When U2 put out an announcement about their North American tour recently, there was one detail in the press release that stood out: $30 tickets.

It’s a move, the band’s manager Paul McGuinness said, that was designed to “ensure that U2 fans can purchase a great priced ticket with a guaranteed great view.”

While that’s a welcomed gesture from thousands of followers who are struggling to make ends meet during this recession, it could have also be a way to make sure the band’s tour will be a sold out event.

It’s likely U2 would have sold plenty of tickets anyway, and many seats are either $55 or $85, but they’re not the only act that seems nervous about touring during this major economic downturn.

“We’re seeing plenty of reaction to the economy in terms of pricing, from layaway plans at the festivals to packaging of artists, to multi-tiered pricing,” says Billboard Magazine’s Ray Waddell.

So far, however, touring hasn’t suffered. Waddell says this year looks “very solid” so far, as huge acts like Billy Joel, Taylor Swift and Nickelback are hitting the road. But, Waddell cautions, “There will be some impact at some point from unemployment and fear.”

While mainstream musicians such as Britney Spears might still bring in the big bucks, it’s mid-range groups and even indie bands that could suffer.

Michael Hershfield, CEO of Toronto-based peer-to-peer ticket brokerage LiveStub, says more and more independent acts tour these days and that has saturated the market. “Because of that,” he says, “when consumers’ wallets are tight they’re not going to go out as many nights as they used to. So indie bands are feeling it.”

“I haven’t noticed anything yet,” says Steven Himmelfarb, a Toronto booker who represents smaller acts like Tokyo Police Club. “All the cheaper ticket shows — $10 to $20 — I have not noticed any difference. There is a looming fear that might change instantly though.”

If touring acts aren’t feeling the recession yet, some venues are. In Halifax the legendary Marquee Club — the place where Sloan got their start — closed down in January. “It has been vastly unprofitable,” owner Victor Syperek told CBC News late last year.

Waddell thinks more venues could shutter their doors too. He points to Toad’s Place, a famous venue in Virginia that recently stopped operating, as a sign that some clubs just can’t beat the recession.

“There is no substitute for ‘brand equity,’ but love and history can’t keep the doors open,” he explains.

Clubs might be at risk, but it’s the summer festival that could suffer the most. There’s a real chance that big name concerts like Chicago’s Lollapalooza or the Warped Tour could see sponsorship pulled as more companies cut back on marketing, and ticket prices aren’t cheap.

“Festivals are the most nervous,” says Himmelfarb. “They’ve been cutting back, but because they’re trying to build a brand, it’s hard for them to a take a year off and just duck the recession.”

Clearly, many bands will feel some financial frustration this year, but if an act is really good they should have nothing to worry about. “When a band is hot, a band is hot,” says Himmelfarb. “And acts with a lot of buzz always do the best on the road.”

Part two of a three-part series on how the recession is affecting the music industry. Read part one or continue to part three.

Appeared in Metro News on March 17, 2009.

Pic of U2 via