During a recent episode of Nieuwsweekend on NPO Radio 1, Roderick Udo – a researcher at the Erasmus School of History, Culture and Communication (ESHCC) – shed light on the financial vulnerability of music festivals. The discussion was sparked by a fire that devastated the main stage of Tomorrowland, Belgium’s world-famous mega-festival.
Despite the substantial damage, organisers decided to push ahead with the event. According to Udo, this decision came as no surprise. Cancelling would have triggered catastrophic financial losses, potentially leading to bankruptcy. Months of preparation, binding contracts, and tens of thousands of visitors already en route made cancellation virtually impossible. “They simply had no choice,” Udo explained during the broadcast.
Tomorrowland is known globally for its extravagant stage designs and visually immersive experience. The destroyed main stage – constructed from materials including decorative polystyrene – was central to that spectacle. Udo praised the organisers for managing to deliver a functional festival site under intense pressure and in a short space of time.
Risk vs. Reality for Festival Organisers
Udo also discussed the delicate balancing act festival organisers face when managing risks. While insurance for unforeseen disasters does exist, it is often prohibitively expensive and comes with limited coverage. Major incidents – such as fires or extreme weather – are frequently excluded from standard policies. As a result, many festivals remain only partially insured due to high premium costs.
He placed Tomorrowland’s situation in a wider industry context marked by mounting financial pressure. Rising operational costs – covering everything from logistics and technology to security and staffing – are squeezing margins across the sector. At the same time, festivals are often viewed as luxury expenditures. In periods of economic uncertainty, they are among the first things consumers cut back on.
The recent announcement that Mysteryland will take a break in 2026, Udo noted, is not an isolated case but a reflection of the underlying structural challenges facing the industry today.
The Rise of ‘Festivalisation’ in the Streaming Era
Udo also connected his analysis to a broader cultural trend: the so-called ‘festivalisation’ of music culture – a sharp increase in the number and scale of festivals over the past decade. He attributes this in part to changing listening habits. With the rise of streaming platforms, music consumption has become more passive, making live performances less about the music alone and more about the overall experience. Festivals like Tomorrowland have embraced this shift, offering immersive storytelling, large-scale set designs, and visual theatrics as key elements of their brand.
About Roderick Udo
Roderick Udo is a researcher affiliated with both the Erasmus School of History, Culture and Communication at Erasmus University Rotterdam and Utrecht University of Applied Sciences. His work focuses on the cultural and music economy, particularly in the areas of entrepreneurship, funding, and artist careers.
- More information
Listen to the full segment on NPO Radio 1 (in Dutch).
For more information, please contact Julia Wetsteijn, press officer at ESHCC, at wetsteijn@eshcc.eur.nl.
