American music festival sector its value and

Festival

An Examination of the American Music Festival Industry

Today, music festivals are far more popular in the us than ever before. Back in the day when there have been only a number of music celebrations for People in america to attend, nevertheless there are numerous festivals annually that cover almost every genre of music. In respect to Billboard. com, thirty-two million People in the usa attend in least a single music celebration every year. (Lynch, 2015). To set that into perspective, this can be more than the human population of the express of Texas and somewhat less than the population of the condition of Washington dc. Slightly beneath half of people who attend for least a single music festivity every year will be millennials, the generation between 17 and 34 years of age, which accounts for 14. 7 million of those who attend a music festival every year. “Attending a multi-day music festival is becoming almost a rite of passage intended for the millennial generation. You will find currently much more than 800 music festivals in america alone. Aggressive pricing, an enormous lineup of top artists, diversity in music types, social media buzz, and a wide variety of cheap rentals on sites like Airbnb are contributing to big swell in festivals” (Reedy, 2015). These are generally considered to be great deal of money events that are immensely popular with their fans. The most important music fests such as Coachella and Lollapalooza generally sell within a that same day of tickets going on sale, before that they even announce their lineups. In 2014, three-day moves sold to Lollapalooza were sold-out within an hour of the seats being put on sale (Reddy, 2015).

The increasing popularity of music celebrations has led to a dramatic change in the financial landscape in the festival sector. Music fests have become big business earning large sums of money intended for weekend-long celebration. “The five biggest festivals combined made more than $183 million in ticket product sales in 2014 not including support or items, food and alcohol sales” (Reedy, 2015). The highest income producing music festival of the year was Coachella, which usually grossed a record-breaking $78 million in only two trips. This was then Austin Metropolis Limits by $38 , 000, 000, Lollapalooza for $29 million, and Outside Royaume which introduced $19 mil (Reedy, 2015). These very successful celebrations have motivated many entrants into the marketplace.

The promoting of American music festivals through the internet and social media is a significant factor in the increase inside the popularity of the background music festival industry. Furthermore, the increase in enthusiast attendance and revenue getting generated via these festivals has led to an increase in the number of music festivals being created, in fact , there has been this kind of a tremendous increase in the number of music festivals that many are wondering whether or not the American music festival market has become so saturated which it can be in comparison to a bubble that is gonna burst. In spite of this, the instances of company sponsorship has become an increasing section of the music festivity industry creating more earnings for members and a bright view for the background music festival sector. Throughout this kind of paper, Let me explore the present state in the music event sector with the music sector including how it started using it to their current point out, some of the issues that the sector faces, the actual bubble, and what the foreseeable future holds for the American music festival industry.

Background and History of American Music Celebrations

George Wein is credited with being anyone who started the American music festival. “The pioneering jazz musician and music maker launched the first Newport Jazz Event in 1954. It was the first big outdoor music event of its kind and offers spawned a host of other ground-breaking musical locations since then” (Miller, 2010). Thus, this first outdoor music festival paved the way pertaining to larger more well-known music festivals.

Probably the most famous music festivals to happen after thus first outdoor festival is Woodstock that took place that kicks off in august of 1969. This renowned music festivity took place over a dairy farm in New york city and drawn approximately 4 hundred, 000 persons. The music celebration featured 32 acts which includes legends just like Jimi Hendrix, The Who also, The Group, Janis Joplin, Johnny Winter, Credence Clearwater Revival, Jefferson Airplane, 10 years After, Joan Baez, Santana, Joe Cocker, and Crosby, Stills, Nash, and Small. It is regarded as one of the most significant moments in American music history and the most famous music festival that took place thus far. Due to poor organization, the individuals of the area in Nyc in which the event occurred terribly received the first Woodstock festivity. Subsequently, this town passed regulations to prevent a conference of that range from at any time happening generally there again. However , the level for significant American music festivals was set now they are extremely significant incidents in the music industry which have been important for artists, fans, brands, and more.

