crisis point? an analysis of the current landscape of outdoor music festival in china
TRANSCRIPT
Crisis Point? An analysis of the current landscape of outdoor music festivals in China
ZIXUAN SONG
ABSTRACT
Music festivals are becoming increasingly popular around the world. It is one of the
few industries, in the age of digital music and music streaming, which is growing
sustainable in the slump in music sales. The size and longevity of outdoor music
festivals in China have developed remarkably over the past ten years as well, which
have been used as an urban characteristic and a new industry model in some
metropolises. However, some music festivals kept losing from beginning to end, and
even some well-known festivals are cancelled behind the flourishing exterior of
Chinese music festivals. This dissertation will explore the reason why some music
festivals in China experienced difficulties and attempt demonstrate that some
Chinese outdoor music festivals are likely to have potential bankruptcy crisis in the
near future.
KEY WORDS：outdoor music festival, potential bankruptcy crisis
CONTENT
INTRODUCTION............................................................................................................1
AIMS and OBJECTIVES............................................................................................2
METHODOLOGY.....................................................................................................3
LITERATURE REVIEW..............................................................................................4
STRUCTURE of DISSERTATION................................................................................5
1. Overexpansion.......................................................................................................7
1.1Introduction......................................................................................................7
1.2 Scale of music festivals in China and other regions..........................................7
1.3 Overstretched Chinese music festivals may face crises in the near future.......9
1.3.1 Position of music weakening in some music festivals............................9
1.3.2 Music ignored by organisers in some outdoor music festivals in China
......................................................................................................................10
1.3.3 Outdoor music festivals treated as commercial tools..........................11
1.4 Conclusion.....................................................................................................12
2. Simple funding sources........................................................................................14
2.1 Introduction...................................................................................................14
2.2 Support from the government and other specific institutions.......................14
2.3 The issue of sponsorship................................................................................17
2.4 The issue of selling tickets..............................................................................18
2.5 Conclusion.....................................................................................................19
3. Rising ticket prices.................................................................................................21
3.1 Introduction...................................................................................................21
3.2 Ticket prices of music festivals are rising constantly in China and in some
other regions.......................................................................................................21
3.3 The reason why ticket prices of music festivals are rising constantly.............23
3.4 Higher ticket prices may bring crises to music festivals.................................24
3.5 Conclusion.....................................................................................................26
4. Similar content of music festivals........................................................................28
4.1 Introduction...................................................................................................28
4.2 Similar line-up and music genres of music festivals.......................................28
4.3 Similar venue of music festivals.....................................................................29
4.4 Conclusion.....................................................................................................31
CONCLUSION..............................................................................................................33
BIBLIOGRAPHY............................................................................................................36
INTRODUCTION
Music festivals are becoming increasingly popular around the world, developing
from small events to become a sizeable part of the music industry in approximately
50 years (Holt, 2010). It is one of the few industries, in the age of digital music and
music streaming, which is growing sustainable in the slump in music sales. According
to the ‘Global Music Festival Events Calendar’ for 2015 by Pollstar (2014), there are
over 1,500 confirmed music festivals from 70 different countries taking place this
year. Meanwhile, various sectors within the music industry and also in other
industries have benefited from the successful music festivals, as they are not only
independent events but also effective industrial chains (Yeoman et al, 2004). Music
festivals are associated with diverse industries including advertising, sponsorship and
tourism. Therefore, the fact that music festivals are developing steadily, and play a
role in developing related industries deserves more attention.
The size and longevity of outdoor music festivals in China have developed
remarkably over the past ten years as well, which have been used as an urban
characteristic and a new industry model in some metropolises (Yan, 2008). According
to ‘Market Research Repot of Chinese Outdoor Music Festival’ in 2013, music
festivals were held 89 times in 2012, an increase of 28.99% compared to the number
held in 2011. There are also some Chinese festivals being held overseas; over 6,500
people attended the Modern Sky Festival in New York in 2014, and this will also be
held in Helsinki and Seattle in 2015 (Billboard, 2015). On the other hand, some music
festivals kept losing from beginning to end, and even some well-known festivals are
cancelled behind the flourishing exterior of Chinese music festivals. For instance, the
two biggest music festivals in China are ‘Strawberry Music Festival’ and ‘Midi Festival’
and both have announced almost at the same time that they have cancelled festivals
in Beijing in May this year (Chaoran, 2015). Moreover, both Evergrande Starlight
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Carnival Music Festival and Zebra Music Festival have cancelled all events which in
the first half of this year (Chaoran, 2015). The dissertation will also appraise whether
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the market is over saturated. Compared with China, music festivals in other
countries, such as the U.S., the U.K. and Australia, have a longer history, during which
a mature operational model has been developed. According to Nielsen Music (2015),
32 million people attend at least one U.S. music festival every year. However, some
problems have emerged with the rising prices, overproduction and repetitive nature
of those music festivals. In order to avoid a similar situation, these problems should
be attended to by organizers of music festivals in China.
AIMS and OBJECTIVES
This dissertation will demonstrate that some outdoor music festivals in China are
likely to have a potential bankruptcy crisis in the near future. In order to prove this
viewpoint, this dissertation will not only illustrate the current problems that Chinese
outdoor music festivals face, but also analyze the potential crises which affect some
foreign music festivals, in order to predict what difficulties Chinese music festivals
will encounter in the future. Initially, there is a need to understand in depth the
current situation and development tendencies of outdoor music festivals in China,
and in other countries including the U.S., Australia and the U.K. More importantly,
the similarities in the process of development of music festivals in China and other
countries cannot be ignored.
This dissertation will concentrate on some specific music festivals which are not only
held in China, but also in other countries. Specifically, it will look at three festivals in
China, one in the USA and one in Australia as the main research cases. Through
researching on these cases, what key factors are constituting a music festival will be
explored, and it is important to observe the development of these factors at different
times in the music festivals being studied. This dissertation will also analyze the
sectors related to music festivals, such as tourism, sponsorship and catering services,
and the changing relationship between these sectors and the music festival industry.
Additionally, based on the analysis of the key factors in music festivals and the
relationship between music festivals and related sectors, this dissertation will focus
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on some specific aspects of the industry, particularly on scale, funding sources,
capital spending, ticket prices and festival content, in order to explore what exactly
the potential crises are by researching on some cases which have similar problems. In
addition, compared with other cases which are successful to explore the reason why
some potential problems exist in these sections of thesee music festivals in China.
Based on all the theoretical analysis and cases studies, this dissertation will present
the argument that some outdoor music festivals in China are likely to have a
potential bankruptcy crisis in the near future due to overexpansion, simple funding
sources under massive spending, rising ticket prices and similar content.
METHODOLOGY
Primarily, I will concentrate on the current situation of music festival markets in China
and other regions by analyzing on several reports; ‘Market Research Report of
Chinese Outdoor Music Festival 2013’; ‘Global Music Festival Events Calendar 2015’;
‘The UK Festival Market Report 2010’ and ‘Association of Independent Festivals Six-
Year Report 2014’. These reports on music festivals are effective as a reference, since
they provide specific data, development tracking and features of music festivals on a
macro-scale. All of these materials are significant for my research, which should be
explored before the other stages.
Secondly, the main method for researching the dissertation topic will be case studies.
