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In the case of live shows - An investor lends money. A producer assembles a team and produces a show. If it's a great show, in the right market, with the right promo, they sell out every night and nX the investor's ROI.
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I used to direct circus, and my producer friend produces circus. If a live musician rehearses alone or in a band then they have very low overhead costs, and the agent/record company model seems to be working well for touring music. Circus/theatre/dance/comedy is more stuck.
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