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Live Music Industry

Pollstar’s Mid-Year 2024 Report Highlights The Need for Sustainable Evolution In The Live Music Industry

Posted on 26 June 2024

The live music industry is at a critical juncture. According to Pollstar’s Mid-Year 2024 Report, the industry is experiencing its highest total grosses ever. However, this positive headline masks a more complex and worrying reality. While more shows are being produced and ticket prices have increased, ticket sales and average per-show grosses are declining. This indicates a sector in need of significant adjustments to maintain its sustainability. Below, we analyse the current state of the industry, and the challenges faced by smaller players, and suggest ways to move forward.

Current State of the Live Music Industry

The live music industry in 2024 presents a paradox. On the one hand, total concert grosses have increased by 8.7% compared to the same period in 2023. The number of shows has surged by 16.7%, and the average ticket price has risen by 9.4% to $127.30. These figures suggest a booming industry with rising revenues and a growing number of events.

However, this growth is not evenly distributed. The average gross per show has dropped by 6.9%, from $1.47 million in 2023 to $1.37 million in 2024. Additionally, 0.7% fewer tickets have been sold in the first half of the year, and the average number of tickets sold per show has decreased by 14.9% compared to 2023. Although the 2024 ticket average of 10,767 still exceeds the 2019 average of 9,901, the downward trend in ticket sales is concerning.

This mixed picture is more pronounced when considering the ecosystem’s lower tiers. Smaller and mid-level artists, venues, and festivals are facing increased competition and struggling to thrive. In the UK, 50 music festivals have been cancelled this year, and established US festivals like Coachella and Bonnaroo have reported lower attendance.

The Price of Live Music: A Growing Dilemma for Artists and Fans

The trend of artists inflating their prices is creating a significant barrier between artists and their audiences, resulting in declining ticket sales and a growing sense of discontent among concertgoers. Artists need to charge more for their tickets to compensate for the loss of revenue from recorded music sales. The rise of digital streaming platforms has drastically reduced the income musicians earn from album sales. Consequently, live performances have become a primary source of income for many artists. This shift has led to higher ticket prices as musicians seek to cover the substantial costs of touring, including logistics, production, and crew wages.

However, the rising cost of concert tickets is becoming a significant deterrent for fans. Many potential concertgoers find the prices prohibitive, particularly when considering the additional expenses associated with attending a live event, such as parking, concessions, and merchandise. The overall cost of attending a concert can easily rival that of a weekend getaway, leading fans to question the value for money.

Moreover, the involvement of ticket agencies and dynamic pricing models has exacerbated the issue. Ticket prices often surge due to high demand, driven by algorithms designed to maximise revenue. This price gouging means that fans are frequently paying inflated prices for less-than-optimal seating at stadium and arena shows. The frustration is further compounded by the prevalence of ticket scalpers who purchase tickets in bulk and resell them at exorbitant prices, making it even harder for genuine fans to afford attendance.

The post-COVID economic landscape has also played a role. With inflation affecting the cost of living, discretionary spending on entertainment has been significantly curtailed. Fans are now more selective about the concerts they choose to attend, opting to skip events that do not offer perceived value for money. This selectivity is evident in the growing number of major tours and festivals reporting lower attendance figures despite the high demand for live music.

Additionally, the cultural landscape of social outings has shifted. The convenience and comfort of high-quality home entertainment systems, combined with the ability to stream concerts online, offer an attractive alternative to the expense and hassle of attending live events. This change in consumer behaviour is contributing to the decline in ticket sales, as many fans prefer to enjoy music from the comfort of their homes rather than face crowded venues and high costs.

The Struggles of Smaller Players

While top-tier tours and major festivals dominate headlines with record grosses, smaller artists and events face a more challenging reality. The increased competition has made it harder for these entities to attract audiences and secure funding. The cancellation of 50 music festivals in the UK and declining attendance at major US festivals highlight the difficulties faced by the broader live music ecosystem.

Smaller venues and festivals are particularly vulnerable. They often lack the financial cushion of larger counterparts and are more susceptible to fluctuations in attendance and revenue. This environment makes it difficult for emerging and mid-level artists to gain exposure and build their fan bases. The result is a live music landscape where only the biggest names and most prominent events are thriving, while the rest struggle to keep pace.

