Music Economy

For the study of cultural economics, the music economy occupies an important role and thus is often included in broader analyses of creative/cultural industries. However, rarely is it the sole subject of an entire book, which makes this study of interest to academics and practitioners in the field. In addition, it should be noted that book’s structure and manner of author’s explanation, with clear distinguishing between different aspects of music business, but also their interdependence, could be of particular appeal to students or those encountering the subject for the first time. Certainly, music students would find it very useful in the quest to understand conditions in which their work could be presented to an audience.

Die Digitalisierung hat als eine Kultur der Digitalität tiefgreifende gesellschaftliche Veränderungsprozesse zur Folge. Die Musikwirtschaft ist seit nunmehr zwei Jahrzehnten intensiv mit den Konsequenzen und neuen Perspektiven konfrontiert. Der Essay diskutiert am Beispiel des Arbeitsmarktes Musik und der Rezeption von Musik die Rahmenbedingungen, Auswirkungen und möglichen Zukunftsperspektiven unter Berücksichtigung einer Kultur der Digitalität. Im Anschluss daran werden Überlegungen zu einer Ethik des Digitalen, an die sich eine Diskussion um die Wertschätzung von kultureller Leistung anschließen lässt, ausgeführt.

The International Journal of Music Business Research (IJMBR) as a double-blind reviewed academic journal provides a new platform to present articles of merit and to shed light on the current state of the art of music business research. Music business research is a scientific approach at the intersection of economic, artistic, especially musical, cultural, social, legal, technological developments that aims at a better understanding of the creation/production, dissemination/distribution and reception/consumption of the cultural good music. Thus, the IJMBR targets all academics, from students to professors, from around the world and from all disciplines with an interest in research on the music economy.

Der kommerzielle Gebrauch von Musik in der Fernsehwerbung ist einer der häufigsten täglichen Kontakte mit Musik in der westlichen Welt. Die Werbeindustrie und ihre Kunden geben Milliarden von Dollars jährlich aus für Lizenzgebühren, die den Gebrauch von Musik in der Fernsehwerbung ermöglichen. An der Bedeutung von Musik für die Wirksamkeit von Fernsehwerbung wird offenkundig nicht gezweifelt. Es wird berichtet, dass Musik in mindestens 42 Prozent einer repräsentativen Auswahl von Fernsehwerbespots vorhanden ist. Berücksichtigt man international ausgestrahlte Werbung, so ist Musik typischerweise sogar in etwa neunzig Prozent der Fälle das vorherrschende Element. Es ist darum umso erstaunlicher, dass dem Studium der Wirksamkeit von Musik als einem Marketingwerkzeug im Fernsehen bisher so wenig Forschung gewidmet wurde. Als Konsequenz hiervon erfolgt der praktische Einsatz von Musik oft auf recht willkürliche und planlose Weise. Der vorliegende Aufsatz zeigt knapp aktuelle Trend in der Fernsehwerbung auf, bespricht Modelle der Werbewirkung unter besonderer Berücksichtigung der Effektivität von Musik und stellt abschließend ausgewählte empirische Studien zur Wirksamkeit von Musik in Fernsehwerbung in Hinsicht auf Aufmerksamkeitslenkung, emotionale Anziehungskraft, Gedächtnisleistung, Urteilbildung und Beeinflussung von Kaufabsichten zur Diskussion.

עבודת סמינר הכוללת סקירה וניתוח מצבה של תעשיית המוזיקה העולמית בכלל ותעשיית המוזיקה הישראלית בפרט לאור השפעתה של המהפכה הדיגיטלית שהתרחשה בעשור הקודם והשיפורים הטכנולוגים, והזמינות של מדיום האינטרנט בעשור הנוכחי.
העבודה בוחנת את מצבה של תעשיית המוזיקה בהקשרים עסקיים, טכנולוגים ורגולטורים ומציעה תוכנית פעולה אסטרטגית לתעשייה המקומית על פי מודל הנשען על היבטים מסוימים מתורת המשחקים ותיאוריות כלכליות.