Music acts, especially up and coming kinds, welcome the opportunity to participate in music festivals. These types of festivals let them have a chance to create a name for themselves and increase their popularity. “It’s so good to get an rising band mainly because when we visit a new place, we need not have the pressure of filling the membership all by ourselves, we’re merely part of this kind of huge issue and they’re endorsing it and they’re doing all of the cool products for it” according to Laurie Shook of the Shook Twins (Robinson, 2015). Intended for music functions that already have sufficient recognition, festivals suggest lucrative paydays. It has become popular for rings to course their trips around music festivals. “Bands build excursions around the excessive paydays of festivals, and in addition they schedule record releases throughout the most obvious appearances” (Currin, 2014). As a result, there is something in participating in music festivals for the little well-known groups as well as the big known as artists as well. In addition , festivals are a great way to get underground works which don’t get a great deal of airplay to build their fan base (Stevens, 2011).

One example of a popular music festival is that of Coachella which occurs in Coachella Valley in Southern California. Coachella is the largest US music festival and takes in Apr every year. For the past few years, this festival continues to be so effective that it has sold out two weekends with identical lineups

Founded it happened in 1999, The Coachella Valley Music and Disciplines Festival features inspired a destination live performance circuit that stretched coming from Washington Point out to Tn and Rothbury, Michigan, to Miami, and included seventy two festivals at its height prior to the 2008 economic downturn¦The celebration is truly a stage show: spread over six polo domains in Indio, California, that features five stages and big art instillations. Because of its site 146 kilometers from the nearby major city area of La and proximate to the getaway community of Palm Suspension systems, Coachella is recognized as a get-away (Cormany, 2015).

This kind of calls for a substantial financial commitment from fans who must pay for vehicles and accommodations as well as concert tickets pertaining to the three-day event.

Similar to Coachella, Lollapalooza is a substantial three-day music festival organised every year in Chicago, The state of illinois which 300, 000 people attend every year. Originally, a compact alternative music event, this festival has increased in both equally size and diversity since it commenced. South simply by Southwest, one more big music festival that takes place each year in the U. S, promises to highlight over 2, 200 works that range between virtually not known to legends. In addition , electronic digital dance music festivals just like Ultra Music Festival, Electric Forest, Electrical Daisy Carnival Las Vegas, Mysteryland USA, Electrical Zoo, TomorrowWorld, and Time Warp UNITED STATES are raising in size and popularity in the U. S, these electric dance music celebrations try to give the crowd similar feeling that may be created by the immensely well-known Belgian music festival Tomorrowland. In fact , these day there are music fests for every genre of music that people may attend to join the thousands and thousands of current music festivity goers.

Music Festivals Encourage the Growth from the Music Sector

Music celebrations today is surely an important part of a changing music market dynamic. With revenue from recordings in a constant condition of débordement, the music market has had to look for other ways to make money by music followers. The music festivity has emerged in recent years as a one of the most rewarding commercial automobiles for the background music industry at large. “Coachella can be part of a rapid build-up in stationary music festivals, big and small, across the country and reflective of live musics explosion of growth because the millennium. Although it wont compensate for a fifty percent drop in U. T. recorded music sales since 1999, concert ticket product sales filled nearly 40 percent of that damage between 1999 and 2009” (Parker, 2013). Music celebrations offer followers both a concert experience and a social experience. “‘Theres an elevated trend of multi-faceted, cultural events and people are more inclined than ever to make sure they never miss out on experiential, destination weekends with friends, ‘ writes Joe Reynolds, CEO of Red Frog Events, [who makes Firefly music festival in Delaware each June]inches (Parker, 2013). Music fests are becoming the social first choice event on which many are selecting to spend all their entertainment finances.

The increase inside the popularity of music festivals has led to a need to get more big name works to subject these conventions. However , the number of acts worthy of headliner position is limited, “There are only a lot of big-name serves to core a big festivity, and they generate good money. While the lowest-rung action at Coachella made $15, 000 this season, headliners can easily command several figures. The turned into a nice living for a few acts” (Parker, 2013). Music festivals today are supplying artists the chance to make big bucks and revamping the music industry.

