Tuesday, January 04, 2011

DMB: The Music Business Paradigm

Dave Matthews Band has decided that after 20 years of touring, they would take a break in 2011.  An article in Slate breaks down the touring success of the band.  The article makes the obvious reference to the Grateful Dead.  DMB knows and appreciates their fan base the same way the Dead did.  DMB differs in that 6 of their 7 studio albums have hit the number one spot on Billboard's charts and they have sold 30 millions records.  Here is the most telling sign of the success of this band:  In 2010 they grossed $72.9 million by performing 62 shows in 50 cities with an average ticket price of $58.69 the article points out.  (The band's website says they performed 89 shows this past year.  The article might be referring solely to summer touring.)  While other acts are charging upward of $100 a seat, DMB is charging about 50% less. This allows fans to attend more than one show a tour and encourages ticket purchases.  The fans more than feel like they got their money's worth and are encouraged to be part of a community. 

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