Outrun the Bear….

June 29, 2010
posted by Andy | View Comments

There is a story about two guys walking thru the woods when a Grizzly Bear appears thru the trees ahead of them.  One of the men opens up his backpack, removes his hiking sandals and puts on his running shoes.  The other man notices this and say’s “What are you thinking, you can’t outrun that bear” to which the man responded, “I don’t have to outrun the bear, I just have to outrun you!”

So let’s pretend that the “Recession” is the Grizzly Bear for a moment and talk about how ticket sales for summer concerts are alarmingly low.

There are a million theories as to why, but the most common is that it’s the economy.

I won’t argue that the economy is not contributing, however, I would bet it has more to do with a few of the following.

1) Class System

The first 10 rows of concerts were once filled with people who camped out to get tickets and they provided a bit of the entertainment during the show for the others.  It kind of made you feel better about being there because you saw a group of people so excited right in front of you.  Now those people are sitting behind rows of executives with their kids who spend the whole time texting and talking.  At some point, even the most passionate people’s enthusiasm will dampen if they are separated from their musical heroes by a wall of ungrateful privileged people.  Kind of like having the children sit on the couch while their parents surround the tree and open presents on Christmas morning. The people who are the most excited and appreciative should be in the front.  By the way, artists I have spoken with find it harder to put on a great show when the energy in the front rows is not there.

What if we offered the best seats to people based on how many shows they had attended and music they had purchased?

2) Groundhog Day Show

Have you ever gone to a show and seen the band play the identical set list and say the same “genuine” things between songs?  It’s one of the biggest “buzz kills” in the music business.  I bet 15-25% of every audience comes to more than one show.

If you knew you could please that many people by rehearsing a couple different songs at sound check and giving some thought to what you say between songs, you probably would.

3) Just like the CD

No one goes home from a concert and emails all their friends to say that the band sounded just like the album.  If people rave about the show, it’s probably because the artist did something “Spontaneous” or “Collaborated” with the opener.  The Barenaked Ladies used to make up a song for each town and played it each night.  People went nuts!  It was usually a mess with a couple moments of genius but it was real.  Brandi Carlile puts down her guitar and walks to the front of the stage and sings a song without any amplification.

That’s what people go home and tell their friends about.

4) Movie Theater Pricing

The reason popcorn and drinks are so expensive at movie theatres is because the film companies take most of the gate receipts.  The same thing happens at concerts.  Some artists demand 115% of the gross receipts from a show so the promoter has no choice but to charge $8 for a beer.  We all have our threshold and I have to think that people are having a hard time prioritizing $8 for a beer.

How about we align interests and look at the ticket price, parking fees & concessions as one economy and negotiate a split between the artist & promoter based on overall success?

We will never be able to outrun the bear but we can certainly outrun the competition.

Andy

If you're interested in staying up to date with the Sixthman Blog, sign up to receive regular updates via Email or RSS Feed!
This entry was posted on Tuesday, June 29th, 2010 at 10:39 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  • Danny Young

    You bring a great perspective as usual, Andy. It might be simple thinking, but if we blame it on the economy then we should be able to blame it super high ticket prices we can't afford. I'm mainly talking about the arena/shed shows, as most clubs still make seeing great bands somewhat affordable.

  • Sixthman

    Thanks Danny. I agree that the biggest challenge is arena and sheds.
    Hope you are well.

  • http://twitter.com/DaWezl Nancy Lennert

    IMHO, your post is dead on in terms of why casual fans are cutting way back on concert going, but I think there's one part of the equation that's missing. The music industry never really acknowledged that the massive revenues of the 90's were mainly generated by “replacement” purchases. People purchased CDs to replace albums and cassettes that they'd owned for years. So instead of just having the “new” music that was being purchased, you had this massive influx of back catalogue sales. At this point, that part of the market is now saturated. It would take an incredibly revolutionary technology to convince people to replace their back catalogue now, and frankly, I don't see anything on the horizon that is superior enough to existing technology to encourage mass replacement on the level that occurred during the shift to CDs.

