[ Ebook ] ➥ Rockonomics: A Backstage Tour of What the Music Industry Can Teach Us about Economics and Life Author Alan B. Krueger – Metalstampedmemories.info

Rockonomics: A Backstage Tour of What the Music Industry Can Teach Us about Economics and Life Alan Krueger, A Former Chairman Of The President S Council Of Economic Advisers, Uses The Music Industry, From Superstar Artists To Music Executives, From Managers To Promoters, As A Way In To Explain Key Principles Of Economics, And The Forces Shaping Our Economic LivesThe Music Industry Is A Leading Indicator Of Today S Economy It Is Among The First To Be Disrupted By The Latest Wave Of Technology, And Examining The Ins And Outs Of How Musicians Create And Sell New Songs And Plan Concert Tours Offers Valuable Lessons For What Is In Store For Businesses And Employees In Other Industries That Are Struggling To AdaptDrawing On Interviews With Leading Band Members, Music Executives, Managers, Promoters, And Using The Latest Data On Revenues, Royalties, Streaming Tour Dates, And Merchandise Sales, Rockonomics Takes Readers Backstage To Show How The Music Industry Really Works Who Makes Money And How Much, And How The Economics Of The Music Industry Has Undergone A Radical Transformation During Recent DecadesBefore Digitalization And The Ability To Stream Music Over The Internet, Rock Stars Made Much Of Their Income From Record Sales Today, Income From Selling Songs Has Plummeted, Even For Superstars Like James Taylor And Taylor Swift The Real Money Nowadays Is Derived From Concert Sales In , For Example, Billy Joel Earned Million From His Live Performances, And Less Than Million From Record Sales And Streaming Even Paul McCartney, Who Has Written And Recorded Number One Songs Than Anyone In Music History, Today, Earns Percent Of His Income From Live Concerts Krueger Tackles Commonly Asked Questions How Does A Song Become Popular And How Does A New Artist Break Out In Today S Winner Take All Economy How Can Musicians And Everyday Workers Earn A Living In The Digital Economy This is an information packed book that provides a fascinating look into the music industry which the author refers to as a winner takes all marketplace By the end of the book, one can not help but agree with him The facts are continuous There is not one copyright on music there are two An artist is paid differently for music on Youtube, Spotify, vinyl, in a commercial, on Spotify and on Satellite radio These and other facts are laid out in a clear and compelling way.The book has to be This is an information packed book that provides a fascinating look into the music industry which the author refers to as a winner takes all marketplace By the end of the book, one can not help but agree with him The facts are continuous There is not one copyright on music there are two An artist is paid differently for music on Youtube, Spotify, vinyl, in a commercial, on Spotify and on Satellite radio These and other facts are laid out in a clear and compelling way.The book has to be read in chunks, or at least I found it to be necessary All book with a full chapter of endnotes and 10 pages on methodology should be imbibed in chunks, just to keep your sanity The coverage of the industry is fascinating and every page, just about, provides some new and different fact that changes your perspective For example, China has just relaxed its rules to allow people who attend a concert to stand and dance..but only if they stand on their seats No one else could have written a book with this range Rockonomics draws on economic theory, standard government surveys, proprietary administrative data, a unique survey fielded by the author, and interviews with a range of people in the music industry It covers just about every aspect of the music industry The book focuses on the economics of the music industry, including a number of familiar themes like how streaming revenue is rising but recorded music primarily drives touring revenue, how No one else could have written a book with this range Rockonomics draws on economic theory, standard government surveys, proprietary administrative data, a unique survey fielded by the author, and interviews with a range of people in the music industry It covers just about every aspect of the music industry The book focuses on the economics of the music industry, including a number of familiar themes like how streaming revenue is rising but recorded music primarily drives touring revenue, how live ticket prices are set, how merchandise is marketed, how streaming is changing the makeup of songs, andRelatively little of this was revelatory, as someone who only casually follows these issues I knew most of it, but all of it was definitive and authoritative A secondary purpose of the book and it is secondary, notwithstanding the subtitle is to use the music industry to illustrate a number of economic concepts, like superstars and inequality, the behavioral economics that leads stars to underprice their tickets for fear of sending the wrong signal, the economics of incomplete contracts, the endogenaity of preferences, and even simple demand curves but in advertising revenue.It is hard not to linger over the references in the book to artists that died