Aaron Fredrick Huston - Introduction to Economics Capstone

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For this introductory scenario in Economics I examined the principles of economics that influence decision-makers, both consumers and producers, within the global economic system. I examined the features of and reasons for different economic systems throughout the world. Supply and demand, fiscal and monetary policies, and international trade benefits and costs were discussed. I was provided a solid understanding of economics and how economics affects the entertainment business industry. For more examples of work like this please refer to www.TriggaRik.com/marketing-consultant/

Transcript of Aaron Fredrick Huston - Introduction to Economics Capstone

Page 1: Aaron Fredrick Huston - Introduction to Economics Capstone

Charles Brown, Aaron Fredrick Huston

Page 2: Aaron Fredrick Huston - Introduction to Economics Capstone

• Strange Music Inc. is 50/50 joint venture between Kansas City mogul Travis O’guin and Tech N9ne. Since it’s inception in 1999, Strange Music has been at the forefront of the independent movement.

Page 3: Aaron Fredrick Huston - Introduction to Economics Capstone

Market Analysis

• Music Industry Market Shift - Late 90’s

• FTI movement - Potluck, KMK, and other Strange Music affiliates

• The Majors vs. Strange Music vs. Independents

• Monopolistic Competitive Market

Page 4: Aaron Fredrick Huston - Introduction to Economics Capstone

• Touring

• V.I.P. “Incentive” Packages

• Canadian and European Tours

• Merchandising

• Clearance sales of up to 90%

• Cyclical Roster Development

• 22 roster albums since 2010

• +40 since 2000

• 90 shows in 99 days - world record for most Hiphop shows

Page 5: Aaron Fredrick Huston - Introduction to Economics Capstone

• Consumers income - Loyal fan basis-translates to inelastic affect on income

• price of related goods - Has greatest effect on first-time buyers

• tastes within the market - Willingness to try different or “strange” music

• expectations within market - Demand for lyricism and adaptability

• number of potential buyers - Adverse opinions to Hiphop

• elasticity - Extremely Elastic

Page 6: Aaron Fredrick Huston - Introduction to Economics Capstone

• input prices - Employment is small - less than 100

• technology - Less artists, better technology, more music

• expectations - consumers express strong brand loyalty when exposed to “beautiful” music

• changes in opportunity costs - Sell, or retire and become a fan again

• entry/exit - time/revenue, impressive track records despite economic lull

• number of establishments in the U.S.

• total industry revenue - $13,000,000

• total industry payroll - $5,000,000

Page 7: Aaron Fredrick Huston - Introduction to Economics Capstone

Supply And Demand

$

QExample: Something Else - 78,000 sales in turn could lower ticket prices

Example 2: 500,000 units to be given away for promo 25-track SM sampler could translate to bigger video budgets

Page 8: Aaron Fredrick Huston - Introduction to Economics Capstone

International Competition

• Little to no foreign competition

*Narration: Damian Marley was meant in reference to touring with Nas on the Rock the Bells tour.

Page 9: Aaron Fredrick Huston - Introduction to Economics Capstone

Government Regulations

• Possibilities