Table of Contents
Issues in the Market
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- Main issues
- Definition
- Abbreviations
Future Opportunities
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- Self-service society
- Making music more experiential
- A Winter Warmer?
Market in Brief
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- Market slows as austerity and high ticket prices collide
- Rock/pop outperforms the rest of the market
- Other factors set to impact on demand
- Live Nation’s growing presence
- Nearly four fifths buy drinks, half buy food, merchandise
- Cost is main barrier
- Package deal opportunities
Internal Market Environment
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- Key points
- Pop/rock buoyant but signs of levelling off
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- Figure 1: Trends in visiting music concerts, by type, 2005-09
- Larger venues’ strong concerts growth
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- Figure 2: Growth in number of concert performances (selected genres) through NAA venues, 2005-09
- Ticket prices on the up…
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- Figure 3: Average ticket prices through NAA venues, 2006-09
- …as PRS for Music launches consultation on live tariff
- Secondary ticketing feels the pinch too
- Licensing issues still bubbling under
- Funding issues ahead for classical and jazz?
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- Figure 4: Major Arts Council-funded classical and opera projects, 2008/09-2010/11
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- Figure 5: Major Arts Council-funded jazz projects, 2008/09-2010/11
- Save our Sound highlights further potential problem for the industry
Broader Market Environment
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- Key points
- Tough times ahead for the UK economy...
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- Figure 6: PDI and consumer expenditure trends, at constant 2010 prices, 2005-15
- ...but GDP jerks back into positive territory
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- Figure 7: GDP quarterly percentage change, Q1 2004-Q2 2010
- Consumer confidence starts to slide again
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- Figure 8: Trends in Consumer Confidence Index, Jan 2007-Jul 2010
- VAT rise could lead to increase ticket prices
- Unemployment still a concern
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- Figure 9: Trends in unemployment rate, Q2 2005-Q2 2010
- Figure 10: Unemployment rate, by age band, Q2 2010
- Age trends not helpful to market
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- Figure 11: Trends in the age structure of the UK population, 2005-15
- Affluent increase bodes well for live music
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- Figure 12: Forecast adult population trends, by socio-economic group, 2005-15
- People from early lifestages core to most types of concert
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- Figure 13: Forecast adult population trends, by lifestage, 2005-15
- Death of the box office...
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- Figure 14: Broadband penetration, by demographics, 2004-09
- ...as technology adoption opens more doors
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- Figure 15: Penetration of digital and mobile communications, April 2010
- Cutbacks hit other areas before live music
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- Figure 16: Spending intentions towards leisure activities in coming year, March 2010
- Volatility of exchange rates causes headaches for promoters
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- Figure 17: Sterling exchange rates, 2005-09
Competitive Context
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- Key points
- Markets offering affordable escapism show strongest growth
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- Figure 18: Consumer expenditure on selected leisure goods and activities, 2005-10
- Live outperforms recorded
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- Figure 19: Live versus recorded music revenue trends, 2007-09
- US market takes a big hit in 2010 – UK to follow suit?
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- Figure 20: Performance of US live music market in first six months of year, 2005-10
Strengths and Weaknesses in the Market
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- Strengths
- Steady stream of artists
- Scarcity
- Venue infrastructure
- Taps into demand for escapism
- Growing online community
- Weaknesses
- Upward pressures on ticket prices
- Fickle nature of the business
- Depressed economy
- Reliance on youth market
- Competition from other media
Who’s Innovating?
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- HMV links physical product with live…
- …as others follow suit
- Barclaycard holders get preferential treatment
- If you go down to the woods today…
- …or the racecourse…
- …you’re sure of a big surprise
- Echo’s app
- Cloud printing points the way
- Songkick: making gigs unmissable
- Fatsoma taps into social networking
- AMG branches out into venue management
Market Size and Forecast
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- Key points
- Strong growth in volume and value since 2005
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- Figure 21: UK music concerts and festivals market size trends, 2005-15
- Growth slows in 2010
- GDP, VAT and PRS – the acronyms strike back
Segment Performance
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- Key points
- Rock/pop dominates and fastest-growing genre
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- Figure 22: Trends in total visits to music concerts, by type, 2005-09
- Music concert visitors
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- Figure 23: Trends in numbers of people visiting music concerts, by type, 2005-09
- Rock/pop only genre to grow visits per year
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- Figure 24: Trends in average number of visits per year to music concerts, by type, 2005-09
- Most go less than once a year
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- Figure 25: Frequency of visiting concerts, by type, 2005-09
- Tickets still generate the bulk of industry revenues
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- Figure 26: UK music concerts and festivals market, by segment, 2005-10
- Figure 27: Percentage breakdown of UK music concerts and festivals market, by segment, 2005-10
- Revenue by venue type
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- Figure 28: Music concerts and festivals revenue, by type of venue, 2009
- Revenue by region
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- Figure 29: Music concerts and festivals revenue, by region, 2009
- Festivals
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- Figure 30: Number of music festival events and days in the UK, by region, 2010
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- Figure 31: Major UK rock/pop/dance festivals, 2010
- Average spend at independent festivals is £346
Companies, Organisations and Services
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- Key points
- Major players
- Live Nation Entertainment Inc.
