For those unfamiliar, SXSW is rather unique in the world for being far more than a conference, trade show, or film or music festival — it’s an economic engine, a cultural touchstone, and, arguably, the defining force that made Austin a global hub for innovation and creativity. But in 2025, something felt… off. The conference, which has shaped Austin’s tech and startup scene as much as its music and film industries, was just… well… changing.
Before I go on and raise the ire of some close friends who work with SXSW or in respective organizations, let me reiterate that I am a huge fan and proponent of SXSW and what they’ve accomplished. This isn’t a negative criticism but some criticism none-the-less, because it’s observation from a long-time attendee, promoter, speaker, and evangelist. In my work with cities throughout the world, SXSW is among my most frequently cited ideals of what an ecosystem wants to have in place for the sake of innovation and entrepreneurship; thus, with my kid gloves on, I want to share some observations, concerns, and encouragements, in hopes that this will reach the right people and we can help SXSW evolve with Austin in the ideal direction.
This year, venues that were once packed were empty and though we were still under quarantine. Attendance felt down and though I don’t have any actual numbers to confirm that, venues, artists, and people in lines all agreed, it felt sparse. Big brand sponsorships seemed fewer. And promotion — usually a drumbeat that starts in November — was barely noticeable until late February. Was this an intentional shift? A strategic misstep? A reflection of Austin’s broader economic challenges? And with Penske Media Corporation (PMC) now holding a stake in changing SXSW, is this a signal that the festival is being reshaped into something new — perhaps into something more aligned with the deep-pocketed film and television industries, at the expense of the music scene that built it?
“Its new decentralized strategy – spreading conferences across hotels, music venues and cultural spaces – could redefine how cities host major events.” Gordon Young, Editor-in-Chief The Drum has a great assessment which I’m going to refer to a few times to tie together my own thoughts.
This is an inflection point for SXSW, and for Austin itself. The city is changing—some would say for the better, others would argue for the worse. And the question isn’t just whether SXSW can adapt. It’s whether downtown Austin still has the capacity to sustain the festival that once put it on the map.
SXSW is Interactive
SXSW began in 1987 as a small music festival with one purpose: to showcase Austin’s local and regional music scene. The idea was simple — if New York and LA were the dominant music markets, then Austin, with its gritty live-music venues, indie and local artist love, and DIY ethos, could be the proving ground for artists trying to break out.
It worked. SXSW became a critical stop for the music industry, a place where labels, producers, and journalists scouted talent – coincidentally, just as some years later, would be the case with startups. The festival was a reflection of its city, and by the late ’90s, Austin was becoming known for something beyond music — technology. Dell, founded in 1984, had put Austin on the tech map. The city was attracting early-stage internet companies, and a burgeoning entrepreneurial scene was taking root.
Recognizing this shift, SXSW expanded in 1994 to include SXSW Interactive while Film became a specific division and focus. Interactive, in particular, was an afterthought at first — a niche event running alongside music. But in 2007, that changed when Twitter launched at SXSW, proving that the festival wasn’t just a place for indie rock — it was where the future of technology was being shaped. Soon, major players like Google, Facebook, and Uber were launching products there and the 2010s, SXSW Interactive had become the startup and innovation event of the year, often compared to CES but with a scrappier, Austin-esque with a Silicon Valley twist – frankly, like it or not, in my work with VC, SXSW was where to go.
The Changing Face of Austin: Growth, Affordability, and Mobility Challenges
Austin’s transformation over the past 25 years has been nothing short of staggering. The city’s population has doubled since 2000, tech companies have set up massive campuses, and high-rise luxury condos have replaced the bungalows and dive bars that once defined downtown (to the chagrin of most).
A growth accelerated, so did challenges. Housing affordability, once one of Austin’s major draws, evaporated. The cost of living downtown skyrocketed, and many of the artists, musicians, and creatives who made the city cool in the first place were priced out. A 2024 Austin Economic Report found that Austin now ranks as the second least affordable housing market in the U.S. relative to income levels.
