NEW STORY: Entertainment Venues and the Recession

THE FOLLOWING IS A STORY I WROTE FOR MY FINAL JOURNALISM PROJECT. COMMENT PLZ.

Evanston SPACE picked a bad time to enter the concert venue business.

But despite starting up in a recession, general manager Jake Samuels says the Chicago Avenue venue has done well, buoyed by the artsy Chicago North Shore residents.

“We’re a new venue; we’re only a year and a half old, so we don’t have the history that some other venues have,” Samuels says. “For us, our business is steadily increasing, but we’re still working hard to get our name out.”

At first glance, the American concert industry is doing well. Since 2002, North American ticket grosses have increased $1.1 million.

“Regardless of the rest of the economy, costs are high. Those things add up,” Samuels said. “I think there’s an element of escapist entertainment. People don’t tend to stop going out and indulging themselves, in tough times. It’s certainly a nice distraction and we see a lot of people enjoying themselves.”

But while grosses have increased, it’s mostly due to a rise in ticket prices, and not an increase in attendance. The average ticket price has increased $3 to $159 in 2008, according to a report from Stub Hub. Still, ticket prices took a nosedive in 2006.

Communication junior Marcus Shepard has been going to concerts since the seventh grade, and even has a management deal. Shepard says that artists should do more to take care of their fans.

“I think artists should think about [their] fans and I believe many have,” Shepard says. “At the end of the day, though, concerts are about making money, and with the current state of the recording industry, the only aspect that these artists are making money from are their tours.”

Much like SPACE, Chicago theatres, while struggling with subscription numbers, have seen their ticket sales trend upward. Still, officials at most theatres remain cautious in their outlooks for the weeks ahead.

“Our single ticket sales have been fine,” Steppenwolf Theatre Company marketing director John Zinn says. “It depends show to show. We’re doing okay. The financial model [is what] people are looking at more.”

In Steppenwolf’s case, subscription numbers, and in particular, new subscriptions are down.

The success in staying competitive has not only been confined to larger theatres like Steppenwolf, who rely mainly on large, touring productions.

“We had a show at the end of last year that was a big hit,” Next Theatre Company marketing director Chelsea Keenan says. “There is more difficulty bringing in buyers; they’re more careful. Funding is a huge part of our revenue base.”

Next Theatre Company received money from the Recovery Act, but Keenan still says a concerted effort has been made in regards to current marketing trends. She says that theatres have their work cut out for them, owing to the fact that it is much easier for consumers to get information themselves.

“Marketing has changed to be more targeted,” Keenan says. “Consumers are more specific.”
Keenan bills the theatre company as “thoughtful and intellectually provocative,” and so far, the venue has had a decent year, albeit slow.

“Our numbers are down,” Keenan says. “[But] we’re only two of five performances into the year. It’s very common for us to see single tickets and subscription goals met by the end of the year. I’m not concerned about it.”

But because the recession took hold after some of the best years in the economy’s history, expectations are tough to match.

“We had a banner year the year before the recession,” Northlight Theatre marketing director Chad Peterson says. “So that year looks more like an anomaly. In 2008-2009, subscription sales came down but stayed above our five year average. This year we’re trending up.”

But Peterson says he is concerned by a particular attitude shift that has taken shape in the midst of the recession.

“People are [now] far less willing to take something on trust. [They almost want] a guarantee,” he says. “I think what we’ve seen is [that] a lot more shows have to be ‘the’ hot show. I certainly hope it’s temporary. I hope people are willing to take risks.”

On the other hand, theatres that rent out space rather than produce shows are doing just as well. Theatre Building Chicago says that business is booming.

“Our rentals are for space,” TBC marketing director Jeff DeLong says. “We rent theatres to clients. Our attendance has been very good; rentals are at about 97 percent, but there has been a slight dip. We are still an affordable entertainment option.”

TBC’s marketing procedures have changed, and shifted to more low-cost options.

“We have definitely increased our social networking presence,” DeLong says. “[For example] we’re twittering about what’s going on; [these are] low to no-cost advertising options."

But Shepard, like most people, says he ultimately doesn’t concern himself too much with the price.

“I only attend concerts that I know the artists I am going to see are going to put on a show. Whether it is an artistic show such as Beyonce, or a vocal showcase such as Ledisi and Jill Scott, at the end of the day, I pay to hear good singing and have a good time.”