CMS calls for ticket levy for grassroots venues
The Culture, Media and Sport (CMS) Committee has backed calls for a new arena and stadium ticket levy, plus tax relief, to safeguard UK’s grassroots music venues (GMVs).
The recommendations feature in a new report from the cross-party committee, which launched the inquiry at the Music Venue Trust’s (MVT) Venues Day in October 2023 and heard about the “cost of touring crisis” facing the sector, against a backdrop of small venues closing at a rate of two per week.
It says that a voluntary levy on arena and stadium concert tickets – as lobbied for by the MVT – would be the most feasible way to have an immediate impact on the business, creating a support fund for venues, artists and promoters, administered by a trust led by a sector umbrella body, and is appealing for the industry to ensure the levy cost is not passed on to music fans. In addition, it is calling for a temporary VAT cut based on venue capacity.
The conclusions have been warmly welcomed by bodies including the MVT, along with trade bodies LIVE (Live music Industry Venues & Entertainment), UK Music, the Music Managers Forum (MMF) and Featured Artists Coalition (FAC).
“These recommendations provide a clear pathway forward to a positive future for the UK’s grassroots music venues, a set of actions that are deliverable, affordable, and will genuinely have a positive impact on live music in communities right across the country,” says MVT CEO Mark Davyd. “We look forward to working with the music industry and with the government to deliver on these recommendations as swiftly as possible.”
Davyd owns Tunbridge Wells Forum in Kent, which recently pledged to become the first venue in the UK to introduce a grassroots ticket levy. Throughout this month, £1 from every ticket sold will be donated to the Music Venue Trust’s (MVT) Pipeline Fund at no additional expense to customers.
The MVT has described 2023 as the most challenging year for the sector since the trust was founded in 2014, as the number of GMVs falling from 960 to 835.
“It’s clear that the committee has recognised the many challenges faced by venues, promoters, events and artists at the grassroots level, and the steps required to address them”
“We would like to thank all the thousands of music fans that have supported our work across the last 10 years,” adds Davyd. “It has taken much longer than any of us would have liked to get the positive change we all wanted to see, but we could not have achieved this fantastic outcome without your continued support for your local live music venue.”
If there is no agreement by September, or if it fails to collect enough income to support the sector, the report says the government should step in an introduce a statutory levy.
“It’s clear that the committee has recognised the many challenges faced by venues, promoters, events and artists at the grassroots level, and the steps required to address them,” says LIVE CEO Jon Collins. “LIVE set out to the committee the actions we believe that the government needs to take to help unleash the economic potential of the sector, such as a reduction in the damaging and uncompetitive rate of VAT on tickets, as well as the actions that sit with us as an industry, notably the creation of a charitable arm, the LIVE Trust.
“We are pleased that the committee’s report addresses both of these matters positively and has entrusted our sector to implement the industry-led solution of a voluntary levy on arena and stadium tickets, gathering and distributing funding that will benefit the whole grassroots music ecosystem. We look forward to working with government on the review of VAT and regularly updating on our progress on the LIVE Trust.”
“Grassroots music venues are a crucial part of the music industry’s ecosystem and have been faced with a series of unprecedented threats for a number of years,” adds UK Music interim chief executive Tom Kiehl. “We welcome the House of Commons CMS Committee taking the opportunity to consider the challenges these venues and the artists that tour in them face.”
Artists and managers previously spoke out in favour of the MVT’s calls for a compulsory £1 levy on tickets sold for UK live music events above 5,000-cap during evidence sessions held in March.
“As the organisations representing artists and managers, we wholeheartedly endorse all the committee’s recommendations,” says a joint statement by FAC CEO David Martin and MMF chief executive Annabella Coldrick. “Most important is their recognition of the ‘cost of touring crisis’, and that the benefits of a ticket levy must flow down to artists, managers, and independent promoters – as well as to grassroots music venues. The entire ecosystem needs support. While we still believe this mechanism should be mandatory, the clock is now ticking to get a process in place before September 2024.”
