Entertainment Industry Economics: A Guide for Financial Analysis, 10th Edition PDF by Harold L Vogel

By

Entertainment Industry Economics: A Guide for Financial Analysis, Tenth Edition

By Harold L. Vogel

Entertainment Industry Economics: A Guide for Financial Analysis, 10th Edition

Contents:

Preface page xix

Part I Introduction 1

Chapter 1 Economic Perspectives 3

1.1 Time Concepts 3

Leisure and Work 3

Recreation and Entertainment 4

Time 5

Expansion of Leisure Time 5

1.2 Supply and Demand Factors 9

Productivity 9

Demand for Leisure 11

Expected Utility Comparisons 13

Demographics and Debts 14

Barriers to Entry 17

1.3 Primary Principles 18

Marginal Matters 18

Price Discrimination 21

Public-Good Characteristics 23

1.4 Personal-Consumption Expenditure Relationships 23

1.5 Price Effects 27

1.6 Industry Structures and Segments 29

Structures 29

Segments 30

1.7 Valuation Variables 35

Discounted Cash Flows 35

Comparison Methods 37

Options 38

1.8 Concluding Remarks 38

Notes 39

Further Reading 46

Chapter 2 Basic Elements 48

2.1 Psychological Roots 48

2.2 Rules of the Road 49

Laws of the Media 49

Network Features 52

2.3 Legal Layers and Limitations 54

Layers 54

Limitations and Concentration Issues 55

2.4 The Internet 56

Agent of Change 56

Big Data and AI (Artificial Intelligence) 61

Long-Tail Effects 62

2.5 Advertising 64

Functionality 66

Economic and Business Aspects 67

2.6 Accounting and Valuation 70

Accounting 70

Valuation 70

2.7 Concluding Remarks 71

Notes 71

Further Reading 83

Part II Media-Dependent Entertainment 87

Chapter 3 Movie Macroeconomics 89

3.1 Flickering Images 90

3.2 May the Forces Be with You 92

Evolutionary Elements 92

Technology 92

Capital 95

Pecking Orders 96

Exhibition 96

Production and Distribution 97

3.3 Ups and Downs 99

Admission Cycles 99

Prices and Elasticities 100

Production Starts and Capital 102

Releases and Inventories 104

Market-Share Factors 110

Collateral Factors 110

Exchange-Rate Effects 110

Trade Effects 111

Financial Aggregates 113

3.4 Markets – Primary and Secondary 113

3.5 Assets 117

Film Libraries 117

Technology 117

Utilization Rates 119

Interest and Inflation Rates 119

Collections and Contracts 121

Library Transfers 121

Real Estate 124

3.6 Concluding Remarks 124

Notes 124

Further Reading 132

Chapter 4 Making and Marketing Movies 134

4.1 Properties – Tangible and Intangible 134

4.2 Financial Foundations 136

Common-Stock Offerings 137

Combination Deals 137

Limited Partnerships and Tax Shelters 138

Bank Loans 141

Private Equity and Hedge Funds 142

4.3 Production Preliminaries 143

The Big Picture 143

Labor Unions and Guilds 146

4.4 Marketing Matters 147

Distributors and Exhibitors 147

Sequencing 147

Distributor–Exhibitor Contracts 148

Release Strategies, Bidding, and Other Related Practices 152

Exhibition Industry Characteristics:

