In an effort to boost ticket sales after 2004's dismal summer concert season, promoters and artists are taking a novel approach: lower prices. In the first half of 2005, the average concert ticket cost six percent less than last year -- the first decrease since 1996.
Artists including Jimmy Buffett, Dave Matthews Band, Sting, the Eagles and Elton John dropped their average prices slightly and boosted ticket sales compared to the same period in 2004. Other top acts, like Maroon 5 and Green Day, bucked the high-price-ticket trend with tours that averaged $35 and $40 per ticket, respectively. "Some [artists] pushed it to the limit the last few years, and a lot of tours really did poorly in 2004," says Peter Katsis, senior vice president of music for the Firm, which manages Linkin Park, Audioslave and Snoop Dogg. "That's the kind of thing that really wakes people up."
Lower prices haven't exactly led to a recovery so far. Mid-2005 data from Pollstar, a concert-industry magazine, show a 17.2 percent drop in total ticket grosses for the top 100 tours, compared to 2004's first half, and an 11.8 percent drop in total ticket sales. But Pollstar editor in chief Gary Bongiovanni says the numbers are misleading; many artists, from Weezer to Audioslave, have simply "underplayed" -- selling out smaller venues rather than playing to half-empty arenas. In addition, major tours late this summer and fall by Coldplay, U2, Paul McCartney and the Rolling Stones will give 2005 a major boost.
Not every tour is buying into the new "lower prices, sell more tickets" philosophy: Eminem and 50 Cent (top ticket: $91) and Stevie Nicks ($115) received high guaranteed upfront payments, causing promoters to jack up ticket prices; sales are sluggish in some markets for both tours, according to industry sources.
And some concert executives say that 2005's average prices will return to last year's levels, once high-priced fall tours like McCartney and the Stones are factored in. "I bet you at the end of the year we end up at pretty much the same place as last year," says Randy Phillips, president of the concert-promotion company AEG Live. "I haven't noticed managers and agents and promoters being as price-conscious as they should be."
Still, many promoters remain upbeat. "There's no doubt that the market's been very responsive -- we were able to keep our ticket prices down," says Clear Channel Music Group CEO Michael Rapino. Clear Channel, the country's biggest concert promoter, has lowered facility fees and Ticketmaster service charges, and offers $20 lawn seats at amphitheaters this year. Adds Rapino, "It's still not enough. I'd like to see more. The real proof in the pudding is going to be the summer."