About The Live Music Industry

The overwhelmingly obvious industry theme of the 2005 edition of the ILMC - the 17th - was growth; growth in the number of companies and people operating in the business; growth in the number of events, concerts, festivals, dance and family shows; growth in revenues, and perhaps more importantly growth in terms of maturity, an industry learning how to control its own development and responsibilities, how to listen to its customers and how to co-operate, with colleagues, authorities and new partners, without abandoning the spirit of entrepreneurship from which it originated and which keeps it vital.

In the UK unaudited figures from the Performing Rights Society (PRS) showed another record year for live music with ticket sales reaching almost £13m. Revenues from popular concerts accounted for £11.2m, up 16% on 2003 and classical concerts for £1.75m, up 6%.

The National Arenas Association representing 15 major venues, in the UK and Ireland presented figures at ILMC 17 that indicated a 20% increase in live events compared with 2003. "2004 was a great year for the live music industry" says Peter Tudor, Chair of the NAA and Wembley Arena's Director of Sales & Marketing. "US artists were out in force and UK artists played to over 2.2m people".

8,209,409 people attended 1,573 performances, including music performances and family events, up 85% on 2003 when 991 performances were recorded. 5,735,291 ticket holders went to the music events. Also Ticket prices have gone up noticeably - overall the average increased by 7% from £23.23 to £24.96. Music tickets have increased by 25.5% in two years - from an average of £23.94 in 2002 to £32.12 in 2004, a 9% increase on 2003's average of £29.10.

The Venues themselves are showing their faith in the future by undertaking extensive re-fits and adaptations to make new configurations possible, in order to be able to stage acts at all levels, and complete new building programmes are in process in certain Cities.

Festivals continue to improve the visitor experience and to become more and more a part of the tourist industry and an attraction to sponsors throughout Europe. A great number of these events are selling out in record time. Precise figures for concert and sales throughout Europe are less available but there are definite positive reports from all areas, including the now 'emerged' markets in the East.

Ticket Prices in the USA (Dollars)
2004	$52.39
2003	$50.35
2002	$46.56
2001	$43.86
2000	$40.74
1999	$36.84
1998	$32.20
1997	$29.81
1996	$25.81
1995	$26.05

 

According to the highly respected and authoritative industry magazine Pollstar, figures for major concert ticket sales revenue in North America last year reached a new high at $2.8 billion. That's up 12 percent over 2003's $2.5 billion, indicating that concert industry revenue has more than doubled since Pollstar estimated total revenues in 1998 at $1.3 billion. However, the US industry was given a warning about escalating prices by concert goers in the spring and early summer when audiences showed that they were not prepared to pay more and stayed away from shows. The Iraq war and rising petrol prices may also have been contributory factors. However Pollstar reports that the Top 100 Tours generated a record $1.97 billion in North American ticket sales, up slightly from the previous year's $1.95 billion, selling a combined 37.6 million tickets.

So far reports of sales in 2005 are encouraging, indicating that the customer's message was heeded and the industry is benefiting from paying greater attention to pricing and other customer needs.

The established live industry and the growing number of young newcomers are poised to capitalise on ever expanding opportunities.
New markets are 'emerging' at a record rate, and it is interesting to note that as Governments become more and more involved with the music industry as an important area of export trade, it is the live industry which is being pushed to the fore ahead of the recorded music sector in territories with vast potential such as China, as it is difficult to pirate the live experience.

This fact opens up a whole area of opportunity for the industry, and for the increasing number of major companies that can see the enormous branding potential for their products. Territories such as India and the Middle East are racing to supply the demands of a fast growing consumer market hungry for both local and international entertainment.

Also the technologies that brought trouble to the music industry seem set to benefit the live sector both directly and indirectly. There are now many ways to distribute tickets using the web and mobile phones bringing the industry and potential partners more directly to the customer and instant live recordings are now becoming the business of the live industry, not always the record company. Live may also benefit from the problems that the TV industry will soon face, as technology makes it more and more possible to edit out commercials from programming, the gigantic advertising business will look for areas which can guarantee exposure to potential customers - the event and live music industry would seem a natural area to turn to. We live in interesting times!