Table of ContentsBackground and History of American Music FestivalsMusic Festivals Drive the Growth of the Music IndustryImpact of the Internet on Festivals American Music FestivalsMarketing Music FestivalsBooking Trends for Music FestivalsIntense Competition and ConsolidationAEG and Live Nation PartnershipsGoldenvoiceToday, music festivals are much more popular than ever in America. There was a time when there were only a handful of music festivals that Americans could attend, but now there are hundreds of festivals each year that cover almost every genre of music. According to Billboard.com, 32 million Americans attend at least one music festival each year. (Lynch, 2015). To put that into perspective, that's more than the population of the state of Texas and slightly less than the population of the state of California. Just under half of those who attend at least one music festival each year are millennials, the generation aged 17 to 34, which accounts for 14.7 million of those who attend a music festival each year. “Attending a multi-day music festival has become almost a rite of passage for millennials. There are currently over 800 music festivals in the United States alone. Aggressive pricing, a huge lineup of A-list artists, diversity of music genres, social media buzz, and the abundance of cheap rentals on sites like Airbnb are all contributing to the huge growth of festivals” ( Reedy, 2015). These are considered major events that are extremely popular with their fans. Larger music festivals like Coachella and Lollapalooza typically sell out within hours of tickets going on sale, before they even announce their lineups. In 2014, three-day passes sold to Lollapalooza were sold out within an hour of tickets going on sale (Reddy, 2015). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essay The growing popularity of music festivals has led to a sea change in the economic landscape of the festival industry. Music festivals have become big business, raking in large sums of money for weekend-long events. “The five largest festivals combined brought in more than $183 million in ticket sales in 2014, not including sponsorship or sales of merchandise, food and alcohol” (Reedy, 2015). The highest-grossing music festival that year was Coachella, which brought in a record $78 million in just two weekends. This was followed by Austin City Limits with $38 million, Lollapalooza with $29 million, and Outside Lands which grossed $19 million (Reedy, 2015). These wildly successful festivals have encouraged many entrants into the market. The marketing of American music festivals via the Internet and social media has been a significant factor in increasing the popularity of the music festival industry. Additionally, the increase in fan attendance and revenue generated by these festivals has led to an increase in the number of music festivals created; In fact, the number of music festivals has increased so much that many wonder whether the American music festival market has become so saturated that it could be compared to a bubble about to burst. Despite this, corporate sponsorship cases have become a growing part of the festival industry.music, creating more revenue for attendees and bright prospects for the music festival industry. Throughout this article, I will explore the current state of the music festival sector of the music industry, including how it got to its current state, some of the issues facing the industry, the bubble potential and what the future holds for the American market. music festival industry.Background and History of American Music FestivalsGeorge Wein is considered the person who started the American Music Festivals.music festival. “The pioneering jazz musician and music producer launched the first Newport Jazz Festival in 1954. It was the first major outdoor musical event of its kind and has since spawned a host of other groundbreaking concert venues » (Miller, 2010). Thus, this first outdoor music festival paved the way for larger and more well-known music festivals. One of the most famous music festivals after this first outdoor festival was Woodstock which took place in August 1969. This famous music festival took place on a dairy farm in New York and attracted around 400 000 people. The music festival featured 32 artists, including legends such as Jimi Hendrix, The Who, The Band, Janis Joplin, Johnny Winter, Credence Clearwater Revival, Jefferson Airplane, Ten Years After, Joan Baez, Santana, Joe Cocker and Crosby, Stills, Nash. , and Young. It is considered one of the most notable moments in American music history and by far the most famous music festival ever held. Due to poor organization, residents of New York City where the event took place gave the original Woodstock festival a poor reception. Subsequently, the city passed laws to prevent an event of this magnitude from happening again. However, the stage for major American music festivals has been set and today they are very important events in the music industry that are important for artists, fans, brands, etc. Musical groups, especially promising ones, welcome the opportunity to participate in music festivals. These festivals give them the opportunity to make a name for themselves and increase their popularity. “It’s so good for an up-and-coming band because