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Economic and Financial Fundamentals Applied to Music Business

Course Description

Fundamental concepts in the fields of economics, finance, IS/IT, management, marketing, and real estate. Course serves as a setting to learn basic tools in the music business and as an introduction to various fields enabling the student to understand fundamental approaches to issues in business.

Athena Title

Econ/Finance in Music Business

Pre or Corequisite

ACCT 1160 or ACCT 1160E or ECON 2105 or ECON 2105E or ECON 2105H or ECON 2106 or ECON 2106E or ECON 2106H

Semester Course Offered

Offered fall and spring

Grading System

A - F (Traditional)

Student Learning Outcomes

  • Read, understand, and generate the two fundamental accounting reports: P/L statements and balance sheets.
  • Understand and apply fundamental principles of economics to the music business.
  • Understand and create simple time value of money and TVM + probability calculations.
  • Apply TVM and risk management concepts to the music business.
  • Understand and apply long/short volatility concepts to the music business.
  • Understand principles of management and how it applies or doesn't apply to the music business.
  • Apply basic principles of marketing to music business.

Topical Outline

  • Overview of the music business A. History, traditional structures, sources of income, roles of different entities B. The outsized role that luck and unpredictability plays in the music business C. In brief, volatility theory of the music business
  • Bookkeeping and accounting A. Bookkeeping, profit, and loss B. Assets, liabilities, equity, and taxes C. Classified assets, liabilities D. Reports
  • Economics A. History, e.g., Adam Smith, Marx, and Keynes B. Fundamental concepts C. Topics that music business illustrates in unusual ways: bubbles, productivity, markets
  • Finance A. Time value of money B. Valuing uncertain outcomes, risk, and reward C. Leverage D. Volatility theory and finance of music business
  • Management A. Traditional management theory B. Music business disorganization and it's hidden genius C. Miscellaneous concepts: disruptive technologies, insourcing, SWOT D. Skepticism as a management tool
  • The future A. New models/technology for the music business B. The copyright wars and public policy C. "Meet the new boss, worse than the old boss" D. Artists compensation

Syllabus

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