Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Entertainment venue revenues increasing due to ticket price hikes
- But ticket volume decreasing, revenues to hit ceiling by 2009
- Top 100 tours represent more than half of total market revenue
- Market leaders becoming all-in-one content, service providers
- Secondary ticket resellers threaten market value of tickets
- Key consumer findings
Insights and Opportunities
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- Invest in mobile ticketing to drive box office convenience, sales
- Charge extra for special seating that is roomier, more comfortable
- Build consumer loyalty, frequency through seasonal subscription clubs
Inspire Insights
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- Trend: I Travel Therefore I Am
- I was there. You were not.
- Hear me, see me, envy me
- Cool show – now let’s go buy sushi and check our email
- Trend: In Search of Memories
- Everyone’s documenting
- Experience versus observation
Market Size and Forecast
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- Key points
- Concert industry revenues increasing due to alarming rise in ticket prices
- But ticket volume decreasing, revenues to hit ceiling by 2009
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- Figure 1: Total U.S. concert industry ticket sale revenues, at current prices, 2003-13
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- Figure 2: Total U.S. concert industry ticket sale revenues, at inflation-adjusted prices, 2003-13
- Figure 3: Average ticket price for the top 100 tours, 1997-2008
- Figure 4: Total tickets sold for the top 100 tours, 2003-08
- Top 100 tours represent more than half of total market revenue
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- Figure 5: Total ticket grosses of the top 100 tours, at current prices, 2003-13
- Figure 6: Total ticket grosses of the top 100 tours, at inflation-adjusted prices, 2003-13
Competitive Context
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- Secondary ticket resellers threaten market value of tickets
- Legislation in some states, cities proposes to regulate secondary market
- Secondary market expected to reach $10 billion by 2012 due to rising prices, demand
Segment Performance
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- Key points
- 82% of 2007 ticket volume sold for top venues in leading markets
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- Figure 7: Total tickets sold for the top 100 tours, 2003-08
- Arenas leading venue segment for ticket sales
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- Figure 8: U.S. tickets sold, by venue or site, 2007*
Segment Performance—Arenas
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- Key points
- Arenas offer more revenue potential than competing venues
- Madison Square Garden dominates arena ticket volume
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- Figure 9: Top ten U.S. arenas per tickets sold, 2007
Segment Performance—Amphitheaters
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- Key points
- Amphitheaters at risk due to rising gas prices, aging infrastructure
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- Figure 10: Top ten U.S. ampitheaters per tickets sold, 2007
- Key points
- Generous capacities, amenities make theaters safer bets for promoters
- Radio City Music Hall dominates theater volume sales
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- Figure 11: Top ten U.S. theaters per tickets sold, 2007
Segment Performance—Clubs
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- Key points
- Clubs establish close ties with community, ticket buyers
- House of Blues franchise threatens regional club operators
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- Figure 12: Top ten U.S. clubs per tickets sold, 2007
Segment Performance—Outdoor Stadia/Festival Sites
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- Key points
- Events at stadia, outdoor sites are fewer, carry greater promoter risk
- Destination festivals driving stadium/outdoor site segment
- Sports franchises opening stadium doors up to more concerts, events
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- Figure 13: Top ten U.S. outdoor stadium/feestival sites per tickets sold, 2007
Promotion Channels
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- Key points
- Promotion companies set prices, control costs of entertainment events
- About 80% of market controlled by two leaders: Live Nation and AEG Live
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- Figure 14: Top ten U.S. promoters, by tickets sold, 2007
- Top ten tours of 2008 roughly split between Live Nation, AEG Live
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- Figure 15: Top ten selling North American tours of 2008, by revenue, dates, average primary and secondary market ticket prices and promoter, 2008
- Key points
- Live Nation dominates industry, controlling 155 venues worldwide
- North American revenues represent almost half of total revenue
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- Figure 16: Live Nation revenues, at current and constant prices, 2003-07
- Live Nation moves to control ticketing, artist revenue streams
Promotion Channels—AEG Live
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- Key points
- AEG Live controls 20% of ticket volume sales, second to Live Nation
- Company avoids amphitheater market in favor of arenas, theaters, clubs
Market Drivers
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- Corporate sponsors spending more on entertainment venues, tours
- Sports sponsorships reign, followed by entertainment tours, venues
- Music sponsorship spending to total $1.04 billion in 2008
- Sponsorship categories expanding as music events become more lifestyle-oriented
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- Figure 17: Music sponsorship spending on entertainment venues and tours, 2006-08
- Banking crisis may affect entertainment venue naming rights