There are a few cases which will be analyzed specifically, including both Chinese
music festivals and festivals in other countries, such as Modern Sky Music Festival,
Midi Music Festival and Strawberry Music Festival in China, Coachella Music Festival
in America and Elvis Festival in Australia. The Chinese cases will be explored through
a range of sources, including the work of Groenewegen-Lau (2014), Naizhu (2012)
and Xiaoyu (2009). There will also be an analysis of music festivals in North American,
using the work of Bladen et al. (2012) and Zuleika and Chantal (2007), along with two
online articles which are the work of Deconstructing (2014) and Currin (2014). Then I
will be drawing on the work of Joanne (2008), Gibson (2012) and Joanne (2008) for
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the research on the music festival in Australia. Similarly, the work of Ali-Knight et al
(2009) will be used to research the music festival in Britain.
Lastly, the dissertation will compare and contrast these several aspects of these cases
which are scale of the festivals, funding sources, ticket prices and festival content, in
order to explore the similarities and differences of problems encountered by these
music festivals. Then the dissertation will illustrate the current problems that Chinese
outdoor music festivals face and predict what difficulties they may meet. After all the
analysis, there will be a summary and conclusion.
LITERATURE REVIEW
In order to research on music festivals in China, this dissertation will draw on
materials from popular music studies focusing on festivals. The works of Ali-Knight et
al (2009), Leenders et al (2005), Thrane (2002) and Gibson et al (2012) are
particularly effective, as they provide many effective cases studies of music festivals
in Britain, the U.S., North American, Australia and Europe. The dissertation will also
focus on the works of Groenewegen-Lau (2014), Naizhu (2012), Xiaoyu (2009) and
Yan (2008), which give research on several music festivals in China. All of these
sources are useful as they illustrate specific features of every festival, including scale,
the process of development, line-up, type and funding sources. The dissertation
researches Chinese music festivals by comparing several festivals in different
countries and regions through these materials.
Some materials from management studies are also significant in the analysis of music
festivals. The work of Bladen et al (2012), Yeoman et al (2004) and Jones (2010) are
the principal sources covering many fields, including event management, operations
and risk. Some relevant topics are further discussed including media and
sustainability. For instance, these academic sources analyze the relationship between
festivals, politics and policy, and the role that the government plays in festivals and
events will also be discussed. Moreover, these materials also focus on risk
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management – all the risks which are proposed in the research may become
problems for music festivals in the future. Therefore, all of these sources are
particularly effective in analyzing not only the relationship between festivals,
government and audiences, but also potential crises in Chinese music festivals.
Additional materials from economics and marketing will be researched as well. Some
sources focus on the sponsorship of music festivals, including the works of Joanne
(2008), Anderton (2011) and Rowley et al (2008). These materials are effective
sources because they make branding, sponsorship and commerce connection with
music festivals. Furthermore, they also analyze potentially negative effects of
sponsorship and brand use. There are also several sources focusing on the ticket
prices, including the works of Decrop et al (2014), Holt (2010), Krueger (2005) and
O’Reilly et al. (2013). Theses academic materials will help explore the significance of
the ticket price and the reason why ticket prices are increasing steadily in recent
years. All of these analyses will help to predict the potential crises of Chinese music
festivals.
STRUCTURE of DISSERTATION
The dissertation will consist of five chapters. The first chapter will explain that
overexpansion is one reason that why some outdoor music festivals in China are
likely to have a potential bankruptcy crisis in the near future. Initially, the first section
of this chapter will illustrate the current scale of music festivals in China to
demonstrate that overexpansion of music festivals exists throughout China. The
following section will explain why Chinese music festivals are becoming
overstretched and why overstretched Chinese music festivals will bring crises in the
near future. This section will explain the argument by analyzing the relationship
between music festivals and the government, the audiences and the artists. Lastly,
based on the analysis, it will be proposed at the end of this chapter that
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overexpansion is one reason that some outdoor music festivals in China are likely to
have a potential bankruptcy crisis in the near future.
The problem of simple funding sources under massive spending will be presented in
the succeeding chapter. Four aspects will be discussed in this chapter. The first
section will explore the issue of financial support of music festivals from the
government, then the issue of funding from ticket sales will be discussed as well.
Moreover, income from the sponsor should also be researched. The last one will
explore the issue of massive spending of festivals. Finally, the conclusion of this
chapter will be proposed that because of the immature industrial chain of music
festival have not been formed and the investment of some music festivals is
excessive, Chinese music festivals may face huge financial pressure. The following
chapter will demonstrate how rising ticket prices could be another factor leading to
bankruptcy crisis in Chinese outdoor music festivals. The first section of this chapter
will illustrate the current situation of ticket prices of music festivals in China and
some other regions. The following section will explain why ticket prices of music
festivals are rising up constantly. Besides, the third section will illustrate that why
higher ticket prices may bring crises to music festivals. Lastly, based on the analysis,
it will be proposed at the end of this chapter that rising ticket prices is one reason
that some festivals in China are likely to have a potential problem in the near future.
Similar content has also been recognized as a reason for potential problems in
Chinese music festivals. There are several specific aspects will be analyzed in the
fourth chapter – similarities in line-up, music genres and venues. The conclusion will
restate main topic and summarize the argument that some outdoor music festivals
in China are likely to have a probable bankruptcy crisis in the near future.
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1. Overexpansion
1.1 Introduction
In recent years the number of music festivals has been growing steadily around the
world, and China is no exception. Some festivals in China are even expanding
overseas. However, some music festivals in China have become commercial tools for
both organisers and officials to promote products unrelated to music, which has a
detrimental effect on music festivals in China, especially regional festivals. This
chapter will illustrate the current scale of music festivals in China and explain why
they are becoming overstretched and why this will bring crises in the near future.
1.2 Scale of music festivals in China and other regions
The number of music festivals around the world has been growing steadily every year
over the last decade (O’Reilly et al, 2013). According to ‘Global Festival Events
Calendar’, in 2013 more than 1200 events (from 70 countries) were held around the
world—including 10 mainstream music festivals held every weekend from July to
August—with more than 1500 events confirmed for 2014 (Pollstar, 2014). This
growth, however, is intensifying competition in countries that have a long tradition of
music festivals, and is resulting in market saturation (Ali-Knight et al, 2009). This year
Live Nation has finished a series of high-profile acquisitions. Shortly after the
completion of the deal to acquire the Bonnaroo Music Festival in April (Sackllah,
2015), Live Nation completed MAMA & Company acquisition after only four months
(Hanley, 2015). Then, it targeted other markets in Europe, and continued
international expansion with Germany move, the fifth-largest live music company—
MLK (Market Lieberberg Konzertagentur) was acquired by Live Nation (Hanley, 2015).
Sackllah (2015) indicates that the reason why Live Nation has fastened speed of a
new round of global expansion probably is it has to seek new business growth points
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since the live music market of North American is becoming saturated.
