What happens in music biz when economy sags?

Chris Lasher · From: Blacksburg, VA

A lot of people here have been around long enough to have seen ups and downs in the national and world economy (I mean that in the nicest way possible

), but I'm not that many years past voting age and so it's only been comparitively recently that I had to become more aware of "economics." Now that gas prices are making a run for the next cent by the hour, newspapers I read are heralding the end of a consumerism-driven economy, at least for the winter. (Hey, they've got to sell papers somehow--they don't want to wind up in the poorhouse, too!) They talk in terms of retail, the service industry, electronics, etc., but they never talk about entertainment.

A lot of you are still in the trenches of entertainment, and the music business. So I'm curious, when the wells dry up and people stop spending more dollars than sense, does the music business feel the hurt? Do people stop coming to shows? Do they stop buying albums? Do they just sit at home and watch the boob tube?

Or do people still come out to the shows, seeking a temporary escape from the pressure cooker? Do they still pick up that album with the hit song because it reminds them of what's really good in life?

And what about, say, instrument makers? Do players stop buying instruments, does business just slow down, or does the motor keep chugging away?

I could imagine things either way, but it's better to find out from those who have actually seen it.

So, what's your experience? I come seeking your wisdom. Please, enlighten me as your pupil. I thank you in advance.

Chris

[This message was edited by Chris Lasher on 05 October 2005 at 07:23 PM.]

[This message was edited by Chris Lasher on 05 October 2005 at 07:27 PM.]

Tony Prior · From: Charlotte NC

Chris, this is a good question . Historically there is data.

The simple answer is ...Entertainment pretty much does not change from a great booming Economy to a sluggish Economy.

People still buy food, still buy CD's , DVD's , 45's, LP's etc...they still go out to eat, they still go shopping..they still go to the Mall..

They still Drink Beer, they still Drink Wine..Actually, they drink more !

What they don't do is buy that new car, maybe don't remodel the house, maybe don't go on an extended vacation..Maybe only 1 trip to Disney World instead of two...

Just keep in mind that the News of a struggling economy may not be bad news for many..if folks are still working and getting paid..they are not really part of the bad economy so to speak..sure some items will have inflated prices and they may choose to hold off on a large purchase, but oeverall, life goes on, unchanged...

A few weeks back, when the Gas prices soared and we all were blasted with the News everyday, we all had fear..of some sort.

Of all things, rising Fuel prices are the worst item to cause economic decline.

We played a new club for us that first weekend after Katrina.

Packed to the gills..both Fri and Sat night.

We played a County Fair right in the middle of the extreme gas prices..the place was absolutley jammed with people..wall to wall..

Even during the Big Depression, Entertainment was the item the kept folks sane...

So, my take is this..yes there can be some area's where there is a decline, but I suspect those clubs or area's were in decline long before any mention of a sluggish Economy...

If an area or club was doing well before the so called sluggish economy, there is no reason to belive that they will not continue to maintain status quo.

Music makes people happy..that will never change...Even at $5 or $8 / person door charge, it's cheap Entertainment..that can last pretty much all night...It's a bargain.

My wife sells her wares at Antique shows across the SE. ..the best gross receipts show she has had this year was right after Katrina in Washington DC..Her bi-weekly shows are fairly consistent..Some dealers are always complaining to her that the Economy is causing them to go out of business..

My take is that they were going out of business regardless...the economy is just an excuse to blame poor Business 101 on someone else..

No different with the club/music scene...

A smart club owner will keep things going...and maintain a profit...

A smart business man/woman will be in business 40 or 50 years...they know and understand how to work around a sluggish economy.

my take

and I didn't even mention the word POLITICS !

[This message was edited by Tony Prior on 06 October 2005 at 02:08 AM.]

David Mason · From: Cambridge, MD, USA

I think that solid evidence of an impending economic decline and/or disaster, or even a simple reminder of mortality, often provokes quite a spike in self-indulgent spending - I'm not endorsing this, just observing.* I was in Miami during and following hurricane Andrew, and there was an amazing spending boom in the months following the hurricane. A small percentage of it could be attributed to people spending their insurance money on that new Mercedes or boob-job instead of rebuilding their house (especially the people who collected two or three insurance settlements), but most of it was plain old fatalism - since the bird flu is going to wipe out your grandchildren anyway (if the global warming doesn't get them first), why not have a good time now? When/if/after the crunch is a different matter, many people might find themselves wishing they could take back that last vacation, Rolex, eightball of coke, but then it's a little too late, no?

