One of the local research projects I’ve been working on is charting the evolution of Classical Music in Kentuckiana (i.e. the Louisville-Jefferson County, KY-IN MSA). Being one of the MSA’s which lies over two states, this makes some of the data gathering a little trickier, but lately I’ve decided to focus very specifically on New Albany, Indiana which is where I currently live and where I spent most of my school years before going to music school.
After the recent passing of Rubin Sher and Don McMahel, two giants of music education in this area, I decided it might be time to really get my hands dirty with data in honor of them and all the other music teachers still with us that I’ve had the honor and pleasure of working with since I’ve moved back.
So, one of my birthday gifts was a copy of Edward Jay Epstein’s “The Hollywood Economist: The Hidden Financial Reality Behind the Movies.” The book opens with this snippet in the intro.
There was a time around the middle of the twentieth century, when the box office numbers that were reported in newspapers were relevant to the fortunes of Hollywood: studios owned the major theater chains and made virtually all their profits from their theater ticket sales. This was a time before television sets became ubiquitous in American homes, and before movies could be made digital for DVDs and downloads.
Today, Hollywood studios are in a very different business: creating rights that can be licensed, sold, and leveraged over different platforms, including television, DVD, and video games. Box office sales no longer play nearly as important a role. And yet newspapers, as if unable to comprehend the change, continue to breathlessly report these numbers every week, often on their front pages. With few exceptions, this anachronistic ritual is what passes for reporting on the business of Hollywood.
To begin with, these numbers are misleading when used to describe what a film of studio earns. At best, they represent gross income from theater chains’ ticket sales. These chains eventually rebate about 50 percent of the sales to a distributor, which also deducts its outlay for prints and advertising (P&A). In 2007, the most recent year for which the studios have released their budget figures, P&A averaged about $40 million per title–more than was typically received from American theaters for a film in that year. The distributors also deducts a distribution fee, usually between 15 and 33 percent of the total theater receipts. Therefore, no matter how well a movie appears to fare in the box office race reported by the media, it is usually in the red at this point.
So where does the money that sustains Hollywood come from? In 2007, the major studios had combined revenues of $42.3 billion, of which about one-tenth came from American theaters; the rest came from the so-called backend, which includes DVD sales, multi-picture output deals with foreign distributors, pay-TV, and network television licensing.
So, why aren’t you in a band anyway? One of the things I think all Classical Music students (especially performers) should be required to do is play in a band. No, this doesn’t mean they should take up a guitar, bass, drums, or sing. What this does mean is that it should become an integral part of the performing experience–even if for just a semester. Learning the ropes on how to put together a set, getting booked, and dealing with a non concert hall type of venue would do more for teaching kids about the business of music than a class would, I’d think. Along the way, students would also be able to dispel a lot of myths about the Pop Music scene that we romanticize as a result of media representation or unrealistic portrayals of the industry through engagement with big name Pop Superstars.
I just watched the third episode of SyFy’s Z Nation, the latest Zombie Apocalypse series to follow in the wake of the popularity of AMC’s The Walking Dead. After the failed attempt by Amazon.com to bring Zombieland (a kind of rebooting of the movie of the same name) to the small screen, and the recent cancellation, after just two seasons, of BBC’s In The Flesh, you’d think the current Zombie craze is in decline.
I’m sure most of you have seen the recent Jim Carrey commencement speech (or at least the shortened clickbait version). If not, here’s the short one:
While it is inspirational and uplifting if we put aside some of the issues of privilege in Carrey’s situation which I’ve been having discussions about with some folks elsewhere, this Salon.com piece, Dear graduates: Don’t follow your dreams (A commencement speech for the mediocre), by Tim Donovan reiterates what I’ve talked about regarding Survivorship Bias in two previous posts. Interestingly, Donovan’s piece isn’t specifically a response to Carrey’s speech as the post was published two days prior to the Maharishi University of Management Graduation.