Stagflation hits pop music

 

Stagflation hits pop music.

Stagflation is apparently a condition where you have persistent high inflation combined with a stagnant demand in a country's economy. Todays inflation rises are at their highest for 50 years. It is eerily similar to where we were in the 1970s. The live music scene doesn't appear to be recovering quite as well or as quickly as it had hoped now that post pandemic restrictions are easing.

As always there you will find exceptions, winners and losers. Some tours are going from strength to strength but at a grass routes level things could be a lot better. I am hearing of many events where music fans are reluctant to pay up front for tickets. Equally promoters are not willing to take a risk. They are waiting, or pinning their hopes on that last minute rush when they begin to see return from their investments.

For some reason a lack of confidence on all sides....promoters and audience. Punters are not willing to commit. This has a double edged sword effect as promoters are, in turn, getting cold feet at the prospect of empty venues.

I have heard so many times recently how, nowadays, a band's only real income comes from touring. No longer do they make money from album sales alone.

And this whole situation had me thinking back to the mid 1970s when we had similar issues and, where high inflation, also had a knock on effect on the music industry. I was reminded me of an interview with promoter Mel Bush who gave us his thoughts on the inflation issue at that time.

Here is that interview.......

If the cost of pop concert tickets keeps going up, a visit to a live performance could well become a rare treat rather than a regular outing for hard up music fans.

As prices increase people will decide to stay away – especially if the band is not very well known – and prices will be raised again to cover the cost of the concert.

A simple take is to slip into the kind of thinking that 500 people paying 50p per ticket is just the same as 250 people paying £1. But national and local promoters all agree that, unfortunately, it is not as simple as that.

Mel Bush, who was promoting Slade's nationwide tour explained that the band would probably be out of pocket after travelling around the country – even though they were playing to full houses every night.

'If you take the average group like Slade they will have about a dozen road crew, plus the groups personal tour manager and the group themselves.

There are hotel bills, wages, hiring out allowances and other running expenses. To put on one show costs around £1400 a night. And the hall takes 30% of the receipts, to which another 10% is added for extra stewards and electricians.

The hire of the van costs £400 a week, lights and sound equipment add another £400 a night and the hotel bill is around £300 a night'.

He said the band would not make any money on tour. 'It's purely done for the kids to get a chance of seeing them perform, and to promote records.

'Last year Slade sold more albums in Britain than anyone else and they have had a string of hit singles. But we want to keep the prices of admission down for the working class kids. We could charge £3 and still fill the halls – and that would make a profit – but we don't want to do that.

The situation is the same when groups are booked in to venues by separate promoters and are not on a tour arranged through one agency. But the loss is suffered by the promoter, not the band, in this case'.

Looking back at that interview, to me, what Mel Bush was suggesting appears to be a complete 180 degrees viewpoint from that being suggested today for the music industry. Times have changed during those 40 years I appreciate. We are now in this digital age for starters where, in my opinion, it hasn't been as kind to musicians as it might have been despite, initially, looking as though it was going to be all so great for them. But we do seem to be back in a situation where inflation is hitting music hard.

How different it all was in the 1970s when we were last faced with the kind of inflation rises we are feeling today. And yet, somehow, how very similar it all sounds. It is strange though that, despite the country being in a recession, the labour market has not noticeably been affected. All we can do now, I guess, is to continue to support the venues. And, where possible, attend gigs and buy merchandise.