The Economics of Concerts
All the ways money is made from music concerts
1. Ticket Sales
From front row to the cheap seats
- The artist takes a cut
- The venue takes a cut
- The ticket seller takes a cut
2. Merch
- The artist gets money for selling T-Shirts and posts.
- The artist also sells more CDs at merch, driving up music sales
- The people manufacturing the merch get a cut
3. People who produce the stage props get paid
4. The tour staff gets paid
The tour road staff gets paid
5. Private security
The tour will often hire private local security to make sure that the crowds do not go into restricted areas.
6. Concessions
The venue makes money from food and alcohol sales
7. Venue staff
They get paid for working the event
The people also taking tickets and doing security get paid
8. Parking
People pay a lot of money for garage and valet parking
9. Uber/Lyft
A ton of people take taxis
10. Local businesses
People go before and after and spend money in the surrounding area
11. Local government
Police are hired to monitor crowds
The local government gets tax dollars from the event
12. Local residents property value
In the City of Dallas, the city is attempting to make the area around the venue an upscale area called Victory Park. There are many new upscale residential high rise buildings. This is driving up property values surrounding the venue.
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