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If we care about art for how it connects people by expression and empathy, live performance is art in its most direct from. It doesnt hold the depth of something more singular or less immediate, or amaze us with its pure flawlessness (mistakes are always part of it). Immediate, imprefect, and interpersonal is our real human experience.
Live, tricks and showship all mean so much more. The tension in holding attention hightens everything. All musical recordings are live, and capturing this energy is its own art.
The dimension of audience is deeper than the performers being conscious of people watching. The audience are there for each other too, they set the energy of the show just as much as the artists. Human connection seems to be a common goal of art, live events connect people socially in the audience too, youre all in it together, mostly for the same reason, youre all feeling whats happening. It might not be as deep but its more broad and shared than 1 persons direct connection with a piece of art.