In 2007, the Rock Band Nine Inch Nails Announced That

question 4

Essay

In 2007, the rock band Nine Inch Nails announced that it had severed all ties with the record industry. The front man, Trent Reznor, announced that "Nine Inch Nails is now totally a free agent" and that it was a "great pleasure to be able to finally have a direct relationship with the audience as I see fit." The band went on to release a free album on the Internet and encouraged web surfers to "remix it, share it with your friends, post it on your blog, play it on your podcast, give it to strangers, etc." In what ways can the band's actions be understood as a reaction to the negative aspects of bureaucracy?

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Definitions:

Fixed Costs

Expenses that do not change with production volume, remaining constant regardless of business activity level.

Relevant Range

The span of activity or volume in which the assumptions about fixed and variable cost behavior remain valid.

Variable Cost

A cost that changes in direct proportion to changes in the level of production or sales volume.

Total Fixed Cost

The sum of all constant expenses that a company incurs, regardless of the manufacturing or sales volume.