Your Take: Concert Crunch
In his post $10 Ticket Specials, music industry insider and blogger Bob Lefsetz wondered if the current centralized concert structure is still relevant:
Furthermore, one can ask whether Live Nation’s business model works at all. Does centralized buying of national tours deliver good results? Or do you need a local promoter, who knows the marketplace intimately, what competing shows are coming into town, what drains money from the marketplace. Only the grandest of the grand, and that seems limited to GaGa and Swift, can appear any night at any price. Everybody else is scrapping for dollars.
A recent article on Live Nation’s large dips in sales in the shadow of the overall economic pace may show Lefsetz is on to something:
In particular, the downturn has spelled trouble for Live Nation, the country’s biggest promoter of live music, which informed investors earlier this month that the company’s adjusted operating income for 2010 is projected to drop by $40 million, or nearly 10 percent below last year’s, despite a merger with Ticketmaster that enhanced Live Nation’s market position. U2’s tour postponement alone will cost the company $6 million. And Live Nation said it expects a further 15 percent income drop for the top 100 tours in the second half of 2010.
Still, despite all of these reports, it seems country music is exempt, reports The Tennessean:
“There’s not a single country artist out there that’s not doing well,” said Clarence Spalding, manager for up-and-comer Jason Aldean and for Brooks & Dunn, currently performing their farewell Last Rodeo tour after 18 years in the business.
“A lot of acts out there from the pop and rock side are getting the crap beat out of them, and a lot of it’s about the high ticket prices,” Spalding said. “I don’t think you should look at it like we’re not making money from the record business so, in turn, you need to jack up ticket prices. If that’s your strategy, it’s not a great strategy, and it’s going to turn away fans.”
What’s your take? With all of the problems Live Nation is facing, what has kept country music tours from feeling the pinch?
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July 31, 2010 at 10:04 am
Spalding could be right. I know rock concert tickets are a LOT more expensive than country tickets. I guess that’s why I always feel I’m getting a steal when I buy tickets to a country concert. I thought concert ticket prices had gone down, but it’s probably, because I’m only buying country tickets these days.
July 31, 2010 at 10:56 am
A part of the reason country tours are so successful is because artists can remain relevent and successful longer in the country genre. Alan Jackson is still having hits at country radio 20 years into his career and people want to hear his new material. The Rolling Stones, AC/DC can release a new album but the singles dont perform well on rock radio so essentially their stuck in a time warp where people are going to see them to hear their old hits. They have nothing new to offer and the nostagia will wear off over time.
If Brooks & Dunn stopped having hits at radio 10 years ago they wouldnt be a big concert draw today and each year their attendence would shrink.
July 31, 2010 at 11:25 am
Here’s another possible factor: look at where these artists are playing. They do a lot of state fairs. FOr a country artist, there’s no shame in playing state fairs and small markets all summer, because that’s where your fans are. In rock, it’s a sign of a flagging career. You’re a rock band and you play a state fair, or one of those festivals with 25 bands in a field in the Midwest, you’re either just starting out, or your glory years are fading in the rearview. And there are exceptions that that, just like everything else, but that’s the general atmosphere.
As for ticket prices overall, we have Steely Dan to thank. When they first reunited in the ’90′s, they were the first artist to be charging over $50 for tickets, because they (or their management) felt they could, that there was enough of a demand for it. And then everybody started doing it, because THEY could get away with it too. And then you had TicketMaster adding on ridiculous surcharges, then Live Nation comes along and owns most of the market and the major artists and effectively blackballs promoters who don’t work with Live Nation. Then you have record companies, who aren’t making as much money selling records, so they grab a slice of the touring and merchandising revenue, which traditionally was where the artists made their money (not off record sales), and prices get driven up even higher, to where it’s $30 at least for a damn T-shirt. Basically, the machine has gotten so big, it’s eating itself.
I don’t go to arena shows anymore, big amphitheaters and football stadiums, with a very few exceptions (Slayer/Megadeth/Testament coming up in a couple weeks–surprised to see them in a place that big, honestly, since all three play large clubs on their own). Most of the artists I like these days, country and rock alike, play in bars anyway (some of them real dives) but even that’s not cheap.
As for country fans being excited to hear an older artist’s new material, good point. Rock bands are always complaining that American audiences just want to hear the old hits, a lot of them not even aware that a band has a new album, or even a string of them, because the traditional outlets like radio (MTV is now a total non-factor) won’t support it. Bruce Dickinson of Iron Maiden has griped about this for years, the way American fans want a greatest-hits show, where European crowds actually know all the words to their newer music.
July 31, 2010 at 11:38 am
A few years ago my mom saw the Rolling Stones for one of their “final” tours and paid $500 per ticket. They didn’t even have good seats. I can’t think of any band I’d pay that kind of money to see and get bad seats to top it off(sorry, I’ll see ya in my dreams!). I MIGHT consider Elvis if he was being reincarnated, but I would still have to think about it. They would have to be good seats too!
July 31, 2010 at 11:55 am
Yeah, it’s ridiculous. And another thing is, these scalping companies that hire people to go online at the time of sale and buy up all the tickets they can, and then resell them for much higher prices. Some artists (and the Washington Redskins, too, and probably lots of other sports teams as well) came under fire last year when it came to light that they were withholding tickets specifically for scalpers to get first dibs on. The Redskins had a waiting list of over 100,000 fans wanting to buy tickets, yet were keeping tickets back from every game for scalpers.
