3). YouTube (10 points)

YouTube is by far the world's largest on demand music service (meaning it is the most popular site to access music on-line). YouTube has periodically been forced to pay small fines to the The National Music Publishers' Association (a trade group that represents songwriters with unpaid royalties owed to singers by You Tube). Artists are supposed to be paid by You Tube based on a combination of advertisements and how many visits their video receives. Although revenue paid to songwriters is way up over the past five years, some economists continue to question the efficiency of YouTube.

I imagine most of you have used YouTube or a similar site to access music or other content giving you context to discuss this market.

How is YouTube efficient in the provision of music and how inefficient? Be sure to offer some graphs and micro concepts.