Boutique Festivals: A Glimmer of Hope

Despite the challenges, there are reasons for optimism. Pollstar notes the emergence of over a dozen boutique festivals, such as Big Ears, Cruel World, Winter Jazz Fest, Solid Sound, and Movement Electronic. These festivals offer a more intimate and curated experience, appealing to niche audiences and fostering a sense of community.

Boutique festivals can provide a viable model for sustainability in the live music industry. By focusing on specific genres or themes, they can attract dedicated fans willing to pay a premium for unique experiences. These events also offer opportunities for smaller and mid-level artists to perform and connect with audiences in a more personal setting. Moreover, boutique festivals can experiment with innovative formats and partnerships, potentially setting new trends for the broader industry.

Strategies for a Sustainable Future

To ensure the long-term sustainability of the live music industry, several strategies need to be implemented. Here are some key recommendations:

Diversification of Revenue Streams

Relying solely on ticket sales is increasingly risky in a fluctuating market. Diversifying revenue streams is crucial for sustainability. This can include merchandise sales, VIP experiences, live streaming, and brand partnerships. Additionally, offering exclusive content or experiences to fans through subscription services can provide a steady income.

Supporting Smaller Venues and Artists

The health of the live music ecosystem depends on the success of its smaller players. Policies and initiatives that support smaller venues and artists are essential. This can include funding programs, tax incentives, and grants. Encouraging collaborations between larger and smaller entities can also help distribute resources more equitably.

Embracing Technology and Innovation

Technology can play a significant role in enhancing the live music experience and expanding its reach. Live streaming and virtual concerts have become popular alternatives to in-person events. Integrating augmented reality (AR) and virtual reality (VR) can create immersive experiences that attract tech-savvy audiences. Furthermore, data analytics can help organisers better understand audience preferences and tailor events accordingly.

Fostering Community Engagement

Building a strong community around live music events can drive loyalty and repeat attendance. Engaging with fans through social media, fan clubs, and interactive experiences can deepen their connection to artists and events. Additionally, creating inclusive and accessible environments ensures that a diverse audience can enjoy live music.

Conclusion

The live music industry stands at a crossroads. While top-tier events continue to generate impressive revenues, the broader ecosystem faces significant challenges. Smaller and mid-level artists, venues, and festivals are struggling to survive amidst increased competition and fluctuating attendance. However, by embracing innovation, supporting smaller players, diversifying revenue streams, and fostering community engagement, the industry can navigate these challenges and create a more sustainable future.

Article by Amelia Vandergast

What Can Save the UK Music Industry?

Posted on 7 November 2022

With issues continuing to amass in the music industry, more people are starting to despairingly speculate on what can save it. Earlier this year some people banked on the ham-fisted benevolence of Elon Musk saving the day, while others pinned their hopes on opportunities opened up by the metaverse and music NFTs.

Realistically, there is never going to be a catch-all solution that gently cradles all musicians from the cut-throat nature of the industry and uplifts it from the increasing economic strains. Nor will there be a return to how things used to be – no matter how longingly we long for it. Instead, the individual issues within the music industry need to be addressed before there can be a discussion of how it can bolster some resilience in an era where even the most robust markets are feeling the increased pressure of the cost-of-living crisis.

The Three Biggest Challenges That Need to Be Overcome in the Music Industry

The Lack of Government Support

In 2022, the UK music industry is now one-third smaller than in 2019 due to the hat-trick devastation caused by inflation, Brexit, and the pandemic. The calls for government support are getting louder and louder in an attempt to quash the blow of the rising costs of touring and keeping the lights on in venues.

Manchester’s Dave Haslam was one of the many voices calling for support in a recently published article in the Guardian, which followed the trajectory of the decline of the music industry through the years and called for government intervention. The government support would ideally involve a freeze on alcohol duty, reductions in VAT, and relief on business rates, to prevent the closure of even more clubs and venues across the UK. Removing the red tape imposed by Brexit to help touring musicians is also a prominent request in calls for governmental intervention.

