I am currently writing a news commentary on music streaming services. My commentary is focused on demand and supply, consumer and producer surplus, externalities, and public goods. And there are a few things that I am kind of confused in some parts:
- Are music streaming services considered public goods? My teacher said they are public goods as it is non-rivalry in consumption. But don't users need to pay for the service and therefore excludable in consumption?
- Does music streaming create a negative externality to the producers? The producers are supposed to earn money through creating music but with music streaming they earn less than they should.
- Finally, why do artists still decide to put their music on the music streaming services even they earn less than they should?
Thank you all very much for helping me. I just started learning about externalities so the questions may seem dumb. Thanks a lot!