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Music Concerts and Festivals - UK - August 2012

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
Market fluctuates year to year with big acts but underlying trend is up
Figure 1: UK music concerts and festivals market, 2007-17
Market factors
Figure 2: Trends in ever visiting* music concerts, by type, 2010 and 2011
Companies, brands and innovation
Figure 3: Leading live music promoters and venue operators, by turnover, June 2012
The consumer
Figure 4: Number of music concerts attended in past 12 months, June 2012
Figure 5: Number of music festivals attended in past 12 months, June 2012
Figure 6: Types of music concerts attended in past 12 months, June 2012
Figure 7: Consumer attitudes and behaviour relating to music concerts and festivals, June 2012
Figure 8: Attitudes towards potential improvements and innovations to music concerts and festivals, June 2012
What we think
ISSUES IN THE MARKET
How can technology be used to maximise yield?
How can venues seek to maximise secondary spend?
How can promoters maximise other revenue from live performances?
How can live music compete effectively with live comedy and sport?
How can promoter/fan engagement be improved?
TREND APPLICATION
Trend: Influentials
Trend: Collective Intelligence
2015 Inspire Prediction: Access, Anything, Anywhere
INTERNAL MARKET ENVIRONMENT
Key points
Classical and jazz lose out but other genres thrive
Figure 9: Trends in ever visiting music concerts, by type, 2007-11
Figure 10: Percentage of all adults who have been to concerts in past year, 2010 and 2011
Figure 11: Number of music concert performances at NAA venues, by genre, 2007-11
Figure 12: Average ticket prices for music concerts at NAA venues, by genre, 2008-11
No change after PRS for Music tariff consultation
Industry wins licensing concessions
Tightening the purse strings
Figure 13: Major Arts Council-funded classical projects, 2012/13-2014/15
Figure 14: Major Arts Council-funded jazz projects, 2012/13-2014/15
Ticketing sector under pressure after Dispatches exposure
BROADER MARKET ENVIRONMENT
Key points
Economy slips back into recession
Figure 15: Quarterly trends in UK GDP, Q1 2007-Q3 2012
Consumer confidence remains weak
Figure 16: Trends in UK consumer confidence, January 2008-July 2012
Job worries continue
Figure 17: Trends in unemployment rate, Q2 2007-Q1 2012
Figure 18: Unemployment rate*, by age band, Q1 2012
The role of technology grows
Figure 19: Penetration of digital and mobile communications, April 2012
Exchange rate fluctuations cause problems for promoters
Figure 20: Sterling exchange rates, 2007-12
The Olympic impact
COMPETITIVE CONTEXT
Key points
Live music one of the larger leisure markets
Figure 21: Value of the UK leisure* industry, by segment, 2007-11
A third say they cut back on live music in 2011
Figure 22: Leisure spending trends in past 12 months, by sector, October 2011
Further belt tightening in prospect for 2012
Figure 23: Leisure spending intentions for the next 12 months, October 2011
Live continues to outstrip recorded music revenues
Figure 24: Live versus recorded music revenue trends, 2007-11
US market bounces back after difficult 2010
Figure 25: Performance of US live music market in first six months of year, 2007-11
WHO’S INNOVATING?
Key points
Electronic wristbands speed up payment and reduce queues
Taking classical into the festival arena
Songkick pushes on with efforts to counter ‘If only I’d known’
Efforts continue to improve phone charging at festivals
Extending the live audience beyond the physical
MARKET SIZE AND FORECAST
Key points
Five years of tremendous growth in revenues
Figure 26: UK music concerts and festivals market size trends, 2007-17
Take That factor boosts revenues
A post-Olympics bounce-back?
Forecast
Figure 27: Forecast UK music concerts and festivals market value, 2007-17
SEGMENT PERFORMANCE
Key points
Tickets provide most of industry revenues but secondary spend growing
Figure 28: UK music concerts and festivals market, by segment, 2007-11
Concerts
Festivals
Figure 29: Major UK music festivals, 2012
MARKET SHARE
Key points
Live Nation dominates the industry
Figure 30: Leading music concert and festival operators ranked by turnover, 2011
COMPANIES AND PRODUCTS
Key points
Live Nation/Ticketmaster
Background
Financial performance
Figure 31: Live Nation Entertainment Inc, key financials, 2007-11
Figure 32: Live Nation (Music) UK Ltd, key financials 2007-11
LN-Gaiety venture is a major player too
Figure 33: LN-Gaiety Holdings Ltd, key financials, 2007-11
Recent activity
Ticketmaster gives Live Nation a strong position in ticketing
Figure 34: Ticketmaster UK, key financials, 2006-10
SJM Concerts and Metropolis Music
Background
Financial performance
Figure 35: SJM Ltd, key financials, 2006-10
Figure 36: Metropolis Music (Scriptograph Ltd), key financials, 2007-11
Recent activity
Anschutz Entertainment Group (AEG)
Background
Financial performance
Figure 37: AEG Live (UK) Ltd, key financials, 2006-10
Recent activity
Academy Music Group
Background
Financial performance
Figure 38: Academy Music Holdings Ltd, key financials, 2007-11
Venues
Figure 39: Venues owned and operated by Academy Music Group, 2012
Recent activity
MAMA Group
Background
Financial performance
Figure 40: MAMA Group Ltd, turnovers of key subsidiaries, 2010 and 2011
Recent activity
Festival Republic
Background
Financial performance
Figure 41: Festival Republic Ltd, key financials, 2007-11
Recent activity
Raymond Gubbay
Background
Financial performance
Figure 42: Raymond Gubbay Ltd, key financials, 2007-11
Recent activity
Marshall Arts
Background
Financial performance
Figure 43: Marshall Arts Ltd, key financials, 2006-10
BRAND COMMUNICATION AND PROMOTION
Key points
Live Nation commands the promotional space
Figure 44: Leading promoters’ main media advertising spend, 2011
Nostalgia and reunions rule the roost in 2011
Figure 45: Main media advertising spend on leading artists, 2011
Sponsorship continues to grow but funds becoming harder to procure?
