Music festivals face challenges

From USA Today:

More than a dozen new festivals — from All Points West in Jersey City to Outside Lands in San Francisco — are springing up to compete with established events such as Chicago's Lollapalooza, South by Southwest in Austin, the New Orleans Jazz & Heritage Festival and Bonnaroo in Manchester.

"It's a demand that has more supply than it had 10 years ago — or even two years ago," says Ray Waddell, Billboard's touring editor.

But ticket sales to two of the most successful recent festivals, Bonnaroo and California's Coachella Valley Music & Arts Festival, were down this year.

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In theory, new festivals could cannibalize from existing ones, especially those like Bonnaroo, which draws fans from all 50 states and several countries. Few festival experts believe the market has reached a saturation point, however. And although gas prices might prevent fans from driving long distances to destination festivals, they could help new regional festivals that offer a nearby option.

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Gasoline prices don't just affect the fans. "It's bad, man," says country singer Dierks Bentley, who'll play Lollapalooza in August. "It's six grand to go to the pump with two buses and four semis. And we do that two out of every three days."

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