Sidmouth does not make money per se. It does pay people to do things, AFAIK like ticketing.

Steve Heap mortgaged his house to pay off debts for the year it was rained on heavily. Had his business acumen not paid off he would not have been recompensed. I didn't go in the years he had control of it because of misgivings about the business model. But I support it now, and ironically (now) Towersey festival which is moving away from folk, so much so that the headline artists masquerading as folk (because their pop career has dried up) are paid individually more than ALL the dance bands for the whole festival. If Jordy is reading this, be assured, when the dance bands are neglected I can easily neglect the festival.

There you have a clue to the demise of festivals. If they serve a market niche, they need to continue serving that niche. And rely on that niche surviving. And be alive to other nice niches that can be served as a back-up to the demise of others.

FWIW I happen to know that Upton upon Severn FF 4-7 May & "not for profit" survives on the goodwill of the committee, and the town. See ya there.