- Average ticket price more than doubles over 11-year period
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- Figure 18: Average ticket price for the top 100 tours, 1997-2008
- Live Nation’s “360 deals” driving up artist exclusivity, ticket prices
- Long-term potential threatens short-term profits
- University venues becoming more prominent players in market
- Declining music sales may create ripple effect on future box office sales
- Entertainment venues both isolated from, affected by declining music sales
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- Figure 19: Top-grossing world tours, 1997-2007
Innovation and Innovators
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- Paperless tickets designed to force secondary resellers from market
- Layaway option helps guarantee box office threatened by recession
- Live Nation revives brick-and-mortar sales through Blockbuster kiosks
- Ticketmaster markets to disenfranchised consumers by suspending fees
Advertising and Promotion
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- Overview
- Radio formats dictate which events are promoted on the air
- Print media work best for regional events; format ad spending decreasing
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- Figure 20: U.S. newspaper advertising revenues, 2007-12
- Venues promote events online virally and through branded websites
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- Figure 21: U.S. online advertising spending, 2008-13
- Analysis of commercial television spots
- Live Nation showcases synergy across multiple advertising platforms
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- Figure 22: Live Nation ad, 2009
- Concessions, secondary entertainment major revenue generators for venues
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- Figure 23: House of Blues ad, 2009
- Credit card partnerships generate revenues, awareness through pre-sales, promotions
- Credit card partnerships consolidate ticketing opportunities for high-profile events
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- Figure 24: Billy Elliott ad, 2009
- Recession generates messages that reflect ticket buyer fears, hesitations
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- Figure 25: Live Nation ad, 2009
Entertainment Venues—Consumer Frequency
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- Key points
- Over half of respondents staying home from concerts
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- Figure 26: Entertainment venue frequency, by gender, November 2008
- Over a quarter of Baby Boomers attend concerts with relative frequency
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- Figure 27: Entertainment venue frequency, by age, November 2008
- Respondents from households earning $100K+ attending 1-4 shows every six months
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- Figure 28: Entertainment venue frequency, by household income, November 2008
Consumer Entertainment Preference
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- Key points
- Classic rock dominates respondent entertainment choice
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- Figure 29: Consumer entertainment preference, by gender, November 2008
- Preferences of some music types transcend respondent age
- Wide age appeal repositions classic rock concerts as potential family fare
- Older respondents in wider attendance than expected
- Untapped older market for kiddie/tween shows
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- Figure 30: Consumer entertainment preference, by age, November 2008
- Expanded age appeal of classic rock creates multiple revenue opportunities
- Higher prices limit audiences for jazz/classical
- Fans of jam band/indie rock may be more connected to technology
- Lower-income respondents value authenticity, non-conformity
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- Figure 31: Consumer entertainment preference, by houseold income, November 2008
Consumer Venue Preference
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- Key points
- Stadium events, free festivals have widest appeal
- Women may value atmosphere, intimacy more than male counterparts
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- Figure 32: Consumer venue preference, by gender, November 2008
- Opera and symphony venues appeal to both ends of age spectrum
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- Figure 33: Consumer venue preference, by age, November 2008
- Street and city festivals can “open up” to attract a broader income audience
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- Figure 34: Consumer venue preference, by household income, November 2008
- Key points
- Fan loyalty primary driver of repeat ticket sales
- Male respondents more “event-driven,” females more “artist-driven”
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- Figure 35: Motivation to attend live music event, by gender, November 2008
- Middle-aged respondents seek relaxation at shows
- Older respondents are more driven by nostalgia
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- Figure 36: Motivation to attend live music event, by age, November 2008
- Respondents from households earning $75-99.9K driven by genre, not artist
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- Figure 37: Motivation to attend live music event, by household income, November 2008
- Concerns over ticket price, safety divides youth from older respondents
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- Figure 38: Motivation to not attend live music event, by age, November 2008
- Key points
- A precipitous generational divide in information access
- Younger respondents are more plugged in by internet than any other media
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- Figure 39: Important factors in the purchase of tickets to live music events, by age, November 2008
- Those from households $25K-$49.9K less likely plugged into internet sites
