Last year was a banner year for live events, with grosses from the top 100 tours up 53% from 2019, the last full year before the pandemic, according to figures reported to Billboard Boxscore. In March, Billboard and Luminate collaborated to dig deeper, and published The Shared Impact of Touring and Streaming.
On Wednesday (Sept. 25), Billboard reconnected with Luminate’s Jaime Lefkowitz (Director of Strategic Partnerships), Jaime Marconette (VP Music Insights and Industry Relations) and Grant Gregory (Research Manager) to discuss the state of the touring industry, giving context to these ever-growing grosses.
In a half-hour webinar – Live Music Landscape: Current Insights & Trends, which this writer participated in as a panelist – the conversation considered the record-setting growth in the touring industry over the last few years, and what challenges and opportunities have arisen or may arise as we move further away from the post-COVID return.
According to Billboard’s year-in-touring report, 2023’s top 100 tours saw the highest reported total gross ($7.5 billion), total attendance (63 million tickets), and average ticket price ($118.64) in Boxscore history. But with dynamic pricing, platinum ticketing and primary market re-sale compounding one another, industry experts must work in real time to evaluate consumer demand and anticipate future purchasing intent. Much has been made of the increasingly difficult environment on the road, with hiked-up costs, supply shortages, and competitive calendars.
And so: Who is buying? What do younger consumers want to see? How can streaming data impact touring schedules?
For those of you who missed the webinar, read below for five major takeaways from the discussion.
Luminate’s consumer research shows that 68% of people surveyed noted that ticket price was a barrier to concert attendance. In the post-COVID era, dynamic pricing and platinum ticketing have driven ticket prices beyond the natural rate of inflation. While that has resulted in plumped up grosses for the biggest acts on the road, it’s also forced concert cancellations on reportedly slower sales for festivals.
During the second quarter of 2024, Gen Z surpassed Millennials for the first time to become the generation with the highest concert expenditures. In part, this is a natural transition as 18-34-year-olds have traditionally been the biggest spenders. But coming out of the pandemic, there’s also been a behavioral shift among Gen Z consumers, further coming “out of their shell,” so to speak. This generational passing-of-the-torch pairs with a new crop of younger touring artists in diverse genres, such as K-pop, Latin and electronic music.
During the week of a concert, artists can expect, on average, a 42% increase in local streams. That percentage boost varies and is often based genre. Country and hip-hop are already drawing huge streaming numbers, with less room to grow after a performance. Conversely, K-pop and electronic artists see enormous immediate jumps, but not as widespread across the country.
For long-term, national growth, A-list touring acts like Bad Bunny, Beyonce and Taylor Swift have harnessed the power of short form video, turning viral TikTok footage into chart success. Swift’s nightly surprise songs and Beyonce’s Mute Challenge allowed for aggregated, year-long streaming bumps.
Luminate and Billboard’s research shows that streams can help define an artist’s demand on tour, but it’s more nuanced than assigning one multiplier or ratio to all. Tedeschi Trucks Band, for example, can be expected to sell 2,814 tickets for every million in-market streams, whereas a more contemporary and streaming-facing act like Caroline Polachek is positioned to sell 673 tickets per in-market million streams.
Again, genre can be a guide. Jam bands like Dead & Company and Phish don’t have as strong a footprint on streaming services but can still sell out shows at Sphere. Conversely, hip-hop artists have high streaming rates but generally have fans that are less likely to buy tickets.
While growing price sensitivity is taking a toll on festivals, the world’s biggest stars are making their concerts more extravagant. From fans making a weekend out of seeing The Eras Tour or traveling to catch Adele during her month-long residency in Munich, they are paying for flights, lodging, wardrobe and more, in addition to the standard rate of admission.
Why is one type of experiential event doing better than the other? Can all artists – and even festivals – learn something from these immersive events staged by individual A-listers?