Historic and arts venues have been hit hardest. Places like the Hole in the Wall have struggled under rising rents while the list is depressingly endless covering the names of famous or beloved places now gone. The city’s reputation as the “Live Music Capital of the World” is under threat — not because the music isn’t here, but because the venues that support it struggle.
And then there’s mobility. Austin’s infrastructure was never designed for the sheer number of people now living, working, and attending festivals downtown. SXSW, once easily navigable, now requires Uber rides between venues or long walks or pedicabs across a city that still lacks an adequate transit system – notably, even pedicabs were incredibly absent in 2025 compared to years past.
It all started to feel as if SXSW as experienced in 2025 was intentional…
Penske Media Group’s Investment and the Future of Experiential Media
In 2021, Penske Media Corporation (PMC), which owns publications like Hollywood Reporter, Rolling Stone, Variety, and Billboard, acquired a 50% stake in SXSW. The move was surprising to some, but to those of us in the thick of this world, it makes perfect sense.
Traditional media is dying. One of my favorites from told-you-so collection (yes, I go there) is that I wrote about this in 2013 when journalists and PR professionals came at me hard for being critical. Advertising revenue has plummeted. Subscription models have failed to replace lost ad dollars. Journalists are underpaid, and newsrooms are shrinking. In this landscape, media companies are realizing that the future isn’t just in reporting events — it’s in creating them.
Vivek Rana, Managing Partner of Gnothi Seauton, covered in exploring How Brands Are Building Newsrooms And Redefining Media In 2025, “Brands are no longer content to advertise in traditional media outlets; instead, they are becoming the media themselves.”
SXSW is a perfect vehicle for this transformation. The festival isn’t just a place to report on emerging trends — it’s where media companies can actively participate in shaping them. Penske’s investment is part of a broader strategy to make media more experiential, more immersive, and ultimately, more profitable.
So, was 2025 intentional?
This year, several things stood out that indicate a shift is already happening:
- Fewer venues in use: Large portions of the usual SXSW footprint were dark. Attendees were forced to travel more to find events, creating a fragmented experience.
- Declining attendance: While official numbers haven’t been released, multiple sources have reported a noticeable drop in attendance compared to previous years.
- Less brand presence: Previous years saw a wide variety of sponsors — from Fortune 500s to scrappy startups. This year, sponsorships seemed fewer and more concentrated.
- Delayed promotions: Usually, buzz around SXSW starts in November. This year, marketing efforts didn’t seem to ramp up until February, prompting no more speculation that I know of than my own, that organizers were still figuring things out.
- Erosion of Local Authenticity: The influx of global brands and commercialization has subtly diluted the local essence that once defined SXSW. This shift risks alienating the very community that fostered the festival’s unique identity and it’s a critical piece of the puzzle because people come to SXSW to experience Austin <- fail to expose and support those experiences, and people can get similar talks and music back home.
- Volunteer Workforce Challenges: The festival’s reliance on volunteers has long been brilliant given alignment with spring break and students who remain in town looking for something fun to do.
- Shifting Demographics and Expectations: As Austin attracts a more affluent populace, the festival faces pressure to cater to upscale tastes, potentially sidelining emerging artists and grassroots initiatives that have historically been its backbone.
And the biggest change evidence that yes, changes are intentional: A now announced new format for 2026. Next year’s festival will be condensed into a single week (March 12-18) instead of stretching across two weekends. Music showcases will now be integrated into the broader festival, rather than having their own dedicated weekend.
Are my other observations intentional? Planned? Or are they accidental, circumstantial, or cause for concern? I don’t know, that’s why I’m writing this – entrepreneurs, marketers, and economists all know that we can’t explore solutions to make something better if we aren’t realistic about causes for concern.
What’s Really Happening? Some Theories
- A Shift Toward Film & TV: With deeper pockets and bigger marketing budgets, film and television bring in more revenue than music. PMC might be subtly pivoting SXSW to focus more on those industries.