Keeping the pressure on politicians, especially the newly appointed Culture Secretary, Michelle Donelan, by reminding them of the value of the multi-billion-pound industry, which employs hundreds of thousands of people, is more important than ever. With Rishi Sunak at the top, it’s easy to give into apathy, given his recent declaration that “the state can’t fix all your problems”. If you care about the future of the music industry, fight for it, don’t just hope that someone will do it on your behalf!

The Economic and Ecological Cost of Touring

National and international tours are how many artists attempt to make their music careers economically viable now that streaming services such as Spotify are reigning over CD and vinyl sales. But with the increasing awareness of the carbon footprint of touring confounding the economic unviability due to the inflated prices of fuel and just about everything else, how long can the massive shows go on?

In an ideal world, we wouldn’t have to contemplate the ecological impact of artists heading out on tour and living their dreams of finding themselves in a new city every night and playing to a sell-out crowd. Unfortunately, the planet is hotting up; the music industry can’t put their heads in the scorched sand any longer and pretend it is not contributing to the massive existential problem.

A study published in 2010 reported that the live music industry annually generated 405,000 metric tonnes of emissions in the UK alone. That is enough energy to power 46,000 homes. While there is no shortage of greenwashing festivals with their token efforts, such as banning plastic cups, it isn’t going to cut the mustard if we are going to achieve net zero by 2050.

Whether you like it or not, the reality of touring is being reshaped by climate change. But that doesn’t mean that live music needs to be wiped from existence. It does mean that we need to consider the ramifications of the environmental impacts and start to place more value on smaller-scale local and regional performances. If communal music traditions met artistic needs for millennia, why should they be discarded now? Local and grassroots music is the overlooked, slightly less glamorous backbone of the music industry. If neglected for long enough, everything else will crumble.

Unfair Royalty Cuts from Streaming Platforms

There are a lot of popular misconceptions around streaming platform royalties, namely that services such as Spotify pay their pitiful revenues to the artists directly. Before royalties reach artists’ and songwriters’ bank accounts, they go through distro companies, record labels and copyright management companies, who take a sizeable chunk for themselves.

Spotify takes a 25% cut of the revenue, the recording owners take 59.9%, and the songwriters and publishers share a 15.1% cut. While it is easy to paint Spotify as the devil incarnate, the real issue is the complexity of copyright law which commodifies music and exploits artists in the process. For the same reason it took The Rolling Stones until the 70s to make any real cash, the struggle is the same for any contemporary artist signed to a record label that was drafted to bleed them dry.

The decline of the major record labels as artists are seeing the light and opting for an independent music career is a step in the right direction but it is easier said than done for independent artists to succeed. Frank Ocean and Chance the Rapper proved it is possible to be successful and independent, but that doesn’t mean it is viable for all artists. Especially given that thousands of new tracks launch on Spotify every day, and almost 80% of artists on Spotify have a monthly listener count that is less than 50.

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So, to answer the question of how can the music industry can be saved in short, the answer is recognising that the current framework of the industry needs a drastic overhaul. From tearing up the copyright laws which exploit artists instead of protecting them to recognising why the live music industry is really up against the wall to accepting the over-saturated unsustainability of the industry. Something has to give before the music industry goes further than a 1/3rd slump in market value.

Article by Amelia Vandergast

How to Promote a Concert in a Fragile Live Music Industry

Posted on 31 October 2022

Whether you have been asked by a promoter to sell tickets to an upcoming show or you have put on your own gig, there are a few golden rules on how to promote a concert you should follow to boost your attendance, and hopefully avoid every artist’s fear – playing to an empty room.

While it is true that artists are currently struggling to sell out their tour dates with 2022’s Mercury Prize winner, Little Simz forced to pull their tour due to financial constraints along with Animal Collective also struggling to budget for their tour, this isn’t a sign that you should give up the ghost just yet.

Before you put your blood, sweat, tears and own funds into playing live, make sure you are playing smart. A common mistake new independent artists make when they don’t have a band manager to push them in the right direction is playing too often in their hometown.

Times are tough, and even if you have a loyal fanbase that will do their best to support you, if you’re playing every month in your hometown, don’t expect to magically find new fans that will come out in support of you. Or that your most loyal fans will shlep from their busy lives time after time when they know that they will probably see the same show they’ve already paid their good money for.

