Artists Slash Prices as Recession Rocks the Concert Business : Rolling Stone

After eight years of growth, during which concert revenues more than doubled, the economy finally seems to be catching up with the touring business. Fearing a deeper recession, top acts are scrambling to cut expenses like special effects, buses, lighting and crew, slashing ticket prices or waiting a few months before hitting the road. "Unless there's a really compelling reason, like a new record or a career retrospective, you're not going to go, 'OK! Now's the time!' " says Andy Cirzan, vice president of music for Chicago's Jam Productions. "You're going to wait this thing out."

With the exception of the biggest acts — Britney Spears and the Eagles have both sold out multiple early-2009 arena shows over the past few weeks — the economic crisis has hit all parts of the business. Concerned about empty seats, many acts have cut ticket prices. Billy Joel and Elton John's co-headlining tour is keeping top seats around $175, the same as their last run six years ago. "That's part of the sensitivity," says Dennis Arfa, Joel's agent. "It's not 'Let's see what we can get.' It's 'Let's try to maintain.'"

Fall Out Boy, too, plan to reduce prices for their '09 tour. "Everyone's going to be feeling it more the next six months," says manager Bob McLynn, adding that the band will cut back on buses, trucks and other expenses. Similarly, all the top festivals, including Bonnaroo, Coachella and Lollapalooza, will freeze prices at 2008 levels, according to promoters.

Like Fall Out Boy, many acts are aggressively cutting costs. While John Legend took four buses on the road for his tour two years ago, he has just three this year, which means fewer jobs and lower revenue for Nashville's Tour Bus Leasing. "I've been doing this for 28 years, and this has to be the worst year I've ever seen," says Ellis White, the company's owner. Next summer's Warped Tour will downsize to one main stage, cut nine bands and eliminate 12 employees. Even Kiss are dialing it down on excess: Their tour planned for late January is likely to reduce from 16 trucks to 12. "We try to be the most cost-effective — what bells and whistles we bring and what ones we don't," says manager Doc McGhee.

Many acts are pairing up in cost-effective packages, like Oasis and Weezer, both of whom saw empty seats in the fall. "It'll be less expensive for the fans and for the bands, because we can split the cost of carting around all the stuff it requires to put on a rock show," says Dan Field, Weezer's manager. Likewise, to keep expenses down, Coachella organizers have pledged not to sign high-cost headliners like 2008's Prince and Roger Waters. "It was getting out of control," says Randy Phillips, chief executive officer for promoter AEG Live. "We're as price-conscious now as we've ever been."

While the economy hasn't stopped most acts from touring, organizers canceled the Social Distortion/Motörhead winter tour due to the "economic climate." And promoters have become more reluctant about signing anything less than a sure thing. "People are cautious," says Tim Borror, agent for Killswitch Engage and Lamb of God. "The tours that would have done great last year are doing good. The tours that have done good are doing OK. The tours that would have done OK aren't doing good."

[From Issue 1070 — January 22, 2009]

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