In 2007, an estimated 485 music festivals (not including free festivals), covering every
genre of music, were held in Britain; this represented a surprising 38 per cent growth
in the number of festivals in just seven years (Mintel, 2008). However, many events
failed to attract a capacity crowd, indicating that the British market may be suffering
from overexpansion (Leenders, et al., 2005). A similar situation appears to be true of
some countries in Europe as well, where the size of audiences and the number of
music festivals have increased substantially in the past decade but where some music
festivals are beginning to experience difficulties in attracting crowds (Koranteng,
2004). Competition for audiences has grown enormously in recent years because of
the influx of many new festivals. For example, in Switzerland there are over 200
music festivals each year, all competing for audiences from a population pool of only
20 million people. Most people simply cannot afford the time and money to attend
all the festivals they might find attractive (Leenders, et al. 2005). Indeed, the famous
Dutch festival Pinkpop was left with thousands of unsold tickets in 2004, and the
festival Lowlands in the Netherlands has experienced similar problems (Leenders et
al., 2005).
In China, the number of outdoor music festivals soared in the last decade, increasing
sixfold (from 24 to 148) in the seven years from 2007 to 2014 (DaoLue, 2014).
Moreover, the size of audiences more than doubled in just three years: from 1.26
million in 2011 to 3.07 million in 2014 (DaoLue, 2014). The most noteworthy increase
was recorded in the period between 2012 and 2013 when audience sizes increased
by 54.2 per cent (DaoLue, 2014).
The Strawberry Music Festival is one of the biggest festivals in China. In 2014, it
covered 12 cities and attracted audiences totalling 710,000 people (Billboard, 2015).
Some Chinese festivals are held overseas. Over 6,500 people attended the Modern
Sky Festival in New York in 2014—it is to be held in Helsinki and Seattle in 2015
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(Billboard, 2015). According to the president of the Modern Sky Company, Lihun
Shen, the Chinese music festival market has become the fastest growing music
market in the world over the past few years (DaoLue, 2014). However, he also warns
that the Chinese music market cannot sustain this growth, because it has been too
rapid (DaoLue, 2014). According to ‘Market Research Report of Chinese Outdoor
Music Festival 2013’, although the trend in the number of Chinese music festivals was
still upward in 2014 (compared with 2013), the rate of increase dropped dramatically
from 36 per cent in 2013 to 22.3 per cent in 2014 (DaoLue, 2014). Furthermore, the
growth rate in the number of audiences decreased considerably, from 54.2 per cent
to 14.1 per cent between 2013 and 2014. These data indicate that the market for
Chinese outdoor music festivals may have overexpanded, resulting in overstretched
resources.
1.3 Overstretched Chinese music festivals may face crises in the near future
1.3.1 Position of music weakening in some music festivals
Music is a significant part of the attraction of music festivals. However, the main
factors for attending music festivals relate directly to the theme of each one and the
specific attractions on offer, socialisation of festival is also important (Yeoman et al.,
2004). Festival organisers do not rely on specific artists, or music alone, to attract
their audiences (Bowen & Daniels, 2005), and budgets, artists and bands are largely
insignificant factors of success (Leenders et al., 2005). On the contrary, organisers
need to focus on creating a fun and festive atmosphere, offering social opportunities
and new, non-musical experiences (Tomlijenovic et al., 2001). Some festivals have
enlarged their request to a wider age spectrum by adopting a more holistic approach
to the festival experience and focusing less exclusively on the music. Festivals such as
Roskilde and Sziget, for example, have invested more in mobile technology facilities,
safety, food, sanitation and environmental solutions (Holt, 2010). They also provide
numerous non-music activities, from comedy to film and interactive installations, and
they design the festival fields to make the entire festival experience fun and pleasant.
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This development has been identified as ‘gentrification’ (Holt, 2007). However, some
organisers of outdoor music festivals in China almost ignore the music itself.
1.3.2 Music ignored by organisers in some outdoor music festivals in China
The outdoor music festival market in China is not as profitable as in some countries
because China does not have as many young consumers as other countries have,
such as the United States, Britain and Australia (Naizhu, 2012). Citizens prefer to
spend their money on other things rather than music festivals, especially in second-
and third-tier cities in China (Xiaoyu, 2009). For this reason, it is difficult for music
festivals to be profitable, especially in the early stages. Therefore, some music
festivals have become commercial tools for promoting other goods and services, and
music has moved into a weakened position. Indeed, some organisers regard music
festivals as commercial tools only. For instance, Jing Dong Music Festival, held in June
2015, cost over a million Ren Min Bi (RMB), including venue fee, security and
appearance of artists (Xiaoyu, 2009). However, the price of single-day tickets was
only 150 RMB—which means that the festival would not have been profitable at all,
if it had depended on ticket sales alone (Xiaoyu, 2009). The organiser used the
festival for name-brand promotion of the Jing Dong Company. According to the
president of the festival, Sai Deng, the festival’s main purpose was not the music at
all but a campaign for a shopping spree on 18th June (Xiaoyu, 2009).
Another example is Chengdu Vehicle Music Festival, held each year in June, which
combines music with automobiles. The president of the festival, Wei Zhan, indicates
that the festival mainly relies on sponsorships for profits (Xiaoyu, 2009). With
automotive elements implanted throughout the festival, other related brands are
willing to sponsor the festival as well. The festival not only has vehicle exhibitions and
news conferences about new cars, but also performances of cross-country vehicles.
More and more car enthusiasts attend this festival, rather than music fans, with 240
vehicles sold in 2009 in just two days (Xiaoyu, 2009). It seems that the Chengdu
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Vehicle Music Festival is more about vehicles than music.
From these two cases, we may safely conclude that some music festivals in China
have become commercial tools for promoting non–music-related products. The
music foundations of these festivals are being lost, with music occupying an
increasingly weakened position. The danger is that if the other commercial elements
develop problems, the festivals may collapse altogether. This situation does not
encourage a healthy and sustainable music festival industry in China.
1.3.3 Outdoor music festivals treated as commercial tools
With the growth in comprehensive marketing, local officials have realized that music
festivals is one strategy which can not only develop the local tourism and economy,
but also can reinvent the place identities (Gibson & Connell, 2005). For example,
music festivals in remote areas of Australia have integrated with the local tourism
industry, which to a large extent benefits from the support of government and other
organisations, such as music associations and local tourism authorities (Brennan-
Horley et al., 2007). The Parkes Elvis Revival Festival, for instance, has received
financial support from the New South Wales state government in recent years
(Brennan-Horley et al., 2007). In 2004, the average grant was $440 per tourist during
the weekend of the festival (covering entertainment, souvenirs, services,
accommodation, food and drink), with the local economy receiving a $1.1 million
boost. Such injections are significant for a town the size of Parkes (Brennan-Horley &
Connell, 2007). Moreover, the music festival brings many flow-on benefits to local
businesses, especially small retail businesses. In 2004, the Parkes Elvis Festival
resulted in local restaurants and cafes, on average, doubling their business (LI &
Connell, 2012).
Music festivals also play an important role in China, both appeal and image of regions
and local culture and pride have been enhanced, opportunities of entertainment
have been improved by festivals (Xiaoyu, 2009). For instance, the Chengdu Zebra
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Festival, which attracted 150,000 visitors over three days in 2010, has become an
additional means for local governments to establish a brand or ‘city name card’
(Groenewegen-Lau, 2014). In China’s current open-door era, media exposure boosts
the prestige of a region nationwide, and the resulting tourism boosts GDP; both have
become increasingly important additional motivations (Groenewegen-Lau, 2014).
Consequently, local governments tend to organise festivals mainly for the purpose of
promoting policies and tourism, and celebrating local achievements.
