The Economy: A Discussion.

As most of you know, my professor, Mike Mackert, is my independent study watchdog. We'll communicate about my blog via comment posting. He asked an interesting question after this post and I'd enjoy discussing it in more detail as a post. Enjoy!

I've heard reports in a couple places (Wall Street Journal This Morning podcast, I think) that a couple of the major movie studios are delaying releases right now, to avoid releasing a big movie right into the teeth of this recession (or whatever it is that we're in). What are the differences between movies and music, do you think? Are there some, or is this two pretty similar industries taking different strategies into a rough economy? - Mackert

Oh man, there are HUGE differences between movies and music - especially in the physical aspect. Let's take a looksie...



One: Movies are so static, meaning you just sit in a comfy chair and gorge yourself on popcorn. There's no involvement outside the brain, no body movement. Don't get me wrong - movies are great! Just not as active. Concerts, live, fresh, breathing concerts, are more of an active process. You jump around (except for the orchestra shows I've been to), you get close to the band, you have a total body experience. It's fantastic.

Two: Movies are just showcases of an actor's ability in a box. That actor can't improv in the movie you're watching - what's filmed is filmed. However, at a concert everything is on the fly. If a band plays a wrong note, it's there. I was at a Counting Crows show in 2004 and the lead singer was belting out their most amazing ballad while a huge june bug went diving down his throat. It was great and it's a memory for everyone there.

Three: Actors are on the screen, out of touch with humans. Maybe this is why so many Americans are fascinated with the out-of-reach-and-unattainable movie stars? Musicians at concerts are live in the flesh. You can run onstage and hug one. You can get a high five. Or a drumstick. Or sweat flung on you. Yes.



Now, to address your question on these industries and their actions with the recession. Since these industries have very different looks and feels, we'll treat them that way - as separate entities. I think it's interesting that the movie execs are delaying the release of certain blockbusters. Along with the music industry, who is focusing more on touring that the hard sales of records, the movie industry has a real opportunity to give U.S. folks the opportunity to "get away" during the recession or economic downturn. While researching this I found an interesting quote to share...

"The bottom hasn't fallen out of it," said Steve Feldstein, a vice president at Twentieth Century Fox Home Entertainment. "Historically, home entertainment has withstood economic downturns. Most folks would rather watch a movie than watch the stock market."

Can anyone say "Staycation"??? (Sorry, had to use it again to drive you crazy.) So, it's going to be interesting seeing how the nation is going to "deal" with the woes of their finances in terms of the entertainment they find. In my future I hope to see folks going back to riding bicycles and playing outside with their children instead of plopping them down in front of a $200 gaming system where games cost too damn much. Or going to cheap outdoor concerts - Orchestra in the Park - and dancing around like fools. Maybe we'll all sit down at the dinner table together instead of pillaging on fattening fast food. Maybe the family game nights and the ever-elusive Movie Nights will be back! Break out the popcorn, folks! It's time for a recession, but more importantly, it's time to cut back on our extravagance. Maybe this is a good thing?

Voting...

So, it's not related to music promotion, but it's worth the post...



GO VOTE!

Touring: The Economy Update.

After discussing this post about the economy's impact on the touring industry with my boss, Megan, she introduced me to the C3 Presents ticket master, Michelle Alldredge. She's in charge of all the ticket sales C3 has their hands on - be that Lollapalooza, Austin City Limits, or shows at the venues C3 books. I sat down with Michelle to chat about whether ACL has been a part of the economic downturn or if it's is doing just fine, like Lolla did. (Lolla sold a record 180,000 tickets this summer.)

Michelle informed me that since 2004 ACL has sold out or has been extremely close to selling out. Good news there. Just the other day, Oct. 2, C3 put a block of cheap tickets up for ACL 2009. So, since we're in the thick of this economic downturn, one would figure that folks would be holding on extra tight to their wallets - aka, no ticket purchases yet. However, that block of tickets (the number would not be released) has already sold out. Clearly, festival lovers aren't going to let these hard times affect their attendance to next year's show.

