Music Festivals and Economics

Author: Nino Kokashvili

Nowadays most countries or towns have their own music festival of one sort or another. While music festivals are not novelties, the rapid growth in their number rises a logic question:  Are today’s Music Festivals more about money than music? While it is obvious that music festivals are good businesses, there are promoters for whom non-financial reasons play a major part.

 Have music events changed through history?

Music festivals have a long history. Humans have been willing to establish common sharing experiences since the Prehistory Era, when we didn’t even know how to properly talk. In Ancient Greece the Pythian Games (A.K.A. Delphi games held two years after each Olympic Games) included musical performances. They are one of the earliest festivals known. During the Middle Ages music festivals were often held as competitions. Nowadays, even though music has gone through a massive development, still, in 21st century it has a competitive nature, but different type, not only art and music related as it was in the past, but more financial and profit-oriented like any other marketing product.

The Woodstock Festival, which was held for four days on a dairy farm in New York State from August 15 to 17, 1969 and attracted an audience of over 400,000 people. It is one of the first biggest massive festival known and referred as "An Aquarian Exposition: 3 Days of Peace & Music".  Are music festivals for music sake today?  If we think about festivals as places where people originally shared music, peace, love and happiness together, then, this function even today has not changed. Music festivals still provide all of that above mentioned. However, the difference lies in price levels. Compared to famous Woodstock Festival in 1969, attending festivals today is 50 times more expensive. While we are clapping hands to performers, taking pictures from festival ground and enjoying the beer with friends, at the same time, we are eventually feeding the kitty. Festivals are huge money spinners and they have an impact on local economy as well. 

What impact do music festivals have on local economies?

Festivals and especially music festivals have a huge impact on regional development, from direct impact on economy to benefits for society’s wellbeing. One average size festival held in a small town can approximately attract 20 000 – 100 000 people in two days. Which simply results in creating additional temporary jobs and increasing demand on hotels, restaurants, stores and etc. Local businesses get 20-30 times higher profit during festival days. Besides this direct financial benefits of regions, music festivals are great marketing signs for tourists, both, national and international.

The qualities of music festivals matter enormously: their format, management structure, values, ethics and decision-making, and degree of integration into local and regional community and economic life

(Gibson, 2013). Music festivals can play as mirrors of community, country values and culture. Especially, they are eye-catching for tourists.  While “Nobody counts the number of ads you run; they just remember the impression you make”, music festivals seem to be ones that leave deepest marks.

Countries and regions who are willing to economically gain from touristic activities should therefore be interested in music industry and especially in live music industry development.

Whatever the case, music festivals continue to be popular event destinations and when we wander whether today’s music festivals are more about money than music, there are many aspects to take into consideration. At least looking at coin from both sides is always a good idea. Think about it. Look at music festivals in your area. What are they about?