The concert business shutdown is creating a credit crisis that’s choking indie promoters. The industry that emerges when it’s done will be more competitive — and concentrated — than ever.
When concerts do start happening again, the industry behind them will have changed significantly. Venue contracts will be renegotiated to account for months of inactivity, and the brands that sponsor tours and festivals will almost certainly slash their budgets. Most importantly, at least some indie promoters may shutter, unable to weather the storm or get the credit they need to endure it — leaving their giant rivals with even more power.
Right now, when so much revenue is tied up, the most important terms involve the guarantees that promoters give acts — especially how much is due when the performance is scheduled compared with when it takes place. Already, Live Nation and AEG pay less upfront, partly because agencies know they’re well capitalized. Smaller promoters pay more, which means more of their capital is already tied up in concerts that have been postponed.
When the concert industry does open for business again, Live Nation and AEG will have the smoothest path forward. But that could disrupt the rest of the business. In the long run, fewer indie promoters would mean fewer potential bidders for talent. That means the concert industry that does return will be both even more consolidated and competitive than it is now.Every day after April 1 that Live Nation can’t put on concerts, it misses $30.
taylorjmims ultra “most of the people are giving refunds” Literally every festival is offering refunds...except for ultra music festival
taylorjmims SterlingKArt
taylorjmims Thank you for answering my question.