“The ongoing wave of closures is not just a disaster for music, performers and supporters in local communities up and down the country, but also puts at risk the entire live music ecosystem”
Among the report’s other recommendations are for the government and Arts Council to make it easier for the live music sector to apply for public funding and for stakeholders across the industry to continue to support the FAC’s campaign to end punitive fees on artists’ merchandise.
“We are also delighted to see the committee endorse the 100% Venues campaign, and hope this will trigger action from the UK’s largest live music venues to overhaul outdated practices on merchandise commissions,” continue Martin and Coldrick. “The sale of T-shirts, vinyl and other physical products represent a crucial income stream for artists. It is only fair that they should retain the bulk of that revenue.”
In closing, the report also calls for a comprehensive fan-led review to be set be set up this summer to examine the long-term challenges to the wider live music ecosystem.
“We are grateful to the many dedicated local venues who gave up their time to take part in our inquiry,” says Dame Caroline Dinenage MP, chair of the CMS Committee. “They delivered the message loud and clear that grassroots music venues are in crisis. The ongoing wave of closures is not just a disaster for music, performers and supporters in local communities up and down the country, but also puts at risk the entire live music ecosystem.
“If the grassroots, where musicians, technicians, tour managers and promoters hone their craft, are allowed to wither and die, the UK’s position as a music powerhouse faces a bleak future. To stem the overwhelming ongoing tide of closures, we urgently need a levy on arena and stadium concert tickets to fund financial support for the sector, alongside a VAT cut to help get more shows into venues.
“While the current focus is on the many grassroots music venues falling silent, those working in the live music sector across the board are also under extraordinary strain. It is time that the government brought together everyone with a stake in the industry’s success, including music fans, to address the long-term challenges and ensure live music can thrive into the future.”
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
Gigpig secures £1.3m investment
Gigpig, a live entertainment marketplace and gig booking platform, has completed a £1.3m seed investment round, led by Haatch Ventures and Notion Capital.
The business gives artists a free platform to find and play gigs at local venues in the UK whilst providing venues with a streamlined approach to search, book and manage entertainment in-house, booking musicians directly.
Since launching in June 2022, GigPig has launched in more than 22 cities across the country. Over 600 bars, pubs and clubs have signed up, booking more than 31,000 gigs so far.
The latest investment will be used to create more gigging opportunities across the UK, helping more pubs and bars boost their revenues with live music and give artists more ways to earn a living gigging, says the firm.
It is also planning to launch new data-led products and services, as well as an app for artists.
Investors in the seed round include Chris Tottman of Notion Capital and Mark Bennett of Haatch. Angel investors and music industry experts Chris Meehan, Richard Flint, Wolfgang Alistat and Andrea Mihalovits are among a raft of individuals also backing the firm in its next phase of growth.
“We believe our mission to help every pub and bar maximise their potential with live music is more important than ever”
“With the hospitality sector facing unprecedented challenges, we believe our mission to help every pub and bar maximise their potential with live music is more important than ever,” says Michael Forster, chief executive of GigPig.
“Our platform has already helped hundreds of venues improve customer satisfaction, drive footfall and increase sales while giving thousands of artists an easier way to earn money gigging. We’re just getting started and the investment announced today will help bring the benefits of live music to more communities in towns and cities across the UK.”
Chris Tottman, a partner at Notion Capital, adds: “When we met Michael and Kit we were deeply inspired by GigPig’s mission, rooted in their combined 30-plus year industry experience of the grassroots and mainstream live music industries.
“We are invested in their vision to build an entirely new category that gives hospitality venues access to thousands of artists, with the ability to discover and book local talent at their fingertips.”
Mark Bennett, a partner at Haatch, comments: “GigPig is one of the most exciting start-ups in the UK right now, having developed a platform that connects venues and artists at unparalleled scale.
“While gigging in pubs and bars has long been the bedrock of the UK music scene, GigPig’s technology and industry expertise is set to drive explosive growth of live music in the hospitality sector.”
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
New Orleans Jazz Fest pulls in half a million fans
The 2024 New Orleans Jazz & Heritage Festival drew the second largest attendance in the event’s history, according to organisers.
