Quote:

I think your arithmetic is wrong. And, since that is incorrect, your entire thesis falls apart.



My math is not wrong, and I invite you to do a bit of research to prove that. Your implication that the expenses of putting on shows negates the earnings from them is simply unsupported by the facts.

The major artists of today (e.g., Lady Gaga, Rihanna, Black Eyed Peas, to name a few) are pulling in at least $100,000 AFTER EXPENSES per arena show they play on tour. If I am wrong about that, it's because it's WAY MORE than $100K, not less. Compared to the profit made from album sales, which has been in steady decline for some time, that is a lot of money. A 20-show tour would yield much more than most of those artists make from album sales and legal downloads. For middling artists with modest financial success, doing live shows is the only way to make money, since unit sales are abysmal.

You cited an Alan Jackson quote about playing for free. Alan Jackson earns about $340K per show. So, he MAY FEEL at times that he's playing for free, but he's not. (And he's not nearly the best compensated artist out there.*)

It's also inaccurate to suggest tickets sell for $25 bucks a pop. Perhaps your knowledge of this subject is limitted to that of local bands/artists with local followings, but the top artists in pop music are pulling in HUNDREDS of dollars per ticket. I encourage you to conduct an ebay search for “Black Eyed Peas tickets” and note the prices for modest seats.

Further, there is money made from merchandising, which actually accounts for a large portion of artists' earnings at live shows, about $3-4 a head (net) on average, which in a big arena can account for another $30-60k earned.

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*The list below is based on data provided by concert promoters and venue managers to the trade publication Pollstar.

Paul McCartney: $2.2 million
Bruce Springsteen and The E Street Band: $1.13 million
George Strait: $846,000
Neil Diamond: $823,000
Aerosmith: $755,000
Shakira: $690,000
Creed: $423,000
Rush: $415,000
Tom Petty And The Heartbreakers: $382,000
Luther Vandross: $363,000
Alan Jackson: $340,000
No Doubt: $325,000
Lord Of The Dance: $308,000
Nelly: $301,000
Enrique Iglesias: $297,000
Toby Keith: $297,000