prematurely, including some sympathetic references to them dying at their own hands This, plus the broad range of Rockonomics, makes it all the harder to accept the fact that Alan Krueger will not write another book Rockonomics, Alan B Krueger, 2019, 325pp, ISBN 9781524763718A light introduction to the money aspect of the music business See also Kurt Dahl, entertainment lawyer and musician advice at You Need to Know About the Music Business, Donald S Passman, 9th edition 2015, ISBN 1501104896The Economics of Music, Peter Tschmuck, 2017, ISBN 1911116088EXTREME INEQUALITYThere are millions of very able musicians who can t earn a living at it And a minuscule number very highl Rockonomics, Alan B Krueger, 2019, 325pp, ISBN 9781524763718A light introduction to the money aspect of the music business See also Kurt Dahl, entertainment lawyer and musician advice at You Need to Know About the Music Business, Donald S Passman, 9th edition 2015, ISBN 1501104896The Economics of Music, Peter Tschmuck, 2017, ISBN 1911116088EXTREME INEQUALITYThere are millions of very able musicians who can t earn a living at it And a minuscule number very highly paid The economy as a whole increasingly resembles this.The top 1% of performers take 60% of all concert revenue p 14 view spoiler Counting only concerts big enough to be on the radar of industry bigwigs Surely an infinitesimal fraction, if it were to include all the live music tonite gigs at the average bar, the band playing for drinks and tips hide spoiler PRAISE THE INVISIBLE HAND IGNORE THE IRON HEEL YOU SEE The note the author doesn t hit is, monopoly profit comes of appropriating what should be the commons, and charging us all rent We all have to buy the same software not because it s good or fashionable but so it works with everybody else s Laws perpetuating monopoly rent aren t what we choose, as the author has it our representatives don t even read the lobbyist written laws before enacting them What would be felony graft in a civilized country is constitutionally protected speech in the U.S So the analogy misses some key marks The author s refusal to use the word, monopoly, calling them, superstar firms, chapter 4 ignores the political causes of inequality we suffer The author has drunk much of the Kool Aid of his profession He glibly refers to the law of supply and demand, as if we lived in the Econ 101 free market fantasy, many buyers, many sellers, no one has control over price He speaks as if inequality results from natural laws in the natural world, and can only be accepted To the contrary, markets are artifacts, created politically and are not free to all but have been captured by the powerful, to extract wealth from the rest of us He shows no awareness that the endpoint is, The supply of slave labor has decreased the demand for free labor I don t have to pay you a living wage And, I control the supply of what you need You ll pay what I ask That inequality is a political artifact and requires political combat, is foreign to this economist s thinking He admires the industrial transformation of producing music in a disused Polish textile factory p 195 ignoring that we re not post industrial clothes are still being made, by everpolitically powerless people Their degradation erodes dignity and wages everywhere The author is a fan of letting the market determine royalties, rather than trying to legislate a fair level pp 229 230 In practice this means the market dominator gets his way And how are millions of musicians to negotiate with thousands of radio stations The author loves the words, supply and demand so much, he bolds them e.g p 243 As if they re immutable and profound In truth, the supplier of a concert chooses the supply number of shows, size of venue, staging for seating in what portion of arena Thomas Piketty and Joseph Stiglitz are less poisoned by market worship than the average economist For lessons of the past, learned with workers blood, most economists ignore There Is Power in a Union The Epic Story of Labor in America, Philip Dray, 2010, ISBN 0385526296 Sometimes he blithers music continues to provide a means of upward mobility In 2016, 26.5% of the musicians in the Billboard Top 100 were from the bottom 10% of families by income Musicians with a top 100 song are likely to reach the top 1% of income earners that year, so a career in music is associated with a greater bottom to top mobility than in the economy overall p 73 No Fifty three people making it into the top 1% of a country this size is not upward mobility He does say that among those whose main work is as a musician, median yearly income from all sources is 20,000 view spoiler Only 213,738 workers p 52 hide spoiler Only about 1 in 1,000 are in the top 1% of all incomes This is NOT upward mobility The author admires small cities massive arts complex projects in an effort to rejuvenate the city and retain population p 42 Usually the city is worse off for building the white elephant See Michael Moore, Roger and Me, about Flint, Michigan Build it and they will come was from a fantasy movie Field of Dreams Madison, Wisconsin did an expensive rebuilding of its civic center, to make a posher playground for the opera set It s a continual drain on city