Or, are they thinking strategically? Are these ticket buyers smarter than the average bear, understanding that the next block of tickets will be more expensive, so they better buy the cheapest they can find? Another thought: Are the folks buying these tickets the generation who isn't as affected by the economy as much? A good point was introduced to me - my generation isn't really feeling the pain of the current recession. Instead, we're somewhat reaping the benefits with lower gas prices ($2.49 by my apartment today.) My generation is predominately who is attending these festivals, and since we don't have retirement funds, 401ks, huge stock investments, etc., then we can focus on what entertains us now rather than worry about the money we haven't really lost. Interesting.

Traditional Advertising: Flyers and Posters.

So, as a part of this blog, I am exploring all types of artist promotion, whether online, at festivals or traditionally, like radio ads, print ads and flyers for shows. As a student of advertising, I am certainly interested in the traditional aspects of artist promotion, since this can allow me to delve into older artists and how they could rise to fame without the assistance of the internet. This first post will be an introduction to the art of flyers. I walked around the city of Austin and took photos of many different posters that advertised festivals, concerts and bands in general. The next time I cover this topic I plan to interview people about their attention to these posters. So, to whet your appetite, here are a few images around town...


Here is a poster for a show - the photos are pretty captivating and interesting...


And a flyer for Fun Fun Fun Fest, which is coming up soon! The typeface for the bands on this flyer is pretty boring, but I guess you have to be informative so viewers can actually read the talent...still, I would pick something a little more eye-catching.


I thought this little guy was interesting. It's a "flyer" for a show, but it was about 3 inches by 3 inches - see the Fun Fun Fun Fest poster next to it??? This little thing is hardly noticeable, so I wonder why the promoter decided to print such baby-sized flyers. If I were walking down South Congress, this would NOT be noticed.



Here is a big cluster of flyers at the South Congress restaurant, Home Slice Pizza. As an advertiser, this is my worst nightmare: getting lost in all the clutter. So, how would an artist or festival promoter make an impression in all this junk? (The answer in a later post.)



Now in the next few posts I'll try to uncover if these posters are actually working or if they're wasting space and being ignored.

Touring: The Economy.

In the Oct. 2 issues of Rolling Stone there's an article about the tour business and its problems and successes with the weak economy. As an advertising graduate student, I'm concerned for the advertising industry - jobs are being cut left and right and advertising budgets are taking a drastic slash. The weakened economy is showing no mercy with the ad industry, obviously, but I often breathe a sigh of relief after I remember that while I'm getting a masters degree in this field, it doesn't necessarily mean I'll be working at an agency post-graduation. No, I'd rather be working in the music industry doing music (festival, concert, artist) promotion, which, according to this article, is mostly doing all right! Read on...

Tour Biz Strong in Weak Economy
By Steve Knopper

At the end of the key summer concert season, the world's biggest promoter reports that high gas prices and a slumping economy did little to dampen business. "Across every metric, we've had one of our best summers in recent memory," says Jason Garner, CEO of Live Nation's North American division, who points to a slate of blockbuster tours, from Tom Petty to the Police, to explain the success.

Petty's summer gross, according to Pollstar, was more than $32 million - almost $9 million higher than his entire 2005 tour, because of higher ticket prices and his increased popularity with a younger fan base. Dave Matthews Band, Coldplay, the Police and Rush did their usual solid business. And the Jonas Brothers sold out amphitheaters everywhere, averaging almost 18,000 people a show and grossing more than $11 million.

Still, the economy did hurt some artists. According to Adam Friedman, CEO of L.A.-based Nederlander Concerts, acts that appealed to younger, less-affluent audiences, including Nine Inch Nails and Maroon 5, hit soft spots or notched fewer sellouts than in recent summers. "It isn't just solely gas - it's the hardship of people losing their jobs and cutting back because prices are high," Friedman says. "Do I think that had an impact on the concert industry? Absolutely."

Adds Warped Tour founder, Kevin Lyman, "People were holding their money tighter to their vests this summer." In response, many amphitheater tours, including Stevie Wonder's, Motley Crue's and Maroon 5/Counting Crows', reduced lawn prices drastically to fill the venues.