- Financial Struggles for Music Venues: Several venues shared with me that their revenue was down substantially this year, at a time when most of the city makes up a lion’s share of annual revenue during this particular week in Austin.
- Austin’s Cost Crisis is Affecting SXSW: Rising costs have made it harder for smaller companies and artists to participate, meaning the event is becoming more exclusive. The local community could have easily highlighted this challenge, for years now both musicians and entrepreneurs have been pushed out of the city given a cost that just doesn’t make sense for creators to absorb.
- Experiential Media Integration: PMC’s investment reflects a strategic move towards experiential media. By integrating their media assets with live events, they aim to create immersive experiences that resonate with audiences seeking authenticity. Gordon Young, “Experiential marketing is no longer a side act – it is the main event. Whether it’s live activations that shift based on audience energy or brand spaces designed as destinations, the future is about storytelling, not selling.”
- Economic Pressures on Local Venues: Austin’s escalating costs have strained local venues, many of which rely heavily on SXSW for annual revenue. The festival’s restructuring and dispersed format may have inadvertently impacted these establishments, leading to financial challenges and a potential decline in the city’s live music scene.?
- Evolving Audience Preferences: The rise of digital platforms and virtual events, accelerated by the COVID-19 pandemic, has altered audience expectations. There’s a growing demand for hybrid experiences that combine physical attendance with digital accessibility, prompting SXSW to adapt its offerings accordingly.
Let me point us back to Young’s perspective, “The future of TV isn’t passive. NBCUniversal is proving that ‘lighthouse events’ – think SNL’s 50th and Bravocon – are more valuable than traditional ad buys. Fans don’t just watch; they participate, creating organic engagement that outperforms any paid placement.
Meanwhile, media strategist Evan Shapiro called out broadcasters for failing to meet audiences where they are. His suggestion? “The BBC needs a Fortnite correspondent.” His point: trust in legacy media is fading and brands that fail to adapt to new platforms will be left behind.”
The media landscape’s economics undeniably favor film and television due to higher revenues and advertising potential. This reality may influence SXSW’s programming decisions, potentially skewing focus towards these lucrative sectors. However, it’s crucial to acknowledge that music remains the festival’s soul and a significant draw for attendees. Neglecting this aspect could erode the very essence of SXSW and undermine Austin’s identity as the “Live Music Capital of the World.” Reports indicate a decline in artist participation, with numbers dropping from approximately 2,000 acts per year to just over 1,000 in 2025.
And here’s why, something to appreciate again – SXSW is an economic engine of Texas, not just a conference or festival:
- “Austin” itself is a draw to experience Austin in March – something now not what it was
- Live music is spirit of that – if dispersed or overshadowed, we don’t have a festival, we have a typical Friday night for Austin music
- Interactive (technology, startups, and venture capital) is what makes SXSW inspiring and exciting
- Film and Television are, frankly, second to the rest and though it might be the most profitable or valuable economically, it isn’t the WHY behind SXSW – I fear losing the globally meaningful impact of SXSW in a shift away from what attracts everyone to Austin
How to Fix SXSW Before It Becomes Just Another Trade Show
- Early and Inclusive Promotion: Engaging the local ecosystem at least six months in advance can foster community involvement and generate grassroots support. Collaborative planning with local artists, venues, thought leaders, and residents is the source of the festival’s authentic spirit.
- Financial Support for Local Venues: Partnering with the City of Austin to subsidize costs for local venues can help maintain a concentrated festival footprint. This approach ensures that smaller establishments remain integral to the SXSW experience, preserving Austin’s cultural fabric.
- Enhanced Mobility Solutions: Improving transportation options, such as ensuring a high density of affordable ride-sharing services, can alleviate logistical challenges and keep it from feeling like it had to spread out. Particularly with the coming renovation of the Convention Center, where is the epicenter to be and what might we celebrate nearby?