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- Figure 40: Important factors in the purchase of tickets to live music events, by household income, November 2008
- Female respondents order online, while male respondents “DIY”
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- Figure 41: Ways consumers purchase tickets to live music events, by gender, November 2008
- Older respondents a potential untapped market for online sales
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- Figure 42: Ways consumers purchase tickets to live music events, by age, November 2008
- Key points
- Concert merchandise as public and private expressions of lifestyle
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- Figure 43: Concert merchandise spending, by gender, November 2008
- Improving concession lines may increase sales
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- Figure 44: Concert merchandise spending, by age, November 2008
- Selling food, drink and T-shirts: “Eat, drink and be merry”
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- Figure 45: Concert merchandise spending, by household income, November 2008
- Key points
- Calming concerns about destination festivals
- Using community, alternate activities to attract female respondents
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- Figure 46: Destination festival participation, by gender, November 2008
- Younger respondents primary target audience for destination festivals
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- Figure 47: Destination festival participation, by age, November 2008
- Those from households earning $100K+ likely to attend New Orleans fest
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- Figure 48: Destination festival participation, by household income, November 2008
- Destination festivals are attractive as vacation options
- Northeast region fertile for marketing destination festivals
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- Figure 49: Destination festival participation, by region, November 2008
- Key points
- Asian and Hispanic respondents have brand loyalty for music events
- Blacks least frequent ticket consumers
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- Figure 50: Entertainment venue frequency, by race/ethnicity, November 2008
- Asian respondents more driven by genre than specific artists
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- Figure 51: Motivation to attend live music event, by race/ethnicity, November 2008
- Asians most dissatisfied with rising ticket prices, excessive spending
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- Figure 52: Motivation to not attend live music event, by race/ethnicity, November 2008
- Asian respondents lead Ticketmaster purchasing but open to alternates
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- Figure 53: Ways consumers purchase tickets to live music events, by race/ethnicity, November 2008
- Hispanic respondents more likely to support additional revenue streams
- White, Asian respondents least invested in souvenir programs
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- Figure 54: Concert merchandise spending, by race/ethnicity, November 2008
- Ethnic respondents and successful destination festivals
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- Figure 55: Destination festival participation, by race/ethnicity, November 2008
- Asian, Hispanic respondents more plugged into digital media
- Traditional media of primary importance to black respondents
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- Figure 56: Important factors in the purchase of tickets to live music events, by race/ethnicity, November 2008
Cluster Analysis
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- Musicolics
- Opportunity:
- Ticketmastered
- Opportunity:
- Outdoor Phobics
- Opportunity:
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- Figure 57: Music event attender clusters, November 2008
- Figure 58: Entertainment venue frequency, by music event attender clusters, November 2008
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- Figure 59: Consumer entertainment preference, by music event attender clusters, November 2008
- Figure 60: Consumer venue preference, by music event attender clusters, November 2008
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- Figure 61: Motivation to attend live music event, by music event attender clusters, November 2008
- Figure 62: Concert merchandise spending, by music event attender clusters, November 2008
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- Figure 63: Important factors in the purchase of tickets to live music events, by music event attender clusters, November 2008
- Figure 64: Ways consumers purchase tickets to live music events, by music event attender clusters, November 2008
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- Figure 65: Destination festival participation, by music event attender clusters, November 2008
- Figure 66: Music event attender clusters, by gender, November 2008
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- Figure 67: Music event attender clusters, by age, November 2008
- Figure 68: Music event attender clusters, by income, November 2008
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- Figure 69: Music event attender clusters, by race, November 2008
- Figure 70: Music event attender clusters, by Hispanic origin, November 2008
Appendix: Other Useful Consumer Tables
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- Figure 71: Motivation to not attend live music event, by gender, November 2008
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- Figure 72: Motivation to not attend live music event, by income, November 2008
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- Figure 73: Ways consumers purchase tickets to live music events, by region, November 2008
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Appendix: Trade Associations
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