when we go into new territory we don’t have to have the pressure of filling the club on our own, we’re just part of this huge project and they’re promoting. and they do all the cool stuff for it,” according to Laurie Shook of the Shook Twins (Robinson, 2015). For musical groups that already enjoy sufficient popularity, festivals represent lucrative gains. organize their tours around music festivals. “Bands organize tours around high-paying festival periods and plan their album releases around the most notable appearances” (Currin, 2014). to participate in music festivals for both little-known bands and big artists Additionally, festivals are a great way for underground bands who don't get much airplay to build their fan base (Stevens. , 2011). An example of a popular music festival is Coachella, which takes place in the Coachella Valley in 2011. Southern California. Coachella is the largest music festival in the United States and takes place every year in April. In recent years, this festival has been so successful that it has sold out two weekends with identical programming. Founded in 1999, the Coachella Valley Music and Arts Festival has inspired a concert circuit that spans the state ofWashington to Tennessee and Rothbury, Michigan to Miami, and included 72 festivals at its peak before the 2008 economic downturn… The event is a real spectacle: spread across six polo fields in Indio, California, it features five stages and massive art installations. Due to its location 150 miles from the nearest major metropolitan area of ​​Los Angeles and close to the vacation community of Palm Springs, Coachella is considered a getaway (Cormany, 2015). This requires a substantial financial commitment from fans who must pay for transportation and accommodation as well as concert tickets for the three-day event. Similar to Coachella, Lollapalooza is a massive three-day music festival held annually in Chicago, Illinois, attended by 300,000 people each year. Originally a small alternative music event, this festival has grown in size and diversity since its beginnings. South by Southwest, another major music festival that takes place annually in the United States, claims to feature over 2,200 artists who range from virtually unknown to legends. Additionally, electronic dance music festivals such as Ultra Music Festival, Electric Forest, Electric Daisy Carnival Las Vegas, Mysteryland USA, Electric Zoo, TomorrowWorld, and Time Warp USA are growing in size and popularity in the United States; These electric dance music festivals try to give the crowd the same feeling created by the very popular Belgian music festival Tomorrowland. In fact, there are now music festivals for all genres of music that people can attend to join the hundreds of thousands of music festival-goers today. Music festivals promote the growth of the music industry. Today's music festivals are an important part of the changing dynamics of the music industry. . With revenue from recordings constantly changing, the music industry has had to find other ways to make money from music fans. The music festival has in recent years become one of the most lucrative commercial vehicles for the music industry as a whole. “Coachella is part of a rapid rise of stationary music festivals, large and small, across the country and reflects the explosion in the growth of live music since the millennium. Although this will not make up for the 50 percent decline in recorded music sales in the United States since 1999, concert ticket sales made up nearly 40 percent of that loss between 1999 and 2009” (Parker, 2013). . Music festivals provide fans with both a concert experience and a social experience. “'There is a growing trend for multi-faceted social events and people are more willing than ever to make sure they don't miss out on experiential destination weekends with friends,' writes Joe Reynolds, CEO of Red Frog Events, [which produces the Firefly music festival in Delaware every June]” (Parker, 2013). Music festivals are becoming the go-to social event that many choose to spend their entertainment budget on. The increase in popularity of music festivals has led to the need to bring in more big-name artists to headline these festivals. However, the number of artists worthy of headlining is limited: “There are only a limited number of big-name artists to headline a big festival, and they make a lot of money. While Coachella's lowest performers earned $15,000 in 2010, headliners can reach seven figures. It has become a pleasant place to live for certain artists” (Parker, 2013). The festivals ofMusic today gives artists the chance to make big money and revamp the music industry. In 2001, the last time Outkast hit the road for a major tour, they were coming off a multiplatinum album and a number one single, "Ms. Jackson." ". André 3000 and Big Boi played 46 shows on the Stankonia tour and grossed $4.8 million, according to Pollstar. That sounds impressive — until you compare it with the reunion tour they're launching this spring and summer, Outkast will perform fewer concerts – 40 concerts, each at a festival – and will make a lot more money: around $60 million, according to concert industry sources (Knopper, 2014). It's not a unique story within the music industry and when it comes to music festivals. In fact, many