However, some local officials treat music festivals merely as commercial tools.
According to Lihui Shen, only major metropolises such as Beijing and Shanghai have
audiences sufficiently affluent to support a festival through ticket sales, which make
up around 70 per cent of the income of the festivals in these locations
(Groenewegen-Lau, 2014). Outside these metropolises, festivals tend to cater to local
officials—and by extension to the state—rather than to the box office and the
market. Local officials, not the market, decide the line-up, the budget, the festival
organisation, ticketing, and the place and time of a festival (Xiaoyu, 2009). Lihui Shen
also asserts that once some small cities achieve their aims through the music festival
(e.g. increased tourism), the festival itself might be cancelled since it can be difficult
for local officials to raise the required capital to fund the event (Naihzu, 2012). This
phenomenon has a detrimental effect on music festivals in China, especially regional
festivals.
1.4 Conclusion
To sum up, compared with Australia and countries in Europe and North America,
which have around 50 years of developmental history of music festivals
(Encyclopaedia Britannica, 2014), Chinese outdoor music festivals are in the primary
stage of development, especially at the service level (Xiaoyu, 2009). However,
outdoor music festivals in China have undergone considerable development in the
last decade. The number of festivals soared sixfold from 24 to 148 during the seven
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years from 2007 to 2014 (DaoLue, 2014). The music festival, which is at the end of
the music industry chain, comprises many aspects: artist management, venue
management, ticket sales and performance tours. The development scale of Chinese
music festivals does not match its operational capability because development is
moving too fast. Furthermore, with overstretched music festivals in China, music is
weakening its position in some music festivals.
Based on the analysis above, we can detect that some music festival organisers in
China have come to regard music festivals merely as commercial tools. Music, as the
fundamental element in those events, is sometimes ignored. If other commercial
activities develop problems, the festivals themselves may collapse altogether. This
situation threatens the health and sustainability of the music festival industry in
China.
Through comprehensive marketing, music festivals have become a strategy for
developing the local tourism industry, thereby reinforcing the local economy.
However, some local officials, more interested in local government issues than the
music market, regard outdoor music festivals in China as commercial tools only. This
attitude may have a detrimental effect on music festivals in China, especially regional
festivals. Therefore, we can conclude that overexpansion may be a contributing
factor in some outdoor music festivals in China facing bankruptcy in the near future.
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2. Simple funding sources
2.1 Introduction
Although outdoor music festivals in China are developing rapidly, few can make a
profit, especially at the early stages of development. According to a report by Daolue
(2014), the number of outdoor music festivals in China soared in the last decade,
increasing sixfold (from 24 to 148) in the seven years between 2007 and 2014;
however, the number of these festivals that made a profit is less than 15%. Even the
MIDI Music Festival, the oldest festival in China, made only small profits after seven
years in development (Yan, 2008). This chapter will explore why it is difficult for
festivals to make a profit and what problems festivals face due to simple funding
sources.
2.2 Support from the government and other specific institutions
Since 2007, cultural and creative industries have received an increasing amount of
financial support from local authorities and even the People’s Republic of China
(PRC); outdoor music festivals are no exception (Groenewegen-Lau, 2014). Many
local governments and other public sector agencies with responsibility for place
promotion and economic development are interested in music festivals (Felsenstein
and Fleische, 2003), resulting in a music festival boom after 2007. Festivals can
contribute to place marketing, raising the profile of areas as tourist destinations and
distinguishing them from other areas (Leender et al., 2005). In recent years, financial
support from the government and public agencies has become one of the main
sources of capital for outdoor music festivals in China (Groenewegen-Lau, 2014).
For example, the MIDI Music Festival, one of the biggest music festivals in China, held
in May 2007 in Haidian Park, attracted an audience of around eighty thousand
(Groenewegen-Lau, 2014). It was given a subsidy of 5,000 RMB from the Haidian
district government, which showed that the government is a reliable partner for the
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MIDI Music Festival (Zhang, 2011). Moreover, after the Sichuan earthquake of May
2008, the Zebra Music Festival in Chendu emerged with the aim of promoting the
area to tourists. With the help of the provincial propaganda department of the
government, the state-owned media conglomerate in Chengdu and the private
company, Zebra Media, signed a five-year contract after it had been approved by the
Chengdu Municipal Party committee. In addition, MIDI organised a successful festival
on an island in the Yangtze River some 200 kilometres east of Shanghai in 2009.
Subsequently, the office of Zhenjiang County announced a 10-year agreement that
the government would invest one million RMB or 50% of its cultural arts budget to
the festival (Naizhu, 2012). It is clear that some music festivals in China receive
powerful support from governments and other institutions.
However, it has been difficult for music festivals to receive financial support from the
government and other institutions and to gain permits for the events in the last two
years. As the number of music festivals is increasing rapidly, the quality threshold for
festival organisers is getting lower and the number of stakeholders is increasing. It is
very difficult for the government to control the live music market if the situation will
not be rectified. In the last year, the government has strengthened its management
of the live music market, especially music festivals.
For instance, site approval procedures and security measures of several music
festivals in Beijing and Shanghai have been strictly reviewed by the Chinese
government (Chaoran, 2015). There were two festivals during the May Day Holiday in
Beijing that were not approved by the government, and only the Strawberry Music
Festival passed review in Shanghai this year (Chaoran, 2015). According to Lihui Shen,
the president of Modern Sky Company, as much as half the budget of the Strawberry
festivals and Modern Sky is spent on clearing permits. He indicates that holding one
festival should pay for the consent and support of many government departments,
including cultural departments, fire inspection and public security (Groenewegen-
16
Lau, 2014). According to Wang Yong, music advisor of the MIDI Music Festival, he
must submit their formal applications to gain permits for festivals from the Bureau of
Culture at least six months in advance (Chaoran, 2015). The process of review is too
complicated for music festivals, especially large ones, due to the fact that the Bureau
of Culture must review all aspects of the festivals, including the personal information
of every artist and the content of each song, especially the lyrics (Groenewegen-Lau,
2014). Wang Yong indicates that for the 2015 MIDI festival in Shanghai, the personal
information of over 120 artists and the lyrics of around 300 songs will need to be
reviewed, which is a long and complicated process (Chaoran, 2015).
Another reason why it is difficult for music festivals to receive financial support from
the government is due to problems of security. Music festivals are required to gain a
license from their respective local authorities, with the aim of ensuring that such
events are carefully planned and managed, before they are able to operate
(Leenders, 2005); if not, the festivals have no chance of receiving financial support or
permits from the government. There have always been security incidents at music
festivals; for example, at the Roskilde Festival in 2000 a tragic accident occurred in
which nine people died in front of the stage and a further 26 required medical
treatment after a crowd-trampling incident (Leenders, 2005). A similar situation
happened in Shanghai last year (Chaoran, 2015). Therefore, the process of review has
become stricter than before. However, a fair and impartial public security agency has
not been established in China, so there is no professional institution responsible for
the security assessment, technical consultancy and management operations. At
present, these tasks are delegated to the police service, but some festivals have been
cancelled without reason close to the opening time by police, as they do not want be
responsible for any potential accidents during festivals. This leads to financial losses
for many festivals (Chaoran, 2015). Therefore, the unpredictable decisions of local
governments make the music festival market highly unstable.