Boosted by an additional day and a long-awaited headline performance by the Rolling Stones, the US festival pulled in half a million people across two four-day weekends to rank behind only the 2001 edition, which was attended by 600,000. Last year’s festival attracted 460,000 fans.
First held in 1970, the Jazz Fest featured over 5,000 musicians across 14 stages at the Fair Grounds Race Course from 25-28 April and 2-5 May, averaging crowds of over 60,000 per day.
It was a case of third time being the charm for the Stones, who previously had to cancel their appearances at the event in both 2019 and 2021. Other artists to appear included Foo Fighters, The Killers, Neil Young and Crazy Horse, Chris Stapleton, Anderson .Paak & The Free Nationals, Hozier and Jon Batiste.
“This year’s festival presented as plainly as ever the beauty of Jazz Fest”
“This year’s festival presented as plainly as ever the beauty of Jazz Fest,” says Quint Davis, producer and director of the event, as per AP. “Watching the Rolling Stones perform with New Orleans and Louisiana stars Irma Thomas and Dwayne Dopsie was to witness the power of the festival to demonstrate the connection of our culture to some of the greatest music of our time.”
Also on the bill were the likes of Queen Latifah, Vampire Weekend, Greta Van Fleet, Heart, Bonnie Raitt, Earth, Wind & Fire, Joe Bonamassa and the Beach Boys.
Next year’s event is scheduled to take place from 24 April to 4 May.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
TEG stages Australia’s ‘biggest beach party ever’
TEG Live has made history by hosting “the biggest beach party ever staged in Australia”, with a sold-out 30,000-cap hometown show by DJ Fisher.
The Australian promoter, which organised the inaugural Out 2 Lunch Festival on Coolangatta Beach, Gold Coast, says the Queensland-only 4 May event injected more than A$50 million (€31m) into the local economy.
More than 200 local businesses were involved in the planning and delivery of the festival, which created more than 2,000 jobs, while accommodation was sold out across the Gold Coast.
“TEG is delighted with the inaugural Out 2 Lunch Festival, and it was great to see the economic impact that the Festival had on the local community,” says TEG Group CEO Geoff Jones. “This was no easy feat, as the planning and logistics required to deliver the Event were extraordinary, particularly as this was the very first time this many people attended a staged event on Coolangatta Beach.
“We would like to sincerely thank Team Fisher, the City of Gold Coast, the World Surf League, Southern Gold Coast Chamber of Commerce, Coolangatta and Greenmount Surf Life Saving Clubs and the many, many other Partners and Stakeholders who helped TEG bring this epic event to life.”
“Belinda comes to TEG with a proven track record working with global brands across local and international markets”
At Fisher and his wife Chloe’s request, $1 from every ticket sold was donated to the Starlight Foundation. A further $20 donation was required for the Pink Elephants Support Network for those punters attending via guestlist or complimentary tickets. In total, $35,320 was raised for the Starlight Foundation and Pink Elephants Support Network.
In addition, TEG has announced the appointment of Belinda Shaw, who will succeed the long-serving Sandra Rouse as the group’s chief financial officer. Shaw brings more than 25 years of senior experience and was most recently CFO at Boral, Australia’s largest vertically-integrated construction materials company.
“Belinda comes to TEG with a proven track record working with global brands across local and international markets, and her in-depth knowledge and experience will be key to the role as we continue to drive growth,” adds Jones. “I warmly welcome Belinda to TEG and look forward to working alongside her.
“I also want to take this opportunity to thank Sandra for her enormous contribution over the past 13 years. During that time, Sandra has supported the business through impressive growth, changes in ownership, a pandemic, acquisitions in multiple countries and the list keeps going. I feel privileged to have had Sandra on the team and have the utmost respect for her commitment, leadership, and contributions at TEG.
“Sandra will be moving into a new role in the business where her intimate knowledge of the Operations and landscape will drive a number of important initiatives across strategy, M&A and operations.”
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
Ukrainian artist plays three sold-out arena shows in Kyiv
Amid Russia’s war against Ukraine, local pop artist Artem Pivovarov performed three sold-out shows at Kyiv Sports Palace, drawing 10,000 attendees each night.
