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By Newsweek Editors
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When '80s metal band Motley Crue announced late last year they were reuniting and ready to rock hard on the road, concert promoters, coming off one of their worst years ever, yawned. It didn't matter that Tommy Lee would be back behind the drums. Or that the Crue would be even more motley, adding fire-breathing midgets and acrobatic strippers to the show. In a business where buzz is everything, few promoters believed fans would pay $55 to watch the aging boomers relive their party days.
Wrong. The "Red, White and Crue...Better Live Than Dead" tour has turned out to be one of the year's hottest. "We knew it was going to work," says Crue manager Allen Kovac. Why? Because he had done something very un-rock and roll: market research. "In this industry, everyone is used to going by their gut," says Kovac. "[But] we actually saw how wide the demo was for Motley Crue."
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It was just the industry's latest correction. Reeling from years of falling ticket sales and half-filled venues, the concert business is undertaking a major gut check. The change is most evident in ticket pricing. Not long ago, promoters were arrogant enough to believe that fans would pay any amount to see their favorite bands. They jacked up ticket prices ("convenience" charges, service charges and parking charges sometimes added up to more than the ticket) and booked acts suited for 6,000-seat auditoriums into 10,000-seat venues.
No more. In an effort to fill seats this summer, chastened promoters are cutting prices: the average ticket price this year has dropped 6 percent, to $50.27. And acts like the Backstreet Boys, which can no longer fill arenas, are being booked into smaller amphitheaters. Clear Channel, by far the largest concert promoter, has brought back the $20 lawn seat. It's also offering a "grass pass." Not what you rock and rollers think, but a package deal where fans score a ticket, parking and a $10 food credit for a flat $39--including service charges.
Of course, megabands still command outsize venues--and proportionate ticket prices. (The industry expects a fourth-quarter boost when U2 and the Rolling Stones hit the road.) Which leads some promoters to argue that reduced prices and added amenities aren't the keys to resurrecting the concert biz. Says Randy Phillips, chief executive of AEG Live, Clear Channel's biggest rival, "It's about innovative shows and venues, not a radical shift in pricing. Our biggest act this summer died 3,000 years ago." AEG's big show? King Tut, which has sold 1.2 million tickets in Los Angeles alone. No pyrotechnic midgets, no strippers. Then again, the boy pharaoh only gets 25 bucks a ticket.
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