Festivals, which have been booming for the last five years, may have hit their saturation point, with at least 15 major events, compared to just seven in 2003. Bonnaroo and Coachella failed to sell out (although Lollapalooza set sales records with 180,000 tickets over three days). "The scene is completely overpacked, and attrition is going to be a reality," says a concert-business source. "It's started."

Tickets for many tours actually went on sale before gas prices skyrocketed, which may have insulated promoters. The true test may come in the next few months, when AC/DC, Metallica and Madonna are expected to be the top acts. "People are going to look at it and go, 'The economy is impacting these shows,''" says Andy Cirzan, vice president of concerts for Chicago's Jam Productions. "But we might not see it until the fall."

Summer 2008's Top Five Tours
1. Tom Petty and the Heartbreakers - $32.1 million
2. Dave Matthews Band - $29.5 million
3. The Police - $28.3 million
4. Neil Diamond - $19.2 million
5. Coldplay - $16.7 million

So, in short, the economy hasn't hit the music industry. Yet. Or, in my optimistic mind, it won't even come close to hurting the concert monster. I do have my worries, but why worry now? I'll live like the Buddhists and not think about the past or worry for the future - instead I'll enjoy the "now" and hope for the best come May! Granted, I will work my ass off to ensure landing a job - duh. Another thing I'd like to note is that Lollapalooza had record ticket sales - and C3 Presents, where I currently intern, is who puts on Lolla. Success! So, I suppose we'll really have to wait to see how Madonna and Metallica do with the recently shotty economy and bank failings. Good luck to us all...

Austin City Limits: My Experience.

This year's fest was just great - lots of amazing acts, fun memories and crazy experiences. I had the opportunity to assist my boss Megan (here's an interview with her) in getting our bands to their appropriate interviews, shows, etc. This proved to be quite the adventure in some cases. A lot of the time, bands don't want to do interview or deal with the press simply because they'd rather be checking out the festival acts they'd like to see. If we lived in a perfect world, bands wouldn't need press, everyone would be famous and get to check out all the bands at ACL...but that's not the case. By a long shot. So, bands need to do press time to help get their name out and to shed some light to what the artist's personality is. Fans like getting that glimpse into the soul of the musician - just think back to old interviews of Jimi Hendrix. These interviews or press conferences give the fan some insight to why the legend plays why he does.



Although I wasn't working with Jimi Hendrix with press, I did have the awesome opportunity to run around with What Made Milwaukee Famous, Black Joe Lewis and the Heartless Bastards. Here are a few photos to show some of the facets of my weekend. Enjoy!

Here I am at the Milwaukee show - since I work for C3, I got the fancy purple wristband that allowed me access everywhere. What a joy! So, I got to be on the stage for shows that I wanted to check out.



Here are the guys - Michael Kingcaid (vocals, guitar) and John Farmer (bass). Check out the crowd behind them - they had a great turnout for their show.



After the show we took the guys over to the press area to knock out some interviews. The first two are a video interview with METV and the third photo is of the guys doing a live radio interview with 101X.





Also in the press pit was Paste Magazine. This photo is of Joe Lewis (guitar, vocals) and Zach Ernst from Black Joe Lewis doing a video interview for Paste. The questions they were asking were like, "If you were running for office, what would your campaign song be?"



And finally, here is a backstage shot before the Heartless Bastards set. There is a lot of scrambling around to get the stage cleared and set up before the next band goes on.



The way ACL has it set up is that each stage is staggered to play, so the bands go on at an exact time (with only a few delays) and play for only the amount noted in their contract. Most of the time each stage has only 30-45 minutes between each show, so the roadies have to bring their A-games in order to get the gear on and off stage in time for the next band to perform.

All in all, I was very impressed with how ACL is put together and organized. It's quite busy backstage, but in the alcohol-drenched artist lounge you can find a little oasis in which to chill and meet some of the brightest minds in the music industry, be it managing, drumming or singing. I've learned that it's extremely important for bands to do interviews with as many publications or radio stations as possible. Although it can sometimes be like pulling teeth, in the end it gives the fans a glance into the inner-workings of the musician's brain. And in most cases, bands will tell you that the reason they do music is because it's "all about the fans." Then let the fans see into your psyche a bit...it's worth it.