It's very typical these days. Most major markets have at least 2 or 3 venues in the 1200 - 2500 range. Many cities have more. The live performance market is very saturated right now and mid size venues are kind of the sweet spot for "established" touring acts. Even the biggest tours have trouble selling out arenas these days. Other than the Frozen soundtrack, I don't think there's even been an album that has been certified platinum (1 million in sales) this year. Music is very fragmented right now and there's not as much of a mass market as there once was. So, yeah, most touring shows now draw about as much as a large prom.
They have been able to book this venue for concerts and sell it out in the past and it was not a good room. This should help attract more acts and, maybe more importantly, make the shows there much more enjoyable.
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