Aaron Fredrick Huston - Introduction to Economics Capstone
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Transcript of Aaron Fredrick Huston - Introduction to Economics Capstone
Charles Brown, Aaron Fredrick Huston
• 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.
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
• 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
• 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
• 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
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
International Competition
• Little to no foreign competition
*Narration: Damian Marley was meant in reference to touring with Nas on the Rock the Bells tour.
Government Regulations
• Possibilities