Geopolitics of the Arctic

The geopolitical and economic implications of a receding Arctic icecap are something to keep an eye on. Global warming is old news to most, but I found this specific instance noteworthy.

The time-frame in the summer when the Arctic waters are passable by ship appears to be increasing. This is a big opportunity for shipping companies to cut down on transportation costs. The video below from the Economist touches on shipping, fishing, and the possibility for more offshore drilling. I am somewhat skeptical about the extent that drilling would be cost efficient in these waters given such a small window of time and the high fixed costs for drilling. Also, staunch opposition from environmentalists will make it politically difficult for oil companies to drill in this area. However, assuming that the melting trend continues, this area could become a hotbed for international conflict over the next century as countries and oil companies jockey for position in the region.

When a Weak Dollar Is Good for the US

The NY Times reports that the trade deficit has shrunk. One of the main reasons has to do with the dollar:

In recent months, a weaker dollar has made goods from the United States less expensive overseas, while exports have also climbed in price as demand rose in developing countries.

Economic Reflections by Music Industry Experts

Warner/Chappell Music

Today I had the opportunity to sit in on several panel discussions with people from all walks of the Nashville music industry as a part of my professional development as a teacher. These discussions included experts from songwriters, to publishers, to television show producers, to musicians. The panel members discussed the importance of radio, royalties and copyright issues, advertising, the studio recording process, and the history of Music City among many other things. It was really a unique and intriguing day. There were two quotes from the panel discussions that I wanted to share here because they stuck out in my mind:

Technology has made [entrepreneurship] possible, the economics have made it mandatory.

This quote is from Ron Routson, COO of Film House, about the role entrepreneurship has been playing in the industry. The quote is to the point and captures what has happened in the industry over the last decade.

Some people say owning a studio is like owning a boat... the two happiest days are the day when you buy it and the day when you sell it.

The second quote came from Patrick McMakin Sr. who is the Director of Operations of Belmont University's Ocean way Nashville Recording Studios. I enjoyed the humor here, but it also speaks to just how difficult it is to run a studio profitably. I always had the impression that studios were super profitable, but with high overhead costs and more people recording themselves at home, keeping a studio above breakeven is difficult, according to McMakin.

Looking forward to Day 2 with more music business experts tomorrow.