- The world’s largest entertainment company
- Merger fallout
- A complex web of cross-ownership
- A major promoter of concerts in the UK and globally
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- Figure 32: Live Nation Entertainment Inc, key financials, 2005-09
- Figure 33: Live Nation (Music) UK Ltd, key financials, 2005-09
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- Figure 34: LN-Gaiety Holdings Ltd, key financials, 2005-09
- Focusing on ticketing improvements
- Big brands get involved
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- Figure 35: Venues owned or operated by Live Nation in the UK, 2010
- Ticketmaster adds an extra dimension
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- Figure 36: Ticketmaster Entertainment LLC, key financials, 2006-09
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- Figure 37: Ticketmaster UK Ltd, key financials, 2004-08
- SJM Concerts and Metropolis Music
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- Figure 38: SJM Ltd, key financials, 2005-09
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- Figure 39: Metropolis Music (Scriptograph Ltd), key financials, 2004-08
- Anschutz Entertainment Group
- A global player with designs on the UK market
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- Figure 40: AEG live (UK) Ltd, key financials, 2005-08
- O2 Arena is jewel in AEG’s crown
- Academy Music Group
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- Figure 41: Academy Music Holdings Ltd, key financials, 2005-09
- O2 branding for venues
- Mama Group
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- Figure 43: Mama Group Plc, key financials, 2005-09
- HMV buys in
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- Figure 44: Mama Group Plc Outlets & Capacity, 2010
- National Arenas Association
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- Figure 45: NAA member venues, by capacity, 2010
- SEE Tickets
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- Figure 46: SEE Group Ltd, key financials, 2008 and 2009
- Other players
- Festival Republic
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- Figure 47: Festival Republic Ltd, key financials, 2004-08
- Raymond Gubbay Ltd
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- Figure 48: Raymond Gubbay Ltd, key financials, 2005-09
- Harvey Goldsmith
- Marshall Arts
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- Figure 49: Marshall Arts Ltd, key financials, 2004-08
- Serious
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- Figure 50: Serious Ltd, key financials, 2006-08
Brand Communication and Promotion
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- Key points
- Live Nation dominates media spending
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- Figure 51: Leading promoters’ main media advertising spend, 2009
- Gubbay’s Christmas receives biggest push
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- Figure 52: Main media advertising spend on leading artists, 2009
- O2 spends big to make its mark
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- Figure 53: Leading venues’ main media advertising spend, 2009
- Sponsorship growth
- Web 2.0 invites involvement
What do People Visit?
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- Key points
- Nearly two fifths went to a concert or festival in the past year
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- Figure 54: Types of music concerts and festivals people visit, May 2010
- Festival-goers are the heart of the live music scene
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- Figure 55: Types of music concerts and festivals people visit, by most popular types of music concerts and festivals people visit, May 2010
- Figure 56: Types of music concerts and festivals people visit, by next most popular types of music concerts and festivals people visit, May 2010
- Most stick to one type of music
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- Figure 57: Repertoire of types of music concerts and festivals people visit, May 2010
- Figure 58: Types of music concerts and festivals people visit, by repertoire of types of music concerts and festivals people visit, May 2010
How Much Do Concert-goers Spend on Food?
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- Key points
- Half of concert-goers buy food
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- Figure 59: Concert-goers’ spend on food, May 2010
- Festival and pop concert-goers most likely to buy food
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- Figure 60: Concert-goers’ spend on food, by most popular types of music concerts and festivals people visit, May 2010
- Figure 61: Concert-goers’ spend on food, by next most popular types of music concerts and festivals people visit, May 2010
- More types of concert visited = higher average food spend
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- Figure 62: Concert-goers’ spend on food, by repertoire of types of music concerts and festivals people visit, May 2010
How Much Do Concert-goers Spend on Drink?