(a) Capacity and Competition 154

(b) Rentals Percentage 156

Video, Output Deals, and Merchandising 159

Video 159

Output Deals 161

Merchandising 162

Marketing Costs 162

4.5 Economic Aspects 163

Profitability Synopsis 163

Theoretical Foundation 164

4.6 Concluding Remarks 168

Notes 169

Further Reading 198

Chapter 5 Financial Accounting in Movies and Television 205

5.1 Dollars and Sense 205

Contract Clout 205

Orchestrating the Numbers 206

5.2 Corporate Overview 207

Revenue-Recognition Factors 207

Inventories 208

Amortization of Inventory 209

Unamortized Residuals 210

Interest Expense and Other Costs 212

Calculation Controversies 212

Statement of Position 00–2 214

5.3 Big-Picture Accounting 217

Financial Overview 217

Participation Deals 223

Pickups 223

Coproduction-Distribution 223

Talent Participations and Breakeven 224

Producers’ Participations and Cross-Collateralizations 228

Video Participations 229

Distributor–Exhibitor Computations 229

Distributor Deals and Expenses 231

Studio Overhead and Other Production Costs 234

Budgets High and Low 235

5.4 Television-Programming Accounting 240

Feature Licensing 240

Program Production and Distribution 241

Development and Financing Processes 241

Syndication Agreements 244

Costs of Production 246

Costs and Problems of Distribution 247

Timing Troubles 248

5.5 Weakest Links 251

Exhibitors: The Beginning and the End 251

Distributor–Producer Problems 252

5.6 Concluding Remarks 253

Notes 254

Further Reading 279

Chapter 6 Music 281

6.1 Feeling Groovy 281

6.2 Size and Structure 284

Economic Interplay 284

The American Scene 284

The Global Scene 289

Composing, Publishing, and Managing 290

Royalty Streams 291

Performances 291

Mechanical Royalties 292

Synchronization Fees 293

Copyright 293

Guilds and Unions 294

Concerts and Theaters 294

6.3 Making and Marketing Recordings 295

Deal-Maker’s Delight 295

Production Agreements 295

Talent Deals 297

Production Costs 298

Marketing Costs 298

Distribution and Pricing 299

Structure 299

Pricing 301

6.4 Financial Accounting and Valuation 301

Artists’ Perspective 301

Company Perspective 305

Valuation Aspects 307

6.5 Concluding Remarks 309

Notes 309

Further Reading 325

Chapter 7 Broadcasting 328

7.1 Going on the Air 328

Technology and History 328

Basic Operations and Spectrum 331

Basic Operations 331

Spectrum 335

Regulation 337

Organizational Patterns and Priorities 337

Networks and Affiliates 337

Ratings and Audiences 340

Inventories 342

Independent and Public Broadcasting Stations 343

7.2 Economic Characteristics 344

Macroeconomic Relationships 344

Microeconomic Considerations 346

7.3 Financial-Performance Characteristics 347

Variable Cost Elements 347

Financial-Accounting Practices 349

7.4 Valuing Broadcast Properties 351

7.5 Concluding Remarks 353

Notes 355

Further Reading 367

Chapter 8 Cable 372

8.1 From Faint Signals 372

Pay Services Evolve 373

8.2 Cable Industry Structure 374

Operational Aspects 374

Franchising 378

Revenue Relationships 380

8.3 Financial Characteristics 383

Capital Concerns 383

Accounting Conventions 385

8.4 Development Directions 387

Pay-Per-View 387

Cable’s Competition 388

DBS/DTH and Other (MMDS, SMATV, and STV) 388

Telephone Companies 389

8.5 Valuing Cable-System Properties 390

8.6 Concluding Remarks 392

Notes 393

Further Reading 401

Chapter 9 Publishing 405

9.1 Gutenberg’s Gift 405

First Words 405

Operating Characteristics 406

9.2 Segment Specifics 408

Books 408

Educational and Professional 409

Trade 410

Periodicals 413

Newspapers 413

Magazines and Other Periodicals 416

9.3 Accounting and Valuation 418

Accounting 418

Valuation 419

9.4 Concluding Remarks 419

Notes 420

Further Reading 423

Chapter 10 Toys and Games 428

10.1 Not Just for Kids 428

Financial Flavors 429

Building Blocks 432

10.2 Chips Ahoy! 433

Pong: Pre and Après 434

10.3 Structural Statements 436

Game Evolution 436

Profit Dynamics 438

Coin-Op 439

10.4 Concluding Remarks 440

Notes 441

Further Reading 449

Part III Live Entertainment 453

Chapter 11 Gaming and Wagering 455

11.1 From Ancient History 455

At First 455

Gaming in America 456

Preliminaries 456

The Nevada Experience 459

Enter New Jersey 460

Horse Racing 461

Lotteries 462

Other Wagering Segments 462

Asia’s Jackpot 464

11.2 Money Talks 466

Macroeconomic Matters 467

Funding Functions 468

Regulation 469

Financial Performance and Valuation 471

11.3 Underlying Profit Principles and Terminology 472

Principles 472

Terminology and Performance Standards 474

11.4 Casino Management and Accounting Policies 477

Marketing Matters 477

Cash and Credit 478

Procedural Paradigms 480

11.5 Gambling and Economics 481

11.6 Concluding Remarks 484

Notes 484

Further Reading 492

Chapter 12 Sports 497

12.1 Spice Is Nice 497

Early Innings 497

Media Connections 499

Wagering Connections 502

12.2 Operating Characteristics 503

Revenue Sources and Divisions 503

Labor Issues 504

12.3 Tax Accounting and Valuation 506

Tax Issues 506

Historical Development 506

Current Treatments 508

Asset Valuation Factors 509

12.4 Sports Economics 509

12.5 Concluding Remarks 513

Notes 513

Further Reading 525

Chapter 13 Performing Arts and Culture 533

13.1 Audiences and Offerings 534

Commercial Theater 535

On and Off Broadway 535

Circus 539

Orchestras 540

Opera 541

Dance 541

13.2 Funding Sources and the Economic Dilemma 541

13.3 The Play’s the Thing 544

Production Financing and Participations 544

Operational Characteristics 546

13.4 Art Markets and Museums 548

Art Markets 548

Museums 550

13.5 Economist Echoes 550

Organizational Features 551

Elasticities 551

Price Discrimination 552

Externalities 552

About Cultural Economics 553

13.6 Concluding Remarks 553

Notes 555

Further Reading 564

Chapter 14 Amusement/Theme Parks 571

14.1 Flower Power 571

Gardens and Groves 571

Modern Times 572

14.2 Financial Operating Characteristics 576

14.3 Economic Sensitivities 579

14.4 Valuing Theme Park Properties 580

14.5 Concluding Remarks 581

Notes 582

Further Reading 583

Part IV Roundup 587

Chapter 15 Performance and Policy 589

15.1 Common Elements 589

15.2 Public Policy Issues 592

15.3 Guidelines for Evaluation 593

15.4 Final Remarks 597

Appendix A: Sources of Information 598

Appendix B: Major Games of Chance 600

B.1 Blackjack 600

B.2 Craps 601

B.3 Roulette 602

B.4 Baccarat 602

B.5 Slots 603

Notes 604

Appendix C: Supplementary Data 606

Glossary 612

References 636

Index 703

This book is US$10. Order for this book:
(Request for free sample pages click on "Order Now" button)

Book Order
Or, Send email: [email protected]

Share this Book!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.