The April shows, for which tickets were priced between US$25 and $150, mark the longest run of concerts at the arena by any Ukrainian artist.
Music Export Ukraine’s Dartsya Tarkovska called his most recent run “a great success story to note in these wild times”.
The feat comes a year after Pivovarov became the first artist to perform at the Sports Palace since the war started on 24 February 2022, delivering two shows at the venue.
Discussing his recent run of shows, Pivovarov’s PR, Rina Volosiuk, told IQ that the main challenge was providing all the necessary technical equipment.
“A large amount of it was brought from Europe and considering the situation on the borders, that wasn’t an easy task at all. Thank god and our technical partners, we coped with that in time!” she said.
Event safety was also a major focus for the team, which dedicated a “huge amount of attention, time and skills” to keeping attendees safe during the shows.
“[These shows] are a great success story to note in these wild times”
“Our country has been subjected to constant missile and drone attacks for more than two years and Kyiv, as the capital city, is no exception,” explains Volosiuk.
“Ukraine is in a very hot and hard phase of the war right now. We had to be ready for different types of provocations and attacks during the shows. As you can imagine, the level of our responsibility in matters of security was off the charts. We worked on that task with private security companies and with the police department.”
Against all odds, the concerts went ahead without a hitch and proved to be a cathartic and essential experience for attendees.
“Obviously, in these difficult times, people in Ukraine are in particular need of support,” she said. “There’s a special atmosphere at our concerts. The audience can let out their emotions, laugh and cry, communicate sincerely and recharge because we always exchange energy at our performances. Сoncerts at the Palace of Sports were no exception. Our new and unique show gave people an unforgettable experience and positive emotions, which is really needed now.”
Pivovarov’s shows aren’t the only ones to take place in the war-torn country. Vladyslav Yaremchuk, programming director of Atlas Festival, told IQ last August that “concerts are happening everywhere in Ukraine”.
But despite a burgeoning live music scene in Ukraine, execs such as YOUROPE’s Christof Huber have encouraged the international live music industry not to forget about the ongoing war.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
Israel protests shroud Eurovision final build-up
The build-up to the 68th Eurovision Song Contest has been marred by protests over Israel’s inclusion in the event.
Israeli singer Eden Golan qualified for tomorrow’s (11 May) grand final at Sweden’s Malmö Arena after a public vote. The 20-year-old received a mixed reaction from the audience during last night’s semi-final and had been booed during rehearsals the previous evening.
Eurovision has faced boycott calls over Israel’s participation in the 2024 contest, amid the ongoing war and escalating humanitarian crisis in Gaza. Thousands of pro-Palestinian protestors gathered in the streets of Malmö yesterday. The Guardian reports that further protests, and an alternative concert, which organisers have billed as “a song contest without genocide”, are planned for Saturday.
A smaller demonstration in support of Israel also reportedly took place.
The European Broadcasting Union (EBU), which organises the competition, allowed Israel to compete after it changed the lyrics to its song, originally titled October Rain, which was understood to reference the 7 October attacks by Hamas, breaching Eurovision’s rules on political neutrality. It has since been renamed Hurricane and features amended lyrics.
“It is truly such an honour to be here on stage, representing [Israel] with pride,” said Golan, as per the BBC. “I’m so grateful for everyone who voted and took part in supporting us, and me.”
“The European Broadcasting Union acknowledges the depth of feeling and the strong opinions that this year’s Eurovision Song Contest – set against the backdrop of a terrible war in the Middle East – has provoked”
According to Al Jezeera, About 1,139 people were killed in the coordinated 7 October attacks according to Israeli authorities – including more than 360 in the Supernova festival massacre – while over 34,904 people have since been killed in Gaza, and 78,514 wounded.
The EBU released a statement last month regarding the “abuse and harassment” of Eurovision artists.
“The European Broadcasting Union acknowledges the depth of feeling and the strong opinions that this year’s Eurovision Song Contest – set against the backdrop of a terrible war in the Middle East – has provoked,” says Jean Philip De Tender, deputy director general of the EBU. “We understand that people will want to engage in debate and express their deeply held views on this matter. We have all been affected by the images, stories and the unquestionable pain suffered by those in Israel and in Gaza.
