A look at the economics of Iranian music with Alireza Mahdavi, a prominent Iranian musician

A look at the economics of Iranian music with Alireza Mahdavi, a prominent Iranian musician

Iran — Music in Iran, in ancient times, which had only an executive aspect and the subject of its publication has not yet been discussed in audio or video or even in writing, was considered a service that was available to certain people and nature as a phenomenon or economic factor for the general public. It was not raised.

But in the last hundred years, when the publication of music gradually created a kind of widespread demand among our people to benefit from the creativity of the art of music, music also entered the basket of people’s demand as an economic commodity and the publication of music in different genres based on tastes and interests of groups. Different social and age created a market that has gone through ups and downs in different social conditions and situations.

From the point of view of economics, a phenomenon that takes on an economic aspect in society, that is, becomes a need for a part of it, is faced with two main categories, namely supply and demand, which in different situations are based on the quantity of each at the opposite of their price. The product or service is determined.

Music in the country, in ancient times, which had only an executive aspect and the subject of its publication has not yet been discussed in audio or video or even in writing, was considered a service that was available to certain people and nature as an economic phenomenon or factor for the general public. It was not raised.

But in the last hundred years, when the publication of music gradually created a kind of widespread demand among our people to benefit from the creativity of the art of music, music also entered the basket of people’s demand as an economic commodity and the publication of music in different genres based on tastes and interests of groups. Different social and age created a market that has gone through ups and downs in different social conditions and situations.

It is obvious that a comprehensive study of Iranian music from various economic, cultural and accepted and floating areas in the field of publishing and production problems and market failures and easy and fast access of applicants to music publications as well as the special effect of advertising which has an important place in market prosperity. Access to the necessary statistics from various sectors involved in the production and dissemination of this economic production is attractive to the vast majority of people.

However, a general opinion on the factors influencing the production process and its supply can provide the basis for future comprehensive studies that will undoubtedly improve the vision and perception of activists in this part of the country’s economy.

In order to achieve a clear view of the process of activity and the presence of music and its production and distribution in society, a brief look to introduce its various aspects will lead us to a better evaluation.

1) Supply:

The various stages of producing a musical work from the beginning can be done as follows:

A) Composition:

This can be done by the order of the applicant or with the personal motivation of the composer. Obviously, when this production is done according to the manufacturer’s order, the initial economic studies for its supply and the amount of demand according to the price and general market conditions in a particular period have been considered and the hope of its economic success or at least satisfying the initial demand of production is expected. Of course, there are cases where the customer has other intentions of producing a musical work, which may be the advertising target for another production or some kind of cultural activity targeted.

B) Execution and publication:

Performance of a work can be provided only for a concert, in which case supply and demand are formed at the venue and the economic effects of this activity are limited to the period of its performance and related economic activity in the field of production, advertising, performance and ancillary services. Is relevant.

In cases where audio and video tapes are produced and released from the implementation, a new market can be considered for this new product as part of an artistic-economic activity.

But in most cases, or at least for artists who are just beginning their careers, their primary focus is on releasing a few collections of music so that they can take advantage of a possible reception to hold concerts as well.

In this activity, various artistic and service specialties, including various instrumentalists, music recording studios, sound engineers, notaries, etc., participate, and its economic dimensions extend to the publisher, distributor and seller.

Investing in the publishing sector requires special incentives, the most important of which are accepting the risk of “capital sleep” and the amount of expectation of return on investment and potential profits. Converting a piece of music to a “cassette” or “CD” or “DVD” requires capital from the producer. This investment includes costs related to the production of the work, raw materials (cassettes, CDs), and written publications (sheets on tape or on CDs, design and printing costs, posters), which are eventually invested after being distributed in retail or gradually sold. Receivables should be amortized and potential profits should be obtained, the issue of the time interval between investment and its return is of great importance.

2) Demand:

The demand for musical works in the Iranian music market is related to various and complex factors, for which forecasting and planning for the producers of these works is gradually becoming more difficult and the risk of unsuccessful investment is increasing. Since some of these factors are associated with social conditions and uncertainty about obtaining publishing licenses, the “risk” of investing naturally increases and limits the incentives to invest in this sector for investors.