finances, and obligates the mayor to try to get acts for it And the average Joe is priced out of what formerly was a civic center for everyone.The author gives a shout out to In Praise of Commercial Culture, Tyler Cowen Yay capitalism It creates a very few winners, some of whom buy cool stuff, and millions of losers, all of whom suffer and some make music Cool p 5 MATH WHATEVER The author gets even simple math wrong view spoiler He tells us, musical preferences followa power law distribution of popularity the popularity of the most popular item is a multiple of the next most popular item, and so on down the line p 87 If he s saying anything here, he s saying that for, say, Fig 4.2, Number of Music Streams of Top 2,500 Artists in 2016, by Rank p 89 , number of streams, S, at successive ranks, R and R 1, is a constant ratio S R S R 1 constant, for all RHe s describing an exponential distribution S e , k constantSo plotting log S vs R should be a straight line log S kR constantNot even close wolframalpha.com input i plot 1,logFor low R, log streams drops off very steeply with successive R at high R, log streams is nearly constant with successive R The actual distribution becomes much flatter at high R than does the exponential distribution the author describes If instead he meant to say that streams, S, is proportional to rank, R, to a power,S R , k constant,then log S plotted against log R would be a straight line, log S k log R constantA reasonable fit wolframalpha.com input i linear fit This could be described by saying, each doubling of rank reduces streams by the same ratio For 28.00 hardcover, Professor, say what you mean Plot on scales that reveal rather than conceal how your variables relate to each other A few general words about power laws from Mark Newman goodreads.com author show 90676 More details Power laws, Pareto distributions and Zipf s law tells us that people taking advice from other people on what to listen to, creates this sort of power law distribution of popularity He says nothing about why, but points us to Networks, Crowds, and Markets Reasoning about a Highly Connected World, David Easley, 2010, ISBN 0521195330, chapter 18, pp 447 455, here cs.cornell.edu home kleinber networks The whole book is here cs.cornell.edu home kleinber networks hide spoiler NOT MUCH MONEY IN MUSICKrueger tells us there s not much money in music Figure 10.1, p 234 shows 49 countries wholesale spending on recorded music vs GDP For all sizes of economy, these countries averaged 5 spent on recordings per 50,000 of GDP Presumably that s on physical media mostly CDs , now less than 20% of the total most is streaming now Figs 2.1, 2.2, pp 30, 31 Those countries that spent a slightly higher fraction of GDP on recordings are the wealthy countries Most countries are too poor to even be in the data set Even the wealthy countries spend shockingly little on recordings They spendon streaming and on concerts Even Paul McCartney earned 82% of his income from live shows in 2017 p 37 But even all told it s a tiny fraction of income Americans spendon potato chips than on recorded music p 24 Strangely, the author s data don t include spending on musical instruments, nor employment of music store clerks, but do include sponsors paying musicians to promote their products, and do include parking at concerts pp 27 28 ROCK STARS ARE NOT DEADISBN 9781473541764 Uncommon People The Rise and Fall of the Rock Star, 1955 1994, opined that never again would a musical act fill a football stadium To the contrary, says the present author, concerts grossing millions of dollars each are still happening, and not showing signs of dying anytime soon.WE KINDA SORTA MAYBE KNOW A LITTLEAs one insider said, there is a limited amount of transparency in our business p 29 Most of the data the author presents don t really exist much of it is guesses The author shares some of what he does have at and p 4 STREAMING33.2M different songs were streamed in 2017 Spotify has 35M tracks in its catalog It would take many lifetimes to hear them all p 86 SCALPERSScalpers take 1M 1.5M per Springsteen or U2 show, to fans cost p 143 QUIZ TIMEThe book answers questions such asgoodreads.com trivia work 65385847 ro Princeton economics professor Alan Krueger examines the music industry, hoping to demonstrate the study of economics through the prism of popular music, and hoping to draw parallels to the economy at large The result isof a book about the music business than about economics, but I wager that most readers areinterested in the business than in economics, so consider that a success.I may be an exception to the rule, having come close to getting a doctorate in economics myself Will B Princeton economics professor Alan Krueger examines the music industry, hoping to demonstrate the study of economics through the prism of popular music, and hoping to draw parallels to the economy at large The result isof a book about the music business than about economics, but I wager that most readers areinterested in the business than in economics, so consider that a success.I may be an exception to the rule, having come close to getting a doctorate in economics myself Will Baumol, who is cited in this book several times, was supposed to be