17
2.3 The issue of sponsorship
As the dissertation has analysed before, music festivals in the world are expanding
constantly, with new festivals being established every year, which means that the
opportunities for sponsorship deals are increasing as well (Rowley & Williams, 2008).
Therefore, if music festivals cannot receive any public funding, sponsorship deals will
be a very significant supplement to ticket revenue (Oakes, 2003). Music festivals and
sponsorship support each other: on the one hand, music festivals are a significant
and developing arena for the advertising of major brands; on the other hand,
sponsorship is an important revenue stream for those festivals. Besides, from the
brand manager’s perspective, the sponsorship of music festivals provides
opportunities for targeted communication to the relatively homogenous festival
audience, composed primarily of young people (Rowley & Williams, 2008).
The corporate sponsorship of music festivals has been identified as an issue of
concern, however, because of the risk of ‘goal displacement’ (Getz, 2007) occurring
when, in the mixture of business and culture, the interests of commercial sponsors
come to dominate an event. In some festivals, the logos of some sponsors are
omnipresent, inducing an uncomfortable perception of over-commercialization in
some fractions of the audience. Some organizers of music festivals in the UK have
realized that audiences feel uncomfortable when sponsorships are excessive.
Therefore, a few have decided to reject any sponsorship in their festivals (Ali-Knight
et al., 2009). Moreover, in Britain, festival managers have begun to seek different
methods to satisfy the attendees, upon realizing that sponsorships were not as
critical as they were thought to be, and not the only factor to influence decision-
making in consumers (Anderton, 2011).
However, according to Ke Song, the president of the Evergrande Starlight Carnival,
the industry chain of music festivals in China has not yet formed, and it is therefore
difficult for festivals to receive extensive funding (Chaoran, 2015). Therefore,
18
although many organizers, Ke Song included, have also realized that over-selling
sponsored brands would make consumers uncomfortable, the festivals have no other
choice but to sell those sponsored brands in large proportions in order to obtain
funding from that sponsor and ensure a smooth run. For instance, revenues from
sponsorships accounted for thirty per cent of the overall funding of the Changjiang
International Music Festival in 2014 (Daolue, 2014). In another example, to make up
for the financial shortage issued from ticket sales, the proportion of sponsorship was
raised to over 50 per cent at the Evergrande Starlight Carnival in 2014 (Daolue,
2014). Furthermore, a more serious problem is that some specific sponsorships are
not limited in China. For example, alcohol sponsorship has not been restricted, which
may bring a certain instability to music festivals, especially for teenagers. In the UK,
some festivals have been facing the issue a risk of violence, ill health and theft
resulting from these sponsorship. To sum up, Chinese music festivals cannot abandon
sponsorships at this stage, since it is a very significant funding resource for them;
however, over-selling sponsored brands can make consumers uncomfortable, and
some specific sponsorships may increase certain risks within the festivals.
2.4 The issue of selling tickets
As it was examined in Chapter one, unlike some countries such as the United States,
the United Kingdom and Australia, China does not have as many young consumers to
support the music festival market (Naizhu, 2012). Especially in second and third-tier
cities in China, citizens would rather spend their money on other things than music
festivals. According to Lihui Shen, only major metropoles such as Beijing and
Shanghai have audiences sufficiently affluent to support a festival through ticket
sales, which can account for around 70 per cent of the income of the festivals in
these locations (Groenewegen-Lau, 2014). Therefore, it is very difficult for music
festivals to be profitable through ticket sales, especially in the early stages. For
instance, the Jing Dong Music Festival, held in June this year in China, spent over a
million RMB on venue fees, security and the appearance of artists (Chaoran, 2015).
19
However, the price of single-day tickets was only 150 RMB, meaning that the festival
would not have been profitable at all had it depended on ticket sales alone
(Xiaoyu, 2009).
In addition, security issues are another significant reason why it is difficult for
festivals to achieve profits; in more concrete terms, many festivals have suffered from
the intrusion of people who were not ticket-holders. For instance, in 2000, between
30,000 and 100,000 audience members had gained free entry into the Glastonbury
Festival through various means, including tunnelling, fence-climbing and the use of
ladders (Leenders et al., 2005). The additional numbers at the event overloaded the
facilities, making crowd control difficult. In a similar way, the Big Love Cheng Du
Music Festival, famous in China, attracted over 100,000 festival-goers over four days
in 2013; however, only 50,000 tickets were sold, and the staggering share of the non-
paying audience incurred serious losses for the festival (Chaoran, 2015). To sum up, it
is difficult for music festivals to be profitable through ticket sales, both because of
their comparatively low price compared to the overall expenses, and due to the
invasion of ticketless audiences.
2.5 Conclusion
Although outdoor music festivals in China are developing rapidly, few can make a
profit, especially in the early stages of development. The overall cost of staging a
music festival is enormous, which includes the costs for musicians, choreography,
advertising and transportation (O’Reilly et al., 2013). According to Shen Lihui, it is
difficult for Chinese outdoor music festivals to achieve profits, and the majority of
them are at the edge of a loss (Chaoran, 2015). Compared with some other
countries, the age of the music festival in China has yet to come. For example, in
2014, the MIDI Music Festival in Beijing resulted in a profit of 900,000 RMB, and 3
million RMB in Shanghai (Daolue, 2014), however, the Coachella Music Festival, one
of the biggest festivals in America, achieved 420 million RMB in the same year, and
20
Summer Sonic, the biggest festival in Japan, achieved 450 million RMB in 2013
(Pollstar, 2014).
Based on the analysis before, one of the main reasons why it is difficult for Chinese
festivals to make a profit is due to simple funding sources. Although the government
and some specific institutions are reliable partners for festivals, the government
maintains tight control over the live music market, especially music festivals, and the
process of review by the government is too complicated. Furthermore, there are no
specialised institutions responsible for the security assessment, technical consultancy
and management operations, and consequently, many festivals have been cancelled
due to the problems of security. Unpredictable decisions of local governments make
the music festival market highly unstable.
In addition, sponsorship deals are an important supplement to ticket revenue and
provide a significant source of funding for music festivals in China (Oakes, 2003). At
this stage, Chinese music festivals cannot exist without sponsorship, since it is a vital
source of funding for them. However, over-selling sponsored brands can make
consumers uncomfortable, and some specific sponsorships may increase certain risks
within the festivals. Finally, profit from ticket sales may also be lower than expected
because of their comparatively low price compared to the overall expenses, and due
to the invasion of ticketless audiences. To sum up, Chinese outdoor music festivals
may face huge financial pressure due to the simple funding sources and the
immaturity of the industrial chain of music festivals.
21
3. Rising ticket prices
3.1 Introduction
Ticket prices of music festivals are rising in China and in some other regions. With
music festivals becoming overstretched, there is strong competition between various
events for the quantity and quality of artists and bands; as a consequence,
integration costs have increased, especially the appearance fees charged by various
bands and artists. If this trend is not limited, buyers and artists will become the
victims of rising prices. Moreover, the competition between large music festivals and
small ones is intensifying due to rising ticket prices. This chapter will illustrate the
current situation of ticket prices of music festivals in China and some other regions,
explaining why ticket prices are rising and why higher ticket prices may bring crises to
music festivals.
