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Fewer bands are hitting the summer tour circuit this year with the economy mired in recession.

 

That may spell disappointment for local music fans. So far, Atlantic City casinos have a little more than half the acts booked for 2009 than they had in 2008.

 

“Most (performers) are not really accepting less money, to date,” said Steve Gietka, vice president of entertainment for Trump Entertainment Resorts Inc. “It is very expensive to tour. If their profit margin isn’t acceptable, they just stay home. Of course, there are exceptions, but it’s not like the industry is experiencing a fire sale just yet.”

 

How bad are things? Between Memorial Day and Labor Day last year, the casinos and Boardwalk Hall in Atlantic City hosted 133 music acts and comics. As of April 29, only 72 acts have been booked so far for this year by these venues.

 

During the past decade, the casinos and Boardwalk Hall made great strides in changing the resort’s image from being known as a place where entertainers eked out shows at the end of their careers to an entertainment center attracting some of the biggest names in the business. Many top-name performers came here after performing in Philadelphia or the New York area. Sometimes, they chose Atlantic City over Philadelphia.

 

Now, many musicians are deciding that the economics of a smaller market such as Atlantic City do not make this area a must-play stop on their recession-hobbled concert schedule.

 

In the past, acts may have played in Philadelphia, northeast New Jersey and Atlantic City. Now, they may only choose to play at one or two locations, but not all three. Atlantic City is likely to lose out unless the casinos pay a large sum of money, said John Scher, co-founder of Metropolitan Talent, Inc., out of New York. That’s unlikely to happen as casinos struggle with their own financial problems.

 

Atlantic City is in a curious dilemma because the other staple of its entertainment schedule — acts past their recording prime that now pretty much make their living by performing live shows — are no longer the guaranteed draw they were in good financial times, Scher said.

 

“In Atlantic City, you have acts that often tour, so people are having to choose. People want to get out and enjoy themselves, but they have to make choices. Their (fans’) attitudes may be, ‘If I miss an act this time, I will be able to catch them next time,” said Scher. “You need something special, acts who haven’t toured in a long time or a great double bill.”

 

Tina Belluscio, regional director of entertainment for the Atlantic City Hilton Casino and Resort and Resorts Atlantic City, said that if middle-of-the-road acts that tour year-in, year-out with no significant new product, hits or added value were pitched to her for this summer, the fact that there was nothing fresh about them played a bigger role in her deciding against them this time.

 

“Atlantic City is a different animal than most markets. ‘Comp’ means very little in other markets,” Belluscio said. “You will likely see less of the multi-engagement acts this year in an effort to bring in hard-ticket selling shows that may not necessarily cater directly to the gaming demographic.”

 

The economics of entertainment are a dance between bands and promoters, with each bringing their own concerns to the decision of whether or not to mount a show here. Top musicians have become more dependent on touring, a major source of their revenue, as record sales decline.

 

But touring can be expensive. The acts absorb some costs and the promoter and/or venues absorb others, according to Ray Waddell, touring industry columnist for Billboard magazine.

 

“A basic rule of thumb is about 65 percent of the ticket gross ends up going to the act after expenses,” Waddell said.

 

But bands can make big profits from selling concert T-shirts and program books, with about 80 percent of sales going to the act, Waddell said.

 

“Given that most acts realize they need to be conservative in ticket pricing this year, they do seem to be looking to control expenses and probably their own profits as well. The primary driver for ticket prices is how much the act gets paid. Promoter profit margins are razor thin, in low single digits,” Waddell said.

 

Belluscio has seen performers drop their prices. The Atlantic City Hilton will increase its entertainment to take advantage of this, but there will be no free summer beach concerts by the casino this summer, unlike last year. During midweek this summer, Resorts will not have headliners, but it will have more contemporary, higher profile or expensive acts on the weekends.

 

With the down economy, more people are also waiting until the last minute to buy tickets, according to Greg Tesone, general manager at Boardwalk Hall.

 

“The average live music fan may see four shows during a summer. Will they do four shows this summer? And if they don’t, who will suffer?” asked Tesone, who has booked Fleetwood Mac, Jimmy Buffett and “American Idols Live” for the hall this summer. “In other markets, the big stuff is selling — Bruce Springsteen, Billy Joel and Elton John. The small artist is where you will see the impact.”

 

Acts commanding the most money and carrying the highest ticket prices are usually those the public wants to see the most. This summer is no exception.

 

For instance, the top ticket price for Buffett on Aug. 23 at Boardwalk Hall is $226. The costliest ticket for Kenny Chesney on June 27 at Lincoln Financial Field in Philadelphia is $200.

 

Acts famous for their live shows, such as Bruce Springsteen, are at an advantage.

 

But even though booking numbers are down now, some casino executives said the picture could look different by the time summer crowds start to arrive.

 

Trump Entertainment Resorts Inc. and Borgata Hotel Casino & Spa said they would offer as much entertainment this summer as last summer.

 

Seven headliners performed at the Trump Taj Mahal Casino Resort during the last vacation season. Six are booked so far for this year, including a triple R&B bill of Keyshia Cole, Keri Hilson and Bobby Valentino on May 23 and Marc Anthony on June 27.

 

Borgata booked 36 entertainers last year and has 24 acts scheduled so far for this vacation season.

 

This summer, Borgata will again try to maintain its reputation for bringing in acts that play in arenas and amphitheaters in other markets and place them in the 2,200-person capacity Event Center. No Doubt plays in Camden, Burlington County, next month, but the band opened its reunion summer tour at the Borgata on Saturday.

 

Il Divo and the joint tour of Chicago and Earth, Wind & Fire will play at arenas and amphitheaters in some parts of the U.S., with the joint tour playing at the Borgata on June 12 and 13 and Il Divo playing July 3. Mary J. Blige appears June 5, Diana Krall performs June 20 and Depeche Mode is already sold out for Aug. 1. Jay Leno performs May 30, the day after his last “Tonight Show.”

 

Joe Lupo, senior vice president of operations at Borgata, said he expects the number of acts the Borgata offers this year to be consistent with last year, but there will be no pricey acts, such as the Eagles or Eric Clapton, which the casino booked last summer.

“I’m still looking for some big acts,” Lupo said. “We are staying very aggressive.”

E-mail Vincent Jackson:

VJackson@pressofac.com

1 comment:

• allure45 (29) posts 11:40 am

  Venues should welcome less known acts with followers , such as Across The Rhine and Demolition Blues Band , and put them in rooms with bars and even some room to dance . House of Blues used to do this . Lots of people just want to have fun . The days of $300 concert tickets and hawking $30 T-Shirts are over . So are the days of $350 bottles of Grey Goose , overpais DJs , Velvet Ropes and snotty doormen at the clubs .

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