former bands are reuniting to play music festivals and make a lot of money. Outkast's success reflects a new reality: Thanks to huge competition for "event bookings" that sell $300 tickets and even more expensive VIP packages, festivals can afford to pay up to $4 million dollars to headliners” (Knopper, 2014). Although these increasingly lucrative salaries entice old bands to reunite, they often headline multiple events and make festival lineups look awfully similar. Cities often host music festivals because they are a huge engine for the host city's economy. “After a decade of steady growth in the music festival industry, many cities are more than happy to host one. The local economies of host cities benefit greatly as they receive millions of dollars in additional tourism-related revenue” (Reedy, 2015). Coachella, the most profitable of the American music festivals, offers a striking example of the advantage of a music festival coming to a city in terms of revenue. “When you consider the $254 million that Coachella brought to the desert region around Indio (and the $90 million to the city itself), it's understandable why any city would do anything it can to help” (Parker, 2013). Additionally, these events, which attract large numbers of tourists as well as local fans, help brand a city and make it a more pleasant place to visit and live. Impact of the Internet on American Music Festivals The Internet and technology have a notable effect on the American music festival industry, just as they have on every other facet of life in America and abroad. Eventbrite, considered a leading platform for online ticketing and registration for concerts and music festivals, recently conducted a study to explore the growing popularity of music festivals in America. According to Eventbrite, “In the past year, 1 in 10 people attended a music festival and 1 in 5 millennials attended a music festival. The boom in music festival attendance is partly due to technology, findings show. Social media has actually fueled the fire of music festivals” (Kunz, 2014). The impact of technology on increasing fan attendance is especially true when looking at electronic dance music festivals. It's a type of music that has exploded online and attracted many millennial fans. Fans often attend these music festivals without even knowing what the lineup of musical artists will be; rather, they participate to have the overall experience (Kunz, 2014). Social media plays an important role in increasing thefan participation at music festivals by creating online buzz about the impending event. Millennials, the group that engages most frequently on social media, are informed about the event by this buzz created by social media and led to believe that the music festival is the event to attend. Generating an audience through social media is a form of non-marketed advertising that is popular with many millennials today. “With social media now a dominant force in the United States, online discussions about music festivals have helped increase ticket sales, the study found. And the chatter demographic is extremely young. In fact, 75% of music festival posts on social media come from millennials aged 17 to 34” (Kunz, 2014). Some American music festivals that have benefited significantly from this type of online discussion include: Bonnaroo, Burning Man, South by Southwest, and Coachella (Kunz, 2014). For example, in 2015, the first weekend of Coachella generated 3.5 million tweets (Lynch, 2015). Additionally, festival-goers flood social media with photos and posts showing how much fun they are having at music festivals, helping to increase their popularity. Festivals have a larger audience, which means more publicity and social media buzz, with thousands of fans constantly posting selfies, photos and band videos on Instagram, Facebook, SnapChat and other popular sites. Fans willingly share information highlighting how much fun they are having so that friends and family back home can see it, and online buzz helps increase ticket sales (Reedy, 2015). Although the 3.5 million tweets that occurred during Coachella's first weekend are still far fewer than the number of tweets that occurred during the Super Bowl, which had 28.4 million tweets, those tweets, along with Other forms of social media are still great advertising for a music festival because it is not nationally televised. of Music FestivalMusic festivals today are becoming bigger and more commercialized than ever before. According to the Huffington Post article “The Commercialization of Music Festivals and the Rise of Super Concerts,” music festivals grew out of community musical and artistic gatherings that took place in Europe and North America (Mason, 2015). They have evolved considerably from their days as small gatherings of independent artists contributing to the culture of the time. “Music festivals began as small gatherings and grew into larger events, bringing with them a generated vibe that propels a festival through word of mouth and an unmissable quality of the event” (Mason, 2015). The growth in reach and audience of music festivals made these events popular destinations that attracted many people, generating larger crowds with different tastes that these festivals wanted to cater to (Mason, 2015). One reason for the