3.2 Ticket prices of music festivals are rising constantly in China and in some
other regions
Ticket prices for some music festivals have soared dramatically over the two last
decades (Decrop & Derbaix, 2014). The average ticket price of a music festival has
more than doubled since 1996 (Holt, 2010). Note Worthy Times (cited in Nieto, 2014)
indicates that the most serious issues for music festivals are not paying enough
attention to the music and losing sight of the price of tickets. In the US, for instance,
at Coachella Music Festival, a three-day admission ticket is $375, while VIP tickets are
$799; festival-goers would pay another $85 on top of this if they want to camp (Note
Worthy Times, 2014). The most excessive example is found at another music festival,
the Tennessee festival in Bonnaroo, where the VIP tickets are $1,499.50, which is
surely too high for audiences (Note Worthy Times, 2014). According to Visit Britain,
around 6.5 million people attended music festivals in the UK in 2012, accounting for a
22
total spend of £2.2 billion (The Guardian, 2014). The price of weekend tickets for
Latitude Festival now, in 2015, was almost double the cost for the original event in
2013 (O’Reilly, et al., 2013). Moreover, the ticket prices for Glastonbury, V Festival,
and Reading Festival have increased by 213%, 234%, and 225% respectively between
2000 and 2010, which means, on average, more than 20% per annum (O’Reilly, et al.,
2013).
A similar situation is also happening at some music festivals in China. For example, at
Strawberry Music Festival, the advance price for three-day admission was 480 RMB,
or 680 RMB at the door, in 2014; however, the advance price for a three-day ticket
has increased 120 RMB in 2015, with a three-day ticket now 800 RMB at the door
(People.cn, 2015). According to Lihui Shen, the president of the Strawberry Music
Festival, the price of a one-day ticket will have risen from 80 RMB to 100 RMB this
year, and the profit from the ticket sales will account for around 70% of the festival’s
total revenue (People.cn, 2015). In terms of another festival, named Zhang Bei Music
Festival, the cost of a one-day ticket was 120 RMB last year, but 150 RMB this year,
while the cost of a three-day ticket has soared dramatically from 300 RMB last year
to 500 RMB now (Art.China.cn, 2015).
According to a report from YouGov, based on information gathered by questionnaire,
many festival-goers thought music festivals were becoming too expensive in 2014,
and the price of some festivals could not represent value (YouGov, 2014). The report
detected that only 11% of all survey respondents said that festivals now gave them
more than what it costs; however, 35% of them considered that music festivals have
become too expensive for them, which meant third nearly a third of all past festival
attenders might not attend again in this year. Furthermore, the rising ticket prices of
music festivals have affected the choices for the festival-goers (Decrop & Derbaix,
2014). Many people will start to check the line-ups and the price of festivals in
advance, and then decide whether they could attend a similar one at a much lower
23
price (Import IO, 2014). The constant increase of ticket prices for music festivals has
thus become a phenomenon in many regions, including China, Britain, and the USA.
3.3 The reason why ticket prices of music festivals are rising constantly
One of the most significant reasons why ticket prices for music festivals are
constantly increasing is that the appearance fees of various bands and artists have
increased. With music festivals becoming overstretched, the competition between
various events for the quantity and quality of artists and bands is furious. Many
festivals hope to book the same bands and artists to perform at similar times, which
leads to many bands and artists demanding a higher fee (Holt, 2010). In order to
avoid the brain drain, some organisers even reserve the most brilliant bands and
artists for two years, or even longer, to ensure their festivals maintain the high
quality necessary to attract audiences (Holt, 2010). Therefore, the price of festival
tickets is rising as performers’ fees go up. Moreover, audiences demand an
increasingly high quality of music festivals, especially the line-up quality (Decrop &
Derbaix, 2014). According to the survey from Holt (2010), both the popularity and
musical style of artists have a positive influence on their ticket prices; besides,
nationality of artists also has an effect on their ticket prices – artists or bands from
foreign countries being more expensive than local artists or bands. It can be found
easily that the ticket prices for all kinds of live music have increased, especially the
appearance fees of outstanding artists and superstars. For example, the average price
of a superstar concert has more than doubled since 1996, which would have been
roughly the same as the price of an album by the artists in the 1980s, but is today
equivalent to somewhere between five to ten albums (Holt, 2010). According to a
report from Pollstar, the average ticket price of a music concert in the US was $26 in
1996 and $62 in 2006. However, prices of performances by superstars were higher
than this, with the average ticket price being $85 for the top ten highest-grossing
artists in 2008 (Holt, 2010). Moreover, based on surveys by Pollstar, the average
ticket prices for superstar concerts on the primary market were $100 to $150 in the
24
US, and €60 to €120 in Europe, in 2010 (Holt, 2010). For example, top-price seats at a
concert by Madonna in 2010 were around $350, while the price of the same ticket in
the secondary market, such as on eBay, was in the range of $500 to $1500 (Holt,
2010). Until now, the competition between various music festivals for the quantity
and quality of artists and bands is more competitive than ever; the appearance fees
of famous artists and bands are still rising, so that the ticket prices for live music,
such as music concerts and music festivals, are increasing as a consequence.
In addition, according to Lihun Shen, apart from artists and bands, other things have
increased in cost, including production costs, venue rental, and security fees (Yan,
2008). Also contributing to the steady increase in the price of music festivals is that
other essential resource of festivals, such as sponsorship – for which there is also
now increased competition. Most music festivals rely mainly on ticket sales and
sponsorship, while a few festivals can receive financial support from the government
and specific organisations. Hedrick (cited in Currin, 2014) argues that not only will
bands and artists be fought over, but also these limited income sources. McCabe
(cited in Currin, 2014) also points out that ‘Festivals are able to pop up everywhere
because brands are becoming more integrated with music. It is a way to carry the
brand.’ To obtain sponsorship, festival organisers have to negotiate with enterprises
by agreeing that a brand will be promoted adequately during a music festival. In the
same way that bands and artists are asking for more money, sponsorship deals are
putting more pressure on music festivals. This is another reason why ticket prices of
music festivals are rising constantly. Based on the analysis above, we can draw a
conclusion that integration costs are increasing as a cause for the rising prices of the
tickets.
3.4 Higher ticket prices may bring crises to music festivals
As the dissertation has analysed before, in order to assure the success of music
festivals, organisers have always made efforts to invite famous artists and bands, to
25
sustain the quality of their festivals, which has meant that ticket prices have
increased constantly in the last decade. Morgan (cited in Currin, 2014) believes that,
eventually, the market cannot support too many music festivals: just because the
number of music festivals is increasing does not mean that the number of potential
attendees is growing in step with it. Bongiovanni (cited in Currin, 2014) argues that
one potential problem for music festivals is that the band’s performance fee is more
than they are worth. He demonstrates that expensive line-ups need audiences to
justify their cost, but there are not that many people who can afford expensive
tickets. For example, in the US, the average ticket price increased by 82% from 1996
to 2003; however, the consumer price index only rose by 17% (Krueger, 2005). In
Belgium, average prices have increased by 52.71% between 1998 and 2005, which is
more than three times the inflation rate (Decrop & Derbaix, 2014). Obviously,
coordination between the level of development of music festivals and the level of
living standards is inconsistent. If this trend is not limited, buyers and artists will
become the victims of rising prices. Thus, on this issue, McCabe (cited in Currin,
2014) asserts that: ‘The supply of festivals is at an all-time high, but no one knows if
that is necessarily true of demand. If demand has not actually increased, higher
ticket prices violate one of the most elementary rules of economics.’
