Two weeks ago, 12,000 people enjoyed Cher’s music in Budapest Sports Arena (BS), and the size of the audience was just as big at the concert of the veteran Hungarian group Fonográf in Kisstadion.

Last Saturday, almost half a million people watched Susanne Vega and Sting near City Park. In spring, youngsters filled BS to see Pink and Britney Spears, while the older generations enjoyed Peter Gabriel’s concert. Other stars, like Liza Minelli, Carlos Santana and the Judas Priest are also coming to Hungary this summer.

The names are impressive, however, profits are scarce for concert organisers. They try to make their ends meet in a small market that generates an estimated HUF 3 billion in total annual turnover.

Sting’s concert was organised by Showtime Kft, which posted revenues of HUF 1 billion last year. The costs of the event were picked up by mobile operator T-Mobile – or rather its parent Deutsche Telekom – which celebrated its name change with the event.

Sting’s concert in Budapest was not part of his European tour, so he asked for more than the usual “package price,” said Showtime owner Márton Brády. Prices for a concert range between €200,000 and €300,000, but – due to the financial situation of the East-European region – stars are sometimes willing to come for less than that.

Showtime’s main competitor on the local market is Multimédia Concerts Kft., which posted HUF 1.4 billion in revenues last year and plans to make HUF 1.5 billion in 2004.

Managing director László Hegedûs is co-owner in another company, Multimedia International (MI), which receives a 12% share from the revenues of each concert organised in BS. In the case of international stars, it amounts to HUF 1,500–HUF 2,000 per viewer.

BS’s rent is 15% of the net ticket sales revenues, which can reach HUF 20 million if there is a full house. Petõfi Hall (Pecsa) and Budapest Congress Centre are much cheaper and smaller locations than BS.

Besides the two large concert organising companies, several small firms try to survive on the local market. For example, Concerto Music Bt. is specialised in hard rock and heavy metal, and promises to bring Judas Priest and Twisted Sisters to the open air stage of Pecsa this summer. According to managing director Gábor Kosinszky, these groups cost only some ten thousands euros.

Sziget Kft. organising firm behind Sziget Festival in August cannot afford to pay more than $100,000–$150,000 for a concert, although they budget 15%–20% of their total spending on foreign superstars.

Source: HVG

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