Popularity of Live Events on the Rise

Do you know the TV killed the radio star and the Internet killed the video star? And once again the musicians have to rethink and think harder this time, on how to get their income. In the latest role reversal, the people with music jobs have increasingly turned their face in the direction of the live concert industry and shaking hands with the corporate sponsors to make up the income lost from digital distribution. Also, in the last two years, the revenue of live concert industry has grown by 50%.
The basic reason behind this trend starts and ends only with the Internet. In the pre-90s era, the actual selling of recordings could nicely make up a significant chunk of the musician’s livelihood. But, today the digital distribution ruined that model and those big chunks of revenue. In its response, most of the recording companies worked with the government for setting up strict rules against piracy. But despite their best-of-the-best efforts, piracy still continues, and, as a result, income from recordings dwindled to just 6% of a musician’s income. Just imagine!
However, musicians were able to adapt by playing more on live events. Even though musicians without any large number of followers tend to lose money on tour, more and more the “middle class” labelled bands able to play in mid-sized events and also took advantage of income from live concerts. These bands might not be able to come in the headline arenas, but they are drawing large number of crowds towards them through the digital means to fill smaller concert halls. With Spotify and SoundCloud, musicians are utilizing the Internet for attracting more listeners, and are relying on the “premium version”, or the concert, as the source of their primary income. That growing musical “middle class” pushed the sales of the live concert until the economy slowed down in 2008 during the period of The Great Recession. As the economy strengthened and disposable incomes became more prevalent, the interest in live concerts has re-emerged and grown more than ever. The recent live concert of Adele in Australia is the proof of the high interest level of people for live concerts.
Rise in Sponsorships
With more disposable income and the need to search for new sources for income are the two reasons, which are already mentioned for the growth of the concert industry. The third one has to do with the corporate marketing. Unlike a release of an album, a live concert tends to spawn live social media posts and tweets, which in return creates more and more hype for the performer (even if it’s not that great). Many companies desire to use this hype for selling their own products by associating their brand with a sponsored live concert.
These branded (sponsored) events will request individual concert-goers to register for these concerts beforehand in lieu of buying tickets. As a result, the bands get more money (high income); the corporations get more advertising (marketing), and a company’s marketing department gets names, or leads, that they send emails to.
More Music Jobs
The growth of the live concert industry means a lot more music jobs. Other than the individuals who are performing on the stage, each live concert needs those in production jobs like stage construction workers, promoters, audio techs, and even prop makers or costumers. And more live concerts also mean that there will be a rising need for more concert venues and the music jobs which correspond with operating concert venue or other halls.
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