Is The Party Over? Music Festivals Grapple With A Changing Industry

Is The Party Over? Music Festivals Grapple With A Changing Industry

music festival industry cancellations

It’s no secret that the music festival industry in North America — and the rest of the world — is having a rough year. Over the last few months, dozens of events have faced bad weather, poor ticket sales, revoked permits, and outright cancellations, and many festivals have never recovered from the COVID pandemic.

When comparing this to the late 2010s, when festivals were sprouting up like heads of a Hydra, it’s left many people wondering — what’s going on? Is it simply the economy? Rising insurance costs? Bad lineups? Perhaps it’s another, secret factor that only the event organizers themselves are privy to.

You’d be hard-pressed to deny that music festivals aren’t a staple part of culture. Events like Woodstock in 1969 shaped not only the music of the 1970s but also politics, environmentalism, psychedelic acceptance, and cinema. FYRE Festival’s cancellation inspired two documentaries and a plethora of memes. Coachella has become almost as notorious for fashion and style as New York or Paris Fashion Week. Humanity has been gathering to listen to music, drink alcohol, and stave off sleep in lieu of partying for nearly as long as we’ve existed. So, if these events are so important to us — what does it mean that so many are going under?

Coachella music festival. Credit: Adventures with Pinny

The search for answers is ongoing, as explored in a recent NPR article that did a deep dive into the struggles of the festival industry. They found a number of reasons for this decline that many of us already suspected: skyrocketing costs of living, poor profit margins for management, oversaturation, and even a generational divide as Gen Z grows into festival-going ages. But one question that many still fail to answer is: can this problem be fixed? 

An Expanding Festival Graveyard

A few weeks ago, I opened Instagram, only to be met with news that has become less and less shocking as the year has gone on — Suwannee Roots Revival announcing their cancellation. Four days before that, it was Louder Than Life canceling their last day due to weather. Less than two weeks prior, Pharrell Williams revealed that Something In The Water is being postponed until April. And, only two days before that, Nocturnal Wonderland canceled three days before the event was due to start. As I worked on this article, Envision, Okeechobee, and Gem & Jam also announced the postponement of their 2025 editions.

This is merely a small slice of the depressing festival news that has been abundant on social media this year, leaving fans despondent, stuck with nonrefundable travel plans, and, in some cases, screwed out of ticket refunds (such was the case after Lucidity Festival canceled).

 

 
 
 
 
 
View this post on Instagram
 
 
 
 
 
 
 
 
 
 
 

 

A post shared by The Festive Owl | Official 🦉 (@festiveowl)

And it’s not just festivals, either — a number of bands, singers, and musicians have called off shows this year as well. Multi-state tours from Sexxy Red, Jennifer Lopez, The Black Keys, Helmet, and more have disbanded early, with many pointing to low ticket sales or rising production costs as the culprit.

For every festival that canceled a planned event, there was another one announcing that they wouldn’t be returning. Firefly, Resonance, Dirtybird Campout, Voodoo, Moonrise, Camp Bisco, Peach, and Sonic Bloom are among a few North American festivals that went under due to COVID or fell off shortly after in the post-COVID era. And, unfortunately, it appears that this list of done-for gatherings may only continue to grow in the future.

Why Is Festival Attendance Declining?

In 2024, for the first time in years, neither Burning Man nor Coachella sold out. Although they are very different events with largely dissimilar fanbases, it was quite notable for two giant American staples in the industry to fail to reach their previous marks.

While other events have still sold out as usual, such as Glastonbury or Electric Forest, some found that the sellout did not happen nearly as quickly as in previous years. Electric Forest, which has sold out in minutes since 2018, took over six hours to see all of its passes scooped up for their 2024 edition.

Several publications have tackled the topic of festival attendance decline this year, and all have come to the same consensus: in a nutshell, ticket prices are high, lineups are increasingly bland, market saturation hit critical mass, and Gen Z may not care for partying overall.

