In this paper I draw on a body of scholarship that focuses on how a central feature of capitalist urbanization is the willingness of firms to participate in a form of rent-seeking that exploits geographical differences. I then extend this analysis to the cultural economy. I use as my case study Austin, Texas, which since 1991 has branded itself the “Live Music Capital of the World.” The existing literature on Austin's urban entrepreneurial strategy, reflecting the dominant trends in urban and economic geography, focuses on how this branding campaign cultivated and exploited the geographical particularities of the city's cultural infrastructure. However, I contend that the changes brought about within the music industry influenced the success of this effort. In particular, I argue that the effectiveness of this branding effort is related to the changing value of live music within the music industry and especially the elevated position of music promoters (those firms that rely on live music as an essential part of their business). As this paper shows, the value of the city's branding efforts is related to the industrial success of two of the music industry's mid-sized promotional firms, SXSW Inc. and C3 Presents. These two Austin-based firms trade on its live-music brand but also, perhaps unwittingly, receive an extra-economic benefit that amplifies this reputation. In particular, I will focus on how a special music event, SXSW, and a music festival, Austin City Limits, help reinforce the image that has been enhanced by the city's branding efforts.
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