נכתב במסגרת תואר שני למדיניות ציבורית באוניברסיטת תל-אביב בקורס ״חשיבה אסטרטגית״ בהנחייתו של פרופ׳ איתי סנד.

It is estimated the UK accounts for almost 15% of the global music market and around 130,000 recorded jobs. There is, however, little evidence of the scale of the economic value of the conditions supporting informal music, despite its possible contribution to outcomes manifest in the UK music industry. ‘The Space’ is where it all happens – the performance, the workshop, the rehearsal, even the brain. Unfortunately, The Space can often be overlooked in favour of the creative process. The informal sector is characterised by the back rooms of pubs, homes and garages which remain unsuitable and poorly equipped rehearsal spaces. Such spaces do exist - rehearsal & practice rooms which operate on a commercial basis. This MA thesis paper develops a methodology to measure the economy of the informal music economy by collecting data on the turnovers of commercial rehearsal/practice studios in London. Along the way, it characterises support for and the significance of informal music-making.

Si sta attualmente assistendo ad un'evoluzione delle preferenze dei consumatori e ad una progressiva sostituzione dei supporti, dal "digitale classico" del CD, al "digitale informatico" dei file musicali (MP3 ed altri). Appare necessario per i produttori e gli artisti tenere conto di tale tendenza, alla luce dei numerosi vantaggi in termini di riduzione dei costi e accesso a nuovi e più vasti mercati. Allo stesso modo dovrebbero adeguarsi la disciplina giuridica sulla tutela della proprietà intellettuale e la scienza economica di riferimento. In particolare dovrebbe essere attenuata la netta separazione che nei modelli economici "tradizionali" veniva fatta fra supporto "classico", legale, e file musicale o file sharing, illegali. Considerando l'enorme successo dei siti legali di vendita di musica on line, si dovrebbe rivedere l'importanza relativa attribuita ai costi opportunità associati all'acquisto di un album su CD o su MP3.
La strategia ottimale non è dunque quella di "reprimere" la diffusione della musica in rete, ma di assecondarne lo sviluppo e di gestirne le possibilità di profitto, con la consapevolezza che in un'ipotetica situazione "a regime" il file musicale diverrà il principale supporto di ascolto e fruizione della musica.
This article investigates recent developments in legal and technological protection of digital music and describes the on-going process of format substitution (from CD to MP3 mainly), as well as consumers' attitude toward music downloads. Record companies, artists and producers should consider this changing in the environment; economic theory and intellectual property law should do the same. The 'traditional' separation between 'concrete' format (legal) and 'digital' format (illegal) in the economic literature, as well as the associated opportunity costs, has to be rethought. Knowing that the MP3 is going to become the most common musical format in the near future, producers' optimal strategy will be not to constrain the pro- liferation of music on the net. Taking into account of cost reduction opportunities in terms of promotion, distribution and network effect, the recording industry has to be ready to internalize the benefits of this technological innovation instead.

Up to the present day, only little academic research has been done on computer game music. The existing studies are quite centered on the comparison to film music and the few empirical are mainly studies related to racing games. The term ‘computer game music’ in the article on hand will be used in its broadest meaning and includes besides music in the narrow sense every kind of atmospheric sound and sound effects, as well as sounds caused by non-player characters as long as it is no human language. So the topic incorporates fields that are normally called ‘sound design’, which can be seen as ‘composing with sounds’. At first, aspects of marketing and secondary usage will be in focus, while afterwards an overview on the use of music in narration based or plot centered computer games will be given. The special role of songs shall be considered, as well as the popular orchestral computer game music. According to film music similar functions of computer game music, interactive game related functions shall be compiled. These functions arise from the adaptability of music to certain gaming situations which are caused by the player. Subsequent thoughts on the adaptive computer game music and the utilization of rather repetitive stamped computer game music will be made. Basis for the considerations on possible effects of computer game music will be my model on the effect of music in audio-visual formats, which is based on several empirical findings by various researchers and will be complemented by the results of already existing empirical studies on music in computer games and an insight in a current pilotstudy.

