Introduction
The success and prosperity of the Concert and Event Promotion industry have resulted from the continuous need for live entertainment and the perceived value of such entertainment among Americans. This industry develops, administers, and promotes live shows and activities such as concerts, theatrical plays, air shows, and state fairs. Thus, this research examines the industry’s indicators, performance, and key players, in addition to the effects of COVID-19 on the industry.
Background Information of the Concert-Event Promotion Industry
Concert and Event Promotion operators create, promote, and manage various live activities and performances, such as concerts, athletic activities, and public appearances. Throughout the bulk of the five-year interval, between 2017 and 2022, the company’s revenue has grown substantially (IBISWorld, 2017). During the beginning years of the present era, consumer discretionary spending on live events and associated performances was supported by favorable economic growth. The COVID-19 pandemic is anticipated to have caused a 47.9 percent revenue reduction in 2020 alone, causing an unprecedented industrial upheaval (IBISWorld, 2017). However, beginning in the second half of 2021, the lifting of coronavirus limitations has increased the general desire for live events, resulting in a record-breaking industry resurgence. In the five years leading up to 2022, the industry’s sales climbed at an annual rate of 7.1%, totaling $51.3 billion (IBISWorld, 2017). Even though industry profits may decline from historical highs, industry success will be sustained by favorable demand circumstances.
The Key Players in the Industry
The concert-Event Promotion Industry is marked by a low market share concentration, with over 70,000 businesses vying for income. Many industry drivers are categorized as non-employing businesses with less than five employees competing in intensely confined regional marketplaces. Approximately 89.3 percent of competing businesses fit this definition, highlighting the extremely fragmented character of the industry (IBISWorld, 2017). Throughout the duration of the five-year timeframe leading up to 2022, continuous growth has created an inflow of recruits (IBISWorld, 2017). This trend has been enhanced by the present low-interest rate market, which has improved the availability of credit and decreased the need for initial capital. Additionally, the company’s light regulatory climate has encouraged expanded involvement.
The pandemic of COVID-19 caused unparalleled chaos for industrial operators. IBISWorld predicts sales will decrease by 47.9 percent in 2020 (IBISWorld, 2017). As the epidemic hindered social gatherings, the industry’s major rivals gained a competitive advantage in terms of fiscal stability, negotiating power, and prestige. In fact, according to a June 2020 poll by the National Independent Venue Association (NIVA), over 90 percent of independent venue managers, bookers, and promoters were at risk of shutting down indefinitely without government assistance (IBISWorld, 2017). NIVA has gained government support through the Save Our Stages Act, providing almost $10 billion to private venues throughout the United States (IBISWorld, 2017). Many venues and businesses have been protected by the removal of government limitations in June 2021 since they may now run at their full potential.
Live Nation Entertainment, Inc. is the biggest Concert–Event Promotion industry player. The projection for the company’s growth is estimated to be 16.6 percent (IBISWorld, 2017). Most of the industry’s achievements over the previous five years can be attributed to consolidating its industry position via acquisitions and mergers. Interestingly, the firm partnered with Ticketmaster Entertainment Inc., forming a powerful live event marketer in the United States (IBISWorld, 2017). In addition, Anschutz Corp is among the industry’s largest players. The Anschutz Corporation revealed in 2021 that it has invested in the Hydrogen Energy Research Center at the University of Wyoming’s School of Energy Resources. The Anschutz Corporation is making a financial commitment to hydrogen energy for the first time.
Marketing Assessment
The Concert-Event Promotion Industry faces competition from various companies, including Live Nation Entertainment, Inc. and Anschutz Corporation. Live Nation Entertainment Inc. possesses, operates, or has booking obligations to over 100 venues, such as the Wembley Arena and Eventim Apollo Hammersmith (Bhave & Budish, 2017). Over the last five years, Live Nation Entertainment Inc. has purchased many international companies. Additionally, about one-third of the industry’s concerts are conducted abroad. In the United States, the industry has a remarkable market fraction in at least one sector: arts, recreation, and entertainment, accounting for approximately 1.2 percent of total industry revenue (IBISWorld, 2017). The revenue is regarded as a Golden Goose due to its substantial profit, medium-to-strong market share, and decreased revenue growth compared to some of its competitors.
Anschutz Corporation is a public business with an estimated 101 workers located in Colorado. It is one of the main competitors in the Concert-Event Promotion industry. The company is invested in movie cinema chains, performing arts centers, magazine publishing, professional football clubs, and oil exploration firms. It has a revenue that is approximated to be $1.2bn (IBISWorld, 2017). The Anschutz Corporation sold its majority stake in LightEdge, a supplier of colocation, cloud, and managed service operations, to GI Partners in September of 2021. The Anschutz Corporation was the main owner of LightEdge for fourteen years until selling it for an unknown price. The corporation considers that the deal was for the best convenience of all stakeholders. The Anschutz Corporation declared that it had made an investment in Hydrogen Energy Research Center. Notably, this is Anschutz Corporation’s initial project in hydrogen energy, but they have picked a region that is well-fitted for it since Wyoming has a substantial foundation that can handle hydrogen energy.
Entrepreneurial Application
It is critical for any entrepreneur who wants to join the concert industry to assign the business a cost that is proportional to the amount of effort the entrepreneur will make and the satisfaction of customers. It is vital to examine social and emotional factors, as well as the competitors, as a comparison point. The entrepreneur should know that the crucial aspect is completing this stage from the customer’s viewpoint, not the marketer’s. Additionally, the entrepreneur should consider a target population of ages between 18 to 24. Live performances of all kinds are likely to be attended by consumers between the ages of 18 and 24, comprising concerts, theatrical plays, athletic events, festivals, and other performances (Brown & Knox, 2017). In addition, it is anticipated that this age group would provide a more significant share of total revenue to the sector going ahead in comparison to other age groups.
Conclusion
Promoting live events and actions such as concerts, air shows, and state fairs are examples of what the Concert-Event Promotion Industry creates, administers, and promotes. Between 2017 and 2022, the company’s revenue increased dramatically for the majority of the five-year period. Live Nation Entertainment, Inc. is the largest participant in the concert event marketing sector, with an estimated 16.6 percent annual growth rate.
References
Bhave, A., & Budish, E. (2017). Primary-Market Auctions for Event Tickets: Eliminating the Rents of’Bob the Broker’? (No. w23770). National Bureau of Economic Research.
Brown, S. C., & Knox, D. (2017). Why go to pop concerts? The motivations behind live music attendance.Musicae Scientiae, 21(3), 233-249.
IBISWorld – Industry Market Research, Reports, and Statistics. (2017). Ibisworld.com.