Written by Adriana Hamacher    Monday, 18 January 2010 13:02   
German Concert Industry Blames A-list Performers for Falling Profits

altConcert promoters in Germany are complaining that they are being squeezed for profits by international superstar acts. The outcry comes as figures show a 7% drop in live entertainment ticket revenue for Germany, the first such decline in 10 years.

 

A ccording to data released at the end of 2009 by IDKV (a trade group that represents 300 German promoters) and trade magazine,Musikmarkt, ticket revenue from  concerts by international acts fell 17.2% in 2008. Meanwhile, average ticket prices rose 3% to €30.30.

Christian Bilda, owner of Hamburg booking agent X-Why-Z, blames the decline on high concert ticket prices by international superstar acts, which he says cut into consumer spending on concerts by non-superstar artists. Speaking to Billboard, the international music industry publication, he said:

"Tickets have simply become too expensive. Stars like Tina Turner or Paul McCartney charge such high prices that fans can only afford two or three concerts annually."

Jens Michow, president of IDKV, believes that the excessive prices being charged by superstar acts are affecting the German market as a whole. He says that many promoters of non-superstar acts are now adopting a "safety first" approach:

"They are scheduling half the shows they'd have done before, hoping to operate at 100% capacity instead of the 60%-70% they'd otherwise have taken.”

He added:

 “Middle-sized and smaller promoters promote new talent. If current difficulties continue, "there's a real danger they may not feel able to do this job any longer."

While acknowledging that high ticket prices driven by top international acts are harming the industry, the country’s biggest promoters are insisting that the German market is stable. Marek Lieberberg Konzertagentur of Frankfurt, which promoted major acts like U2 and Depeche Mode, projects total attendance at its shows will be up 5% for 2009.

For full story, see: http://www.billboard.biz/bbbiz/search/article_display.jsp?vnu_content_id=1004055896


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