Extra Revenues Don’t Mean Extra Profit
German promoters are raking in more money from their shows but it doesn’t mean they’re making more profit, according to BDV chief Jens Michow.
A survey commissioned by German promoters association BDV and weekly business magazine Musikmarkt showed record sales of euro 3.94 billion ($4.78 billion) for 2011.
Information compiled by the Association for Consumer Research also showed 32.9 million visitors bought 122.1 million tickets, which was 7 percent up on the previous year.
The revenues were even higher than the euro 3.9 billion ($4.73) achieved in 2007, although in the following two years the market slowed to about euro 3.2 billion ($3.90 billion) per year.
However, Michow points out that it’s not right to conclude that the German industry is doing better than ever.
He says escalating costs, including rising artists’ fees, production overheads and PRS levies have driven up ticket prices without necessarily increasing show profits.
Musikmarkt chief editor Stefan Zarges, whose magazine covers Germany, Austria and Switzerland, welcomed the fact revenues have climbed back to the sort of levels achieved in 2007 but warned that further hikes in ticket prices could in turn lead to dwindling audiences.