my committee chair until I decided not to proceed with my dissertation But that was forty years ago, an interval in which my career had nothing whatsoever to do with economics or music.Still, I was hoping to see the application of economic theory to music I pictured a model of monopolistic competition where product differentiation in the form of signing and promoting unique artists and genres allowed suppliers to force consumers onto the inelastic portion of their demand curves, given the high utility consumers place on live and recorded music once they become fans of particular artists and styles.If that last paragraph made your eyes and minds glaze over, perhaps that explains why Krueger made the wise choice not to go there except that he does talk about how artists are positioned as unique, as imperfect substitutes for each other, a key element of product differentiation.Unfortunately, despite devoting an entire chapter to the gratification music gives us, Krueger doesn t place that within the context of consumer demand the concept of utility is in fact what underlies demand, evenso in the context of a experiential rather than tangible good like music The various factors that shape utility in music makes demand potentially inelastic inelastic demand allows suppliers to charge higher prices without dampening demand all that much to me, that s a big part of how technology has affected pricing for live and recorded music.Much is made of the music business being superstar driven, and that s a shame, because it really isn t I live in New York, where there are three arenas in the area and half a dozen large concert halls, so there s maybe an average of one superstar event a day plus one or two next level events And then there are dozens of small theaters and hundreds of clubs that operate Every Single Night Of the year.In terms of the number of people performing, watching, and working, and the amount of business activity generated if you include food and drink, transportation, etc., I bet the superstar and next level events are a drop in the bucket In Nashville, performers have to pay clubs to play People go to Chicago and New Orleans as well as Nashville and Brooklyn just to go club hopping LA, Seattle, Boston, San Francisco, Atlanta, Philly, Portland just go down the list, the everyday music scene swamps the superstar events in sheer magnitude.Similarly, one hundred miles west of NYC, in Bethlehem PA, there is probably an average of one star event a month if that , but there is a vibrant music scene at lower levels that translates into dozens of events each day within an easily drive able radius As an amateur musician who spends time in that area, even the bottom most level open mic business that allows me to pretend to be a musician is a bigger deal than superstar concerts.The City Winery model is spreading all over the country PACs are everywhere Old theaters in relatively small cities and towns are being renovated into community theaters that mix concerts with other cultural events There are so many of these venues in my area that I can t keep track of them all Meanwhile, I almost never go to an arena concert, and never ever go to a stadium, not with all the other choices I have not worth the hassle or cost This is a golden age for concert goers, and that has nothing at all to do with superstar performers.Krueger discusses literally none of this He devotes just about a whole chapter to music in China, but says absolutely nothing about the grass roots live music scene that is ubiquitous in America, still the largest market in the world Put together a Leontief input output model hardcore economics again I got to study and work a little with Nobel winner Leontief back in the day of the club scene, showing how music radiates out into various areas of the economy via tourism, food service, transportation, fashion, etc., and this is a huge, possibly dominant segment of the industry that gets no attention in this book.I have one other problem with the superstar model My older daughter was in youth theater, went to college for drama, and my younger daughter was an elite youth soccer player, now playing in college Their dreams were winning Oscars and Olympic gold But therealistic goal was easier to envision all their teachers, coaches, trainers, choreographers, etc., their dream was Oscar and gold too, but they found productive lives within the economy in their areas of greatest passion at other levels There isto the music industry than U2, Springsteen, and Taylor Swift So muchthat the superstar model actually fails, except at the tabloid level where a high school drama teacher and club soccer coach aren t going to compete with Bruno Mars.Nevertheless, there is much to like about Rockonomics I especially like the sidebar interviews with industry players And I like that much of the analysis was backed up by empirical evidence and not just anecdotal evidence although the anecdotes are a lot fun anyway There is a high probability that my critique is unique to me and yet, none of my critiques diminish what is here, I only wish there wasHopefully there are economists out there ready to build on what Krueger has started

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