Naturally, though, each of these tentpole reasons is a result of a cascading number of other issues and causes both big and small, but they’ve all played a part in contributing to fewer ticket sales.

Economic Downturn

Perhaps the most significant reason that people are walking away from live events in droves is due to the exorbitant rising costs. And it’s not only the tickets — just getting to these events can cost hundreds of dollars in flights or gas. Add on food, drinks, outfits, camping gear, and other supplies, and it can easily run one person $1,000-2,000 for even a mid-size event. Massives like Electric Daisy Carnival or Tomorrowland can cost far more.

Inflation is hitting hard, everywhere. Grocery prices have gone up 25% since 2020, and average rent prices have jumped 33% from the beginning of the pandemic. Festival and concert tickets are not immune to this, either — concert ticket prices went up more than 33% between 2018 and 2023 and have only increased further in the last year. It’s not uncommon for a single night at Red Rocks in Colorado to now cost you over $100 — sold-out shows can run even higher.

We’re a long way away from 1960’s Red Rocks pricing.

Frankly, many people around the world are simply getting priced out of attending live events. When it’s your rent or a three-day festival, which one are you going to choose?

Generational Divides

Money is certainly an object, but societal influences are changing festivals, too. A number of news outlets reporting on this issue have come to a similar conclusion: Gen Z may simply not be as interested in partying as previous generations.

One big factor playing a role here is their lack of desire to use drugs or drink alcohol. One study wrote, “Only 5% of Gen Z are most excited about drinking when they get to a festival.” Gen Z is, overall, drinking significantly less than other age groups who have come before them, with roughly a third of them choosing not to drink at all. Rates of certain substance use have increased, such as with marijuana or benzodiazepines, but it is still fairly marginal across the board.

Another challenge for Gen Z? Loneliness. This is particularly noticeable after COVID, which caused further isolation for young people who were already struggling to feel connected to their peers.

Millennials were big partiers — and many still are — but, an increasing amount of them are aging out of these live events as a result of children or careers. When they’re largely gone, who will replace them?

The Hidden Struggles of Event Management

Although there are, certainly, some cultural and economic factors leading to a drop in events and attendance, many behind-the-scenes influences are going on as well.

If inflation is hitting consumers hard, it tracks that it’s also affecting festival owners and organizers. Every aspect of an event costs money — from insurance to vendors, to porta potties, to lighting and sound, to stage build, to art installations — and the prices for all of these have risen dramatically.

The Festive Owl, a popular and highly trusted source of news and info regarding these events, spoke to us on the topic, stating: “The real issue was that everything changed after COVID. Everyone wanted to hit the road, attend events, and, of course, get paid. As a result, the cost of every part of the production process skyrocketed. Take something as basic as porta-potties. In just two years, the same units now cost two, three, even four times as much. That’s not exactly a ‘sexy’ expense, and it’s not something attendees notice — but it still gets passed along through higher ticket prices. This kind of inflation hit every corner of the industry, especially on the production side.”

It’s not uncommon for venues to cost upwards of hundreds of thousands of dollars a day, and many popular artists fall into this range, too. EDM headliners like Zeds Dead may run you $200,000, and a more mainstream act like Rihanna can total well over a million — not exactly small change. When you have a billing packed full of these high-cost artists, it gets pricey fast.

Many of us in the festival scene have been disheartened to see how many of our beloved festivals have been bought out by corporate giants — i.e., Insomniac or Live Nation — but it makes more sense when you factor in these exorbitant costs. Unfortunately, it often results in the ticket and food prices for these events going up as a result.

The simple fact of the matter is that many independent brands just don’t have the funds to stay afloat anymore. When an event manages to stay independently owned and operated like Suwannee Hulaween has been able to do, it makes them that much more special and precious — and it shows why it’s so important to continue supporting the festivals that really provide something special.

