The air was different at this year’s SXSW, the annual March festival where technology meets pop culture in Austin. I was reminded of SXSW in 2019, when people filled downtown and lines snaked out of local businesses.
Attendees said it was the same this year, although my friend, who lives in the area and has attended many times, admitted that some things have changed. For example the festival is now two days shorter than it used to be. It was also “decentralized,” largely due to the demolition of the Austin Convention Center, which scattered events and panels across downtown venues. This made the whole conference feel less overwhelming but also less connected.
The event is still recovering from the pandemic, which saw it lay off staff and go two years without much revenue. It has since changed hands and, starting this year, adopted a new strategy.
Greg Rosenbaum, SVP of programming at SXSW, said this year, the conference’s 40th anniversary, was its most “ambitious reinvention.” He cited changes such as new Clubhouses, for recharging, networking and special programming, which attracted 5,000 people daily. He noted how attendees experienced “more of Austin and the downtown community.”
At least for the tech founders I spoke to, the conference remains extremely valuable, and they all had the same advice: conferences like these, you get what you give.
Besides, there were people to meet and panels to talk about. Grammy nominee Lola Young performed, Vox threw a hot party, Boots Riley’s new movie premiered, and Serena Williams and Steven Spielberg headlined. (I also moderated a panel on AI and taboo topics like relationships and money, which was pretty cool if you ask me.)
Ashley Tryner-Dolce, investor and founder, said the conference was yet another “incredible gathering of ideas”. Like many festivals, however, he found the most “important moments” happened at the side events – like INC’s Founder House party, where he connected with other founders and CEOs.
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“It’s less about the main stage and more about who you’re sitting across from,” he said.
James Norman, managing partner at Black Ops VC, didn’t even have a proper badge for the festival. He organized an event to connect founders with opportunities and attended some movie screenings and dinners.
“If you’re just showing up without the right connections or proximity to the rooms and conversations that matter, you’re going to struggle to unlock the true value of the event,” he said, echoing Jonathan Sperber, a founder who participated in the SXSW competition.
“The value tends to depend on how well you prepare for it,” Sperber said, adding that his team made sure to have organized meetings and follow a clear strategy. He called it “an effective environment for connecting with big business and other key stakeholders.”
Talk of the death of SXSW has been circling the industry for years, but that never seems to be the case. For every batch of jaded founders, a crop of fresh eyes and aspirations emerges, ready to take advantage of what lies in the festival’s wake.
For example, this was Simon Davis’ first SXSW. He said his overall impression was that it was “a media conference with a technology angle, not the other way around.” He praised the diversity of the event compared to other tech events (which we’ll limit ourselves from mentioning).
“At SXSW, you have a much wider range of people, backgrounds and experience levels,” he continued. “Live music programming reinforces that. It’s a whole different energy. Not somewhere you’d necessarily go to do deals as a tech company, but a great place to share and learn.”
This year, SXSW introduced a new badge system, meaning each person had a different experience depending on which track badge they bought — film, music or technology. For example, I felt surrounded by conversations about AI and technology, and heard other tech people talk about how the festival used to have a stronger music focus (though it sure seemed like there were more tech-focused panels this year than music showcases or film opportunities).
The convention also eliminated secondary access that allowed people with, say, musical credentials to participate in film events. Instead, people had to buy the premium all-in-one badge for about $2,000. He also introduced a booking system (to help with lines) where badge holders had to book time for whatever they wanted to do. This was even true for platinum badgers like Sperber.
As a result, he said the festival didn’t feel like a place where someone could just show up, and noted that some events happened so quickly that it was hard to get into. The off-center piece also made it harder to move than he would have liked.
“I loved the openness and the ability to meet people from all walks of life, I really got to understand the city and some of the interactive exhibits were very interesting,” she said.
Rosenbaum said the team made the decision to get rid of secondary access after hearing feedback that participants wanted more “enhanced access to badges, as well as more benefits for Platinum badges.” They also reduced the price of the platinum badge to make the all-in-one option more affordable. Bookings, meanwhile, will pick up again next year, he said, citing positive feedback (except for a few technical glitches and capacity confusion). “We will certainly adjust and improve them as needed,” he said.
Norman described it as more of a “non-conference” now, at least from his perspective. He said the event was more flexible, allowing people to move around, meet people and then go to other places.
Rodney Williams, the co-founder of fintech SoLo Funds, has also noticed a change, but again, it’s not necessarily bad. He has been going to SXSW for more than a decade and has hosted events and spoken on panels. Usually, he goes for the whole festival, but this year, he decided to go for just a few days, throwing his own events and avoiding the lines.
He said that for tech founders, SXSW has “moved from a familiar, scrappy discovery zone to a high-cost, high-competitive space,” focused on “investor engagement and experiential marketing” — meaning companies with big budgets can make the big activations and get more eyeballs.
“If you’re attending for the first time or don’t have access to the right events or connections, the event can definitely prove difficult,” Williams said.
Adweek reported fewer shows overall and said there was no advertising from big tech companies. Williams clarified that even with the lack of big tech companies, advertising is still a big money game.
“Companies with huge marketing budgets are usually the only ones participating, launching products or holding expensive events,” he said. “It hasn’t always been this way, and this change has taken away opportunities from emerging technology companies that participated in the past.”
Williams added: “Now, standing out takes more than a great product, requiring significant marketing investments that only companies with huge budgets can make.”
That didn’t stop him from partying this year. Neither does Norman. In fact, organizers expected around 300,000 people to show up this year (final numbers won’t be available until April), revealing that the convention hasn’t lost its steam or magic just yet.
“I always enjoy it and make the most of it,” Williams said.
