The Fed distorts the economy in favor of the capital goods sector, i.e. real estate, construction, the stock market etc., and away from consumer goods. The readjustment period is a period when the old consumption ratio, with a stronger consumer sector, reasserts itself. Guess what? While housing, real estate and the stock market has crashed,the ultimate consumer goods industry is booming, the concert industry.
The concert business grossed just under $4 billion worldwide in 2008, the most ever for a year and up almost 13 percent over last year, according to Billboard magazine.
In North America, the average box office gross was up 18 percent and the average attendance up 6.3 percent.
Last month, concert promoter giant Live Nation reported third-quarter profit more than tripled to $139.9 million.
I believe there is an acquisition in those Live Nation "profit" numbers.
ReplyDeleteI also believe there are some very strong secular trends occuring toward the concert business away from the CD (albums) business. On net, the consumer may have or have not spent more on this broad entertainment catagory.
Still, a very interesting data point.
I believe there is an acquisition in those Live Nation "profit" numbers.
ReplyDeleteI also believe there are some very strong secular trends occuring toward the concert business away from the CD (albums) business. On net, the consumer may have or have not spent more on this broad entertainment catagory.
Still, a very interesting data point.
von Pepe
von Pepe,
ReplyDeleteVery good points. That said you would have to add in iPod sales and an argument could be made that a percentage of iPhone sales should be added in, for this broad entertainment category. Also, the drops in housing and auto sales are dramatic. In the rough range of 30% to 50%, I doubt secular trends in the concert industry could buck that to show up numbers if it was being impacted the way the way the capital goods sector, e.g. housing and autos. is being impacted.
Bottom line,the concert sector is an example of a sector that demonstrates that some sectors can do well during a readjustment period. As you put it, "It is a very interesting data point."
It will also be interesting to see how movie sales numbers come in for the year.