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...