Global Live Music Sales Rise 10 Percent in 2008

In 2008, profit from the live music business increased by 10 percent globally in 2008 to $25 billion, in contrast to plummeting recorded music sales. Ticket sales went up 8 percent to $10.3 billion, while sponsorship, resold tickets, and ticketing fees also rose.

The causes behind the boost seem obvious; more people are spending their cash on concerts. But what about ticket prices? Despite a $1.07 billion loss in 2008, Ticketmaster reported revenue of nearly $1.5 billion, a 17% increase from 2007, thanks to its acquisitions of Front Line Management and resale service TicketsNow. How much are they jacking up the prices?

The company said its revenue from ticketing amounted to about $1.4 billion, for 141.9 million tickets sold, which the Wall Street Journal says is an average of 3% more per ticket than it made in 2007. So that might be a hefty contribution to the 10 percent rise in live music profits.

If the labels and “ticket masters” get all the money instead of the artists, perhaps the industry leaning towards live music isn’t the paradigm shift it’s made out to be. Maybe it’s exactly the same as before, only they get our cash in a different, even subversive way.

Ultimately, high ticket prices aren’t enough to keep everyone away from concerts, and in truth, we should continue to attend concerts in order to support the bands. But stating that live concerts are becoming more popular just because of high revenues could be wrong, as it’s entirely possible the industry will continue to raise ticket prices, and maintain their profits, while cutting access for people unwilling to pay hundreds of dollars.

Do the numbers indicate more concertgoers, higher prices, or both?

Photo via cs.ucy.ac.cy
Source: Reuters