The music capital of the world is losing capital.
A study released by the Austin Music Commission, showed that Austin missed out on 56 music tours that stopped at other Texas amphitheaters in 2004 and is losing at least $4.4 million in revenue per year because the city lacks a midsize amphitheater.
The results were obtained by Michael Feferman, a graduate of the McCombs School of Business, and Scott McCarter, a UT business graduate student, in April under the supervision of Lenore Sullivan, associate director of the Department of Finance.
"People thought our facilities were adequate, and maybe for local artists they are, but for touring acts, these are not what they are looking for," said Brad Stein, a member of the Austin Music Commission. "Right now there are talks about whether a midsize venue should be built."
The Austin Music Commission proposed the research study in December 2004.
Feferman and McCarter examined tour histories for the four mid- to large-size amphitheaters in the region, including Smirnoff Music Centre in Dallas, Cynthia Woods Mitchell Pavilion in Houston, Verizon Wireless Amphitheater in Houston and Nokia Theatre in Grand Prairie. Dave Matthews Band, Tim McGraw and Jessica Simpson overlooked Austin for their tours.
"There are definitely some gaps and concerns over space. If a band falls into a certain [venue] size that is too small, like La Zona Rosa, or too big, like the Frank Erwin Center, they are likely to go elsewhere," said Rose Reyes, music and film manager of Austin Music Office. "It would be nice if there was something [that] was in between."
About 41 percent of the lost revenue comes from locals who travel to other cities for the concerts.
In the study, local business owners and managers were asked how they think a central Austin amphitheater would affect city identity, quality of life and businesses.
Cole Roulain, general manager of Waterloo Records, said he thought the venue would be a great idea that would bring more music choices and benefit Waterloo Records.
The study suggested that a possible venue location could be at the site of the Seaholm Power Plant.
"I think a midsize venue should be located in an urban area of town. I think downtown presents good opportunity but also some challenges," Stein said. "I think East Austin also presents good opportunities, perhaps with less of the challenges that face a downtown venue."
Stein said the Erwin Center is a large venue, but many bands don't want to play in a basketball stadium. They want to play outdoors and continue their standard routines in the summer.
This is the first phase of the study. Next, the researchers will focus on how to get a midsize venue built and what it would cost.
Be the first to comment on this article!