This work, pioneer in Bolivia in the investigation in the field of the economic theory of the art, analyzes the artists behavior before economic incentives. In this sense, it is proposed a model that explains the differential of laboral income among artists. The main conclusion suggests that only the experience from the variables of human capital theory affects directly the revenues of the artists.

This model supposes that the access to this experience is restricted by a double barrier selection, in one hand final consumers and in the other one expert-producer-union. In this sense, the investment in education, the free concerts, and other elements are constituted in the main strategies to cross them. Due to the dynamics of the market, this generates a process of constant signaling, which is constituted in the prestige that finally will determine the income differential. In order to validate this model it was generated a specific database for the group of instrumentalists interpreters of classical music in the city of La Paz.

Additionally, some characteristics of this population are described and settle down a comparison between its income level and that of its occupational group of reference. The document concludes with several suggestions of cultural politics after a reflection regarding the degree of the studied populations similarity with the described characteristics of the artists populations widespread in other contexts and their behavior modeled in the theory of the economy of the art.

This is an extensive overview of the performance practice, with the purpose to demonstrate that canonization characterizes not only Western composition, but the performance standards as well. As such, canonization should be viewed as an organic property of organization of any market. The moment when a music product is offered for public trading, the canonic hierarchy of products starts forming, based on the supply / demand interaction. The very same factors that affect compositional “Hall of Fame” apply to the performance “Hall of Fame”. The repertories of violin, piano and vocal music are analyzed. The trend of “non-communicative” avant-garde performance, rejecting historicity and conventions, is identified in the 20th century performance practice. The “recording canon” is defined in relation to the established practice of studio recording and increase of record consumption by the general public. The influence of “recording” canon on performance canon is discussed, with special attention to the issue of “period performance” practices.

Much has been written on jazz, its explosive success at the beginning of its life journey, and its gradual gain of respectability as it aged – in exchange for a noticeable loss of popularity in the land of its birth. But very few researchers have touched upon the role that American copyright law has played in the development of jazz. This short book investigates the connection between the existing copyright laws, their administration in the U.S., and the historic changes in the way jazz music has been performed and consumed in America. Cross-examination of data coming from musicology, sociology, legal and economic studies points in the direction of legal issues as the primary underlying cause of negative changes that affected jazz. Bad copyright laws led to bad practices of law enforcement, which in turn, promoted bad business practices in relation to jazz. At the end of this chain, after about sixty years passed from jazz’ inception, the general public started losing interest in this art form which has become severely censored as a result of imperfect copyright laws, their overly restrictive administration, as well as the failure of legislative bodies and courts to recognize the special nature of jazz.
The most American form of expression in music, widely popular during the 1920-1950’s, has eventually turned into an esoteric Aesopian art form, meaningful mainly to an expert – ideally, a jazz performer himself.

The phenomenon of spontaneous canonization is examined here in relation to the standards of listening to music, accepted as a norm within Western cultural establishment. The same self-organization of the music market that led to formation of canon in composition and performance affected the practice of consumption of music. The listener’s canon has been constructed and fixed through the interaction of professional criticism, music education, music journalism, and later, music records and radio broadcasting. This canon is documented in the music appreciation literature. More recent poll data suggests that the listener’s canon closely follows the performance canon. High degree of correspondence between the composer’s, performer’s and listener’s canons testifies to the futility of attempts to revise existing canons or introduce any new canons. This discussion is especially useful for understanding of the problems faced by concert agencies and record companies of today. The very same bug of “non-communication” that affects modern composition and modern performance is identified in modern practice of listening - as “non-communicative listening.” The roots of this problem are examined in light of cultural mismanagement of music by the record industry. Its ramifications in relation to both, classical and popular music are discussed.