    How does this affect concert pricing? Well, labels got used to a certain level of revenue that was based on an unsustainable level of consumer activity. When that activity began to wane (unfortunately coupled with the technological advances that allowed music lovers to freely download massive amounts of music without any revenue being generated at all), labels had to find ways to replace the missing income, thus the rise of things like “360″ deals where they now get percentages of the merchandising, touring, etc. You end up with a no-win situation for anyone other than the most successful artists, as without label support, many smaller bands/artists won't get airplay, and without airplay, they aren't going to be able to draw enough fans to pull enough at the gate to allow everyone (artists/promoters/venues) to all profit at lower percentages. Throw in Ticketmaster's stranglehold, wherein the fees attached to tickets can sometimes be more costly than the tickets themselves, and it's very hard to present the average consumer with an experience that they will deem “worth” the money spent. I'm obviously more than a “casual fan” of music, and even I can't justify certain tickets to certain shows–as much as I want to see Elton John and Billy Joel perform together, it's just not worth it to me to spend $150 (before fees) and still be sitting way off in the back of the arena, watching the show primarily on a video screen. I might as well buy a DVD of a live performance and watch it at home for the quality of the experience that I will have. (Which probably brings up one additional point–when it comes to live music experiences, bigger is not always better…) But it's not just the large concerts that suffer from this. If I only know a song or two of an artist, I'm not going to be inclined to spend $30 after fees to figure out if they are good live or not, so when labels and TM drive the overall cost over my personal threshold, the artist is the one who ultimately loses out.

  • MEC1207

    Great post Andy. There was actually a conversation going on over at the Cayamo message boards talking about all our experiences with arena shows. If I remember correctly, most of us had opted out of any arena shows ever again. One reason being, as Nancy points out above, who wants to pay $150 to sit in the nosebleed section and watch a video screen? I have sit in my comfortable living room and watch a live dvd on my 40 inch lcd tv instead. Throw in the heavenly experience that is Cayamo, and I'm spoiled for small venues FOREVER.

  • Willow

    I think VIP/Exclusive Concert experiences are also a potential issue here, (maybe bucketed within #1). More and more, front row or front section seats are bundled into VIP experiences (for example, to get the closest Conan O'Brien seats you had to purchase a VIP package that also included a lot of things like apparel and a meet & greet, and it cost Yankees prices), diehard fans who are used to paying face value for up-front seats (and who don't need more than one copy of a CD or t-shirt) are more likely to save up and splurge on one great show experience rather than go to 5 shows on one tour and sit farther back. So they're spending the same amount they used to, but seeing fewer shows overall. The money's the same (actually theoretically probably better for the artist), but the venue is emptier.

    (Or maybe a diehard fan may save up all year to go on one fabulous vacation and see 4-5 shows each from their favorite bands instead of paying the same money to sit farther back at 6-10 arena shows throughout the year ;) )

  • Willow

    there are nowhere near enough parentheses in that comment

  • Sixthman

    I was absolutely referring to the VIP part of it. I am not a fan either.

    Andy

    andy levine
    sixthman | http://www.sixthman.net
    404 526 3531 direct | 404 664 9797 mobile
    1040 boulevard SE | suite j | atlanta, ga 30312

    “If you want to build a ship then do not gather men to find wood, award
    commissions and distribute work. But teach them to yearn for the wide,
    endless sea.”

  • Sixthman

    Thanks Mary Ellen. Arena shows are the ones that are hurting.

    andy levine
    sixthman | http://www.sixthman.net
    404 526 3531 direct | 404 664 9797 mobile
    1040 boulevard SE | suite j | atlanta, ga 30312

    “If you want to build a ship then do not gather men to find wood, award
    commissions and distribute work. But teach them to yearn for the wide,
    endless sea.”

  • Sixthman

    Awesome point on the CD “replacement” theory and the rest. Thanks for
    adding.

    Andy

    andy levine
    sixthman | http://www.sixthman.net
    404 526 3531 direct | 404 664 9797 mobile
    1040 boulevard SE | suite j | atlanta, ga 30312

    “If you want to build a ship then do not gather men to find wood, award
    commissions and distribute work. But teach them to yearn for the wide,
    endless sea.”

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Anonymous

    Thanks for the confidence. We will consider.rnrnAndyrn– rnandy levine | 404 526 3531 direct | 404 664 9797 mobilern”Don’t ask what the world needs. Ask what makes you come alive, and go dornit. Because what the world needs is people who have come alive.”

  • Leslie

    This whole post leads right back to my former suggestion that Sixthman should take on ticketing for concerts. With your already exceptional customer service I am convinced that you could do a far better job than Ticketmaster ever has or ever will!

  • Sixthman

    Thanks for the confidence. We will consider.

    Andy

    andy levine | 404 526 3531 direct | 404 664 9797 mobile
    “Don't ask what the world needs. Ask what makes you come alive, and go do
    it. Because what the world needs is people who have come alive.”

blog comments powered by Disqus