- Reimagined Festival Layout: Consider alternative locations. Months ago I proposed that it needs to be established along Barton Springs Road (a divisive suggestion met with anger from residents and praise from others). Here’s the point of it though: walking distance to “downtown” while being within spitting distance of the lake + Zilker Park (known to you perhaps because of ACL) bookends one side while Palmer Events Center and the Long Center cap the other + in between great restaurants, venues, and ZACH theater + South Congress creating an L shape off of Barton Springs Road. All, most importantly, still feeling characteristically like Austin rather than just another downtown.
Ideal? Making everyone happy? No, of course not, but we work with what we can, and I’ve not heard a better possibility other than sprawling from far East Austin, miles down West 6th, and all the way down to, who knows where, San Marcos?? While any change is going to find both detractors and supporters (hell, here I am being both), the fact is it is going to change and I’d like to celebrate and see collaboration with Austin, to keep it quintessentially Austin and an economic engine of both the entrepreneur and artist ecosystems as well as locally owned restaurants, venues, and workforce that have come to consider it paramount.
SXSW stands at a crossroads, reflecting broader shifts within Austin and the media landscape. By acknowledging and addressing these underlying factors, stakeholders can collaborate to preserve the festival’s essence while adapting to contemporary realities. This collective effort is vital to maintaining SXSW as a cultural and economic engine for Texas, ensuring its continued relevance and vibrancy in the years to come.
What’s exciting for me, being here, is that as I continue to talk with governments throughout the world about how to develop meaningful startup ecosystems, SXSW remains a shining example of what needs to be in place, and now we’ll experience together if it can evolve and thrive, just as would have to happen to such a thing anywhere in the world.
Need to start over with another organization and a different team and maybe location. It’s all about money now not creating or fostering and mentoring startups. It feels like they are having it just because they are obligated to have it. It should have different tiers for different income classes like it used to. Almost 3 tiers. One for artists and creatives who are just there to vibe and take in culture. The middle class who is there to experience everything they can because it’s a cool thing to do(was) and the upper business/sponsor/investment people who can find that diamond in the rough they are looking for. It used to be the event for every creative. Music, art, games, movies, and software developers. Plus the dozen other hobbies and interests people are into. The price to even stay in Austin during the event is out of hand. Not to mention the cost of the tickets now. They lost their way and it won’t ever be what made it great again. I say start over.
Enrique Gonzales I have different location in there, agreed. Love your other suggestions and your take is accurate.
My two cents, this is an opportunity for other orgs to fill the ‘second weekend’ on the coattails of SX without having to give SX a dime.
Ana DeAlvare a great many people have proposed doing something. I don’t think you’re wrong but… keeping people around or promoting something then, will raise SXSW’s attention and maybe collaboration is the better path.
the rebuild of the convention center over the next 4 or 5 years is one of the biggest factors, it will barely affect film/tv or comedy though because that was always scattered it will have the biggest impact on interactive which will have to split into multiple hotels and that will cut into future sales as some people won’t want to have to hike all over town to catch different conf tracks…music is heavily dependent upon industry trends which sxsw can’t control, still 1,000 bands is a lot of options for those looking to just listen to live music
would be nice to see the return of gaming which was a great event and free to the public
I did not really hear any advertisements for it and did not even realize the music part started.
Donny Edelmon yeah, I really heard nothing but the occasional social media post from Hugh
I think something else that went wrong this year that every single person I’ve seen write it up missed is that SXSW was offset from UT Austin, AISD, ACC, and many other spring breaks this year. The number of attendees who work or attend school in the area is not negligible.
Maybe less sponsorships from weapons manufacturers.
SX as we once knew it is over. I’m all for supporting local creatives, musicians in particular. It’s just that music crowds show up for big acts and SX doesn’t pay. It’s corporations that pay those big artists and that in turn brings their music industry partners i.e. record labels, etc which in turn provides exposure opportunities for smaller bands. Those corporations are bracing for a recession and they aren’t seeing the ROI on doing activations, etc at SX for the foreseeable future. On the other hand, C3 had a great year with ACL, etc because they pay to bring in big acts that attract crowds.
