Feeling the pinch

Perhaps it was a matter of time, but the concert industry is starting to feel the pinch of the current economic condition.

Throughout the summer, we've seen many organizations, cities and non-profit agencies either cut back on or cancel events due to lack of ticket sales, failure to secure corporate sponsors or because the event had just simply run its course and had become stale.

The fact the event became stale is nobody's fault but its organizers and/or boards of directors. But that's a different post for a different time.

Now, even the juggernaut of the concert industry ... the monolith known as LiveNation ... is reporting shortfalls in revenue from what was earlier projected.

LiveNation is discounting tickets all over the place -- finding that in many of the venues in which they promote or produce shows, the less expensive seats are selling out while the really, prime seats are vacant. There are stories at some venues at some shows where $60 seats are going for $20 and $45 seats are going for $15.

Not good for LiveNation because many of the artists booked in the venues in which they control are high-dollar performance fee artists.

The good news is that the music industry has reversed itself. Back in the middle part of the 20th century, artists made their money by playing live. Once the recording industry started to get its wheels under it, and as technology continued to advance in the recording arts and sciences, record sales were the primary source of income for artists.

I read recently where itunes accounted for more than 35 percent of all music sales last year. That's a huge hit to the record industry trying to move CDs of their signed artists. It probably explains why the greatness of Virgin Record Store, Tower Records, Sam Goody and other music retail outlets have gone the way of the dinosaur.

So, it's come full circle. Artists must tour to make bank. And, the Real. Texas. Festival. is committed to find top shelf artists and the hottest up and coming acts as well. And, we're gonna find a way to keep those ticket prices at a level where folks can come out, have a good time and not worry too much about the bank account.