Rand's fall rocks big shows

13 January 2016 - 08:43 By Leonie Wagner

If going to a stadium concert is on your bucket list this year, you might need to rethink if the rand continues to plummet. Concert promoters and industry experts have warned that if the rand continues to drop it could negatively affect the entertainment industry.Vicki Myburgh, entertainment and media industries leader for PricewaterhouseCoopers South Africa, said the more the rand weakened, the more things would cost - be it video games or music purchases, adding: "These increasing costs may see an uptick in piracy as consumers seek to 'manage' the rising costs."Consumers will also pay more for dollar-based products such as Netflix and Apple Music, which were recently launched locally, unless these companies fix a rand price to their products.But it's not all bad news. Though music fans might miss out on the big international acts, local acts could capitalise on this.Carel Hoffman, of Hilltop Live, an events management company that specialises in music festivals, said: "The strong dollar makes many events more dependent on South African talent. So this is in a way a protective banner for [local] talent, which is a nice thing. So things like our strong South African content projects benefit from this."Big Concerts CEO Justin van Wyk said even though the company's concert schedule for the first half of the year was confirmed, if the rand didn't recover South Africans could see fewer shows in the later part of this year as well as next year.Some big acts might postpone their plans to tour South Africa, while promoters might need to increase ticket prices.Van Wyk said: "Generally speaking, it's now 20% to 50% more expensive to bring the big acts. It will be very hard to [attract] acts like One Direction and Justin Bieber [at the current rate]. The result would be an increase in ticket prices, which means we'd lose the middle-income segment because it's too expensive."Both Van Wyk and Hoffman said the rand's volatility often made it difficult to plan. Van Wyk said it made South Africa "less competitive" once offers to host the big tours became available.Myburgh said: "Consumers have a limited entertainment budget. [A weak rand] will make the fight for the consumers' dollars even more competitive."..

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.