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If they want to carve out their own niche and identity, why ride the coattails of sxsw? Why poach their acts?
There's plenty of local music to embrace. Why try to be a me-too?
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Because there is a lot of money on those coattails. It does make sense and it is a great chance for bands that are making the long trip to get even more exposure.
Of course, there is the fact that SA is not a great live music town like Austin and attendance might be really low and it may fail miserably.
If not, then let it grow.
I don't think I'd be offended if Austin started doing a Fiesta type event in early April. Is New Orleans upset that Galveston has Mardi Gras celebrations? The pie is big enough for everyone to have a piece.