BlackBerry backs TOWIE-style reality TV series
Digital role grows for live music promoters
Figure 46: Total unique monthly visitors to music concerts and festivals websites, January 2009-October 2012
MUSIC CONCERT ATTENDANCE
Key points
Nearly a third of adults paid to go to a live music concert in the past year
Figure 47: Number of music concerts attended in past 12 months, June 2012
Strong correlation between concert- and festival-going
Figure 48: Number of music concerts attended in past 12 months, by number of music festivals attended in past 12 months, July 2012
MUSIC FESTIVAL ATTENDANCE
Key points
Figure 49: Number of music festivals attended in past 12 months, June 2012
Less correlation between concerts and festivals than vice versa
Figure 50: Number of music festivals attended in past 12 months, by number of music concerts attended in past 12 months, July 2012
TYPES OF MUSIC CONCERT VISITED
Key points
Rock, pop and classical most popular genres
Figure 51: Types of music concerts attended in past 12 months, June 2012
Relatively little correlation between the genres
Figure 52: Types of music concerts attended in past 12 months, by type of music concerts attended in past 12 months, July 2012
CONSUMER ATTITUDES AND BEHAVIOUR
Key points
Scarcity has its price
Figure 53: Consumer attitudes and behaviour relating to music concerts and festivals, June 2012
Festivals sector to dip slightly in 2012?
Frequent concert-goers more likely to also attend live sport and live comedy events
Figure 54: Consumer attitudes and behaviour relating to music concerts and festivals, by number of music concerts attended in past 12 months, July 2012
Around half of 2011 festival-goers going again in 2012
Figure 55: Consumer attitudes and behaviour relating to music concerts and festivals, by number of music festivals attended in past 12 months, July 2012
Figure 56: Consumer attitudes and behaviour relating to music concerts and festivals, by music concerts attended in past 12 months, July 2012
ATTITUDES TOWARDS POTENTIAL IMPROVEMENTS AND INNOVATIONS
Key points
Initiatives to speed up in-venue service most popular
Figure 57: Attitudes towards potential improvements and innovations to music concerts and festivals, June 2012
Location-based technology opportunity?
Fans open to idea of season ticket
Free Wi-Fi could increase fan engagement
Social media can allow fans to become more involved
Wristbands and mobile drinks vendors popular with regular concert-goers
Figure 58: Attitudes towards potential improvements and innovations to music concerts and festivals, by number of music concerts attended in past 12 months, July 2012
Festival-goers more enthusiastic about prepaid wristbands
Figure 59: Attitudes towards potential improvements and innovations to music concerts and festivals, by number of music festivals attended in past 12 months, July 2012
Rock fans keenest on convenience
Figure 60: Attitudes towards potential improvements and innovations to music concerts and festivals, by number of music concerts attended in past 12 months, July 2012
APPENDIX – MARKET SIZE FORECAST SCENARIOS
Figure 61: UK music concerts and festivals market size forecast scenarios, 2012-17
APPENDIX – MUSIC CONCERT ATTENDANCE
Figure 62: Number of music concerts attended in past 12 months, by demographics, June 2012
APPENDIX – MUSIC FESTIVAL ATTENDANCE
Figure 63: Number of music festivals attended in past 12 months, by demographics, June 2012
APPENDIX – TYPES OF MUSIC CONCERT VISITED
Figure 64: Number of music concerts attended in past 12 months, by type, by demographics, June 2012
APPENDIX – CONSUMER ATTITUDES AND BEHAVIOUR
Figure 65: Consumer attitudes and behaviour relating to music concerts and festivals, by demographics, June 2012
Figure 66: Consumer attitudes and behaviour relating to music concerts and festivals, by most popular consumer attitudes and behaviour relating to music concerts and festivals, July 2012
Figure 67: Consumer attitudes and behaviour relating to music concerts and festivals, by next most popular consumer attitudes and behaviour relating to music concerts and festivals, July 2012
APPENDIX – ATTITUDES TOWARDS POTENTIAL IMPROVEMENTS AND INNOVATIONS
Figure 68: Attitudes towards potential improvements and innovations to music concerts and festivals, by demographics, June 2012
Figure 69: Attitudes towards potential improvements and innovations to music concerts and festivals, by most popular attitudes towards potential improvements and innovations to music concerts and festivals, July 2012
Figure 70: Attitudes towards potential improvements and innovations to music concerts and festivals, by next most popular attitudes towards potential improvements and innovations to music concerts and festivals, July 2012
Figure 71: Attitudes towards potential improvements and innovations to music concerts and festivals, by most popular consumer attitudes and behaviour relating to music concerts and festivals, July 2012
Figure 72: Attitudes towards potential improvements and innovations to music concerts and festivals, by next most popular consumer attitudes and behaviour relating to music concerts and festivals, July 2012

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