Circle-jerk gigs are killing live music scenes up and down the country – don’t be a part of the problem! With that warning out the way, we will move on to how to effectively pull a crowd to your live dates to make sure that the attendees aren’t solely the support acts and people working at the venue.

8 Ways to Promote a Concert

1. Circulate Videos of Your Past Live Performances

We have all been to gigs after falling in love with a band’s records, only to be sorely disappointed by what the live show entails. If you thrive in the domain of live music, make it known to your fans by creating promo videos for your live dates using footage of your past shows that can be posted across your social media channels. Additionally, share any good quality fan-made videos from your last gigs and post live content to YouTube and other streaming platforms.

2. Reach Out to People Individually or Offer a Cheap List to Friends

Many independent artists boost their attending lists by offering access to a cheap list for their friends, family, and industry figures, such as journalists, photographers, and A&R reps. That personal touch can be what it takes to convert someone considering attending the show into a ticket holder. Go carefully with this approach; don’t hound people into paying for a ticket! Always use discretion.

3. Utilise Gig Listing Platforms and Publications

Many local newspapers and online music publications run features every month to let readers know what is happening in their city. Rather than sitting and hoping that your gig will be picked up by the editorial team, be proactive in your gig promotion efforts to make sure that your upcoming shows have the best chance of being noticed. Using Manchester as an example, The Skinny, All Gigs, Visit Manchester, and Manchester Gigs all promote upcoming live events, along with other national sites, such as Skiddle and Song Kick.

4. Choose a Crowd-Pulling Support Act

If you have free reign over who opens for you, decide wisely. Book a local opening act that has a proven fanbase and is willing to put the effort into pulling a good crowd. Rather than just roping in your friend’s bands in an act of nepotism, consider if your fans would want to watch this band too. After all, gig-goers are far more likely to stump up the cash for gig tickets if they think they will enjoy the entire evening, not just an hour’s worth of entertainment they will have to go out of their way for.

5. Plaster Your Gig Dates Everywhere

If you have Spotify for Artists, you can easily upload your tour dates to the platform, so the next time someone flicks through your discography, they will see all of your upcoming tour dates. As Spotify is one of the main ways music fans discover music, it makes sense to use Spotify as free advertising for your upcoming gigs. Similarly, if you have an official artist website, which every artist definitely should, all of your upcoming (and past) gigs should be listed here too.

6. Create an Event Page on Facebook

Even though you may not be able to trust who is coming to gigs via the attending and interested lists on your Facebook event pages, Facebook events are one of the best ways to circulate news of new gigs. Be sure to keep the page updated with the necessary information, such as who is opening the show and the set times. Many disagree that set times should be published as this discourages gig goers from watching all of the bands, but by publishing set times, you’re more likely to boost attendance by letting fans know how to arrange their travel plans.

7. Get to Grips with Digital Advertising

If your budget allows it, promote your gigs and tours via Facebook, Instagram and Google adverts – just be sure to set the appropriate parameters. For an efficacious digital advertising campaign via sponsored ads, ensure that you are only targeting the right geographical audience and people who have seen your posts before. For bands who can’t afford paid ads or are reluctant to use them, email marketing and using local hashtags can also increase the number of ticket-holding gig goers.

8. Don’t Rule Out Conventional Means of Advertising

Social media may dominate a worrying proportion of our daily lives, but that doesn’t mean that gig promotion solely has to happen across digital platforms. Team up with talented graphic designers to create an eye-catching gig poster that can be used online and printed and plastered across the town or city you’re playing in. Ask local businesses, such as bars and shops if they would mind putting your tour poster in their window – the worst that could happen is that they say no.

Article by Amelia Vandergast

Live Music’s Glass Ceiling: Up and Coming, But Going Where?

Posted on 9 July 2022

There is always more than one angle on any given scene. But there is an elephant in the live music industry taking up the unattended room and gorging on the irony of our desire to save iconic indie venues while being ambivalent about the reason they exist in the first place. And no, that isn’t to keep the doors open on your sentimentalised fragments of youth.

The future of music is disintegrating around the fixation of legacy acts that hold the monopoly of the live music industry while only creaking out of their coffins to effectively catfish us at £50+ a pop on their anniversary (read: crucifixion) tours. At some point, recollection became more compelling than discovery, causing more artists to concuss themselves on the glass ceiling invisibly constructed around indifference of newness.