Not to mention, SX over the past 30 years has brought a lot of monied folks here making it unaffordable for many creatives. It’s time to move on.
Not that you – the legend that you are (I mean that sincerely) – don’t have a strong sense of things, but it feels like talking to past attendees and past sponsors (who did not attend) would be the ideal place to start. Along the same line, what about those who have never been (e.g., myself) but might be in the target market? I could be wrong but my sense is it got too mainstream – for my tastes – and might have jumped the shark. Again for my tastes.
One year is not a trend. Given the economy and general uncertainty, perhaps that’s all it was? It’s not broke per se, so why try to fix it? Of course evolution / experimentation is always good to do but maybe not too much?
Mark Simchock it hasn’t jumped the shark, though some think so, it just can’t work WHERE it has been, for a host a reasons from convention center remodel to costs to cultural appeal. My concern is PMG is in LA, they don’t know that first-hand, and while the SXSW team does and would, they need the support of more than the local organization, to make the changes necessary to keep it amazing.
And no, one year isn’t a trend, but this year was a stark difference, and even last year, we knew the convention center was going to be shut down for a few years and some serious changes had to be made. This was a stark difference, but the signals of change have been there for years.
Still, yes… want to know why people would come? Ask them, not the rest of us couch quarterbacks
Very well said and definitely agree with you. Austin used to be such a fun city to enjoy music, theater, food,etc but now it’s just so chaotic. I hope it recovers and goes back to being the Austin I knew from 15 yrs ago
Paul O’Brien it seems like SX closed the door though. Silver lining?
Donny Edelmon I found it impossible to escape, but I’m an avid listener of KUT and KUTX, reader of the Chronicle (in print no less), and skimmer of the seemingly dozens of online media outdits covering it, local, national, international. Also all my social feeds and emails were jam packed with news about it for weeks before from bands and venues doing adjacent events to corporations doing adjacent events to hundreds of posts about official events in film, interactive (or whatever it’s called now), and music. Free events, events sponsored by various CVBs (Midwest House, anyone?) to all the south by south congress and private house parties/concerts and workshops etc.
Sara Breuer Something changed though. Seems to me that their social media efforts abandoned X and Facebook.
Interactive is not what it once was, startups are priced out and their IT is really bad. For the past few years there has been no way to build connections with attendees. Why would any startup launch at sxsw these days?
Charles Valentine it was frustrating seeing the try to push to proprietary apps, particularly apps that aren’t well oriented to social media, local mobile, or discovery.
Have you seen the ticket prices? No true startup or artist are going to be there. Especially ones rooted in community and impact.
Cole Still in fairness to that, many of us have been socializing how entrepreneurs need to be in Austin for the events, badge or not. The real value to startups was in going to the VC and sector specific events, parallel to SXSW; despite that, unfortunately, too many get tied up into the startup events and stuck in a bubble of just chatting with other founders.
People who think you can double in size as a city in 10-15 years and erase 90% of Austin’s history with transplants and still carry the same culture are just stuck with their head in the clouds. Austin will never be the same again, we sold out and now we’re just another major city.
Tanner Laine I’ve noticed that too. Genuine pro human spirit street art is now just corporate ads using street art to try to seem relevant amoung tearing down so many spots for apartment skyscrapers
Tanner Laine I beg to differ. I have my Austin that continues and grows and embraces what it wants of the new while nurturing and supporting everything leading up to now. Everyone has their Austin.
Hollyann Wood like they over lapped or didn’t overlap
Vee Jennee every year until this year Sxsw and all the spring breaks have been in complete alignment, same 2 weekends and week. This year: they only overlapped over one weekend, but there are still school activities for some kids and employees over the first weekend of spring break. (E.g. I spent a large chunk of this past Saturday watching my highschooler and volunteering at their robotics tournament, and I had papers due by Saturday and Sunday.)
Hollyann Wood oh so people had way more time to support them SXSW businesses then. Make sense
Hollyann Wood SXSW was supposed to line up with the Spring Breaks that you listed, but apparently they all moved Spring Break to be this week instead. My Spring Break lines up with AISD and it was originally supposed to be last week, but it was changed to this week. I don’t know why.
