INDUSTRY RESEARCH : PROMOTERS
IS THE INDUSTRY EXPANDING?
The MAJOR promoters “Live Nation” and “AEG” are certainly expanding. For them, business is always expanding vertically and horizontally in terms of business lines and contracting in terms of tickets pricing and sales.
However, for the entire nation and for that matter the world, the economic hardships of a tough recession and a slow recovery had amounted to a decrease in both ticket sells and events of around 12-15 percent circa 2006-2010. By all accounts the industry has been bouncing back for the global conglomerates who own, operate or manage while booking for their own venues either nationally or internationally.
A multi-tiered ticketing approach had been in place to deal with the almost 40% of unsold tickets in the industry during the downturn and has become the norm today, as well as ticket price reductions, and expanded sponsorship revenue streams for merchandising, new media and even recording activities or LIVE streaming to add greater value.
Because promoters are competing with the large conglomerates they are finding themselves acting like music companies promoting not only the events but any un-signed undistributed record/cd for the artist on tour. There are also digital bundles with ticketing companies and websites, website-TV streaming that gets world wide attention, Traditional radio specials and TV (promotions), posters and handbills are important since some major record companies do not service regional areas anymore.
There are many independent producers, labels, distributors and promoters now that can access the internet marketplace like MySpace, YouTube, iTunes and big box retailers like Wal-Mart.
Will this trend continue?
The industry has steadily bounced back from the recession and as un-employment decreases and the economy stabilizes, tours and concerts have grown double digit internationaly as well as nationally. On the average fans will attend 3 large LIVE events because that experience is difficult to achieve otherwise however, there's is a trend to larger multi-day events at outdoor venues which are typically cheaper to rent for the promoter and can sell to larger crowds that are willing to sit in non-traditional seating arrangements.
These ticket prices used to be lower but have increased in price from $150 to $300 and this year might jump to $400-500 hundred dollars for General admission. My concern is that if the fan is willing to make that investment it might be at the risk of not attending any other large event for the rest of the year.
I am hoping that this might turn out to be a great cross marketing opportunity. A "Black Friday" for entertainment which rather than just expanding the fan base might actually be a plate tectonic shift from indoor to outdoor vis-a-vis the festivals and our disruptive social media technology of the day can ride the wave.
A great opportunity as far as this magazine and my blog are concerned and certainly something to capitalize upon by JOINING my YouTube channel and Tweets from WPLV24 or by SUBSCRIBING to my RSS feeds and blog at www.thewirelesscowboy.tv
