Time Magazine’s November 14, 2011 article in TIME Europe highlighted music festivals around the globe as a “rare bright spot in the struggling music industry.” While declining sales have been plaguing the music industry for years, (40% in the last ten years according to IFPI .) The festival business is booming with $4.6 billion dollars of revenue in last year alone.
What does this mean for the music industry?
One-off events from major tours create profits for all sectors of the music industry, as well as increasing revenue for struggling musicians. Live music also gives the consumer a unique opportunity to discover new music in person rather than online or on the radio.
How Does Industry Growth Affect event stakeholders?
Increased revenue has been a substantial boost to the concerts and events industry. Although the recording industry has been dominated by a few large corporations, the live touring industry is ruled by many independent entrepreneurs. Entry into the field can prove to be costly and filled with risk for festival managers. Many are daunted by the amount of knowledge it takes to turn an empty field into an event compound hosting thousands of people. However, with the help of a savvy talent-buyer and event production company, festival and event stakeholders benefit greatly by profits from food, drink, merchandise, vendor sales, and sponsorship in addition to ticketing.
To read the entire article by Thomas Grose at Time Magazine Online click here.