American Eagle hopes price is right for fest ticket

By Mitchell Peters

LOS ANGELES (Billboard) - Despite a slow economy and soaring gas prices, many concertgoers this summer will spend more than $200 in ticket fees to attend a multiple-day music festival.

But in an effort to provide an affordable ticket price for its 15- to 25-year-old customer base, clothing retailer American Eagle Outfitters will rely primarily on company dollars to underwrite its inaugural New American Music Union festival in Pittsburgh.

American Eagle Outfitters has tapped Red Hot Chili Peppers frontman Anthony Kiedis to help curate the new event, which will feature performances by Bob Dylan & His Band, the Raconteurs, Gnarls Barkley, the Roots, Spoon, the Black Keys, Black Mountain, the Duke Spirit, NASA and Tiny Masters of Today, with several more acts expected to be announced. The festival, set for August 8-9 at SouthSide Works in Pittsburgh, also will feature 15 college bands that were selected by American Eagle Outfitters scouts who survey college music scenes around the country.

With affordability in mind, admission to the festival for college students is $25, while non-students will be charged $49.50. As a bonus, ticket purchases include a commemorative festival T-shirt, which is "something that would normally cost as much as the ticket," American Eagle Outfitters chief marketing officer Kathy Savitt said.

Tickets for the event went on sale May 16. "We're about halfway sold out," said Savitt, who expects approximately 10,000 concertgoers per day.

So how is it being paid for? Savitt declined to provide specifics about talent and production costs, but said the New American Music Union festival is more about "supporting and celebrating our customers. We're not making a profit on this." Money generated by ticket sales, however, will help offset some of the production costs, she added.

Keeping in mind that "we're in the business of selling apparel and accessories," Savitt said the retail chain will use its 900-plus stores in North America to help promote the festival. New American Music Union also will be advertised via American Eagle Outfitters' Facebook and MySpace profiles, as well as online marketing and advertising campaigns. In the weeks after the event, beginning August 12, performances from the festival will stream exclusively on AE.com.

American Eagle Outfitters has hired Live Nation to help produce the event at SouthSide Works, a mixed-use area comprising restaurants, retail shops and other businesses, including the headquarters of American Eagle Outfitters. The location is also within close proximity of such colleges as Carnegie Mellon University, the University of Pittsburgh and Duquesne University.

Reuters/Billboard