The Economics of Everyday Things: “My Sharona” | Freakonomics

Intro

In this episode of “The Economics of Everyday Things” podcast, hosted by Zachary Crockett, we dive into the fascinating story behind the hit song “My Sharona.” The episode features an interview with Shirona Alparen, the woman who inspired the song and sang its iconic chorus. We explore the economics behind the song’s success, the royalties it generates, and the impact it had on the lives of the songwriters and performers.

Main Takeaways

The Making of “My Sharona”

• Shirona Alparen, a teenager in late 1970s Los Angeles, was pursued by an older man who became her groupie.
• The song “My Sharona” was written by Doug Feiger and Burton Averre from the rock quartet, The Knack, in just one hour.
• The intention behind the song was to create an energetic and catchy tune that would make the audience demand an encore during live performances.

The Rise to Success

• “My Sharona” became a massive hit, staying number one on the Billboard Hot 100 for six weeks in 1979.
• The Knack, known for their high-energy shows, gained a cult following and had famous artists like Bruce Springsteen jamming with them.
• The success of the song led to potential record deals worth around $100,000.

The Economics of the Music Industry

• The Knack spent only $17.5k to record their debut album, “Get the Knack,” while other bands spent up to $400k.
• The band received an advance of around $100k for potential record deals, but all the money from their first sales went back to the label until they paid back the advance.
• The band received a 13% royalty rate for every physical copy sold, which was uncommon for a new band.

Royalties and Copyright Issues

• “My Sharona” generated significant performance income and performance royalties for the songwriters, Doug Feiger and Burton Averre.
• Weird Al Yankovic’s parody of “My Sharona,” called “My Balona,” also generated royalties for Feiger and Averre.
• Run DMC used a sample from “My Sharona” without permission and never paid royalties, leading to a copyright infringement lawsuit 19 years later.

The Longevity of “My Sharona”

• Revenue streams from “My Sharona” decreased for Burton Averre by the early 90s.
• The song experienced a resurgence when it was featured in the film “Reality Bites,” generating synchronization royalties and re-entering the Billboard Hot 100 chart 15 years after its release.
• “My Sharona” has been used in approximately 50 films, commercials, and advertisements worldwide, continuing to generate substantial paydays for the songwriters.
• Streaming royalties from platforms like Spotify and Apple Music have become another significant income source for “My Sharona.”

The Impact on Shirona Alparen

• Despite being the inspiration behind the song, Shirona Alparen does not receive any royalties from “My Sharona.”
• She is now a real estate agent in Los Angeles, and her business can be found at myshurona.com.

Summary

The Making and Success of “My Sharona”

The story of “My Sharona” begins with Shirona Alparen, a teenager in late 1970s Los Angeles, who caught the attention of an older man who became her groupie. Doug Feiger and Burton Averre, members of The Knack, wrote the song in just one hour, aiming to create an energetic tune that would leave the audience craving an encore. The song’s success propelled The Knack to fame, leading to potential record deals and a cult following. Despite spending significantly less on recording their debut album compared to other bands, The Knack received a generous royalty rate for every physical copy sold.

The Economics of Music Royalties

“My Sharona” generated substantial performance income and performance royalties for the songwriters, Doug Feiger and Burton Averre. Additionally, Weird Al Yankovic’s parody of the song also contributed to their royalties. However, the unauthorized use of a sample from “My Sharona” by Run DMC led to a copyright infringement lawsuit years later. Over time, revenue from the song decreased for Burton Averre, but its inclusion in the film “Reality Bites” brought it back into the spotlight, generating synchronization royalties and reintroducing it to the Billboard Hot 100 chart. The song’s widespread use in films, commercials, and advertisements worldwide continues to provide significant financial returns for the songwriters, especially through streaming royalties on platforms like Spotify and Apple Music.

The Impact on Shirona Alparen

Although Shirona Alparen served as the inspiration for “My Sharona,” she does not receive any royalties from the song. Today, she works as a real estate agent in Los Angeles and can be found at myshurona.com, showcasing her business. The song’s enduring popularity and financial success highlight the complex economics of the music industry and the disparity in royalty distribution.

Conclusion

“My Sharona” is not just a catchy rock song; it represents a fascinating case study in the economics of the music industry. From its humble beginnings as a quick creation to its enduring popularity and revenue streams, this episode sheds light on the financial intricacies behind a hit song. It also raises important questions about the fairness of royalty distribution and the impact on those who inspire such iconic tunes.