In 2001, the last time Outkast hit the road for any major travel, they were coming off a multiplatinum album and a top00 single, Ms. Jackson. Andre 3000 and massive Boi played out 46 displays on the Stankonia tour, and grossed $4. 8 , 000, 000, according to Pollstar. That sounds amazing ” until you compare it while using reunion head to theyre introducing this spring and summer season. Outkast will play fewer live music evenings ” 45 shows, everyone at a festival ” and help to make vastly more cash: around $60 million, in accordance to concert-business sources (Knopper, 2014).

This is not an exceptional story within the music sector and for music conventions. In fact , many old groups happen to be reuniting to experience at music festivals for big bucks. “Outkasts success reflects a new truth: Thanks to enormous competition intended for event reservations that sell $300 tickets and even more pricey VIP packages, festivals are able to afford to pay headliners up to $4 million” (Knopper, 2014). While these kinds of increasingly rewarding paychecks entice old rings into reuniting, they often topic multiple events and cause festival lineups to seem awfully similar

Music Festivals’ Relationship with Cities

Cities generally welcome music festivals as they are a huge boost for the host city’s economy. “After a decade of consistent progress in the music festival business, many cities are more than happy to sponsor one. The local economies in the host cities benefit tremendously as they are infused with huge amount of money in extra tourism related revenue” (Reedy, 2015). Coachella, the most successful of the American music festivals offers a powerful example of the benefit of a music festival arriving at a city in terms of revenue. “When you consider the $254 mil Coachella delivered to the desert region around Indio (and $90 million to the city itself), you can see so why a city might do whatever it can to help” (Parker, 2013). Furthermore, these incidents, which attract large numbers of travelers as well as home town fans, help to brand a town and set a more attractive place to check out and live.

Impact from the Internet in American Music Festivals

The Internet and technology has a notable effect on the American music festival market just as it is on other facets of your life in America and abroad. Eventbrite, which is regarded as a most recognized platform for online ticketing and registration for the two concert and music conventions, recently done a study to explore the booming popularity of music celebrations in America. Relating to Eventbrite, “in earlier times year, you in 12 people have joined a music festival and 1 in 5 millennials have attended a music festival. The boom in music event attendance is part because of technology, according to the findings. Social networking, has, in fact , fueled the fire for music festivals” (Kunz, 2014). The impact of technology in increasing fan attendance is especially the case when examining electronic move music festivals. This is a type of music that blew up online and gained many millennial fans at the same time. Fans generally attend these music celebrations without even being aware of what the line-up of artists will be, rather they go to for the general experience (Kunz, 2014).

Social networking plays a tremendous role in increasing supporter attendance to music conventions by creating an online news about the impending event. Millennials, the group that most frequently engages in social media, are made mindful of the event by this buzz that may be created through social media and led to believe that the music festivity is the celebration to attend. Creating a subsequent through social websites is a form of non-commercialized promotion that is popular with many millennials today. “With social media such a prominent force in the usa today, the online chatter about music celebrations has helped drive up ticket sales, in line with the research. As well as the demographics of the chatter happen to be overwhelmingly young. In fact , seventy five percent of music celebration posts upon social media result from millennials age range 17 to 34” (Kunz, 2014). Several American music festivals that have benefited considerably from this type of online gossip are: Bonnaroo, Burning Gentleman, South by simply Southwest, and Coachella (Kunz, 2014). For example , in 2015 the first weekend of Coachella produced 3. a few million tweets (Lynch, 2015). Additionally , celebration goers ton social media with photos and posts of how much fun they are really having with the music fests, helping to enhance their acceptance.

Fests have bigger audiences this means more promotion and social networking buzz, with thousands of supporters constantly publishing selfies, photos and videos of groups on Instagram, Facebook, SnapChat, and other well-known sites. Enthusiasts willingly talk about information highlighting how much entertaining they are having for family and friends back home to find out, and the online buzz helps drive up ticket sales (Reedy, 2015).

Although the 3. 5 million tweets that took place during the initial weekend of Coachella is still far less than the number of twitter updates that occurred during the Super Bowl which will had twenty eight. 4 , 000, 000 tweets, these types of tweets together with other forms of social websites are is still great promotion for a music festival due to the fact that it is not nationally televised.