SXSW’s unique spirit is vital for Austin’s identity. Let’s ensure it remains a vibrant hub for creativity and community!
I honestly haven’t gone to SXSW in years. I used to love it when it was strictly a music festival and you could hop easily from one club to the next to hear all manner of new music. Then when film and interactive were added, I thought it was a nice addition because there was more to do and each had their own time and space. Somewhere along the way the festival became so bloated and commercial that I look at the schedule and I don’t even know what the festival is about anymore. I miss the SXSW of old.
Deanna Brown something to consider and share with the Board & Penske
Totally with you on this one, in fact , 1,3 and 4 are recommendations we made to SXSW last year. Have a few alternate recs (planned post coming later this week). Even the film and Tv side of the festival has been on the downhill for years, with the best of the fest happening prior to the pandemic and never fully bouncing back.
I still love SXSW, but the answer is not condensing more solid events into less days — it’s spreading them out and repurposing the second weekend of the festival to feel more like a can’t miss cultural culmination rather than a slow fizzle out.
As it is, with the influx of international women’s day events that started last year, the first weekend of the festival became overloaded. While I’m glad to see this programming emerge, the execution and timing forces women like myself to choose between solidarity in the pursuit of gender equity or enriching gender neutral interactive and film events — which further exacerbates the issue of gender equity in tech and really grinds my gears ?
Kana LiVolsi “I still love SXSW, but the answer is not condensing more solid events into less days — it’s spreading them out and repurposing the second weekend of the festival to feel more like a can’t miss cultural culmination rather than a slow fizzle out. ”
YES
I fear that people involved fail to appreciate the significance of the fact that Tech and Money come cause of Music and Spring Break. Lose or dilute that, and it loses the driving culture underlying why it works so well.
The music fest was founded in 1987 by the local newspaper in a college town “because beer revenues plummet on 6th street during spring break when the students leave.” If we accept that and the long arc of what’s changed and changing, set aside the history and future of the interactive and film components that would come later:
-Exposing new music to labels, agents, etc. smaller addressable market now that recorded music, MTV, etc. no $ business there
-People under 30 don’t even really want guitar music in their taverns like they used to. This is affecting Austin’s live music reputation year round and shrinking the second weekend of SXSW accordingly.
(quick Gen X whine: they do seem to want free drinks and weird activations, brought to you by consumer media brands, and that part seems to perserve)
-Music is still a creative form that can monetize itself *some*, which has woven nicely into interactive parties which pay better than music showcases for the past decade or so skewed towards the first weekend. Condensed, not extinct.
Whether the conversation is about generational shift in SXSW or general shift in the city of Austin, blame the youngsters! Or celebrate them! They’re not the youngsters of 2007, or 1987 and that is OK.
… hello, penske. as an active participant and speaker since 1999, more corporate isn’t apparently what the doctor ordered. local transportation, local talent and sheer infrastructure issues want to be addressed when that many people come to austin at the same time, as well. SXSW is about to float into the COMDEX zone, which NO one wants 😉
I appreciate this write-up. Being as involved in the ATX tech community as long as I have, I believe it is too late for SXSW to repair the interactive component (tech/startups/vc) as we know it. The erosion started back in the early 2010’s. SXSWi used to be a gathering where people introduced innovative ideas. It was on the bleeding edge. People attended because they’d learn something new. There was excitement and energy focused on the future. Around 2013-ish, topics shifted to emerged trends (as opposed to emerging). For example, SXSW was like 4 years late to game theory, crypto, and other subjects. In my software development circles, SXSWi topics were stale on arrival. The event was more for the rest of the world to catch up on trends they missed, and even those folks walked in with preconceived notions from water cooler conversations they’d already had. That’s when SXSWi felt like it became “corporate”. Every conversation was the same. I think SXSW could work to refocus on genuine innovation, but it will never regain the tone it once had. It needs a renaissance, to set a new tone.