Why festivals will survive the coming recession

Submitted by druby on Fri, 10/24/2008 - 11:13.
Keywords: Array, Attendance, Festival Economics, festival industry, Festival Lifestyle

Analysis

By Dan Ruby

I recently provided answers to some survey questions from a college student about the economics of the live music industry, which gave me a chance to write down some of my thoughts about the underlying appeal of festivals and the likely impacts of the economic downturn on the festival market. It struck me that some of those answers would be interesting to also post to the site. Comments are welcome.

What is it about festivals that intrigues you?

I believe that as our lives become more isolated and mediated by technology, we are seeking out immersive experiences that connect us with "live" communities and give us a sense of participation in a technicolor, multi-sensory world. Festivals are uniquely suited to providing this kind of experience in a contained weekend-long break from our otherwise humdrum, cubicled lives.

I think this is the underlying appeal of all kinds of festivals — whether music or other cultural celebrations of athletics, food, film, books, etc. Note that in most cases, the consumer is still spectating on the activity rather than actually creating it, but the form of "spectation" is more active and engaging than pursuing that cultural interest at home or online.

With the current state of the economy and the music industry at a decline, what do you see as the future for festivals, and concert performances in general?

2008 was a banner year for festivals despite the worsening economy. As consumers cut back on bigger-ticket discretionary expenses, festivals were seen by many as an economical form of entertainment. Meanwhile, the dynamics in the music business motivated national promoters to aggressively move into new geographical markets with new festival brands, so there was an unprecedented number of new festival launches in 2008--Outside Lands, Rothbury, Mile High, All Points West, Pemberton and more.

It's highly likely that economic recession and festival saturation will result in declining attendance figures and a shakeout in the festival industry in 2009. However, the underlying factors favoring festival success (relative economy of festivals vs. concerts, relative economy of festivals vs. other travel, and the continuing attraction of "the festival lifestyle") will protect the industry from a deep decline. Instead, the next year or two will see a retrenchment followed by continued growth in subsequent years.

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Submitted by Michael Bowles (not verified) on Tue, 11/04/2008 - 09:19.

First, let me thank you for retaining such a positive attitude toward the future of music festivals. I have been researching what various bloggers think about the effects of the current economic crisis in relation to these events, and most of them have been very pessimistic. I must admit that I myself was rather skeptical when I started reading that 2008, in actuality, had more festivals than any year before given all the reports about how ticket sales have been down. As Steve Knopper of Rolling Stone reported all the way back in July, "In a year with more festivals than ever, the biggest have endured sales dips for the first time in years." Given the soaring gas prices, especially over summer, it seems logical that festival organizers would want to put on more events so that they would be more easily accessible from further locations. As you say, "the dynamics in the music business motivated national promoters to aggressively move into new geographical markets with new festival brands." Also, you claim that "the next year or two will see retrenchment followed by continued growth in subsequent years." My question is whether or not you think that these new festivals which have sprung up will flourish as well, or will their respective audiences return to the larger, more well-established events once the recession has ended? In addition, do you believe that it might be possible for the festivals to be spread too thin? If there are so many that none make a large enough profit then a few years could be all that it takes to close a number of them down. In the end though, I completely agree with you that festivals will continue to thrive if for no other reason than the fact that they are relatively cheaper to attend than concerts, as well as the calling to "the continuing attraction of 'the festival lifestyle."

Festivals Will Survive

Submitted by soundinsight on Thu, 10/30/2008 - 12:18.

Although a broad generalization, the Festival Universe can be divided into two basic camps: 1.) the Destination Festival, i.e., Bonnaroo, Coachella, et al, and 2.) the Local/Regional Festival, such as the Joshua Tree Music Festivals that we proudly put on. The explosion of Destination festivals this year with the launch of Outside Lands, All Points West, etc., while a boon for the artists, will be hard to sustain due to the higher ticket prices, combined with the expense of travel/accomodations resulting in a crowded concert ticket dollar leading to a shakeout among the large scale productions in the next year. However, the local/regional Fests can hugely benefit from the current economy, as indicated by the recently coined concept of the 'staycation'. While the ticket buyer can't afford to fly off to a Destination festival, the appeal of a festival within driving distance offers huge appeal to the concert goer.

Word

Submitted by BassMastaMike on Tue, 10/28/2008 - 13:27.

What you said about "spectation" is dead on. The audience isn't just watching, but engaging in it. If people are gonna shell out $200+ on a festival, many want something more than to sit in a seat and simply be entertained (this, of course, doesn't apply to everyone). If this kind of entertainment-related outlook had caught on during Roman times, a lot of the spectators would be down in the pit cheering on the gladiators, fully aware yet apathetic of the fact that lions could maul them at any moment. Regular concerts are great, but they only provide a temporary high (so to speak). Festivals, depending on how they're put on and attendees' personal taste, can serve as a vacation of sorts. They are, as you said, a multi-sensory world, which seems to have a far greater sense of community and chill vibes than your average arena gig.

festivals and the economy

Submitted by BobR on Fri, 10/24/2008 - 16:44.

Good points, Dan. Festivals are a wonderful and relatively affordable getaway for those with a little disposable income. On the flip side, changes in the music business make festivals that much more vital to artists who want to be heard, enjoy the comeraderie of other musicians, and not least of all make a living. They need the festivals as much as we do. And as long as they keep coming, so will those of us who can afford to.

Coming shakeout might lead to more, smaller festivals

Submitted by TonyB on Mon, 10/27/2008 - 08:58.

I agree with your assessment and wonder if the combination of factors -- economic slowdown, high fuel costs, lower attendance at the biggest festivals, and so many bands needing to create local followings -- will lead to a wider variety of smaller, local festivals as well as some of the big ones. Maybe they would be branded and controlled by a larger organization, but local festivals that are less than an hour from urban centers will do very well. Let's have one every weekend! There are certainly enough bands. Tony Bove (rockument.com)

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