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For What It's Worth

Michael Rushton on pricing the arts

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What is a movie star worth?

March 2, 2014 by Michael Rushton 2 Comments

don't forget to negotiate a share of foreign box office

Is there pay discrimination against female movie stars? Helaine Olen at Reuters thinks so. She writes: Why should we begrudge [Robert] Downey a $50 million payday for The Avengers? The film brought in $1.5 billion globally. Downey’s take was a mere 3 percent of the haul. However ... Hunger Games producers first signed [Jennifer] Lawrence to a deal in 2011. She was still a relative unknown, albeit one with an Oscar nomination on her credits. So they could sign her to play the lead, Katniss Everdeen, for less than $1 million — a relative … [Read more...]

Droit de suite

February 27, 2014 by Michael Rushton 2 Comments

beast of burden

Legislation is proposed to bring droit de suite - a rule in which some artists receive a share of proceeds from some resales of their art - to the United States. The New York Times reports here, and blog neighbour Lee Rosenbaum analyses the proposal here. I will just deal with one point. Patricia Cohen in the Times writes: Artists have long complained that unlike composers, filmmakers or writers, they do not receive a share of future sales. But that is a very partial view. All artists in all genres can receive one or both of two kinds of … [Read more...]

Today in film tax credits (Updated December 2, 2014)

February 21, 2014 by Michael Rushton 1 Comment

created six thousand jobs

It never ends: production companies asking for, and getting, tax credits for local production when the economic case is cloudy, to say the least. The Washington Post reports: A few weeks before Season 2 of “House of Cards” debuted online, the show’s production company sent Maryland Gov. Martin O’Malley a letter with this warning: Give us millions more dollars in tax credits, or we will “break down our stage, sets and offices and set up in another state.” ... Both seasons of “House of Cards” were filmed in Maryland, mostly in Baltimore and … [Read more...]

Today in tax advice: the winner takes it all

February 17, 2014 by Michael Rushton 1 Comment

you can dance, you can jive

The Guardian reports on Swedish tax incentives: The glittering hotpants, sequined jumpsuits and platform heels that Abba wore at the peak of their fame were designed not just for the four band members to stand out – but also for tax efficiency, according to claims over the weekend. Reflecting on the group's sartorial record in a new book, Björn Ulvaeus said: "In my honest opinion we looked like nuts in those years. Nobody can have been as badly dressed on stage as we were." And the reason for their bold fashion choices lay not just in … [Read more...]

Scaling the house, fifty years ago

February 10, 2014 by Michael Rushton Leave a Comment

love me do

Were there people who thought '$4 is an awful lot for a pops concert, I think I'll just go for a $2 seat'? Via Matt Yglesias. … [Read more...]

Rich man, poor man

February 8, 2014 by Michael Rushton 1 Comment

we get letters

My last post criticizing a recent study on the distribution of the benefits of NEA funding generated a lot of commentary. I thank everyone for contributing, and will try to respond to at least some of the points raised. First, I was not staking any claim on whether public funding of the arts is a good thing. As it turns out, I do think it is a good thing - I'll post my thoughts on this later - but all I was doing in the initial post was saying that the recent study out of SMU on arts funding was flawed. That the study was trying to say … [Read more...]

NEA funding and the ecological fallacy

February 4, 2014 by Michael Rushton 28 Comments

rich town poor town doesn't matter

Are rich voters more likely to favor candidates from the Republican Party? The richest states by per capita income are Maryland, Alaska, New Jersey, Connecticut, and Massachusetts. Of these five, four are pretty reliably "blue" - i.e. leaning Democrat - with Alaska being the outlier. The five poorest states by per capita income are Alabama, Kentucky, Arkansas, West Virginia, and Mississippi, all of which are "red" - typically Republican. So the rich actually tend to vote Democrat, right? Wrong. That inference is an example of what statisticians … [Read more...]

Pricing at the Met

January 29, 2014 by Michael Rushton 4 Comments

not just a theory, it's the law

Today the Wall Street Journal and the New York Times report on statements from the Metropolitan Opera regarding recent changes in prices and box office revenues. The WSJ reports, under the headline "Met Opera Suffers Budget Shortfall From Pricing Backlash":       The Metropolitan Opera's $311 million budget fell short by $2.8 million last year, after a ticket price increase backfired and caused attendance to drop, according to a newly released financial-disclosure document. Last February, Met officials announced a … [Read more...]

The sunk cost fallacy

January 26, 2014 by Michael Rushton 3 Comments

rid your mind of sunk costs

It is great to be back at Artsjournal, after a fall semester of teaching a couple of courses, taking an introductory course in Mandarin, finishing up some academic papers and, most relevant to this space, completing a manuscript of a book on strategic pricing in the arts. I'll give updates as that moves along. For now, I plan on getting back to regular posting, and I welcome suggestions for any questions on pricing in the arts that might occur to you. To get started, I came across this article in the journal Psychological Science by Andrew … [Read more...]

More whatever

August 28, 2013 by Michael Rushton 2 Comments

Thanks for the comments on my recent post, Whatever, on pay-what-you-will pricing. Joanna writes: There was the instance in 2007 when the band Radiohead sold their album, In Rainbows, on a pay-what-you-can basis. My understanding is that even this extremely popular band that doesn’t have to do much to get people to buy their records figured out this strategy didn’t work in generating revenue. Agreed. And Radiohead's strategy has to be seen in the context of using sales or distribution of recordings as a means of generating demand for … [Read more...]

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Michael Rushton

Michael Rushton taught in the Arts Administration programs at Indiana University, and lives in Bloomington. An economist by training, he has published widely on such topics as public funding of the … MORE

About For What It’s Worth

What’s the price? Everything has one; admission, subscriptions, memberships, special exhibitions, box seats, refreshments, souvenirs, and on and on – a full menu. What the price is matters. Generally, nonprofit arts organizations in the US receive about half of their revenue as “earned income,” and … [Read More...]

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