Seit jeher sind Filmmusik und Ökonomie eine Verbindung eingegangen – und dies gleich in zweierlei Hinsicht: Zum einen war man stets darauf bedacht, mit vergleichsweise geringem Aufwand zu einem schnellen Ergebnis zu kommen, was sich besonders ausgeprägt an Hollywoods Studiopraxis, aber auch schon anhand der Kinotheken der Stummfilmzeit aufzeigen lässt. Andererseits wurden schon seit der Stummfilmzeit Titelsongs zur Ankündigung und Vermarktung eingesetzt, und seit den fünfziger Jahren des 20. Jahrhunderts erfolgen eine Bewerbung des Films und eine Vermarktung der Filmmusik über Soundtrackplatten. Auf beide Aspekte von Filmmusik und Ökonomie wird im vorliegenden Beitrag eingegangen.

Öz: Sosyal medyanın sahip olduğu küresel özellikler medyanın erişimini tarihte olmadığı kadar genişlemesine neden olmuştur. Küreselleşen sosyal medya dünyanın bir ucundan diğer ucuna bir tık kadar yakınlaşmasına katkıda bulunmuş ve dünyayı küçük bir küresel köye çevirmiştir. Ürün ve hizmetlerin tanıtım ve pazarlanması bu küresel köyde geçmişe göre daha kolay olmuş,tükecilerin birbirleri ile kurdukları etkileşim ürünlerin tanıtımına katkıda bulunmuştur. Müzik endüstrisi küreselleşen sosyal medya platformları sayesinde geniş bir erişim imkanı bulmuş küreselleşmiştir. İlk küreselleşme evrimini küreselleşen geleneksel medya ve televizyon kanalları aracılığı ile yaşayan müzik endüstrisi ikinci büyük evrimini sosyal medya aracılığı yaşamıştır. MySpace, YouTube gibi küresel sosyal medya platformları müzik üreticisine küresel pazarlama imkanı sağlamıştır. Bu çalışmada küreselleşme tartışmaları çerçevesinde küresel sosyal medya platformları ve onların müzik endüstrisi ile yakınsaması üzerine bir araştırma yapılmıştır. Çalışmanın birinci bölümünde küreselleşme kavramı ile ilgili değişik perspektiflerden literatür araştırması yapılmıştır. İkinci bö-lümde ise sosyal medyanın küreselleşme ile boyutu üzerinde durulmuş ve küreselleşen sosyal medya platformlarının müzik endüstrisi ile buluşması anlatılmıştır. Çalışmada küresel sosyal medya platformlarının müzik endüstrisine olan yararlarına değinilmiş ve müzik endüstrisinde küresel sosyal medya platformları aracılığı ile sağlanan küresel pazarlamanın yerel müzisyenlere avantajları üzerinde durulmuştur. Abstract: Global characteristics of social media have caused media to enlarge more than ever. Globalizing social media has helped social media to be just a click away all around the world and changed the world to a small global village. Promotion and marketing of these products and services have become easier than the past in this global village, and the interaction between consumers has contributed to the promotion of products. Music industry has found an opportunity for a wide Access thanks to the globalizing social media platforms, and become globalized. Music industry that globalized for the first time via globalized traditional media and television channels has experienced the second evolution via social media. Such global social media platforms as MySpace and YouTube have provided music producers with the opportunity of global marketing. In this study, a research has been conducted on global social media platforms and their convergence with the music industry within the framework of globalization discussions. In the first part of the study, a literature review related to globalization notion has been conducted from various perspectives. In the second part, the globalization dimension of social media has become a focus and the meeting of globalizing social media platforms with music industry has been explained. The benefits provided by global social media platforms to music industry has been mentioned in the study, and the advantages of global marketing provided via global social media platforms in music industry to local musicians have been highlighted. Özet : 2012-2014 Yılları arasındaki TUİK verileri kullanılarak hazırlanan bu çalışma, sanayi ve konutlarda kullanılan doğalgaz ile elektrik tüketiminin istatistiksel olarak analiz edilmesi şeklindedir. Farklı analiz teknikleri kullanılarak hazırlanan çalışmada ANOVA modeli uygulanmıştır. Ayrıca hipotez testleri uygulanarak araştırma daha kapsamlı hale getirilmiştir. Sanayi ve konutlarda tüketim aralıklarına göre elektrik ve doğalgaz fiyatlarının tespit edilmesi yönünde hareket edilmiş olup, yapılan istatistik bulgulara göre de sonuca gidilmiştir. Elde edilen bulgular sonucunda; sanayi sektörü için tüketim aralığı arttıkça, elektrik ve doğalgaz fiyatlarının genel seviyesinde düşüş gözlendiği sonucuna varılmaktadır. Sonuç olarak tüketim aralığı Kw cinsinden yükseldikçe, fiyatlarda da azalma meydana gelmektedir. Abstract: In this study prepared by using data of TSI belonging to the years of 2012-2014, the consumption of electricity and natural gas used in industry and houses is statistically analyzed. ANOVA model was applied to the study prepared with the use of different techniques for analysis. Moreover, tests of hypothesis were applied and the research was made more comprehensive. The purpose was to determine electricity and natural gas prices KÜRESELLEŞME KAVRAMI

