Entertainment Venues - US - May 2011

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Entertainment venue revenue drops 8% in 2010
Industry responding: average ticket price drops second year in a row
However, ticket volume is not growing, decreasing nearly 12% in 2010
Frequency down: one third report they are attending less events
Consumers reporting cost is what is keeping them away
Ticket volume grew only for theaters in 2010
Live Nation controls half of the tickets sold in 2010
Sports arenas and stadiums dominate venue choice among respondents
Soft drinks/water most likely to be bought at live events
Operators should focus on messages that appeal to groups
Mailed tickets rated higher than mobile, paperless ticketing
INSIGHTS AND OPPORTUNITIES
Price freezing can reward loyalty, help ensure sales over time
Refund model helps operators win back frustrated fans
Host small alternate events at local venues to build hype for major events
Link to music purchase
INSPIRE INSIGHTS
Trend: “Who Needs Humans”
MARKET SIZE AND FORECAST
Key points
2010 revenues drop nearly 8%, the first decline after years of increases
Ticket volume decreased nearly 12% in 2010
Figure 1: Total U.S. concert industry ticket sale revenues, at current prices, 2005-15
Figure 2: Total U.S. concert industry ticket sale revenues, at inflation-adjusted prices, 2005-15
Fan chart forecast
Figure 3: Total U.S. concert industry ticket sale revenues, 2005-15
Top 100 tours account for 52% of total concert industry revenue in 2010
Figure 4: Total U.S. ticket grosses of the top 100 tours, at current prices, 2005-15
Figure 5: Total U.S. ticket grosses of the top 100 tours, at inflation-adjusted prices, 2005-15
MARKET DRIVERS
Promoters launching mobile ticketing apps to drive sales
Controversy over paperless ticketing growing
Entertainment tour sponsorships increase nearly 6% in 2010
Music venue, festival, tour sponsorships expected to grow 7.3% in 2011
Figure 6: Music sponsorship spending on entertainment venues and tours, 2006-10
Average ticket price drops second year in a row to nearly $62
Figure 7: Average ticket price for the top 100 tours, 1997-2010
Heritage artists dominate tour sales, not current hit-makers
Figure 8: Top-grossing world tours, 1997-2010
SEGMENT PERFORMANCE
Key points
Ticket volume declines nearly 12% in 2010
Figure 9: Total tickets sold for the top 100 tours, 2003-10
Theaters the only segment where ticket volume increased in 2010
Figure 10: U.S. tickets sold, by venue or site, 2009 and 2010*
SEGMENT PERFORMANCE—ARENAS
Key points
Arenas offer more revenue potential than competing venues
Madison Square Garden dominates arena ticket volume with 9.8% of sales
Figure 11: Top 10 U.S. arenas per tickets sold, 2010
SEGMENT PERFORMANCE—AMPHITHEATERS
Key points
Amphitheater ticket sales increase
Figure 12: Top 10 U.S. amphitheaters per tickets sold, 2010
SEGMENT PERFORMANCE—THEATERS
Key points
Generous capacities, amenities make theaters safer bets for promoters
Radio City Music Hall represents 14% of total ticket volume
Figure 13: Top 10 U.S. theaters per tickets sold, 2010
SEGMENT PERFORMANCE—CLUBS
Key points
Top 10 clubs control about 35% of all tickets sold at U.S. clubs
Figure 14: Top 10 U.S. clubs per tickets sold, 2010
SEGMENT PERFORMANCE—OUTDOOR STADIUM/FESTIVAL SITES
Key points
Of top 100 stadium/festival sites worldwide, only 15 are in the U.S.
Destination festivals help stadium/outdoor site segment
Figure 15: Top 10 U.S. outdoor stadium/festival sites per tickets sold, 2010
PROMOTER OVERVIEW
Key points
Live Nation controls half of the tickets sold in 2010
Figure 16: Top 10 U.S. promoters, by tickets sold, 2009 and 2010
Festivals represent half the 10 highest-grossing concerts of 2010
Figure 17: Top 10 U.S. concert grosses, 2010
Promotion companies set prices, control costs of entertainment events
PROMOTER PROFILE—LIVE NATION INC.
