2020 Concert Tour Season Revenues Estimated at $34 Billion
Is Your Venue Positioned to Capitalize?
“According to a new study from PricewaterhouseCoopers (PwC), the live concert industry will experience significant growth during the next few years. Breaking down entertainment industries in the Global Entertainment and Media Outlook 2018-2022 report, PwC reveals live music revenue will increase at a compound annual growth rate (CAGR) of 3.3% heading into 2022. This includes ticket sales and sponsorship. According to the calculation, the live concert industry’s total revenue will reach $31 billion in four years. Ticket sales will make up $24 billion of that total.”1
“Due to persistent consumer demand for live entertainment, the Concert and Event Promotion industry in the United States is expected to thrive over the five years to 2024. As a result of favorable macroeconomic conditions and growing consumer interest, total industry revenue is forecast to increase at an annualized rate of 1.9% to $36.6 billion over the five years to 2024. This expected growth will attract new promoters to the industry, though large, established players will benefit the most. In 2019 alone, IBISWorld estimates that industry revenue will increase 2.3%.”2
“Live music concerts in the United States generate 24.5% of industry revenue and have been both the most lucrative and fastest-growing events in the industry over the past five years. Events in this segment include live music performances at clubs, music theaters, arenas and amphitheaters, as well as local and regional music festivals. Events can range in size from an attendance of fewer than 500 people in local clubs to more than 80,000 in arenas. As a proportion of industry revenue, this segment has experienced stable increases over the five years to 2019. The number and popularity of club- and theater-level concerts has risen in line with consumers’ increasing use of the internet as a tool for music discovery. Furthermore, musicians and other artists are increasingly using live events to generate revenue as album sales continue to plummet in the wake of streaming music services and per-song downloads.”4
“The industry’s largest player, Live Nation Entertainment Inc. (Live Nation), is expected to generate 22.4% of industry revenue. The company has achieved success over the past five years because it has consolidated its position in the industry through mergers and acquisitions. Most notably, the company merged with Ticketmaster Entertainment Inc., creating the most powerful live event promoter in the United States. Aside from Live Nation and its largest competitor Anschutz Entertainment Group, the industry remains fairly fragmented.”5
“According to Live Nation’s most recent annual report, the company connected with nearly 580.0 million fans across 40 countries to provide logistics and support for more than 34,900 events including 4,000 artists in 2018. The company has an equity interest in more than 222 venues across North and South America and Europe, including amphitheaters, theaters, clubs, arenas and festival sites. Live Nation Entertainment Inc. (Live Nation) owns, operates or has booking rights to more than 100 venues, some of which are outside the United States, including London’s Eventim Apollo Hammersmith and Wembley Arena. Over the past five years, Live Nation has acquired several organizations in other countries. Furthermore, about one-third of the company’s concerts are performed overseas.
It operates in three business segments: concerts (concert promotion and venue operations); sponsorship and advertising; and ticketing. According to its most recent annual report, the company generated $10.9 billion in total revenue in 2018.”6
“The Anschutz Corporation is the parent company of Anschutz Entertainment Group (AEG), one of the world’s largest sports and entertainment presenters. The company has several subsidiaries in the Concert and Event Promotion industry, including AEG Live and Goldenvoice. AEG develops, owns and operates venues and arenas that host professional sports teams, live concerts and internationally recognized special events. AEG’s numerous major venues around the country include the Staples Center, Toyota Sports Center, the StubHub Center, PlayStation Theater, Microsoft Theater and Nokia Theater at Grand Prairie. The company also owns several sports franchises, including the Los Angeles Kings National Hockey League team, the Manchester Monarchs American Hockey League team and several Major League Soccer teams; however, revenue from these franchise teams is excluded from this industry.
Over the past decade, AEG has expanded its business to include the development, ownership and operation of state-of-the-art venues, major sports franchises, event management and production and related services. Through AEG Events and AEG Live, the company also books, manages and promotes A-list events such as the ESPN X Games, HBO Boxing events and the Grammy Awards. The company also produces and promotes internationally acclaimed music festivals, including the New Orleans Jazz and Heritage Festival and the Coachella Valley Music and Arts Festival.”7
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Notable venues include Gillette Stadium, MetLife Stadium, Petco Park, Banc of California Stadium, Mercedes-Benz Stadium, SoFi Stadium, ANZ Stadium and Bankwest Stadium.
1Sanchez, Daniel. “The Live Music Industry Will Be Worth $31 Billion Worldwide by 2022” DigitalMusicNews.com (10/26/2018) https://www.digitalmusicnews.com/2018/10/26/latest-live-music-revenue-31-billion-2022/ 2 Kumer, Tanvi. “Concert & Event Promotion in the US” IBISWorld Industry Report 71133 (05/2019) 3 Ibid4 Ibid, p. 14 5 Ibid, p. 20 6 Ibid, p. 26 7 Ibid, pp. 27 - 28