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Vorsprung durch Musik

The German biz is flourishing. Even severe weather situations and recent terrorist attacks in Europe have not impaired its economic success—yet, reports Karl-Hermann Lipp

By IQ on 16 Sep 2016 Cannstatter Volksfest, Germany, T. Niedermüller's Cannstatter Volksfest

image © T. Niedermüller

The most recent numbers available on the German live entertainment market date back to 2014, when the BDV (the German promoters’ association) put the overall revenues of the sector at €3.8 billion, €2.7bn of which were generated by music events. “Since, on the one hand, more tours and concerts than ever are taking place, and since ticket prices haven’t gone down over the past years, I think overall revenues have continued to grow,” Professor Jens Michow, the president and CEO of BDV, tells IQ, while cautioning that profits may not have risen in line, “as costs in all areas, especially artist claims, are constantly increasing. And since the audience’s [financial] capabilities are eventually limited, rising costs cannot be passed on to the consumers. Hence, as head of the association, I can only ask all involved – but especially the artists – to be moderate.”

One of the major recent developments in Germany has been the entry into the market of Live Nation. Michow says that while local promoters, in particular, had been apprehensive at the beginning, “many concerns proved to have been unsubstantiated. In Germany, we say: competition invigorates business. My impression is that the new global player in the German market has prompted many to be more transparent and optimise their service offering.”

Indeed, most promoters profess to be happy with their respective businesses. Dieter Semmelmann, founder and CEO of Semmel Concerts, calls the economic climate of the live events market “very positive. Everything indicates a stable market condition and a good sentiment within the industry.”


Read the rest of this feature in issue 67 of IQ Magazine. To subscribe, click here.

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