Why are music festivals so expensive?
The Economist・2 minutes read
The Coachella festival in California has grown exponentially in attendance and ticket prices over the years, reflecting the increasing complexity and scale of running a music festival, with the rise of streaming impacting the economics of the music industry and artists' fees. Live Nation and AEG Live dominate the festival market, leading to higher prices and a more standardized festival experience, while unique and immersive experiences are becoming crucial for engaging attendees in the evolving experience economy at festivals like Boomtown.
Insights
- The Coachella festival in California has experienced a substantial growth in attendance and ticket prices over the years, showcasing the increasing popularity and commercialization of music festivals.
- The dominance of Live Nation and AEG Live in the festival market has led to higher ticket prices, standardized experiences, and the acquisition of smaller festivals, emphasizing the significant impact of corporate influence on the festival industry's landscape.
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Recent questions
How has Coachella attendance changed over the years?
The attendance at Coachella has increased significantly from 25,000 in 1999 to nearly 250,000 in 2017.
What resources are required to run a music festival?
Running a music festival involves a vast array of resources such as budgets, water, Wi-Fi, traffic management, toilets, security, food, artists, and more.
How has streaming affected the music industry?
The rise of streaming has made touring more profitable for artists, leading to higher performance fees, like Ariana Grande being paid eight million dollars at Coachella in 2019.
Who are the dominant forces in the festival market?
Live Nation and AEG Live have become dominant forces in the festival market, pushing prices up and acquiring smaller festivals, with Live Nation's net worth estimated at $15.6 billion in 2019.
What is crucial for festival attendance besides headline acts?
While headline acts are important, the overall experience is crucial for festival attendance. Festivals like Boomtown focus on creating unique and immersive experiences to engage attendees in the evolving experience economy.
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Summary
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Evolution of Music Festivals: Growth and Impact
- California's Coachella festival has seen a significant increase in attendance over the years, from 25,000 in 1999 to nearly 250,000 in 2017, with ticket prices rising substantially.
- Running a music festival involves an extensive amount of work and resources, such as hundreds of budgets, water, Wi-Fi, traffic management, toilets, security, food, artists, and more, with festivals like Boomtown requiring 12,000 crew members and tons of scaffolding.
- The rise of streaming has shifted the music industry's economics, making touring more profitable for artists, leading to significantly higher fees for performances, like Ariana Grande being paid eight million dollars at Coachella in 2019.
- Live Nation and AEG Live have become dominant forces in the festival market, pushing prices up and acquiring smaller festivals, with Live Nation's net worth estimated at $15.6 billion in 2019, leading to a more standardized festival experience.
- While headline acts are not the primary factor for festival attendance, the overall experience is crucial, with festivals like Boomtown focusing on creating unique and immersive experiences to engage attendees in the evolving experience economy, where festivals offer transformative experiences for attendees.
