunes EU country stores.

Suggested Citation

Gomez Herrera, Estrella and Martens, Bertin, Language, Copyright and Geographic Segmentation in the EU Digital, Single Market for Music and Film (September 4, 2018). Review of Economic Research on Copyright Issues, 2018, 15(1), 20-37. Available at SSRN: https://ssrn.com/abstract=3243751

Estrella Gomez Herrera (Contact Author)

European Union - Institute for Prospective Technological Studies (IPTS) ( email )

Brussels
Belgium

Bertin Martens

Joint Research Centre ( email )

Edificio Expo, C
Inca Garcilaso, s/n
Sevilla, E-41092
Spain

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