In the meantime, few publishers affiliated with government institutions with the motivation and design of “cultural work publishing” are less concerned with the market for music works and can enjoy financial support in adverse market conditions.

Market boom Demand for a musical work depends on various factors, including advertising facilities through audio-visual media and publications, the opportunity to be present when there is a vacuum for a type of music in the market, taking advantage of the presence of prominent artists in production, technical quality of production and timely distribution. And the scope of the work depends on both the media promotion and, ultimately, the artistic standard of the work, which guarantees its continued sales in the long run.

3) Price:

The issue of price of musical works is one of the most important things that can encourage or limit the motivation of production, especially in improving the quality of those works.

If the cost of producing a musical work is examined separately and compared with the price offered in the market, the skepticism of many producers of such works to increase investment to improve the quality of works, both production and performance, is more justifiable.

Generally at the actual price, which is very low compared to the price of such works in the markets of other countries. The prices of the parts related to raw materials have been constantly increasing in recent years, and of course, due to the relative stability of the prices of these works in the market, the manufacturer can only reduce the costs of the arts sector to ensure return on investment and accept “risk” of its economic activity. Which practically leads to the degradation of the quality of these works due to the emergence and presence of artistic creations in the work and the weakness of the performance.

Accordingly, the possibility of investing at current prices and the hope of return on investment and the minimum profit in very high “circulations” is possible, and it is almost impossible without the support of advertising and media, and therefore producers have a special privilege for artists who can broadcast media. Their works are available, and the field for young and new artists to enter this market is narrowed without access to a channel to introduce their abilities to the audience.

Factors that can be considered in keeping the price of musical works low are:

▪ The position of cultural products in the family consumption basket: This is directly related to the level of development of countries and the government’s attention to encouraging society to “shift” the pattern of family consumption from consumables and decorations to cultural production (including books and other cultural and artis ground for implementing such policies.

▪ Until now, the dignity and status of the creators of works of art and the prestige that society should be fully considered as the owner of a property for their works have not been reflected in the general culture of Iranian society and despite the fact that To have an economic commodity (movable or immovable) less attention and commitment is felt to maintain and exploit it, and therefore reproduction and use without respecting the rights of creators, is not considered an inappropriate and reprehensible act and can be paid for The unit reproduced and distributed large numbers of a work to the detriment of the domestic producer. This is a very shocking effect, especially in the heat of the publishing market.

In conclusion

The music economy in today’s world, apart from its cultural aspects, has probably degraded in terms of artistic quality, but in the economic dimension, it forms a market of hundreds of billions of dollars with millions active in the arts and services sectors. Hundreds of new works with millions of copies are published in different parts of the world every day and cross the national borders of the country of production and are offered in other markets. Makes huge profits.

In this regard, Iran is one of the few countries that sets special criteria for cultural and artistic publications in accordance with the social and cultural norms of society, especially in verbal music, which is the main area for the prosperity of the music economy, maintaining quality and quality of work and attention. The cultural status of the production of such works has special importance and priority.

On the other hand, in today’s world, the listening taste of the present generation has changed significantly, and today’s generation of the country has not been deprived of this superficial transformation.

Of course, part of this change is related to the general conditions of social, cultural and technological life of the contemporary consumer world.  Every day, economics and technology activists create new demands in different societies, and the use of spiritual phenomena and creativity in return for the use of material gifts and innovations is limited to shorter times and times, and disposable music, like a disposable glass, is the birth title. The publication is located in the west of the earth.

Adherence to the cultural and moral principles of publishing and operating in the culture and art market in a way that was considered valid in previous decades is becoming less and less.  In order to survive, publishers are gradually moving away from that credibility and belief in maintaining cultural norms in their activities, and the public sector has updated and long-term plans in line with the evolution of current cultural tools in the world and what is happening in the century of great communication. Has not been developed and implemented in a country of 70 million and has significant economic potential, especially the tendency and motivation to participate in the music market as an effective demand on the one hand and favorable supply areas in terms of quantity and quality to produce appropriate works. In the field of music economics, traditional producers are faced with ambiguity and reluctance of new producers and those interested in investing in this field.

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