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With U2 and the Rolling Stones selling out arenas all across America, the concert business rebounded this past year after a rocky 2004. North American ticket revenue jumped from $2.8 billion in 2004 to $3.1 billion last year, according to the concert-industry trade magazine Pollstar -- with the Stones selling $162 million worth of tickets (smashing their own 1994 North American record of $121 million) and U2 selling $139 million. "For bands with a brand name -- the Eagles, the Rolling Stones, Paul McCartney -- it's been really good," says Irving Azoff, the Eagles' manager. "I didn't see anybody suffer."
While the top veteran acts charged higher-than-ever prices, many second-tier stars took advantage of industry reforms instituted after 2004's dismal summer concert season. That year, Lollapalooza was canceled, many other major tours sold poorly and Clear Channel Entertainment, the world's biggest promoter, promised to reduce facility fees, cap many lawn-seat prices at twenty dollars and pressure artists to reduce their upfront payments. The company came through with the reforms, allowing big shows such as Dave Matthews Band, Tom Petty and the Heartbreakers, Green Day and Coldplay to keep their prices in the thirty-eight-to-forty-seven-dollar range. "It was a better year than 2004," says Alex Hodges, executive vice president for House of Blues Concerts. "The improvement wasn't necessarily related to two or three superstars being out -- it was more related to the midlevel, the top 100 acts after you take off the top two or three. The core business was improved."
But the numbers show troubling long-term signs: The total number of tickets sold dropped from 37.6 million in 2004 to 36.1 million last year, and average prices were the highest ever: fifty-seven dollars a ticket, up 8.8 percent from 2004. The price increases were largely due to the superstars' top prices, which included a record-setting $450 for the Stones and $250 for McCartney. "[Clear Channel concert head] Michael Rapino tried very hard, but he only had partial success," says Tony Dimitriades, Petty's manager. "He's always up against acts that are touring that want to make a certain amount of money. I don't see it as a rebound. The jury's still out about how the concert business is doing."
The big test may come this year, when the Stones and U2 won't be around to bail out promoters. Billy Joel, Eric Clapton, the Who, Coldplay and Radiohead will hit the road, and Mariah Carey, Madonna, Prince, Metallica and the Red Hot Chili Peppers are all maybes. "If you don't have the Rolling Stones, U2 and Paul McCartney, you're missing the three biggest concert attractions in the world," says Dennis Arfa of Artist Group International, agent for Metallica and Joel. "But there will be other superstars."
Top ten tours of 2005 (in millions):
1. The Rolling Stones, $162
2. U2, $138.9
3. Paul McCartney, $77.3
4. The Eagles, $76.8
5. Elton John, $65.8
6. Kenny Chesney, $61.8
7. Dave Matthews Band, $57
8. Neil Diamond, $47.3
9. Jimmy Buffett, $41
10. Motley Crue, $39.9