With a decline in record sales, record labels and labels
have had to explore different ways to monetize talent. Concerts and festivals
are one way that artists are able to engage their fans and earn revenue for the
record label. Then new wave of 360 degree
record deals allows artists and labels to share revenue from multiple sources
such as merchandise sales, publishing, record sales and touring. Labels are increasingly encouraging artists
to tour and join festivals that are popping up and reporting record successes.
Fans are appreciating that their favorite artists are
actively touring. The world’s largest
promoter, ticketing company and management firm, Live Nation Entertainment,
reported that attendance at live shows was up 11 percent in 2013. The company
also reported an increase in cash flow generated from operations, citing fan
willingness to pay higher prices for reserved seats at indoor venues during the
festival off-season. As record sales are expected to continue to decrease due
to streaming services, its a safe bet that more of your favorite artists will
tour in the near future.
Inside a 360-Degree Deal. (2007). Rolling Stone, (1040), 14.
Waddell, R. (2014). Live Nation’s Sweet Spring. Billboard, 126(16), 10.
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