popularity of music festivals, the article continues, is that they are shielded from much of the mass commercialization that plagues the music industry in general. These types of events, traditionally, were aimed at fans and lacked much of the commercial atmosphere present in much of the music industry. Music festivals, however, have evolved enormously since the days when they were free from much commercialization. who is present in the music industry and the type of marketing that occurs with thetraditional concerts. In fact, according to Mason (2015), music festivals have evolved into mega-concerts full of commercialism. There are events that resemble music festivals but lack the popular history of the event, lack years where the festival has grown and seen audiences increase over time and have an overall commercial presentation to fans. As commercialization increases, Super Concerts are labeled as music festivals and have become a summer staple. This is not a natural progression for thriving music festivals in America and around the world, but a bastardization and redefinition of the concept of festival, a word and an event shared in around the world across cultures, a common thread of familiarity among all (Mason, 2015). Some critics of the commercialization of music festivals argue that the traditional history of music festivals is being lost. In recent years, ticket prices for these events have increased alongside the commercial aspects of the music festival. Here are some examples of music festivals that critics say turn into great concerts: Lollapalooza, Coachella, Peach Fest, Mysteryland, etc. (Mason, 2015). "Attending these festivals now includes a high ticket price, optional/tempting VIP packages for those who don't want to camp or deal with the general population of GA ticket holders, marketing of products to spectators of the concerts, while trying to see and experience new and familiar music with new and familiar friends” (Mason, 2015). music Now, fans can expect to pay exorbitant prices for refreshments while attending shows that increase profits instead of fan enjoyment. This can affect a festival organizer's ability to deliver programming. new and unique In fact, according to Mason (2015), music festivals are at risk of disappearing altogether and being replaced by Super Concerts. One of the reasons for this is that even small music festivals must include. some commercialization in order to compete with the super concerts and their lavish amenities. Booking Trends for Music Festivals There is a huge risk involved in booking any type of shows for music promoters. “When it comes to festivals, this is even more true: promoters have to shell out huge sums of money to pay artists' guarantees to perform, and if ticket sales are slow or conditions weather conditions force cancellations, the promoter (and his insurance company) takes responsibility. L. It only takes one bad year to decimate an annual festival” (Ruiz, 2016). So no matter how popular a music festival is, promoters may need a greater sense of security when putting on an event. This is the main reason why the booking landscape for music festivals has recently changed in ways that mitigate risk for promoters. The trend in booking headliners for music festivals involves booking headliners of well-known megastars who have already headlined many music festivals before; this trend toward reservations diminishes the uniqueness of the music festival experience. In fact, in the HTF magazine article, "Rock Rant: Are Festivals Running Out of Worthy Headliners," rock editors and writers argue that even though the festival circuitAmerican music is hot right now, these festivals run the risk of people not coming back year after year if they select the same headliners from the limited number of headliners they have to choose from (Westbury, 2013). This sentiment is echoed by the New York Times article, "Music Festivals Scramble for the Same Headline Talent" which claims the music festival circuit has peaked and suggests a decline is coming due to repetition in the selection of headliners (Heyman, 2015). ).Intense Competition and ConsolidationDue to the risk of booking music festivals, many festivals that started as independent festivals are no longer independent. In fact, big promotion companies are rushing to buy out these independent music festivals. “Since 2012, four of the five busiest music festivals in the United States have gone from independent operators to acquired by Live Nation. And Live Nation is just one of many companies rushing to buy up their own festival stock” (Fong, 2016). This has led to a form of market consolidation that has never been seen before in the music festival industry. Eventbrite offers some warnings about what the corporatization and consolidation of the music festival industry means for the music festival industry and fans. One of the first caveats of Eventbrite's proposed consolidation of the music festival industry is that it could lead to the replacement of a unique local music festival experience with a generic music festival brand experience global ; thus, in the future, it will not matter which music festival one chooses to attend, as they will be so similar (Fong, 2016). Additionally, Eventbrite warns that smaller festivals won't be able to