The Commercialization of Music Event

Music fests today are becoming larger and even more commercialized than previously. According to the Huffington Post article “The Commercialization of Music Festivals plus the Rise of Super Concerts”, music conventions emerged out of community driven music and arts gatherings that took place around Europe and North America (Mason, 2015). They may have evolved drastically since the time when they were small gatherings of indie artists leading to the tradition of the time. “Music festivals started out as small events and progressed into larger situations, bringing with them a generated feel that ignites a festivity forward through word of mouth and a must-attend quality to the event” (Mason, 2015). The expansion of the range and the viewers of music festivals caused these occasions to become well-liked destinations which usually appealed to a lot of, generating much larger crowds with differing likes to which these festivals desired to cater (Mason, 2015). One of the reasons for the popularity of music festivals, the article goes on to point out, is that they are free from most of the mass commercialization that plagues the music industry in general. These kind of events, customarily, were geared at the enthusiasts and was missing much of the industrial atmosphere that may be present in most of the music market.

Music Celebrations have developed tremendously, however , from the days in which we were holding free from much of the commercialization that is certainly present in the music industry as well as the type of commercialization that occurs with traditional live shows. In fact , music festivals, according to Builder (2015), have been completely evolving in mega-concerts frocked with commercialism.

Generally there events that seem like music festivals although lack the grassroots great the event, don’t have years where the festival produced and saw audiences develop over time, and have an overall industrial presentation to fans. While commercialization increases, Super Live shows are labeled as music festivals and made to be a hot ticketed of the summertime. This is not an all natural progression for the flourishing music fests in America and round the world, nevertheless a bastardization and redefinition of the concept of a festivity, a word and event that is certainly shared throughout the world across nationalities, a common carefully thread of understanding between everybody (Mason, 2015).

Some experts of the commercialization of music festivals argue that the traditional history of the music festival is getting dropped. In recent years, seat tickets prices to events have got increased combined with the commercial aspects of the music celebration. Some examples of music conventions which critics argue are turning into extremely concerts contain: Lollapalooza, Coachella, Peach Vorstellung, Mysteryland, plus more (Mason, 2015). “Attending these kinds of festivals today includes a large ticket price, optionally available / attractive VIP plans for those who avoid want to camp or perhaps deal with the overall population of GA admission holders, advertising of products to concert goers, all while they make an attempt to see and experience new and familiar music with new and familiar friends” (Mason, 2015). Thus, the fan experience has been considerably diminished by the over-commercialism in the music festivity industry. Today fans can anticipate to spend exorbitant prices for refreshments while viewing acts which increase income instead of fans’ enjoyment. This could effect a festival promoter’s ability to produce a new and unique get in line. In fact , relating to Builder (2015), music festivals are running the risk of about to die out altogether and getting replaced by simply Super Live shows. One reason behind this is due to the fact that even more compact music festivals must consist of some commercialization in order to contend with the Super Concerts and their plush features.

Booking Trends for Music Festivals

There is also a tremendous amount of risk attached to booking any sort of shows to get music promoters. “When considering festivals, it can even more so ” promoters ought to front significant amounts of money to spend artists’ guarantees to perform, and if ticket revenue are sluggish, or climate forces cancelling, the promoter (and their particular insurance company) takes the L. All it takes is one poor year to decimate an annual festival” (Ruiz, 2016). Thus, no matter how popular a music festival is becoming promoters might require a greater sense of secureness when hosting an event. This can be the primary purpose that the reserving landscape to get music celebrations recently transformed in a way that minimizes the risk to promoters.

The trend in booking headliners to get music celebrations is that of reserving well-known mega-star headliner works which have headlined music fests many times just before, this arranging trend diminishes the uniqueness of the music festival encounter. In fact , inside the HTF journal article, “Rock Rant: Will be Festivals Running Out of Worthy Headliners” rock publishers and freelance writers argue that although the American music festival outlet is hot right now, these festivals run the risk of people not really coming back every year if that they select the same headliners with the limited volume of headliners via whom they should choose (Westbury, 2013). This kind of sentiment can be echoed by the New York Times article, “Music Festivals Scramble for the Same Subject Talent” which will asserts the fact that music event circuit has hit a peak and suggest that a downward slip is following due to repetition in headliner selection (Heyman, 2015).

