Live Nation, the dominating force in the live music industry, reported record-breaking figures for 2023, showcasing a 36% increase in revenues reaching $22.7 billion and a 46% surge in operating income amounting to $1.07 billion. While this upper echelon of the live industry flourishes, a stark contrast exists at the grassroots and mid-tier levels where artists, promoters, and venues face more challenges.
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Live Nation’s CEO, Michael Rapino, expressed enthusiasm about the industry’s growth, attributing it to the increasing demand for live music experiences. He highlighted the power of the digital world in enabling artists to reach global audiences and fans to seek in-person connections. Additionally, the industry’s expansion into a wide range of concerts and the development of new venues have further enriched the live music landscape.
The year-end report from Live Nation also revealed a 20% increase in concert attendance and a consequent 15% rise in the average number of shows per tour compared to five years ago. Higher spending on food and drinks at events, along with a growing interest in brand partnerships, contributed to a 13% increase in sponsorship revenue.
Despite the success at the top, the disparities between the elite and grassroots sectors have become more pronounced post-COVID. Calls for support from larger shows to nurture emerging talent and sustain smaller venues have been echoed, particularly in the UK. The Music Venue Trust has advocated for a ticket levy on major shows to assist those at the grassroots and mid-tier levels.
However, challenges persist as evidenced by the recent closure of The Chameleon, a grassroots music venue in Nottingham. Mark Davyd of MVT emphasized the urgency of addressing these issues rather than ignoring them. Calls for government intervention, including a VAT cut on tickets, have been made to alleviate the financial strains faced by independent festivals.
The Association Of Independent Festivals echoed these sentiments, urging for sustained government support to prevent further cancellations and closures within the festival sector. With mounting costs and economic uncertainties, independent festival promoters are struggling to remain viable in the aftermath of COVID and Brexit.
In conclusion, stakeholders across the live music industry are advocating for collaborative efforts to bridge the gap between the top tier and grassroots levels. By implementing supportive measures like lowering VAT on tickets, there is potential to safeguard the diverse ecosystem of live music events and ensure a flourishing future for artists and fans alike.