| Rise In The Euro Creates Golden Opportunity | | | | spent on American music. |
| The rapid rise in the value of the Euro has | | | | The demand for American music is increasing. |
| created an even stronger foreign market for | | | | European music distributors need more American |
| American music. International business is almost | | | | music to meet the increased demand. This is only |
| always conducted in dollars. Oil, natural gas, gold, | | | | half of the overall picture. Let me give you |
| silver, wheat, rice, sugar, and many other such | | | | another example. Assume a German music |
| things are priced in dollars. Music, movies, and | | | | distributor wants to lease American music to |
| other art forms are usually priced in dollars. Most | | | | meet the increased demand. Assume the cost |
| of western Europe uses coins and bills called | | | | per album is $20,000. Before the run-up in the |
| Euros. About 2 years ago, the Euro was worth | | | | Euro a $20,000 album lease would have cost the |
| 80 cents, in American money. Now, the Euro is | | | | German company 25,000 Euros. This year, it will |
| worth around $1.50. Each Euro is buying roughly | | | | cost about 15,000 Euros. Assume the German |
| 90% more products and services, This is a very | | | | music distributor had a total of 100,000 Euros to |
| important fact if you are interested in leasing your | | | | spend leasing American music. Last year, he could |
| music to European music distributors. The rise in | | | | lease four American albums. This year, he can |
| the value of the Euro has lowered the price of | | | | lease six American albums. |
| everyday items in Europe. | | | | Each American artist is still getting $20,000 for his |
| Here's an example. Oil sells on the world market | | | | album. The payment has not changed. The overall |
| for about $70 per barrel. When the Euro was | | | | pie has became larger. The total number of artists |
| worth 80 cents, a barrel of oil cost about 86 | | | | receiving $20,000 has increased. The German |
| Euros. That same barrel of oil now costs around | | | | music distributor's total cost is still 100,000 Euros. |
| 46 Euros. If you take this same effect and apply | | | | The demand for American music has increased. |
| it to other everyday items, you see the impact it | | | | The price in dollars has remained the same. The |
| is having on the European economy. Imported | | | | cost to the distributor has fallen about 60%. |
| cars, electronics, and clothing from Asia, meat and | | | | These three factors mean there has never been |
| grain from the United States and hundreds of | | | | a better time to lease American music to |
| other items have become roughly 60% cheaper. | | | | European record distributors. The world's largest |
| The overall effect is to increase the purchasing | | | | music trade fair is held during January, in France. It |
| power of the average European by about 90%. It | | | | is known as MIDEM. |
| is almost the same as if everybody in Europe had | | | | If you can afford the time and expense, you |
| been given a tax free 90% raise in pay. The | | | | should attend MIDEM. If not, you might consider |
| average European has more money to spend on | | | | hiring a reputable agent to represent you and |
| entertainment. Some of that increase will be | | | | your music. |