Which way with the cost of live entertainment?

In April last year, event organisers and music promoters announced a hike in gate fees, pegging any live musical event at a minimum of K5 000 per head.

The organisers argued that despite the rise in the cost of living and production, the gate fees remained static in the last seven years. But if observations made by The Nation are anything to go by, then the implementation of that resolution has hit a snag.

Our findings have revealed that over a year after the announcement, event organisers are yet to hit the announced threshold. This is despite the continued rise in production costs. One wonders whether the event organisers are able to break even when they host events.

In random interviews, several players have pointed to a number of reasons, including lack of unity among the event organisers, poor economic environment and resistance from people to recognise real value for entertainment.

Music Promoters Association interim chairperson MacDonald Soko admitted that their plan to hike the gate fees has indeed failed to materialise as they would have wished.

He said the raise, which has been achieved, is significantly smaller compared to the cost of production.

“The lack of uniformity among show organisers is still apparent. Some still have the feeling that if they peg their show at K5 000, then it will limit the number of patrons. In the absence of a registered association to regulate such things, it is difficult as everyone makes decisions according to their interests,” he said.

Soko said for one to organise a show, one  requires a minimum of K4 million as the cost of hiring artists has also drastically risen.

He said as an association, they will continue to carry out consultations with the interested parties to find a way forward.

Entertainers Promotions (EP) director Tonderai Banda in a separate interview blamed the development  on lack of unity among event organisers.

He said: “We needed to look at issues of time an event is being held, whether it is mid-month, month end, venue of the event and location.

“It is also important to inform the corporates we work with of our minimum standards. Though this flopped but it was a good initiative.”

Banda said as things stand, it is impossible for an organiser to recoup their investment through gate collections. He said mostly they rely on food and beverages that are sold during the shows and corporate partnerships to offset the production costs.

Banda, however, dismissed assertions that Malawians are not willing to pay over the odds for an entertainment event. He said it all goes down to proper segmentation of the target audience and the quality of the product one is bringing on the market.

Poet and event organiser Q Malewezi said when hosting any event, one needs to have a business case to establish where their revenue will come from. He said relying on revenue from the gate fees does not always work.

The artist said it becomes easier for one if they have a track record of producing content of good quality so that people do not question the value you attach to your product.

Malewezi said that approach requires human resource to communicate what is required.

“Ticket sales are only one stream of earning revenue. You need to get companies on board for corporate partnerships. Then there is trade exchange deals plus food and beverages that are sold during events. These all help to bring the cost of production down,” he said.

Artists manager and event organiser Ras Ray Harawa said the poor economic conditions has also played a part as people are having to prioritise the allocations of their spending.

“People can come at the show, but they are never willing to pay the real value of the event. We understand this is just entertainment and not something that will fill their bellies so we are forced to compromise. We know it’s a general problem which has hit all sectors of the economy,” he said.

Mostly the gate charges for some of the popular music acts such as Black Missionaries, Zembani Band, Skeffa Chimoto, Mathumela Band, among others range from K4 000 in normal venues and K5 000 or K6 000 in high-end venues.