compete with larger ones, as artists begin to wait for larger festivals that can make them more money and offer them larger crowds to perform. Additionally, Eventbrite warns that big companies will focus more on making money from festivals and the soul of the music festival will be lost in the process. Eventbrite also states that due to the growing popularity of music festivals in recent years, there will still be opportunities to get in on the music festival action. “After all, even as the market becomes more competitive, demand also increases. Per capita spending on live music events, including festivals, increased from $29 per person in 2008 to $48 in 2014. The music festival industry may be changing, but with as much of addicted fans, there is no shortage of opportunities for organizers to make their mark” (Fong, 2016).AEG and Live NationOne may be unaware that the majority of major music festivals are run by the same two promoters. The two biggest promoters in the world, Live Nation and AEG Live, have turned their attention to the biggest and most successful festivals and are gobbling them up bit by bit, piece by piece. AEG Live has owned Goldenvoice, which produces the Stagecoach, Firefly and Hangout festivals as well as Coachella, since 2001. Live Nation, the only publicly traded live music company, produces more than 60 festivals and is in the process of acquiring late . The company now owns majority stakes in Bonnaroo, Austin City Limits, Sasquatch!, Lollapalooza, and Budweiser's Made in America, among others (Ruiz, 2016). Thus, a huge market consolidation has taken place in the music festival industry and this trend is not expected to change anytime soon. Big promoters such as Live Nation and AEG LiveWeed out independent promoters trying to enter the music festival market. The mega-promoter is on an aggressive acquisition streak that is bringing more and more music festivals under its control. “Live Nation's acquisition of a majority stake in the massive Bonnaroo Music & Arts Festival in Manchester, Tennessee, from founders AC Entertainment and Superfly, continues the global concert company's aggressive acquisition trend in the festival space in the United States, and at the same time eliminates the “independent” status of what was the largest independent music festival on the continent” (Waddell, 2015). With this acquisition, Live Nation has made a definitive statement. “As the only publicly traded live music company, Live Nation aims to show Wall Street that it is a force in this robust space” (Waddell, 2015). To date, Live Nation has accomplished its mission to make Wall Street look good. “Live Nation now has more than 60 festivals in its European and North American events portfolio, including US events like Lollapalooza, ACL Fest, Electric Daisy Carnival, an explosive list of country music festivals that will include at least seven events in 2016, and, now, Bonnaroo” (Waddell, 2015). Similar to Live Nation, AEG has sought to accumulate big-name music (Lewis, 2016), a festival shopping spree, with a portfolio of 27 festivals including the world's highest-grossing festival, Coachella (through its Goldenvoice division ), and the pioneer in the field with the New Orleans Jazz & Heritage Festival. AEG Live President Jay Marciano has focused on investing in businesses that, unlike touring, generate sustainable revenue, and has doubled down on his investments in festivals, which Marciano says "will continue to explode in North America” (Waddell, 2015).Goldenvoice PartnershipsGoldenvoice, has established significant partnerships with popular music festivals in recent years, helping to solidify AEG Live's position in the music festival industry. Goldenvoice, originally a punk rock concert promoter that started thirty years ago, rose to the forefront of the music festival scene with its frontman. event, Coachella (Lewis, 2016). In 2011, FYF Fest, or Fuck Yeah Fest, entered into a partnership with Goldenvoice. In 2014, Goldenvoice partnered with another well-known music festival, creating a joint venture with the founders. of the Firefly Music Festival, Red Frog Events, to promote and produce the festival (“Goldenvoices Announces Partnership”, 2014). The Firefly Music Festival, which began in 2012, "is one of the fastest growing music festivals in the country." (“Goldenvoice Announces Partnership,” 2014). The Firefly Music Festival is an annual music festival held in June at the Dover International Speedway in Delaware (“Goldenvoice Announces Partnership,” 2014). Goldenvoice entered into another joint venture in 2015 with Hangout Music. Festival, a smaller music festival in Gulf Shores, Alabama; This music festival offers a beach setting and smaller crowds than other major music festivals. Goldenvoice also has partnerships with Camp Flog Gnaw Carnival and Panorama music festivals. In January 2016, Goldenvoice. announced the dates and location of its first Panorama festival, which is expected to be New York's version of Coachella (Nelson, 2016). This event will take place the penultimate weekend of July 2016 on Randall's Island. and the scheduling of this event has caused some commotion in the music festival industry due to the fact that the Governors Ball, an independent music festival established six years ago, is considered the version,.