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At first glance it might seem that with the pound no longer as strong against the dollar, it might be more profitable for bands like counting Crows to make the trip across the Atlantic, however as Duritz says deals are often made in different currencies, and whilst if the band were paid in dollars they would make more money if they'd agreed to be paid in pounds they could well have seen any profit from the tour wiped out.
A financially viable tour would be costed out before hand, and with recent exchange rates international touring bands could be getting about 25% less if they had agreed to be paid in pounds. Conversely if the promoter is paying the band in dollars he'd make 25% less then he'd have been previously expecting, and if he'd paying the band in pounds he'd still be paying the same.
Whichever way a touring band agree to do the deal, one side would not getting the deal they thought they were if the deal was done before the pound fell. As 'profit' is likely to be around 10-15%, the fall in value of the pound is likely to have wiped out all profit for one or other, and so either the band or promoter would probably be losing money. Although a band could probably hold a promoter to the agreed deal if the changes affected the promoter and not the band, in the long run that wouldn't be a great thing for the band to do, as these things have to work for both parties else they don't really work at all.
With the current money markets 'yo-yo'-ing as Duritz put it, it makes the planning and costing of an international tour very difficult and with such large changes, it is very likely that Counting Crows will not be the only band effected by the credit crunch.
The upshot of wide scale percentage changes in money markets makes it much more likely that next summer the number of international artists appearing on these shores could be greatly reduced, if the global money markets do not stop swinging wildly. Add to this the possibility of lower ticket sales as the credit crunch bites, and the lack of profitability in tours could make performances from international acts much less likely.
The good news is that festivals that offer a more family tailored experience, with diverse programming and a sensible pricing policy could attract back those festival goers who over the last few years have decided to travel to festivals abroad, with exchange rates making the foreign festival a less attractive option.
The current financial climate is proving to be a difficult time for the festival industry, which is readying itself to be further affected by another year of reduced consumer spending. However there are positives, with good sales of some of the big summer tours, and many live venues reporting that they are still having good ticket sales it would seem that those effected by the credit crunch are still spending on feel good events. Next summer could see festivalgoers still saving for a weekend away from it all, and a feel good holiday with a weekend at a festival.