2009 Summer Concert Industry Strong Despite Tough Economic Climate

Billboard recently reported that overall concert gross sales from May 1, 2009 to Labor Day were $1 billion, which was flat compared to 2008. Attendance rose for the summer season's 4,200-plus live music shows to 19.2 million, up 3 percent from 18.7 million in 2008.

One could argue that the concert industry was spared by tough economic times due to the fact that many money-conscious fans saw going to a concert in their city as a less expensive alternative to going on a vacation. On the other hand, one could argue that the true emotional connection people have with the music they love transcends most economic forces we face. What do you think?

According to the Office of Travel and Tourism Industries (OTTI), international travel by Americans was down an average of 6.16 percent per month through the first half of 2009. Furthermore, 38 percent of Americans planned on cutting back their travel and vacation/leisure time altogether, according to Deloitte’s October 2008 travel survey.

So, if Americans aren’t traveling, what are they doing with their disposable income? While the prices of concert tickets are on the rise, attendance at live music shows has steadily increased. Passionate music fans have always had a strong connection with their favorite performers, and the current recession seems to have only strengthened that bond.

The notion that people are traveling less and resorting to other forms of entertainment gains even more momentum when you look at box office sales within the movie industry. Box office ticket sales in North America during the summer season set a new record of $4.18 billion, according to the tracking firm Rentrak Corp.

As other industries continue to be rocked by what has arguably been one of the worst economic times in a generation, the music landscape, and the live music space in particular, has continued to endure – a testament to the enthusiasm and loyalty that runs deep with its fans. The question brand marketers should ask themselves is: “Are many of those same passionate fans my current or potential consumers?”.

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