Another potential problem is the competition between the large music festivals and
small ones is intensifying. Under the situation that ticket prices for some large music
festivals are increasing constantly, smaller-sized music festivals are playing a more
and more significant role in the music market and music industry, providing
audiences with more choices to enjoy music (The Guardian, 2014). Many festival-
goers shift their focus to these diminutive music festivals. For example, in San
Francisco and Washington, there are some festivals which are successful by offing
small-sized festivals with reasonable prices and an emphasis on performing artists
and local culture (Note Worthy Times, 2014). Those festivals provide audiences other
viable options when they cannot afford the expensive, larger events. According to
26
Note Worthy Times (cited in Nieto, 2014), organisers of music festivals have paid
more attention to establishing small-sized festivals which focus on local elements,
including a performing groups, artists, local sponsor and the local culture. Moreover,
the competition between large music festivals and small ones results in audiences
starting to fragment (Import IO, 2014). Although some audiences begin to abandon
expensive festivals, there are also people who insist on attending the large one, and
who will still undertake the high price tickets. Therefore, such a situation would
perhaps lead to potentially terrible consequences, in that the audience will become
more and more scattered. If that situation continues to deteriorate, music festivals,
especially some large festivals, will face a problem: it will be difficult to attract
enough audiences to maintain their normal operation and scale. Based on the
analysis above, we can draw a conclusion that with ticket prices rising, and the
performance fee of bands and artists being more than they are worth, the result is
that the interests of audiences and buyers have been harmed. In addition, the
competition between the large music festivals and small ones is intensifying, which
will lead to the audience becoming more and more scattered.
3.5 Conclusion
To sum up, the ticket prices of some music festivals have soared dramatically over the
two last decades (Decrop & Derbaix, 2014). The average ticket price of a music
festival has more than doubled since 1996 (Holt, 2010). The most serious issue for
music festivals is not paying enough attention on the music and losing sight of the
price of tickets, which are rising constantly in both China and other regions such as
the US and UK. Furthermore, rising ticket prices of music festivals have affected the
choices for potential festival-goers (Decrop & Derbaix, 2014); many audiences
consider that music festivals are becoming too expensive now.
Based on the analysis above, we can detect that the most significant reason why
ticket prices for music festivals are rising constantly is that appearance fees of various
27
bands and artists have increased as a consequent of the competition between music
festivals for the quantity and quality of artists and bands being so furious. The price
of festival tickets is rising as performers’ fees go up. Moreover, aside from artists and
bands, other factors including production costs, venue rental, and security fees have
increased as well (Yan, 2008).
Additionally, as the research has analysed above, we can discover that the market
cannot, eventually, support too many music festivals, since not that many people can
afford expensive tickets, if the high price of tickets will not be limited. Moreover, the
competition between the large music festivals and small ones is intensifying, which
will lead to the audience becoming more and more scattered. Generally speaking, if
the ticket prices of music festivals keep rising, some festivals may have difficulties in
the near future.
28
4. Similar content of music festivals
4.1 Introduction
Every music festival has its own limited lifespan with a progression of changing
audiences (Hawking, 2014). It is significant for festival organisers to identify which
bands or musicians and what kind of music the next generation will be interested in.
With overstretched music festivals in China, the competition between similar festivals
is very serious. Several famous artist and bands are in the line-ups of different
festivals, and many festivals are held in the same or similar venues. All these
phenomena make audiences feel bored to some extent. This chapter will explore
several specific aspects of the music festival, including similarities in line-up, music
genres and venues.
4.2 Similar line-up and music genres of music festivals
Every music festival has its own limited lifespan with a progression of changing
audiences (Hawking, 2014). Music festival organisers will inevitably lose their fans at
some point since fans will grow up and probably take on new music tastes; however,
it is difficult for festival organisers to identify which bands or musicians and what kind
of music the next generation will be interested in. At the same time, if the line-ups of
music festivals change slowly they will not continue to meet their own development
needs and the needs of the music market. For example, the Coachella Music Festival
in 2014 aimed at the same music fans as it did in its inaugural event in 2009; the
similar line-ups and elements in the festival meant that fans went to a different
venue but watched almost the same performance as before (Nieto, 2014). According
to the report by YouGov (2014), in regard to the content of music festivals, 14% of
the survey respondents said that many festivals were becoming too repetitive and
11% felt some music festivals were boring for them. An international festival-goer
29
named Max Frey found that the line-ups were always the same at Belgian festivals,
which was too repetitive for him (IMPORT IO, 2014).
With overstretched music festivals in China, the competition between similar festivals
is very serious. Several famous artists and bands are in the line-ups of different
festivals, such as Cuijian, Zhangchu, Heyong, Tangchao and Xietian Xiao, which makes
audiences feel bored to some extent (Zhang, 2011). In addition, most music festivals
in China are rock or jazz festivals. China just had its own popular music festival
named Evergrande Starlight Carnival Music Festival in 2014 (Daolue, 2014). This
means that consumers do not have enough choice between different types of music
in different music festivals. Therefore, it is clear that Chinese outdoor music festivals
should have their own characteristics in order to avoid becoming too similar for their
audiences.
4.3 Similar venue of music festivals
As the number of audiences has soared in recent years in China, selecting a suitable
venue is very significant task for organisers. According to Wang Yong, the vice
president of MIDI Performance Company, many factors require careful consideration
when selecting a venue including transportation, accommodation, infrastructure and
emergency facilities (Xiaoyu, 2009). The venue has always been an issue for music
festivals, especially for some of the large festivals. For example, as the oldest music
festival in China, the MIDI festival has started to look for new venues to prepare for
future festivals (Chaoran, 2015). According to Wang Yong, the venue which is being
used by the MIDI festival may not undertake more audiences in the near future,
however, it is difficult to find a place which is suitable for a music festival (Xiaoyu,
2009).
The first reason why it is difficult to select venues for music festivals in China is that
the venue is decided by officials to some extent. Chinese festivals have become
brand names that exist relatively independent of specific communities, times, and
30
locations, and that can go where officials want them to (Groenewegen-Lau, 2014).
For example, in Beijing, it is an unwritten policy that music festivals are not permitted
to be held within the fifth ring road (Groenewegen-Lau, 2014). Furthermore, climate
can also decide the location. For instance, the majority of music festivals in Britain
are staged in the southern half of the country, and particularly south of the River
Thames (Leenders et al., 2005). This can largely be explained by reason of the
prevailing weather: the south of the country is more heavily wealthier populated
and, and the weather tends to be significantly warmer and less prone to rain.
Furthermore, many cities in China lack venues which are specifically designed for
music festivals. For example, in Beijing, the majority of festivals are held in parks,
however, most of the parks were not established for large-scale activities and have
many steps, ramps and ponds. This kind of environment is not convenient for
evacuating the population.
Obviously, selecting venues for music festivals is restricted by many factors.