 

 
 
 
 
 
View this post on Instagram
 
 
 
 
 
 
 
 
 
 
 

 

A post shared by The Festive Owl | Official 🦉 (@festiveowl)

Steps Forward: How To Revive The Industry

It’s easy to get caught up in the wave of cancellations and conclude that the festival industry is dying, particularly when news outlets have quickly declared it so. But people tied to this world are optimistic about the future.

It’s certainly going to be necessary for festivals to find ways to adapt and host events with love, care, and innovation — aspects of management that truly speak to fans. I know myself and many of my friends see festivals as our annual escape from the stressors and strains of regular life, and nobody wants that to disappear. However, fans are becoming increasingly picky about where they spend their money, seeking out festivals and shows offering something unique that’s worth the time and travel.

Michael Berg, co-founder and co-owner of Suwanee Hulaween and North Coast Music Festival shared his thoughts with us on the subject: “Although some events in the festival and venue spaces have suffered in the current economic landscape, others seem to be thriving. From our portfolio, North Coast had a record-breaking year, and Hulaween is 90% sold out a week ahead of the festival. If you take the time to curate the right lineup for your community and truly understand what sort of experience your fans are looking for, then the future can still be very bright.”

The Festive Owl echoed a similar sentiment, writing: “It’s all about the music. Humans have been creating and enjoying music since the dawn of time, and that’s not going to change anytime soon. However, the key is offering unique musical experiences — ones you can’t find anywhere else or that feel truly special. Listen to fans — listen, listen, listen. Sure, the rumor mills and internet chatter can spiral into wild conspiracies or unproductive noise sometimes. But within all that are real people — real fans who deserve to be heard. Some of them might even have a good idea or two. Be open to constructive feedback.”

Attendee relationships matter, of course, but good organizers are also able to build solid, lasting connections with musical acts, artists, stage builders, and all of the other vital people who come together to make these events happen. If you please your fans but fail to pay your talent, you’re likely going to end up in the festival graveyard — no matter how fun the show was for the audience.

Devin Ellis, founder and owner of Ocaso Festival in Costa Rica, told us as much: “Music has always been my deepest passion. After nearly 30 years of producing events in the U.S. and Costa Rica, I’ve built lasting relationships with artists, and these bonds are the foundation of a great festival. Creating a space where artists feel relaxed and completely comfortable is essential to helping them perform at their best — this, above all, is a promoter’s most important role. With the many moving parts involved in organizing a festival, this sometimes gets overlooked, but every detail counts when supporting our artists.”

So, if you’re an event organizer looking for ways to stay afloat in these times: listen to your fans. Listen to the artists. Provide your stagehands with good working conditions. And, most of all, stay passionate about offering an experience that people truly cannot get at any other event in the world. At the end of the day, the most successful festivals are the ones thrown by people who have a genuine love for music, art, and human connection — and that shines through more than anything else.

So, Are Music Festivals Dead?

While the outlook may initially seem grim, don’t panic: there will always be festivals. No matter how much complaining there is on social media, whether it be about lineups or ticket prices, people are still seeking out these parties. Events worldwide including Glastonbury, Ultra Music Festival, Electric Daisy Carnival (EDC), Tomorrowland, and Boom Festival all sold out this year, and some of them have already sold out for 2025 as well.

However, the music festival bubble has grown and burst, and the industry is going to have to continue evolving to adapt to these changes in the coming years. What, exactly, this will look like is truly anyone’s guess at the moment, but showing support for the events we truly love will make all the difference. In essence: music festivals aren’t dead — simply changing.

And, if the incredible people who have hosted pop-up DJ sets in Ukraine to inspire loved ones working to clean up bomb debris is any indication, it’s that people are always going to come together and dance — even when it seems like the world is ending.

@cryptikuk Modern solutions for not so modern problems ❤️🇺🇦 #ukrainewar #rave #festivals #musicscene #ravers ♬ original sound – Cryptik

Related Content:

0
YOUR CART
  • No products in the cart.