The Lefsetz Letter — Concert Biz & The Economy

Lefsetz Letter:

Conventional wisdom is the entertainment business is recession-proof.  If you believe that, you probably believe Sarah Palin is our country’s foremost energy expert.

The movie business was hurt by the last recession.  But at least their prices are cheap.  Ours are stratospheric.

We’ve got high prices, a dearth of superstar talent and a financial meltdown.  Do you really think the concert business is going to emerge unscathed

Yes, superstars will sell every ticket.  Then again, Madonna is not selling out, even though her handlers won’t say so.  You can get tickets for gigs.  People e-mail me the promotions.  And if Madonna can’t sell out, what are the odds for Joe Wannabe Band?

Historically the concert industry has been one of rugged individualism.  Run by independent acts and their agents.  To a great degree, this is still true.  But along the way, there was a great consolidation in concert promoters.  Instead of regional fiefdoms, we have the international giants and JAM and…some more indies.  It is time for all concert promoters to unite and tell the acts TICKET PRICES MUST COME DOWN! (Continue Reading…)