How is music an economic commodity?
A commodity is a marketable item produced to satisfy consumers wants and needs. A need is something you require, for example people need food and water. But wants are something you desire, for example some people want lots of money. People/consumers have unlimited needs and wants, but resources are only limited. This causes tension in people. But all this tension causes people to make choices, an all choices have long term consequences.
Music is an economic commodity in the media will suite the music economic consumers. A media item that is a commodity in music is a CD, this is because people want CD’s to listen to their favourite music, so they buy the certain CD the want. This produced money in music, This also includes tapes and vinyl’s but because CD’s are used more in producing music and selling artists music. Tapes and Vinyl don’t produce as much as a CD. But Digital files are also as popular a buying CD’s. Also there are also economic commodities that suite peoples needs. These include music items such as sheet music and arrangements. They are marketable because musicians need them to play music in groups such as big bands. This is to play to earn money.
Music in an economic commodity in performance as well. This includes musicians performing to gain money for example music earns money at concerts. Money can be earned buy selling tickets, merchandise and for performing. Its also an economic commodity in other events such as festivals, sessions and gigs.
Other commodities include equipment and instruments, this is because music is created with equipment and instruments. Whether is software to create sounds or mix songs, or instrument to actually play and perform/record with. Musicians and songs are also a commodity because they are both used as marketable items in the economy of music. For example musicians are icons for people and other musicians. Other commodities include transport, music websites, labels, promoters, rehearsal space, recording space and performing space. The rehearsal, recording and performing spaces all lead up for making money in the economy.
What market forces impact on how musicians make business decisions?
Supply and demand impacts how musicians make business decisions. Supply is the quantity available to buy. Demand is the quantity people are willing to buy. For example musicians have to make sure they supply enough of their albums to the consumers otherwise there will be a shortage of the product. This will make the musician lose out on money. But if they supply too much of the product when the demands for the product are too low, they will lose out on money by making too much. If the demand for the item is high, then more of the item would need to be produced to earn money. But if the demand is low then less of the items are made so the musician doesn’t lose out on money by producing too much of the product. The amount of supply and demand need to reach the equilibrium of the produce to gain a full profit on the product. By changing the supply depending on the demand, and also changing the price of the item. If the price of the item is too high then the demand would be lower. But if the price was too low then a profit wouldn’t be made on the item.
Another impact is trends, this can include things such as fashion and genres of music. Trends can impact musicians decisions, this is because musicians could wear fashion items popular with the mainstream community and groups of people. This could gain and earn money and followers of the musician. Also genre of music, a musician can create their songs based on the genres most popular with the public and the audience they are aiming at.
How may musicians receive revenue and funding?
Musicians can receive funding/revenue in many different ways. They will earn more money which will make them advance in their music career. They may receive funding from gigging and sessioning for people. This will get the musician money and also make them become more recognised. Also producing and managing can receive them money for helping other artists. Money can also be produced by writing sheet music, song writing/composition/arranging and also selling albums. Merchandise can also gain money for a musician with shirts and other items which could be sold as well as gigging. Sponsorship and the arts council fund you as a musician so they will gain money for there music, and sponsorship could give you free gear to advertise their business. But also teaching helps receive money, from teaching others music and certain instruments.
How may musicians impact the larger market?
Musicians can impact the larger market. One way is advertisement, a musician can advertise for larger market and made the larger market more popular. Also musicians can use items by larger markets and get them more popular with the musicians followers using the larger market products. For example if a big musician uses a certain brand of guitar in a certain colour and shape. Then followers of the musician will want to buy that brand of guitar and maybe shape and colour as well. That’s why big guitarists guitars with their own special design on are sold by the larger market at a higher price. This gains more profit for the larger market and the musicians design. Musicians could impact larger markets buy having their songs on the markets advertisement to. This will make the song more memorable and the advert becomes more recognisable for the public. This will gain both the market and the musician profit from the song and advert. This also happens in television show and movies.