Exercises: Local cultural and artistic sectors

Name four cultural or artistic sectors and give a real-life example from your local area (town, city, or province) for each one: a band, a theater, a design studio, a publishing house, a festival, a video game team...

Who can support a youth cultural project? Make a list of five possible stakeholders (local municipality, associations, school, stores, crowdfunding platforms...) and explain in one sentence what each one can provide: money, venue, publicity, materials, or contacts.

The figure shows the support network for the charity concert organized by the school band, but one of the stakeholders is covered with a question mark.

1. a) Think about which stakeholder is missing from the network (someone who can record, broadcast, or amplify the concert) and justify your proposal.
2. b) Explain what each stakeholder in the network provides and what they can receive in return.

The town festival concert fills the square with $800$ people. The bars sell three times as much that night, the parking lot fills up, and two stores stay open late. Explain what the indirect economic value of culture is and calculate: if each attendee spends an average of $\$100$ in the neighborhood, how much money does the concert generate outside the venue itself?

The school drama club wants to perform a play, charging an admission fee of $\$60$ to finance the costumes. They expect $120$ audience members across two performances. The expenses are: play rights ($\$1\,600$), costumes and props ($\$3\,000$), and posters ($\$400$).

1. a) Calculate the expected revenue, the expenses, and the financial result of the project.
2. b) If only $60$ audience members came, what would happen? Propose two ways to cover that risk before starting.

A local youth publishing house is funding its first comic through crowdfunding: it is asking for $\$40\,000$ and each backer contributes as much as they wish.

1. a) If the average contribution is $\$500$, how many backers does it need? What if the contributions were $\$1\,000$?
2. b) Explain what backers usually receive in return and how crowdfunding differs from a loan.

A group of students wants to organize a self-funded youth festival at the sports center: three school bands, tickets at $\$80$. Costs: sound equipment rental ($\$6\,000$), insurance and licenses ($\$3\,000$), posters and publicity ($\$1\,000$).

1. a) Calculate how many tickets they must sell to break even (break-even point).
2. b) Analyze the two biggest risks of the event and propose a measure for each one before selling the first ticket.

A youth music band has invested 800\ \text{ pesos}$ in recording their first EP and is debating their business model. One member proposes selling digital downloads for \$5$ exclusively on their website. Another argues for releasing the songs openly and for free on streaming platforms, monetizing solely through the sale of official T-shirts (unit manufacturing cost: 7\ \text{ pesos}$, selling price: \$17$) and concert tickets (price of 6\ \text{ pesos}$ with a variable cost per attendee of \$1$).

1. a) Using the economic concepts of "non-rival good", "marginal cost of digital distribution", and "network effects", justify why setting a price of 5\\ \\text{ pesos}$ for digital downloads can drastically reduce the band's total revenue in the medium term compared to the open-access model.
2. b) If they choose the open model and estimate that 3\\ \\%$ of unique listeners buy a concert ticket and 1.5\ \%$ buy a T-shirt, calculate how many unique listeners they need to reach to break even on the 800\\ \\text{ pesos}$ recording cost. Design a pricing or complementary product strategy to reduce the required number of listeners without restricting free access to the songs.

Design the support network for a student photography exhibition at the local community center: which five stakeholders you would contact, what exactly you ask from each one (venue, printing, publicity, opening event, small sponsorship), and what you offer them in return. Sequence the contacts over time (what is secured first and why).