What does the average music fan care if the current hierarchy of gods and nobodies creates classist unsustainability for your average independent artist? Not a lot. They have no vested interest in the future of artists they’ve never heard of. Ignorance is bliss.

Until revered by dictating tastemakers, they have paid their way into the industry or just got INCREDIBLY lucky; independent artists are up, coming, and going nowhere. That isn’t an insinuation that the music industry has ever been an egalitarian dream; far from it. For some perspective, imagine the current state of the music industry if we ignored the bands on the rosters of Rough Trade, Factory Records and Mute Records because we were too preoccupied with what happened five decades before. That’s precisely where we’re at in 2022.

While the majority raved at how impressive it was for McCartney to headline Glastonbury at 80, in context, it’s a symptom of a far more insidious disorder in the live music industry.

Independent artists are lucky if they break even on tour, let alone break into the industry. Where does this past-decade-sonic-memento fascination end? Do we only let new blood seep into the industry if it sates the affluent artists that need a cheap/free opening support band? Sure, the stamina of an octogenarian icon is impressive. As impressive as the new music that constantly comes our way? Absolutely not.

For what it is worth, I understand the lack of enthusiasm for discovering and supporting independent music. I’m as prone to lapses of jaded disillusion as the next person. Consumer confidence hasn’t been in pits deep as this since the 70s. It plunged with the cognitive bandwidth that gave us the luxury of being able to care about such frivolous things.

Buying tickets to tours just announced doesn’t seem as appealing with the constant reminders that inflation keeps rising at the same rate as the water we have to keep our heads above in this hyper-warped time. Lest we drown in the entropy force-fed by entities that prefer us cowed into fear, division, and isolation. As if a collective of awkwardly amalgamated bodies at gigs that have forgotten to be in a crowd wasn’t enough to make music fans give See Tickets a wide birth.

In the run-up to Glastonbury, the BBC speculated how overwhelmed attendees would be. That same funk and social awkwardness have been floating around every venue since July 2021. If you haven’t noticed it, that’s probably because you’ve started treating gigs like kebabs. In the cold light of sobriety, you’d give it a miss; with your favourite anxiety-quashing poison, you’re numb to the questionable sensory appearance, and that legacy acts give their apathy to their roadies as the heaviest thing to carry.

Something has got to give before the reality of live music plunges deeper into a Black Mirror plot and we are left with an ageing population of icons that we will glue ourselves to before they appear on our screens as holograms on tour and rave about the experience.

But who am I to imply that supporting independent artists should take precedent when every passing day the media etches into our psyches a scarcity complex and teases us further into nihilism? Someone painfully aware of the cognitive dissonance choking the live music industry and desperate for the resurgence of the punk ethos.

How many times have you heard some iteration of “if you are in it for the money, you are in the wrong industry?” as though we should let live music be another death knell of capitalism and its greedy for independent artists to not be out of pocket for all that they contribute to society?

After all the insistence on the value of music and creativity that echoed in lament while it was on pause for 18 months, independent artists gritted their teeth through the cumulative blows and prepared to play their role in society once again. Only to find that getting enough advance tickets sold to leave the promoter inclined to carry on with the event is near impossible.

Independent music has triumphed over the oligarchy before. Just as it did after the economic crisis in 1974 when punk and electronica burst the pop bubble that would have been impenetrable if it weren’t for the likes of Tony Wilson and Geoff Travis. Technically, the industry is more accessible than ever before through the power of social media and software enabling artists to create masterpieces in their bedrooms on a shoestring. But what use is the power of technology if we passively accept its manipulation?

And for anyone thinking that the threat of the world ending is enough justification to mentally nope out of giving a fuck about culture, every generation before us has believed that they will see end times. Fear is a fundamental part of the human experience; the end is always nigh when prophecies of doom are so attractive to our ego-driven minds that believe we will see reality crumble around us.

Turn off the news. Support scenes that allow artists with autonomous voices to thrive. Smash the illusion that enough fame makes a person celestial, and maybe apply some self-awareness to the sycophantic fetishization of a few key figures.

Amelia Vandergast