Shake, Rattle And Roll

American Demographics, Oct 1, 2002 by Peter Francese

It's a challenge for those who put on music festivals and concerts to find the right venue, arrange for sponsorships, sign up vendors and provide adequate security and cleanup services. It is not difficult to find firms or individuals with expertise in these areas. But as with so many other enterprises, it is marketing expertise - the ability to attract enough customers to make a venture profitable - that makes the crucial difference.

During the next several years, the tens of millions of 16- to 24-year-olds who are now burning their own CDs will pay to hear their favorite bands in a place where they can dance, camp, buy merchandise and otherwise be entertained. It remains for an enterprising individual to survey youthful music fans within a day's drive from a chosen venue to determine what type of music and which new performers would likely attract, say, 25,000 customers spending an average of $200 each. Create and market 10 such events around the country each summer, and the result is a $50 million a year business, the profit on which will likely depend on the accuracy of the research conducted and the decisions made long before the concert begins.

Peter Francese is the founder of American Demographics. He can be reached at peter@francese.com.