Ko-Fi prompt from KemiKitty:
id enjoy hearing about concerts and ticket money if you want
Referencing my “how does this make money/how does this lose money” in this post.
Whoo! I actually really enjoy talking about money flow like this. Digging into examples like this helps with understanding the interconnectedness of the economic systems we inhabit, and with why things cost What They Do.
Disclaimer: I have not worked in this industry. I just majored in business, watch a lot of documentaries/video essays, and like to break down business and economic topics. When I got to performances, I try to figure these things out as an observer (dinner theater from watching Lindsey Sterling before she got super famous, more Traditional concerts at Staller Performing Arts center, Broadway shows) and asking questions of tour guides when at places like the Vienna Opera House.
Our Example: A moderately popular performer, in an enclosed performance space with a stage, fixed seating, and food service.
Let us consider a performer of middling popularity. They go on tours, but only in the lower 48 states, not yet internationally. They do single nights at an independent venue, which has either dinner tables or rows of audience seating. Let's say... 350 seats, in a middle-sized city, with $30/ticket on average, with wiggle room depending on seating, VIP passes, and discounts (groupons, senior, military, annual passes, etc).
So, who is getting paid, and who is paying?
Money coming into the venue, tied directly to this one event:
Tickets
The people who came to this concert are paying for the tickets. 350 seats, at an average of $30/ticket, that's about $10,500. Most of this money does not go to the venue, but may pass through it, or leave a cut with it.
(Depends on the ticketing software; we're saying this is an independent venue, not part of the ticketmaster situation, so it's a maybe.)
Food and drink
The venue sells snacks, possibly full meals, if it's a dinner-and-show location. It may sell alcohol. It almost definitely sells drinks, maybe has vending machines if nothing else. If attendees cannot bring their own food and drink, and don't want to leave the building so they don't miss the show, then the venue can mark up the food they sell.
Merchandise
Dependent on the type of merch and the venue, this may be a flat fee, where the performer puts down a few hundred dollars up front to set up a table for after the concert, or it might be taking a small cut of whatever is sold that night. They might not charge anything, but we'll include it as a likely avenue of income. I can see some kinder venues waiving the fee for newer, up-and-coming artists, but generally you can assume that the venue will take a cut.
Money flowing out of the venue, tied directly to this one event:
The Performer and their team
The ticket costs will go primarily to the performer, their backup dancers/singers/band, their manager, and whatever fund they have for things other than wages, like a tour bus rental fee, the label, the driver, the night's post-concert laundry costs, and so on.
The chances of all that money going to a single performer is very low; you can generally assume they have backup, management, additional costs, and someone pulling the strings. There are exceptions, like unaffiliated stand-up comedians or other, genuinely solo acts, but for the type of event I'm outlining, these are all contributing factors.
Performers may bring their own lighting/sound techs. The venue also might provide their own. For a larger venue, I'd assume both are involved; one who knows the concert's program, and one who knows the venue's setup.
Venue staff
The ushers, lighting/sound technicians, the bar staff, the cook, the janitor, security, and anyone else who is working night-of is getting paid. We can equate their pay to the money coming in from specifically the food and drink sales, along with tips for the waitstaff in particular.
By this, I mean that the correlation is such that, should sales fall, the corresponding cut in costs is employee labor (the bar staff and cooks), rather than the performers (whose costs are calculated in relation to the money they bring in relating to the ticket sales).
Food and Drink
Raw ingredients for the food, wholesale costs for the liquor, napkins, single-use straws, and so on.
Printed Programs
Someone has to print the little booklet that tells you who's performing tonight, who's performing for the next few months, and anything else you need to know. If it's a big-name cultural center, they may even include some interviews! But ink is expensive, and that's a lot of paper.
Money coming into the venue, not connected to the specific event:
Advertising
Does the venue have posters around for local businesses? For insurance companies? For upcoming events? Someone is paying them for that.
Does the venue intersperse the pre-show music over the speakers with the occasional ad spot? Someone is paying them for that.
Does the venue have ads in the program booklet? Someone is paying them for that.
For a really, really large venue, the kind with dozens or hundreds of employees and massive lighting/sound setups, they are liable to get most of their income from advertising.
Government Grants and Private Donations
Depending on the venue, they may donations or grants. This is more likely to apply to a university/community performing arts center than a for-profit dinner theater, but it's a possibility.
