This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

#DigitalSkeptic: The Live Concert Business Hates Live Concerts

NEW YORK ( TheStreet) -- Todd Hunt will tell anybody who's got the guts to listen that the secret to making money producing big-time live music concerts in the digital age is not strictly relying on partners such as Live Nation Worldwide or selling VIP tickets or T-Shirts or via Facebook or the iPhone or even the mobile Web.

The secret is not actually being in the live concert business at all.

"The concerts are exciting. They are the glitz and the glamour. But they are not the bulk of the business," Hunt told me on the phone. He's the director of the 10,000-seat BancorpSouth Arena and Conference Center in Tupelo, Miss., which serves the greater Mid-South, including Tennessee and Alabama.

"Markets vary dramatically," he said. "And it's not like we don't want concerts, but venues of this scale get at most 20% of revenue from live music."

Investors should realize that Hunt is not merely speaking from his 18-some-odd years in the live event trade, nine of which were spent working and then managing BancorpSouth. Or that his facility fetches top-line sales of $1.5 million to $2 million per year from selling north of 235,000 tickets for concerts, events such as Disney on Ice, World Wrestling Entertainment and smaller local graduations and meetings. Hunt is also chairman of the arenas committee for the International Association of Venue Managers, the Coppell, Texas-based large venue trade group.

That means he has a unique line of sight on just the type of facilities that are supposed to be the final payday for today's digitally enabled stars, such as Jay Z, Taylor Swift or Justin Timberlake.

"We love doing concerts when they work," he said. "But the risks now are so great, you have to be very careful."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs