[Article] So far, so good for concert touring biz

Temperatures are hot, and so is the concert business.

North American concert grosses are up 24.6 percent for the first half of 2006, compared with January-June 2005. This continues the upswing shown in the first quarter of 2006, when grosses rose 28 percent.

And with tours by Eric Clapton, the Rolling Stones, Red Hot Chili Peppers, the Who, Barbra Streisand and others teed up for North America in the fall, the industry has a good chance of ringing up a healthy increase in year-end dollars from 2005's numbers.

So far this year, $989.6 million in North American ticket sales have been reported to Billboard Boxscore, up from $794.1 million a year ago.

Despite that good news, it's apparent that high ticket prices from superstar acts like Madonna, the Rolling Stones and U2 are in many ways driving the boom. Total attendance, at 18.2 million for the first six months of 2006, is up just 5.4 percent.

Still, for an industry that hit a wall in 2004 and barely rebounded last year, any uptick is good news. Additionally, dollars outpacing attendance is not new for the concert business, which experienced rapid increases in ticket prices starting in the mid-1990s.

Even if the rampant escalation in ticket costs has slightly slowed, the business is still seeing some of its highest prices ever, including top prices of $350 for Madonna, $400 for the Rolling Stones and $750 for the upcoming Streisand tour, with VIP packages costing much more. While there have been some signs of resistance, these tours are still expected to sell out all of their dates.

It is not just the high-priced shows that are contributing to the current box office success. Tours by Bon Jovi, Billy Joel, Pearl Jam, Aerosmith, Coldplay, Kenny Chesney, "American Idol," Tim McGraw/Faith Hill and Rascal Flatts are relatively affordable for superstar acts, and consumers are responding at the box office.

To say that the North American concert business is strong across the board, however, would be an overstatement.

"I think business this year is good in many markets and a bit off in a few markets," said agent Ken Fermaglich of the Agency Group, who adds that dips seem to be more market-related than artist-related.

"Of course, an act always contributes to sales," Fermaglich said. "However, I believe that some markets, specifically in the Midwest, are having more issues this summer because of the economic trends and issues in those markets."

Worldwide figures are not quite as bullish as those in North America but still show increases. Global box office totals reached $1.227 billion and 22 million in attendance, up 13.3 percent and 2 percent, respectively.

A total of 6,508 shows have been reported to Billboard this year, down from 7,047 for the period last year. That decrease likely reflects tardy reporting as opposed to less activity.

The jury is still out as to whether the industry can maintain its heated pace. During July and August, when the number of tours passing through a given market usually exceeds double digits, business tends to slow down as consumers are forced to make choices. But with major acts yet to play, the rest of the year looks strong.

http://www.philly.com/mld/dailynews/15169053.htm