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Music’s ‘competitive value’ 2.5 times what’s paid: study

Media | 02/19/2015 5:27 pm EST

A new study from the C.D. Howe Institute says the "competitive value" of music in Canada is two and a half times what is actually paid through copyright tariffs. The report, authored by economist Marcel Boyer, came to this conclusion based on an analysis of conventional radio, for which he said established royalty rates serve as a benchmark for tariffs in online music streaming. Boyer said the Canadian radio industry pays 18.3 per cent of its revenue to on-air talent for talk content. The general ratio of music to talk is 60 to 40 per cent, and this suggests music is one and a half times more valuable to radio than talk, and in turn indicates that 27.5 per cent of revenue should...