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- Key points
- Nearly eight in ten buy drinks
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- Figure 63: Concert-goers’ spend on drink, May 2010
- Rock/indie concert-goers most likely to buy drinks and spend most
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- Figure 64: Concert-goers’ spend on drink, by most popular types of music concerts and festivals people visit, May 2010
- Figure 65: Concert-goers’ spend on drink, by next most popular types of music concerts and festivals people visit, May 2010
- Correlation between visiting more types of concert and drinks spend
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- Figure 66: Concert-goers’ spend on drink, by repertoire of types of music concerts and festivals people visit, May 2010
How Much Do Concert-goers Spend on Merchandise?
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- Key points
- As many spend on merchandise as food
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- Figure 67: Concert-goers’ spend on merchandise, May 2010
- Classical music concert-goers likely to buy low-value items
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- Figure 68: Concert-goers’ spend on merchandise, by most popular types of music concerts and festivals people visit, May 2010
- Figure 69: Concert-goers’ spend on merchandise, by next most popular types of music concerts and festivals people visit, May 2010
- Clear correlation between food, drink and merchandise buying
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- Figure 70: Concert-goers’ spend on food/drink/merchandise, by concert-goers’ spend on food, May 2010
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- Figure 71: Concert-goers’ spend on food/drink/merchandise, by concert-goers’ spend on drink, May 2010
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- Figure 72: Concert-goers’ spend on food/drink/merchandise, by concert-goers’ spend on merchandise, May 2010
- Core visitors spend more on merchandise
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- Figure 73: Concert-goers’ spend on merchandise, by repertoire of types of music concerts and festivals people visit, May 2010
What are People’s Attitudes Towards Music Concerts and Festivals?
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- Key points
- Cost deters people from going more often
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- Figure 74: Attitudes towards music concerts and festivals, May 2010
- Demand for cheaper food and drink constrained by practical issues
- Package deal opportunity?
- Gift horse?
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- Figure 75: Attitudes towards music concerts and festivals, by most popular types of music concerts and festivals people visit, May 2010
- Figure 76: Attitudes towards music concerts and festivals, by next most popular types of music concerts and festivals people visit, May 2010
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- Figure 77: Attitudes towards music concerts and festivals, by repertoire of types of music concerts and festivals people visit, May 2010
Music Concerts and Festivals Targeting Opportunities
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- Key points
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- Figure 78: Music concerts and festivals target groups, May 2010
- Trads
- Rockers
- Miss-outs
- Rockers like their food
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- Figure 79: Concert-goers’ spend on food, by target groups, May 2010
- …and drink…
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- Figure 80: Concert-goers’ spend on drink, by target groups, May 2010
- …but Popsies like their merchandise
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- Figure 81: Concert-goers’ spend on merchandise, by target groups, May 2010
- Popsies most concerned about prices of tickets
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- Figure 82: Attitudes towards music concerts and festivals, by target groups, May 2010
Appendix – What do People Visit?
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- Figure 83: Most popular types of music concerts and festivals people visit, by demographics, May 2010
- Figure 84: Next most popular types of music concerts and festivals people visit, by demographics, May 2010
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- Figure 85: Repertoire of types of music concerts and festivals people visit, by demographics, May 2010
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Appendix – How Much Do Concert-goers Spend on Food?
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- Figure 86: Concert-goers’ spend on food, by demographics, May 2010
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Appendix – How Much Do Concert-goers Spend on Drink?
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- Figure 87: Concert-goers’ spend on drink, by demographics, May 2010
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Appendix – How Much Do Concert-goers Spend on Merchandise?
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- Figure 88: Concert-goers’ spend on merchandise, by demographics, May 2010
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Appendix – What Are People’s Attitudes Towards Music Concerts and Festivals?
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- Figure 89: Most popular attitudes towards music concerts and festivals, by demographics, May 2010
- Figure 90: Next most popular attitudes towards music concerts and festivals, by demographics, May 2010
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Appendix – Music Concerts and Festivals Targeting Opportunities
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- Figure 91: Types of music concerts and festivals people visit, by target groups, May 2010
- Figure 92: Target groups, by demographics, May 2010
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