Merchandise
The venue may have merch that is unrelated to the performance of the night. A historic or novelty location is most likely to have success with this, selling beer glasses with their logo or a t-shirt with 'home of the [band from several decades ago]' printed across the front.
Money flowing out of the venue, not connected to the specific event:
Administrative/Overhead Employees
Management, bookkeeping, legal, marketing, and so on.
Utilities
Electricity, water, sewage, gas, telecomm, and so on.
Taxes, Licenses, Fees
Sales tax, property tax, liquor license, etc.
Mortgage or lease
The venue's business owner is not necessarily the one to own the property outright. They may pay rent to a property owner, or mortgage to the bank.
Maintenance - Building Codes
Any large building is going to need plumbers, glass techs, electricians, roofers, and so on coming by with regularity.
(This part, I actually do know; I used to do repairs dispatching, and you'd be amazed how frequently a big box store needs someone to come by about the toilets.)
Maintenance - Venue Codes
There are certain things that an entertainment venue needs to do that other businesses... don't. Namely, fire safety. It's a huge deal.
Staying up to code can be expensive, especially if you need to get your backstage/wing curtains chemically treated again, which can be anywhere from one to five years, or the next time someone spills water on it. (That's the main reason open containers of liquids aren't allowed backstage.)
Marketing
Just like people pay the venue to advertise, the venue pays for others to advertise it. This could be in the local newspaper or online, but if a given performer isn't someone semi-famous on tour that has a following, then something else needs to draw in a regular paying crowd.
Miscellaneous Overhead
There is a lot of overhead for any business of moderate size that has its costs spread out over the year. This includes hiring an accountant for tax season, purchasing uniforms for employees, replacing cutlery and plates and furniture as it wears out or gets lost, repainting the walls every few years, office supplies when the printer for the programs wears out, and so on.
Is this everything? Almost definitely not.
But, hopefully, I've untangled a few things that you may not have considered before.
Those tickets and drinks you bought cover a lot more than just the performer!
...unless it's through ticketmaster, in which case it's probably just the monopoly.
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ao3 (includes pt2)
Eddie knows he’s gonna lose it one day. Every single time he watches Steve put his hands on his hips and reprimands the feral teens, he wants to jump the man’s bones.
He ends up pinching whatever exposed skin he has when the urge hits him, leaving itty bitty bruises behind.
It works for months until one evening when Eddie lets his guard down and is 3 beers deep. Steve is leaning against the wall with his shoulder holding himself up. Eddie is telling him about how he had to haul Mike off Dustin the day before and Steve out of habit slides his hand up onto his hip.
Eddie stops midsentence and lets his eyes follow the long lean line of Steve’s body to his fingers.
“What?” Steve asks in confusion.
“Huh?” Eddie’s mouth is open when he looks back up.
“You stopped talking.”
“Well fuck, man.” Eddie sighs and flops against the wall near Steve, his back hitting flat and puffing out a huff of air. “You-you do that bitchy fucking stance and it drives me crazy. I wanna…UGH!” He covers his face, the beer can he’s holding presses against his cheek.
“You wanna what?” Steve sounds nervous.
Eddie whines and stomps his feet a little, trying to hold back his answer. It’s so close to falling out, resting on the tip of his tongue.
“You wanna what, man?” Steve’s voice coming out stronger like he’s daring Eddie to be honest.
Eddie drops his hands and pouts over at Steve. “Don’t make me say it.” He shifts from one foot to the other.
“Say what? You’re acting weird.” Steve stands up straight and crosses his arms over his chest.
“Oh goooood, then you do that.” Eddie whines. “You don’t even know, look at you.” He sighs and flops his arms in defeat.
“What the fuck are you talking about?” Steve stares like he’s watching a car crash.
“I WANT TO FUCK YOU! You stand like that and-and I can’t think. It makes me crazy. Like-like feral animal crazy. I want to rip your clothes off and scratch my nails down your chest and watch you tell those little shits off. I can’t fucking take it!” Eddie groans, spins on his heels, and stomps away.
Steve stands in shock, letting Eddie’s words sink in. After a brief moment he shrugs to himself and murmurs, “ok.”
Robin’s head pops around the corner. “What’d you say?”
Pt 2-ish
coffee? ☕️🍩💕
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