The Financial Perks to Music Festivals
April 25, 2016
With so many music festivals popping up nowadays, it’s likely you’ve been to one. They range in everything from size and line-up to genre. The anticipation that comes with waiting for tickets to go on sale at 10 am on a Friday grows with exposure, which begs the question: what is the financial impact of these festivals?
People Will Pay for an Experience…
Thousands of people flock to cities like Austin and Indio every year to see their favorite musicians or to be the first to witness the next up-and-coming artists. With music being so accessible via downloads and streaming, experts argue that fans have a renewed interest in experiencing artists up close and personal. So, there’s no doubt the music industry is thriving. Coachella has long-been the most profitable music festival in the U.S. In 2014 alone, tickets sold out in twenty minutes and the festival raked in over $47 million dollars. Even Austin City Limits has had to expand their festival to two weekends because it was such a success.
..And Local Economies Notice
It’s no secret that when these highly-anticipated festivals roll into town, local economies get a boost. Hotels, restaurants and transportation services all see a clear rise in profit. Small businesses, on average, see about a 30% jump in sales. Larger companies that are often seen at most of these events also reap financial benefits. Many participate via corporate sponsorship and branding from these well-known companies proves successful as they reach new customers. These sponsorship dollars are usually a top source of revenue for these festivals.
As established festivals continue to grow and new ones make their way onto the scene, the financial impact on local economies is largely welcomed.