According to Shen Lihui, the number of audiences are increasing constantly year by
year, and as the venues of these festivals are relatively small, they cannot accept any
more consumers (Chaoran, 2015). Moreover, holding any mass outdoor music
festivals regularly in the same place inevitably entails environmental degradation
(Leenders et al., 2005). For instance, site cleaning crews removed more than 1,650
tonnes of waste including 5,000 abandoned tents after the Glastonbury Festival in
2014 (Best, 2014). In addition, the allocation of music resources is not balanced in
China. In 2010, there were 92 music festivals in the whole country; more than 20
festivals were held in Beijing, other festivals were held in Chongqing, Fujian, Zhejiang
and Guangdong but there are few festivals in other regions of China (Daolue, 2014).
The situation has improved in the past few years, but still not enough as the cultural
and economic development of many cities has not matched the development of
music festivals in China. For example, Changjiang International Music Festival was
held last year in Zhenjiang, which is a small town in China, and during that period of
31
time, the pressure on transportation and accommodation in the town was mounting
day by day (Chaoran, 2014).
To sum up, the majority of outdoor music festivals are concentrated in large cities,
however, as the number of audiences has soared in recent years in China, it is
difficult to find new suitable venues to hold festivals due to the policy and climate.
Furthermore, because the cultural and economic development of many cities has not
matched the development of music festivals in China, small cities do not have
enough ability to organise festivals. Therefore, it seems that if specific venues will not
be developed in big cities, some music festivals will stay in the same or similar
venues, which may face problems such as crowds of people and environmental
pollution.
4.4 Conclusion
Every music festival has its own limited lifespan with a progression of changing
audiences (Hawking, 2014). However, it is difficult for festival organisers to identify
which bands or musicians and what kind of music the next generation will be
interested in. With overstretched music festivals in China, the competition between
similar festivals is very serious. Several famous artists and bands are in the line-ups of
different festivals, which make audiences feel bored to some extent (Zhang, 2011).
Consumers do not have enough choice between different types of music in different
music festivals. Some Chinese outdoor music festivals are becoming too similar for
their audiences if they will not seek their own characteristics in the near future.
As the number of audiences has soared in recent years in China, selecting a suitable
venue is a very significant task for organisers. However, it is difficult for festival
organisers to select a suitable venue since there are numerous factors require careful
consideration, which contains transportation, accommodation, infrastructure and
emergency facilities (Xiaoyu, 2009). Moreover, it is difficult to find new suitable
venues for festivals in big cities due to the policy and climate, however, small cities in
32
China do not have sufficient ability to undertake large-scale events. Therefore, some
music festivals will stay in the same or similar venues if specific venues will not be
developed in big cities. This situation may bring problems such as crowds of people
and environmental pollution to music festivals.
33
CONCLUSION
Music festivals are becoming increasingly popular around the world, developing
from small events to become a sizeable part of the music industry in approximately
50 years (Holt, 2010). It is one of the few industries, in the age of digital music and
music streaming, which is growing sustainable in the slump in music sales. The size
and longevity of outdoor music festivals in China have developed remarkably over
the past ten years (Yan, 2008). However, some music festivals kept losing from
beginning to end, and even some famous festivals are cancelled behind the
flourishing exterior of Chinese music festivals.
Based on the analyses above, compared with Australia and countries in Europe and
North America, Chinese outdoor music festivals are in the primary stage of
development, especially at the service level (Xiaoyu, 2009). The development scale of
Chinese music festivals does not match its operational capability because
development is moving too fast. Moreover, with overstretched music festivals in
China, music is weakening its position in some music festivals. Some music festival
organisers in China have come to regard music festivals merely as commercial tools.
Music, as the fundamental element in those events, is sometimes ignored. This
situation threatens the health and sustainability of the music festival industry in
China. Furthermore, through comprehensive marketing, music festivals have become
a strategy for developing the local tourism industry, thereby reinforcing the local
economy. However, some local officials, more interested in local government issues
than the music market, regard outdoor music festivals in China as commercial tools
only. This attitude may have a detrimental effect on music festivals in China,
34
especially regional festivals. Therefore, we can conclude that overexpansion may be a
contributing factor in some outdoor music festivals in China facing bankruptcy in the
near future.
In addition, although outdoor music festivals in China are developing rapidly, few can
make a profit, especially in the early stages of development. Compared with some
other countries, the age of the music festival in China has yet to come. One of the
main reasons why it is difficult for Chinese festivals to make a profit is due to simple
funding sources. To be specific, although the government and some specific
institutions are reliable partners for festivals, the government maintains tight control
over the live music market, especially music festivals, and the process of review by
the government is too complicated. Many festivals have no chance of receiving
financial support or permits from the government. Moreover, sponsorship deals are
also an important supplement to ticket revenue and provide a significant source of
funding for music festivals in China (Oakes, 2003). However, over-selling sponsored
brands can make consumers uncomfortable, and some specific sponsorships may
increase certain risks within the festivals. To sum up, Chinese outdoor music festivals
may face huge financial pressure due to the simple funding sources and the
immaturity of the industrial chain of music festivals.
Additionally, the ticket prices of some music festivals have soared dramatically over
the two last decades (Decrop & Derbaix, 2014), which have affected the choices for
potential festival-goers (Decrop & Derbaix, 2014); many audiences consider that
music festivals are becoming too expensive now. Based on the analysis above, we can
detect that the most significant reason why ticket prices for music festivals are rising
constantly is that appearance fees of various bands and artists have increased as a
consequent of the competition between music festivals for the quantity and quality
of artists and bands being so furious. Moreover, aside from artists and bands, other
factors including production costs, venue rental, and security fees have increased as
35
well (Yan, 2008). However, the market cannot, eventually, support too many music
festivals, since not that many people can afford expensive tickets, if the high price of
tickets will not be limited. Moreover, the competition between the large music
festivals and small ones is intensifying, which will lead to the audience becoming
more and more scattered. Generally speaking, if the ticket prices of music festivals
keep rising, some festivals may have difficulties in the near future.
Lastly, every music festival has its own limited lifespan with a progression of changing
audiences (Hawking, 2014). However, it is difficult for festival organisers to identify
which bands or musicians and what kind of music the next generation will be
interested in. With overstretched music festivals in China, the competition between
similar festivals is very serious. Several famous artists and bands are in the line-ups of
different festivals, which make audiences feel bored to some extent (Zhang, 2011).
Consumers do not have enough choice between different types of music in different
music festivals. Some Chinese outdoor music festivals are becoming too similar for
their audiences if they will not seek their own characteristics in the near future.
Moreover, selecting a suitable venue is a very significant task for organisers.
However, it is difficult for festival organisers to select a suitable venue since there are
numerous factors require careful consideration, which contains transportation,
accommodation, infrastructure and emergency facilities (Xiaoyu, 2009). Moreover, it
is difficult to find new suitable venues for festivals in big cities due to the policy and
climate, however, small cities in China do not have sufficient ability to undertake
large-scale events. Therefore, some music festivals will stay in the same or similar
venues if specific venues will not be developed in big cities. This situation may bring
problems such as crowds of people and environmental pollution to music festivals.
Therefore, we can draw conclusion that similar content of music festivals is also one
reason that some outdoor music festivals in China are likely to have a potential
bankruptcy crisis in the near future.
36
To sum up, based on all the cases studies and theoretical analysis, we can draw our
conclusion that some Chinese outdoor music festivals are likely to have a potential
bankruptcy crisis in the near future due to overexpansion, simple funding sources
under massive spending, rising ticket prices and similar content.
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