July 31, 2010 at 12:09 pm
…to where it’s $30 at least for a damn T-shirt.
I went to a Lady A/Tim McGraw concert earlier this year and my 10-year-old son wanted a Tim McGraw Shirt. I wish they were $30- most were up in the $40 to $50 range.
July 31, 2010 at 12:20 pm
I paid $6.00 for a ticket to see all the Beatles at Red Rocks, then paid a $250.00 to see to see just the one Beatle, Paul McCartney last year. I like when you can pay for early access to a general admission venue, or if you get a meet-n-greet and want to pay for it, Like Toby Keith does. It’s whatever the market will bear, I guess.
July 31, 2010 at 12:21 pm
Ken, it’s a business for those merchandisers selling shirts, too. Have you tried to buy a licensed NFL tee shirt at a game lately?
July 31, 2010 at 12:58 pm
I think Michelle is right that country tickets tend to be cheaper. The most I’ve ever paid for a country show was $100 for one ticket to see Strait/Reba/Womack in Omaha earlier this year. Usually I get pretty good seats in the $30-50 range.
July 31, 2010 at 1:14 pm
You’re right, Fizz. I thought I would shop around online for a better deal and realized the tickets were twice as high and the seats weren’t good either, that’s shameful. I will only buy tickets through the venue and get better seats and cheaper tickets.
July 31, 2010 at 1:35 pm
There is also the back end factor. Large rock shows often mean large budgets for the show itself. Alan Jackson and Brooks and Dunn don’t have to drop 20,000 per show on pyro, dancers and miscelaney, ergo they can charge cheaper prices.
July 31, 2010 at 1:42 pm
Andrew, you got to see TWO huge names in country music, so I could definitely justify paying $100 per ticket. Actually, that’s a great deal(imo). Mom saw Reba recently, but I can’t remember how much she paid. Obviously, it wasn’t enough to be ingrained in my memory.
July 31, 2010 at 8:29 pm
I got the top seat at $54 for a Carrie Concert. Didn’t price the T-shirts as I don’t buy that crap.
Now with Strait, Reba and Womack coming to Lexington in Sept, I will have to pay more for that ticket but c’mon..that’s still a deal with these 3!!
July 31, 2010 at 11:16 pm
That goes back to what I was saying, Linda. Merch prices have gone up because the labels aren’t making the big money selling records anymore, so when they sign a new contract, they cut themselves in on the merch and ticket sales, areas that have traditionally been where an artist makes most of their money.
Whatever the market will bear, fine, but as we’re seeing now, it’s reached the breaking point. I look at it as something the industry has done to itself. From that perspective, it’s real hard to feel sorry for somebody like Don Henley or some of these other big-name artists that side with the major labels and Live Nation with one side of their mouth and whine about not getting fairly compensated with the other.
August 1, 2010 at 9:40 am
The people who book country events at the State Fair level have been trained into–and are now often lockled into–the idea that they have to have One Huge Act that will draw 80,000 or 100,000 people, and even complian, these days, that there aren’t enough of those acts to go around. Someone–probably someone younger, is going to look at that situation, look at models that work more like the web, with varied flavors of interets, and figure out that having four shows running at once on smaller stages, ecah drawing 20,000 who go for this flavor or that, can work better, last longer–and that there are plenty of acts–very good acts– that can draw that sensible number.
The music business needs to get over elephantiasis. Even if it means retiring dinosuars to get there.
August 1, 2010 at 9:41 am
That;s mentally LOCKED into. Not lockled. Though they’re probably lockled, too.
August 1, 2010 at 10:17 am
There are plenty of country acts that can draw 20,000 people on their own?!
August 1, 2010 at 10:19 am
The good thing about the fair circuit, from the performer’s point of view, is that not only are you not reliant directly on ticket sales yourself, but you’re not reliant on your music alone to draw the audience. The bad thing about it is that you also have no idea of what you’re really worth.
August 1, 2010 at 11:44 am
Agree with Barry. The fair in my state (Delaware) brings the same artists back year after year. I don’t just mean the same TYPE of artists, but the exact same artists. The Beach Boys. Jason Aldean. Lynyrd Skynyrd. Brad Paisley. 3 Doors Down (although they were mercifully absent this year). Rodney “Velveeta” Atkins. And the token, third-tier Disney act for the kiddoes. Can somebody get some imagination, please?
August 1, 2010 at 3:59 pm
They don’t need plenty of acts Jon. But they claim they can’t even consider more than about 6 total because they “have to’ shoot for the 90,000+. Which is the way it’s been–but doesn’t have to stay the way it is.
It could be five times 12,000 and be profit-making. Festivals with side stages have been known to get towards big numbers–so fairs could do it too, and probably moreso, with all the promotion. But the old school promoters will have to–as was just said–find some imagination.
August 1, 2010 at 8:00 pm
I was just expressing a little surprise at the idea that there are plenty of acts who can draw 20,000 on their own – or, for that matter, that there are acts who can draw 80 or 90,000 by themselves. I think if you dropped a zero off all those numbers they’d be more realistic.
I guess I’m not seeing the signs that the fair circuit is hurting like the concert one is. And until that’s the case, there’s not much incentive to experiment.
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