Key points
Live Nation dominates ticketing, live entertainment market
Live Nation revenues jump 21% due to Ticketmaster acquisition
Figure 18: Live Nation revenues, at current prices, 2005-10
Figure 19: Live Nation revenue streams, 2009-10 *
PROMOTER PROFILE—AEG LIVE
Key points
AEG Live concentrates on smaller venues, clubs to theaters
Company avoids amphitheater market in favor of arenas, theaters, clubs
AEG Live set to launch its own ticketing system
PROMOTER PROFILES—OTHER
Key points
Regional operators control 25% of the market among top 10 promoters
MSG Entertainment
Feld Entertainment
C3 Presents
Broadway Across America
THE SECONDARY TICKET MARKET
Key points
Secondary ticket market a threat to primary operators
Ticketmaster under fire for sending consumers to its secondary resale site
StubHub gross ticket sales increased 20% in 2010
Figure 20: Top 20 secondary ticket sellers, April 2011
INNOVATIONS AND INNOVATORS
Vendini creates software that processes tickets via mobile devices
Veritix creates system that allows users to transfer paperless tickets
Milwaukee club creates new revenue stream by streaming live concerts
TicketForce allows consumers to purchase tickets via Facebook
Ticketmaster announced dynamic pricing model to appeal to consumers
Mobile phone app allows concertgoers to order food, drink to seats
MARKETING STRATEGIES
Social media can be used to not just inform, but to entertain consumers
Live Nation partners with Groupon to raise awareness about events
Clean air advocacy partnership also provides chance for promotion
Figure 21: Live Nation ad, woman’s car breaks down, 2011
Online operators should not sacrifice helpfulness for convenience
Figure 22: Ticket City ad, being helped by a real human being, 2011
VENUE TYPES VISITED FOR LIVE ENTERTAINMENT
Key points
Sports arenas and stadiums dominate venue choice among respondents
Figure 23: Types of venues visited for live entertainment, by gender, December 2010-January 2011
Youngest respondents more inclined to attend events at most venues
Figure 24: Types of venues visited for live entertainment, by age, December 2010-January 2011
Higher-income groups most likely to attend events—period
Figure 25: Types of venues visited for live entertainment, by household income, December 2010–January 2011
FREQUENCY OF ATTENDING A LIVE EVENT: PAID VS. FREE
Key points
Split between paid and free events relatively even among respondents
Figure 26: Frequency of attending a live event, by gender, age and household income, December 2010–January 2011
LIVE ENTERTAINMENT VENUE TYPES VISITED TODAY VS. LAST YEAR
Key points
One third report they are attending fewer events
Figure 27: Types of venues visited for live entertainment today versus last year, by gender, December 2010-January 2011
18-24 year olds attending more often this year than their older peers
Figure 28: Types of venues visited for live entertainment today versus last year, by age, December 2010-January 2011
Households earning $100K+ report attending about the same
Figure 29: Types of venues visited for live entertainment today versus last year, by household income, December 2010-January 2011
REASONS FOR NOT ATTENDING LIVE ENTERTAINMENT
Key points
Cost related to top three reasons why respondents not attending
Figure 30: Reasons for not attending live entertainment, by gender, December 2010-January 2011
ITEMS PURCHASED AT LIVE ENTERTAINMENT EVENTS
Key points
Respondents most likely to purchase soft drinks/water, food at events
Figure 31: Items purchased at live entertainment events, by gender, December 2010-January 2011
Higher likelihood of buying items among 25-44 year olds
Figure 32: Items purchased at live entertainment events, by age, December 2010-January 2011
Soft drinks/water purchased the most by households earning $75K+
Figure 33: Items purchased at live entertainment events, by household income, December 2010-January 2011
HOW PEOPLE FIND OUT ABOUT LIVE ENTERTAINMENT EVENTS
Key points
Friends, family most dominant way event information spreads
Figure 34: How people find out about live entertainment events, by gender, December 2010-January 2011
Youngest respondents more engaged by social media, online sites
Figure 35: How people find out about live entertainment events, by age, December 2010-January 2011
Friends/family matters most to households earning the least
Figure 36: How people find out about live entertainment events, by household income, December 2010-January 2011
HOW CONSUMERS BUY TICKETS
Key points
Ticketmaster remains the major channel for purchasing tickets
Figure 37: How consumers buy tickets, by gender, December 2010-January 2011
Households earning the least most likely to purchase from box office
Figure 38: How consumers buy tickets, by household income, December 2010-January 2011
HOW CONSUMERS RECEIVE THEIR TICKETS
Key points
Majority of respondents prefer hard tickets mailed to them at home
Figure 39: How consumers receive tickets to live events, by gender, December 2010-January 2011
Mobile ticketing rated highest among by those aged 25-34
Figure 40: How consumers receive tickets to live events, by age, December 2010-January 2011
Mailed tickets rated highest by wealthiest households
Figure 41: How consumers receive tickets to live events, by household income, December 2010-January 2011
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Nearly half of black respondents have not attended a live event in the last year
Figure 42: Types of venues visited for live entertainment, by race and Hispanic origin, December 2010-January 2011
Asians most likely to be going to more events
Figure 43: Types of venues visited for live entertainment today versus last year, by race and Hispanic origin, December 2010-January 2011
Black respondents most likely to purchase soft drinks/water, food
Figure 44: Items purchased at live entertainment events, by race and Hispanic origin, December 2010-January 2011
Black respondents use variety of sources for information
Figure 45: How people find out about live entertainment events, by race and Hispanic origin, December 2010-January 2011
How consumers receive tickets to live events
Figure 46: How consumers receive tickets to live events, by race and Hispanic origin, December 2010-January 2011
CLUSTER ANALYSIS
Hi-Lifes
Demographics
Characteristics
Opportunity
Frienders
Demographics
Characteristics
Opportunity
Old Schools
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 47: Venues clusters, January 2011
Figure 48: Items consumers purchase at live entertainment venues, by venues clusters, January 2011
Figure 49: How consumers find out about live entertainment events, by venues clusters, January 2011
Figure 50: How consumers purchase tickets, by venues clusters, January 2011
Figure 51: Live event participation, by venues clusters, January 2011
Cluster demographics
Figure 52: Venues clusters, by gender, January 2011
Figure 53: Venues clusters, by age group, January 2011
Figure 54: Venues clusters, by household income, January 2011
Figure 55: Venues clusters, by race and Hispanic origin, January 2011
Cluster methodology
APPENDIX: OTHER USEFUL CONSUMER TABLES
How consumers buy tickets and household income
Figure 56: How consumers buy tickets, by age, December 2010–January 2011
How consumers buy tickets, by race and Hispanic origin
Figure 57: How consumers buy tickets, by race and Hispanic origin, December 2010-January 2011
APPENDIX: TRADE ASSOCIATIONS