Wenn der Begriff ›elektronische Musik‹ fällt, wird nicht selten davon ausgegangen, dass es sich hierbei um das Produkt einer Kosten sparenden und flexiblen Herstellungsmethode von Musik für ausgewählte Gebrauchszusammenhänge handelt. Dieser Eindruck entsteht wesentlich dadurch, dass Musik und Elektronik durch die Verflechtung der Unterhaltungsmedien eine nicht mehr zu trennende Allianz eingegangen sind – und zwar bis hin zur noch nicht abgeschlossenen, aber durchaus angestrebten Bündelung aller Audio- und Videoeinrichtungen eines Haushaltes in einem so genannten Multimedia-Center. Hier kann jeder, der es rein technisch beherrscht, Audio- und Videodateien zu verschieben, zu kopieren oder zu manipulieren, prinzipiell zum (Musik-) Produzenten werden.
Wenn auch das Produzieren von Musik bestimmter Genres in den letzten Jahren mit Hilfe verschiedener Computerprogramme oder spezieller Geräte schneller und damit kostengünstiger geworden ist, war die elektronische Musik nie ›billig‹ oder ›ökonomisch‹. Der Gebrauch von Elektronik hat in den letzten fünfzig Jahren einen großen Facettenreichtum in Werken der so genannten Neuen Musik entstehen lassen und zu einer enormen Ausweitung der Spielarten Populärer Musik geführt. Trotz ihres Misserfolgs sind die anfänglich belächelten exotischen Produkte elektroakustischer Experimente die Anfänge einer heute selbstverständlichen Ausstattung für Jedermann. Das Interesse an elektronischen Klangerzeugern ist dadurch gestiegen, und die industrielle Herstellung führte zu einem unvorstellbaren Preisverfall bei gleichzeitiger rasanter Ausweitung der Anwendungsmöglichkeiten und  -bereiche. Kinder und Jugendliche ›komponieren‹ Klingeltöne für ihre Mobiltelefone, und demjenigen, der einen Computer besitzt, steht prinzipiell ein elektronisches Studio zur Verfügung: Es ist mittlerweile Standard, dass ein mehr oder weniger brauchbares Audiobearbeitungsprogramm zum Betriebssystem, also quasi zur Grundausstattung gehört. Hiermit ist der eingangs bereits erwähnte ›Produzent‹ rein technisch ausreichend ausgestattet. Für die ›Elektronik-Pioniere‹ der zwanziger bis fünfziger Jahre des 20. Jahrhunderts wären die Möglichkeiten, die einfache Standardprogramme heute bieten, geradezu traumhafte Arbeitsvoraussetzungen gewesen, denn in der Anfangszeit der elektronischen Musik gab es nur wenige funktionstüchtige Instrumentenkonstruktionen, überhaupt keine Aufzeichnungsgeräte, und die finanziellen Mittel, die in derartige Projekte flossen, waren sehr begrenzt. Im Folgenden soll exemplarisch skizziert werden, wie ›unökonomisch‹ elektronische Musik immer dann ist bzw. war, wenn es sich dabei nicht um Massenware, sondern um musikalisch-technische Pionierleistungen oder künstlerische Einzelgänge handelt.

