This study compares how two small communities in rural settings tried to promote sustained economic development by capitalizing on local music festivals. Merritt, British Columbia, Canada, home to a large country music event, focused on place branding, marketing, and related entertainment initiatives. Hultsfred, Sweden, in contrast, used its iconic rock festival to create a year-round music industry cluster called RockCity. Our study argues that the alternative strategies reflect fundamental differences in economic development policies and governance structures. We subsequently question whether RockCity-like cluster initiatives are possible in the Canada without coordinated tools and programs for supporting cultural industries in small communities.