Top Strategies for Successful Influencer Collaborations in the Beauty Industry

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The Business Side of U.S. Music Festivals A Look at Corporate Involvement

Sleeping in a tent for days only to see Beyoncé make history at Coachella. Crowds gather in a park for a surprise appearance by Dolly Parton at the Newport Folk Festival. Music festivals have grown in popularity, and these types of experiences have become an important part of American cultural life.Music festivals have turned into a big moneymaker in a competitive business with hundreds of such events held in the United States each year during the past decade. There are the big ones—Coachella, Lollapalooza, Outside Lands, Governors Ball—with high ticket prices, many stages, camping possibilities, and seemingly infinite lists of performers. Along with their growth in popularity, hundreds of smaller, niche, or genre-specific festivals have emerged. Look up "music festival near me," and you'll probably discover one within a few hours' drive.

Music festivals originated in ancient Greece, when such festivities frequently featured competitions in music, arts, and sports

Woodstock's establishment and spirit inspired modern music festivals in the United States. Though it was not the first of its sort (the Newport Folk and Jazz Festivals, Milwaukee's Summerfest, and the Monterey Pop Festival all preceded Woodstock), the 1969 event remains legendary in American pop-cultural history. Festivals have developed from the DIY, communal ethos of Woodstock to mainstream businesses that earn profits and welcome corporate sponsorships, with over 32 million people attending each year, according to Billboard. Coachella, one of the country's most popular events, made $114.6 million in 2017, setting a new record for the first recurrent festival franchise to make more than $100 million."They used to be more of a communion of culture," says Carlos Chirinos, a clinical music and global health professor at New York University. "A group of folks who like the same style of music would gather together. That was the driving force in the 1970s and 1980s, until it became a profitable format."According to Chirinos, the mechanics that drove music festivals to become top earners are heavily influenced by the effects of modern living. People are now more likely to spend money on experiences rather than material objects, he claims, arguing that sharing a video of a Billie Eilish or Cardi B performance with one's Instagram followers is more rewarding than purchasing something pricey. That "experiential economy" has risen at the same time that marketers have attracted into festivals, seeking to capitalise on the potential that one huge group in a single area provides, he claims. According to a 2019 Deloitte survey of millennials—who account for at least 45% of the 32 million people who attend music festivals—experiences are most valued. 57% of respondents indicated they preferred traveling and experiencing the globe over having a property.Music has evolved, making festivals more appealing to listeners. As streaming becomes one of the most popular ways to listen to music, ticket and product sales account for the majority of fans' music purchases. Listening to music has become basically free (or subscription-based), making live music even more special, according to Chirinos. "Audiences are keen to connect to the artist," observes him.

According to Rishi Bahl, a musician and marketing professor at La Roche College in Pittsburgh, Pa

participating at music festivals is a more convenient way for artists to earn money than relying on record sales or lengthy tours. As record sales plummeted in the early to mid-2000s due to the rise of digital music, artists began to rely on touring for income. According to Bahl, festival organizers quickly noticed the increase in touring acts and chose to pay them more to appear at their events. He observes that a band like the Offspring, which played Woodstock '99, now spends the majority of their touring schedule performing at festivals. Approximately 15 of the Offspring's 20 remaining gigs this year will be at music festivals."They don't need the hassle of touring anymore. "They will fly to a show, get paid six figures, and then fly home," Bahl says. "So that model is super integral as to why artists and agents are focusing so hard on music festivals."Over the last decade, the arrival of major music promoters has streamlined and altered the business of music festivals. Putting up a festival is difficult because you must pay artists enough to secure their appearances, sell a particular number of tickets to be successful, pay for additional insurance, and deal with the hazards of inclement weather. Large corporate live music producers, such as Live Nation and AEG Live, have recently purchased significant controlling holdings in some of the country's largest festivals. Their organizational skills aid in the management of ticketing and other aspects of festival planning. After acquiring a controlling interest in Bonnaroo in 2015, Live Nation purchased the remaining portion this year to take complete control of the festival. Live Nation also owns or controls a number of events, including Lollapalooza and Austin City Limits. Every year, the firm provides a "Festival Passport" for $999, which grants spectators admission to more than 100 festivals. AEG Live has contributed to the production of Coachella, Firefly, and Stagecoach through its ownership of the producer Goldenvoice.

Then there's the opposite side: not all music festivals are intended for the general public, and not all programmers desire the influence of major promoters

Don Smiley, CEO of Summerfest, which takes place in Milwaukee for 11 days each year, says his organization has adapted to changing circumstances to make the annual event relevant. Summerfest, which attracts between 750,000 and 850,000 people annually over the course of its almost two-week run, bills itself as the "world's largest music festival" (albeit the current record is held by Austria's Donauinselfest, which had more than 3 million participants in 2015). "We keep offering new experiences, from front-row viewing to VIP experiences, to embracing new technology," Smiley told the magazine TIME.Ultimately, a festival's success is determined by its lineup. Summerfest's 2019 lineup featured Lionel Richie, The Killers, Jennifer Lopez, Billie Eilish, Lil Wayne, Snoop Dogg, and The National—a broad collection that does not rely on a single genre or artist. "Our customer base is really eight to 80 [in age]," according to Smiley. "We cover every form of music. That's what we attempt to provide. The Newport Folk Festival, which began in 1959, is another example of an event that has managed to change enough to remain a draw for spectators while maintaining its objective of meeting corporate sponsorships. Newport's non-profit proceeds benefit the Newport Festivals Foundation and charitable causes. Jay Sweet, who runs the Newport Folk and Jazz Festivals, tells TIME that the folk festival has survived so long by "just focusing on itself." Where recent attempts to resurrect Woodstock have failed, Newport has remained committed to bringing people together "in a communal sense," according to Sweet. "We stuck to our own blueprint and we haven't changed a whole lot," he boasts. "It's very artist-focused."

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