The Challenges of New Technology Rising Costs for Music Festivals.

The speed of advances in technology constantly increases and for music festival entities to keep up has significant cost implications. Whilst new technology has many benefits, these sometimes require a significant investment. What do festival organisers need to consider when assessing new technology whilst balancing the costs with potential benefits.

Technology and the pace of innovation is transforming the music festival in every aspect, from more immersive stage productions to the operational backbone of the event. Digital ticketing, cashless payments, festival apps and always on connectivity have all become standard expectations for festival-goers. For organisers this creates significant financial pressure and whilst the benefits include improved efficiency, safety and revenue, the cost of buying, implementing, maintaining and constantly upgrading these systems is rising faster. It is a constant challenge for organisers to keep innovating while maintaining long-term financial stability.

Increasing Efficiency at a Cost.
Investing in the right technology can automate some festival operations like marketing and ticketing which saves labour costs, but this needs to be offset against increased compliance with privacy and data protection regulations. The software and hardware systems used by festival entities is increasing in sophistication, and this requires ongoing updates or upgrades, however, suppliers now offer subscription-based services rather than a one-off purchase which can help cash flow. With many festivals now operating in a digital environment, there is an additional cost to provide increased cybersecurity solutions. Electronics hardware used for operational systems and stage productions have become more advanced with new features and capabilities, but the electronics sector has seen significant inflation in recent years making equipment increasingly expensive. In addition to all these ongoing costs organisers must consider the growing expectations of festival-goers who now expect festivals to be wholly digital environments.

Performance Production Equipment.
Any large-scale music festival that could have hundreds of artists booked will usually subcontract the supply of stage audio and lighting equipment. The festival production team will need to coordinate with artists and carefully examine all tech rider specs submitted as many are increasingly requesting specific new technology, for example. There is often a mix of standard equipment supplied by organisers and more specialist equipment being shipped in by the artist themselves. A balanced approach is required to satisfy artist demands against the costs of hiring the latest specification equipment which will always be higher. Festival-goer expectations for immersive shows is putting pressure on organisers to use expensive technologies that can include LED video walls, automated lighting, laser systems, projection mapping, kinetic stage automations and drone light shows, for example.

Operational Technology Costs.
One of the largest portions of budget spent on new technology for festival organisers is the operational and logistics for the events they run. Virtually all festivals now operate with digital ticketing, either using a third-party platform or their own system. Whichever system is used there are admin charges, fees and other costs associated with using these services. Similarly, using RFID technology on a festival site along with cashless payments has implications for hardware and software costs and requires secure reliable Wi-Fi connectivity to be available site wide. Festival sites are now using CCTV systems, crowd monitoring, digital access control and drone surveillance, all of these services incur a cost, usually from an external supplier. The standard for most music festivals is the dedicated festival app which includes interactive maps, artist schedules, food ordering, and notifications, for example. Organisers must commission an external agency to build, test and operate these apps, and these often need to be updated every year. An increased focus on the sustainability credentials of festivals has meant that organisers now need to invest in technology that can monitor and track fuel and water usage. Many power generation suppliers have upgraded their systems to use smart grids and battery storage, and the increased cost in developing these is being passed onto the festival in increased rental costs. As festivals become more digital with an increase in transactions and use of festival-goer data, the need to invest in robust cybersecurity systems has become essential.

Other Technology Related Costs.
In addition to the actual cost of new technology, there are other related costs that organisers need to consider too. Using the latest tech software and hardware will always require an element of staff training which means lost labour resources whilst this takes place. For software systems there may also be an annual licence cost plus ongoing support contracts. When migrating from older systems to new ones, it can present challenges, specifically increased downtime or compatibility issues. When organisers implement new technology and operational systems, it can have a knock-on effect on vendors and sponsors who must update their own systems to remain compatible. For all these reasons many festival organisers prefer to use third party contractors every year, which means they get to use the latest technology without having to commit to any capital expenditure. If they do need to invest in technology, they should prioritise those with a measurable operational or revenue benefit.

For festival organisers planning their next event using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, site planning, cashless payments and contactless ordering.

Image by Victor Silva via Pexels

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