Intense Competition and Consolidation

As a result of risk that may be involved with arranging music celebrations, many conventions that once started off while independent conventions are no longer impartial. In fact , big corporate promoters are rushing to buy up these self-employed music celebrations. “Since 2012, four of the top five music festivals in the usa by attendance went via independent operators to acquired by Live Nation. And Live Land is only among the several companies hastening to buy up their own inventory of festivals” (Fong, 2016). This has resulted in a form of marketplace consolidation which includes not been seen in the music festival market before.

Eventbrite offers a few warnings by what the corporatization and consolidation of the music festival sector means for the music festival sector and the fans. One of the first warnings concerning the consolidation of the music festival sector that Eventbrite offers is the fact it may bring about the replacement of a unique regional music festival experience with a generic global music celebration brand experience, thus, down the road, it may not anymore matter what music festival 1 chooses to attend, they will have so much likeness to one another (Fong, 2016). In addition , Eventbrite alerts that small festivals will not be able to compete with larger types as artists begin to hold on for larger festivals that could pay these people more money and provide them a larger crowd that to perform. Furthermore, Eventbrite warns that huge corporations will be more focused on earning profits from the fests and the soul of the music festival will get lost at the same time. Eventbrite also states that due to the elevating popularity of music festivals in recent years, there will still be opportunities to choose from to enter on the music festival action. “After most, while the companies are getting more competitive, demand is usually rising too. Per household spend on live music events including celebrations grew coming from $29 per person in 08 to $48 in 2014. The music celebration industry might be changing, good results . so many hooked fans, there’s no shortage of possibilities for planners to make their very own mark” (Fong, 2016).

AEG and Live Nation

One may become unaware that almost all big known as music celebrations are work by the same two marketers. The two biggest promoters in the world, Live Nation and AEG Live, took aim at the greatest, most effective festivals, and they are slowly gobbling them up, piece simply by piece. AEG Live has owned Goldenvoice, ” which in turn puts on Stagecoach, Firefly, and Hangout celebrations as well as Coachella ” as 2001. Live Nation, the sole publicly traded live music firm, produces a lot more than 60 fests, and have been on an purchase tear recently. The company at this point owns managing stakes in Bonnaroo, Austin tx City Limits, Sasquatch!, Lollapalooza, and Budweiser’s Made in America, among others (Ruiz, 2016). Therefore, there is a tremendous amount of market consolidation that has taken place in the music festival industry and this trend is definitely not likely to alter soon.

Live Nation Development

Big promoters such as Live Nation and AEG Live are blending out self-employed promoters trying to enter the music festival marketplace. The mega-promoter is by using an aggressive purchase streak watts that is getting more and more music festivals under its control. “Live Nation’s acquisition of a controlling interest in the massive Bonnaroo Music Artistry Festival in Manchester, Tennessee, from pioneers AC Entertainment and Superfly continues a global concert business aggressively possessive streak in the U. S. festival space, and at the same time reduces the independent status of what was the greatest independent music festival within the continent” (Waddell, 2015). With this purchase, Live Country has made an absolute statement. “As the only publicly-traded live music company, Live Nation aims to show Wall Street it is a pressure in this robust space” (Waddell, 2015). To date, Live Region has achieved its objective of making an excellent showing to Wall Street. “Live Nation has more than 60 festivals in the portfolio of European and North American events, including U. S. occasions like Lollapalooza, ACL Fest, Electric Daisy Carnival, a great exploding nation music tillst?llning roster that will have by least several events in 2016, and, now, Bonnaroo” (Waddell, 2015).

AEG Live Expansion

Similar to Live Nation, AEG has been over a quest to accumulate some big name music Lewis, 2016) festival shopping gratify, with a portfolio of 28 festivals which includes the highest-grossing fest in the world, Coachella (through its Goldenvoice division), and the pioneer inside the space with the New Orleans Jazz Traditions Festival. AEG Live chairman Jay Extraterrestre has centered on investing in businesses that, contrary to tours, make sustainable earnings, and provides doubled upon festivals, which will Marciano feels will still explode in North America” (Waddell, 2015).