The music business is one of the most international of all the cultural industries. Music, industry practices, and people travel easily across country borders and the major music companies are dominating national music markets across the globe. However, at the same time the music industries in different countries are very idiosyncratic. Music is an ingrained part of a country’s history, its culture and heritage. One aspect of this idiosyncrasy is related to how creatives, audiences and music organizations are affected by and is able to take advantage of the ongoing digitization of society. [This issue is free to read on the publisher website]

The precarious foundation of all the arts, including music, is money. Those who wish only to be concerned with “pure art”, removed from all personal and social pressures, dislike being reminded of this fact. Nonetheless, it is known that recognition and applause alone do not satisfy the artist, so that the question of how the creation and production of music is financed is constantly relevant and always finds new forms.

Beiträge: RÜDIGER BITTNER, Was Musik ist, was Ökonomie ist und was sie miteinander zu tun haben • PETER BENDIXEN, Neues Denken in der Ökonomie. Wie bringt man Musik in die Öffentlichkeit? • JÜRGEN BRANDHORST, Die kollektive Wahrnehmung von Urheberrechten als Teil der Musikwirtschaft. Aufgaben und Arbeit der GEMA • WOLFGANG SCHNEIDER, Kulturpolitische Überlegungen zur Musikförderung in Deutschland. Eine weitere »Unvollendete« • KADJA GRÖNKE, Cajkovskij, die Frauen und das liebe Geld • ULRICH BARTELS, Komponisten - Verleger - Komponisten und Verleger. Ein Streifzug • HANS-JOACHIM ERWE, Ein Komponist zwischen Kunst und Kommerz. Beobachtungen im Bach-Jahr 2000 • CHRISTIAN UNGER, Musikdistribution über das Internet - eine Chance für die Künstler? • GERD GRUPE, »Eine Sache unter Brüdern«? Nicht-westliche Musiker zwischen Ausbeutung und kommerziellem Erfolg • WALTHER THISSEN, Radio und Ökonomie • CLAUDIA BULLERJAHN, Die Wirksamkeit von Musik in der Fernsehwerbung. Ein Vergleich theoretischer Annäherungen und Ergebnisse empirischer Studien • CLAUDIA BULLERJAHN, Von Hollywoods Studiosystem zur Vermarktung populärer Kinohits • WOLFGANG LÖFFLER, Zur Ökonomie der Instrumentation und Komposition • ANDREAS HOPPE & CLAUDIA BULLERJAHN, Das Neue ist immer irgendwie »unökonomisch«. Zum Ökonomischen in der elektronischen Musik • RUDOLF WEBER, Zur Ökonomie des Musiklernens oder Nürnberger Trichter und Crash-Kurse

ABSTRACT:

This paper is meant to explain the importance of Nashville to the music industry.
With a research and with focus on business, Nashville seems like the center of the music world, especially jobwise. The most important thing in every industry is how many jobs it can provide and young people from all over America have been moving to Nashville to find a career in music. Some will become singers or songwriters, some will get into the management and others will work with cables and recording gear.
This paper will focus on potential careers in music and on what sets the Nashville apart.