*(Is it "political" to say I think we're doing this on a grand national scale re our foreign debt? Oops.)

Kenny Burford · From: Independence, Missouri USA

The economy and how it affects the music industry is one of my favorite subjects to examine, I am no expert, but will I parrot what I have been told by the few individuals I knew in the record industry.

It was their general perception that recorded music sales flexed upward and downward with the nations economy because of the lack of disposable income. The theory being if Mom and Dad do not have enough money to make their house payment they are not going to hand their teenager $20.00 cash to buy a CD.

During the Great Depression, the father of country music Jimmy Rogers sold recordings and performed across the country. The US went through a recession in 1957 and I am guessing that’s when Elvis, Jerry Lee, Carl Perkins, and some other notable rock singers of the era were enjoying large record sales. But what may need to be considered, is yes some major artists were selling large quantities of records during that recession, but the overall record sales for the industry were down.

I do not believe the live music industry suffers as much when the economy goes south, especially at the local level as the recording industry or other forms of entertainment. When fuel costs for vehicles goes radically like it has recently, reason would tell us that folks are going to stay closer to home for their entertainment, one result would be that local bands get bigger turn outs at performances. People are the same during a good or bad economy they need outlets to release and have fun. Even in today’s electronic era live music has a charisma that packaged entertainment does not provide, plus live music provides the opportunity for physical contact between the sexes, which few other entertainment outlets provide. I also agree that $5 to $8 for four hours of entertainment is an outstanding bargain that few other entertainment sources can match.

Chris Lasher · From: Blacksburg, VA

Thanks for your insight, guys! I appreciate your food for thought.

David L. Donald · From: Koh Samui Island, Thailand

Entertainment dollars tend to get spent closer to home, in a bad economy.

This can be good for the local bar bands,
or the lower end touring acts playing small,
to meduim sized rooms in more obscure locations.

People will spend less gas, and more beer money if the drive home is short.

But people STILL want to forget their troubles and get out and dance.

Frank Parish · From: Nashville,Tn. USA

Be careful what you read in the paper about the economy. I hear some of that stuff but I can't tell that anything has taken a turn for the worse with the exception of gas prices. I have lots of friends in the contruction business including my son and they're building like crazy. My son took a higher paying job at over $30 an hour recently so I always look to my own pocket before I let the paper or the local news guys scare me to death. Remember bad news sells more than good news. That's why you see more about car bombings in Iraq than schools opening up and more people getting electricity. Remember the news people have an agenda.

In the mist of the Great Depression more big bands and nightclubs sprang up everywhere. These were the big days of Glenn Miller and Tommy Dorsey big bands with Sinatra singing to the Bobby Soxers. People are going to drink if for no other reason that to escape depression at home. In the mid 70's when gas prices tripled overnight, I was working more playing music and getting payed more than I get now but of course this is Nashville too. I could make a decent living just playing music in nightclubs and hotels and didn't need a day job. Gas prices haven't tripled yet this time. What I see that hurts live music more than anything right now is canned music like D J's spinning CD's and Karaoke bars. The folks from ASCAP and the musicians unions should get together on that one IMHO. The ASCAP folks still get their money so they don't care one way or the other but the musicians union doesn't make a dime from canned music. In another thread Jack Stoner got it write when he said what the kids want today is music with a beat. They just want to dance like any young people do. It's a lot easier to meet folks on the dancefloor! The folks that write our new country songs should keep that in mind but until it's profitable for bars and nightclubs to have live music again, the canned stuff is going to rule.

Ray Minich · From: Bradford, Pa. Frozen Tundra

Investments 101... When the economy is going in the tank, buy stock in the enterprises engaging in those acivities where "sin" taxes apply.

Rick McDuffie · From: Benson, North Carolina, USA

The music retail business is generally not affected by a sluggish economy.

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