END OF AN ERA
This week, Austin’s creative and tech communities were stunned by the sudden departure of Hugh Forrest, the longtime president and public face of South by Southwest (SXSW). Forrest, who dedicated more than 35 years to the festival, leaves at a pivotal moment-just after a 2025 edition widely described as a shadow of its former self, with noticeably smaller crowds, fewer brand activations, and less of the signature energy that once made SXSW the heartbeat of Austin.
Hugh Forrest: Architect of SXSW’s Global Rise
Forrest’s journey with SXSW began in the early 1990s, when he took the helm of the fledgling Interactive track. Under his steady leadership, SXSW transformed from a niche gathering into a global powerhouse at the crossroads of technology, music, and film. He was instrumental in expanding the festival’s footprint, booking major keynote speakers, and championing diversity and innovation within the programming Forrest’s approachable style and deep ties to Austin’s creative scene made him a beloved figure, helping the festival weather turbulent times-including the COVID-19 pandemic, which forced its first-ever cancellation in 2020.
In his statement, Forrest made clear the decision was not his:
> “Leaving South by Southwest was definitely not my decision. I put my heart and soul into this event for more than 35 years, and I was looking forward to leading several more editions. I will be rooting big time for the Austin team on the go forward. The city, the nation, and the globe require the uplifting spirit that South by Southwest has consistently delivered, and it is needed now more than ever.”
Forrest’s exit is part of a broader leadership shakeup, with several other high-profile departures fueling speculation about deeper internal shifts at SXSW.
A Festival at a Crossroads: Declining Attendance and Waning Buzz
The 2025 festival season left many attendees and locals wondering if SXSW has lost its groove. While official numbers haven’t been released, local reports and long-time festival-goers noted dramatically thinner crowds, fewer packed venues, and a surprising scarcity of the brand activations that once defined the event. As one attendee quipped, “You used to need a machete to get through Sixth Street during SXSW. This year, you could’ve done cartwheels.”
Theories abound about the cause:
- Resource Stretch: SXSW’s expansion into Sydney and London may have diluted the Austin experience.
- Economic Pressures: Rising costs for venues, artists, and attendees have made the event more exclusive, while Austin’s skyrocketing cost of living has pushed out many local creative.
- Brand and Sponsorship Decline: Fewer Fortune 500 sponsors and delayed promotions contributed to a muted atmosphere.
- Venue and Infrastructure Challenges: Historic music venues are struggling, and Austin’s infrastructure is straining under the city’s rapid growth.
- Cultural Shifts: The festival’s demographic is evolving, with younger audiences less interested in traditional music showcases and more drawn to branded experiences and interactive events.
The Penske Factor: Hollywood Power Meets Austin Cool
A key turning point came in 2021, when Penske Media Corporation (PMC)-led by media mogul Jay Penske-acquired a 50% stake in SXSW. PMC owns influential brands like Billboard, Rolling Stone, Variety, and The Hollywood Reporter. The deal, made through a joint venture with MRC, was described as a “lifeline” for SXSW, which was reeling from pandemic-related financial losses.
Jay Penske promised to “build upon SXSW’s incredible foundation” and extend its reach digitally and internationally. While the investment brought stability, many longtime fans and local stakeholders quietly wonder if the festival’s soul is being traded for corporate polish and a shift toward glitzier film and TV fare-potentially at the expense of the music scene and local authenticity that built SXSW’s reputation.
Downsizing and Uncertainty: What’s Next for SXSW?
The shakeup doesn’t end with leadership. SXSW recently announced that the 2026 festival will be two days shorter and will drop its dedicated music weekend-a move that’s raising eyebrows in a city that calls itself the Live Music Capital of the World. Organizers say the change is about affordability and improving the attendee experience, but skeptics see it as belt-tightening in the face of waning interest and financial pressures.
The festival’s home base, the Austin Convention Center, is also set for demolition and redevelopment, adding another layer of uncertainty to SXSW’s future. With the founding leadership stepping aside and new corporate partners at the helm, the festival’s next act is anyone’s guess. Is SXSW experiencing growing pains, or is it in the midst of a full-blown identity crisis? Will Jay Penske’s Hollywood playbook inject new life, or will the festival lose its Austin soul in the process?
One thing is certain: all eyes are on who will take the mic next-and whether they can bring the magic back to Austin’s most storied stage. We shall patiently wait and see what the future holds.
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- https://www.bizjournals.com/austin/news/2025/04/26/hugh-forrest-sxsw.html
- https://www.austinchronicle.com/daily/sxsw/2025-04-26/huge-changes-in-sxsw-leadership/
- https://www.yahoo.com/news/hugh-forrest-no-longer-leading-224308945.html
- https://www.youtube.com/watch?v=LRZH_E2a2aA
- https://vendelux.com/news/sxsw-identity-crisis-brand-activations-2025/
- https://seobrien.com/changing-sxsw-condensing-the-weekends
- https://x.com/AustinChronicle/status/1916265328578814123
- https://www.instagram.com/sahar_c95/reel/DI6wkQfNY72/
- https://www.kut.org/austin/2025-03-17/sxsw-austin-tx-march-interactive-film-music-festival