GOLDENVOICE RELATIONSHIPS

Goldenvoice, has entered into a lot of significant relationships with well-known music celebrations in recent years, helping to solidify AEG Live’s browsing the music festival industry. Goldenvoice, originally a punk rock concert marketer that commence thirty years in the past, escalated for the forefront of the music celebration scene with its leading function, Coachella (Lewis, 2016). This summer, the FYF Fest, or the Fuck Sure Fest, created a alliance with Goldenvoice. In 2014, Goldenvoice merged with another famous music festival, entering into a joint venture together with the founders with the Firefly Music Festival, Red Frog Incidents, to promote and produce the festival (“Goldenvoices Announces Partnership”, 2014). The Firefly Music Festival which in turn began this year “is one of the fastest developing music conventions in the country. inch (“Goldenvoice Announces Partnership”, 2014). The Firefly Music Celebration is an annual music event held in 06 at the Dover International Speedway in Delaware (“Goldenvoice Makes announcement Partnership”, 2014). Goldenvoice created another joint venture in 2015 with Hang-out Music Event, a smaller Gulf of mexico Shores, The state of alabama music festivity, this music festival provides a beach foundation and smaller crowds than any other large music festivals. Goldenvoice has also entered into partnerships with Camp Flog Gnaw Carnival, and Vistas music conventions.

BATTLE FOR NEW YORK: LIVE NATION GOVERNORS BALL VS AEG PANORAMA

In January of 2016, Goldenvoice announced both the times and location of its initial Panorama event which is billed to be the New York City version of Coachella (Nelson, 2016). This will be held on the second to the last weekend in July 2016 on Randall’s Island. The billing and scheduling with this event provides caused a lot of commotion inside the music festival industry due to the fact that the Governors Ball, a six-year-old independently run music festival, is considered the New You are able to City version of Coachella.

The Governors Ball, which will be held the first weekend in June perfectly location since Panorama event, is a music festival which has quickly become popular in New York City. It is an event that was developed by Pioneers Entertainment, a completely independent promoter. The first 12 months of the music festival it absolutely was a one-day event that drew an audience of 18, 000 persons and was held on Governors Island (Nelson, 2016). Simply by 2012, completely doubled in proportions. By the third year of the festival it had expanded into a three-day function which drew in a masses of 135, 000 guests.

Due to its interest in guarding the Governor’s Ball, its founder, Creators Entertainment was very oral in urging the city of recent York to reject the proposal by AEG to experience a music event in that metropolis, in close proximity to the Governors Ball. Although work by Pioneers Entertainment had been unsuccessful, largely due to the not enough support which the independent marketers received from the people of the associated with New York, below 10, 500 of which had been willing to signal a petition to prevent AEG from keeping a music festival inside the city, it is usually argued that the Governors Ball is in a much better position than AEG’s Vistas festival because of the dates of the two festivity. “Late This summer is a awful tome to support a three-day music festival in New York City. It is a horrible time to always be outdoors whatsoever in Nyc. Many citizens abandon the location entirely This summer weekends, each goes to the Hamptons or the Rockaways or the Jersey Shore or perhaps Cape Cod or everywhere else 1 might find drinking water and fine sand and bathing suits” (Nelson, 2016). The pleasant climate of mid-June that the folks who attend the Governors Ball will knowledge will be changed by the frequently dreadful climate that Nyc experiences at the end of July, in late July the humidity in the metropolis is uneasy, the heat triggers the subway odors being more putrid than they can be normally, and torrential downpours typically occur (Nelson, 2016).

Whether the Spectacle festival will be as good as AEG’s other music festival incidents in its 1st year is still undecided. AEG originally desired to hold the Panorama festival in June but the city of Nyc would not allow it to take place in that month. Thus, the time of the music festival may have an effect on regardless of whether it is able to pull a crowd which it would like to go to the event. Furthermore, AEG wished to hold their very own music event in Flushing Meadows, the which can be conveniently accessed for a number of travel ways and with a significant volume of hotels in the immediate vicinity (Nelson, 2016). This location is also twice how big is Randall’s Tropical isle. Yet, AEG’s failure to procure the date ranges and places that it preferred did not prevent Panorama celebration from intimidating the Governors Ball.