As an antidote to this I would like to offer my experience in the industry in the mid-90's specifically around Garth Brooks.
I've never been a fan of his music, but at that time he really seemed to be focused on ensuring that as many regular fans got to see his shows as possible.
He limited the price of his tickets to I believe $25. This was when he was at the peak of his fame so he easily could have gotten away with charging much more.
Secondly he would often book a massive amount of dates in each city but only announce one of them. The next show in the block of dates would go on sale after the previous one sold out. It didn't fully stop scalpers but the unpredictable nature of how many shows in total there would be and when they would be on sale cut down on a lot of the scalping.
Again, not a huge fan of his music, but he seemed genuinely interested in helping his fans get to his shows.
There is a psychological hype effect which affects both audience and performers in a capacity room of any size. Whether it's 50 or 5000, if the room is full, you feel it, and it adds to the excitement, tension and maybe magic of the event. There's nothing worse than playing an empty room, and some of the best times I've ever had have been with a band and thirty people crammed into a living room.
Marketing 101. I don't go to concerts often, but there was one last year. Tickets for the thursday show were sold out within minutes, but oh look, they tried Really Hard and revealed they were going to do an EXTRA show on the Friday!
(they already had it planned but wanted to make sure the first show on the less popular day was sold out first)
In short, the author thinks it's the same reason that a half empty club will keep a line waiting outside: it inflates demand. Reality is probably that's one of the reasons only some of the time.
As an aside, I've noticed an uptick in the amount of YouTube ads for music artists and their live shows. The amount of faux-organic hype being generated feels like it has increased recently, with those same artists who I have never heard of showing up on podcasts. It feels like a new era of payola.
This is pretty normal on some level. I used to work in audio production and one of the jokes is that the end of an artists career usually resembles the beginning. I.e. older musicians 'classic rock' etc being relegated to largely county fairs and casinos once they have reached the peak of their fame and are on the backside.
Also production costs do tend to balloon dramatically each time you jump from clubs -> theaters, theaters -> arenas, arenas -> stadiums, etc.
I don't think that this is a primary dynamic for music. Partly, but not really to fans. I don't think fans are extra hyped because something sold out. It helps, but I don't think that's a motivating factor.
Within the industry - I can see that. Producers, managers, booking, PR, etc everyone loves the bandwagon.
And a big artists not selling as they would is kind of negative news, but I don't think that has anything to do with people respond to the next album.
I've been in and around the music business since the 90s. This is not new. There's even a term for it, it's called an "underplay".
Just a preference for the artist. If you go for bigger venues and stretch a little bit, you might end up filling it, and then you'd make more money. If you underplay, then you're guaranteed to have a good vibe at the show, which musicians care a lot about.
That's really, I think, the dynamic that most people use. There is an aspect of it that is public perception-facing, but I've been around a lot of musicians ranging from just starting out to household names, I think it's mostly a trade-off between those two options. Just about every musician prefers smaller venues because they're more fun to play, and less financial risk.
Like anything there are exceptions. For example, an artist who wants to headline Madison Square Garden for the first time might make a different choice. But I don't think the strategy is that much about cleverness. It's just about preference.
I don't think this is "sneaky" - to use the term from the article. Yes, on the one hand a band could maximize by playing in a larger venue, but maybe doing so diminishes the experience for more people. Smaller venues, greater precision, and budgeting, and a better experience for the audience seems like a win.
Not quite sure this is an issue that needs an article in Bloomberg
it's the same concept as sales at Kohls
ffs, artists aren’t in control of these prices or venues. LiveNation is. Remember LiveNation? Yeah, those assholes.
In the era of venues, ticket sellers and resellers being one and the same, a show is never really sold out. It's a marketing tool, yes, but in the context of the "underplay", it's also a way to limit supply, thus increasing the price of the ticket in order to collect fees on that inflated ticket price as many times as possible.
"Money. The answer is always money."
https://archive.is/92Xsy