“However, we wish to address the concerns and discussions surrounding this situation, especially the targeted social media campaigns against some of our participating artists.”
De Tender continues: “The decision to include any broadcaster, including the Israeli’ broadcaster Kan, in the Eurovision Song Contest is the sole responsibility of the EBU’s governing bodies and not that of the individual artists. These artists come to Eurovision to share their music, culture, and the universal message of unity through the language of music.
“The EBU has previously explained the reasoning for the inclusion of KAN and the differences between them as an independent broadcaster and previous participants who were excluded. Constructive debate is a positive consequence of such decisions.
“However, while we strongly support freedom of speech and the right to express opinions in a democratic society, we firmly oppose any form of online abuse, hate speech, or harassment directed at our artists or any individuals associated with the contest. This is unacceptable and totally unfair, given the artists have no role in this decision.”
“We urge everyone to engage in respectful and constructive dialogue and support the artists who are working tirelessly – on what is a music and entertainment show”
He adds: “The EBU is dedicated to providing a safe and supportive environment for all participants, staff, and fans of the Eurovision Song Contest. We will continue to work closely with all stakeholders to promote the values of respect, inclusivity, and understanding, both online and offline.
“We urge everyone to engage in respectful and constructive dialogue and support the artists who are working tirelessly – on what is a music and entertainment show – to share their music with the world.”
Meanwhile, Sky News reports that the Netherlands’ Eurovision entry Joost Klein is under EBU investigation due to an “incident”.
“We are currently investigating an incident that was reported to us involving the Dutch artist,” says an EBU statmement. “He will not be rehearsing until further notice. We have no further comment at this time and will update in due course.”
Malmö Arena, owned by Parkfast Arena, can host up to 15,000 people for music events depending on the position of the stage, according to the venue’s website. It will be the seventh time Sweden will host to Eurovision and coincides with the 50th anniversary of ABBA’s first triumph. Former winners Charlotte Perrelli, Carola and Conchita Wurst are set to perform an homage to the legendary Swedish band during Saturday’s ceremony.
Latvia, Austria, the Netherlands, Norway, Greece, Estonia, Switzerland, Georgia and Armenia also qualified for tomorrow’s final. Last year’s trophy was taken home by Sweden’s contestant, Loreen, who won the competition, hosted by Liverpool, UK, on behalf of Ukraine, for the second time. Croatia are the current favourites to win the 2024 contest.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
MVT announces venue purchase, new hires
Music Venue Trust (MVT) has announced a second acquisition by Music Venue Properties (MVP) under its Own Our Venues scheme.
The Ferret in Preston, a 200-capacity venue which has hosted artists such as Ed Sheeran, IDLES, Alt-J, Royal Blood and many more, will now be placed into permanent protected status.
Following the purchase, The Ferret’s operators have signed a cultural lease with MVP, an “innovative agreement” specifically created by MVP to guarantee that, as long as The Ferret operates as a space for grassroots live music for their local community, they can enjoy the use of the building.
“This one was a very complicated and challenging process, but that’s good because it tested what we’re doing,” MVT chief Mark Davyd tells IQ.
“We had to make our way through a lot of legal complications and work out different bits of ownership law. But the important thing is, The Ferret is a highly valued and treasured space in this area. It has grown organically out of a music community here and has a fantastic team running it. It came under threat and not only has that threat gone, but the venue will be here forever.”
“The Own Our Venues programme is escalating”
The purchase of The Ferret follows the October 2023 acquisition of The Snug in Atherton, Greater Manchester.
A further seven venues across the country have been identified for purchase in this initial phase and Davyd reveals to IQ that MVT/MVP currently have offers on three of those venues.
“We would expect to announce at least two of those venues in no more than a month,” he adds. “The Own Our Venues programme is escalating and we’re still keen to get more people invested because it’s really transforming the future of these venues.”
Own Our Venues was originally launched as a Community Share Offer in 2022. To date, almost £2.6m has been raised from over 1,200 individual investors. Funding was matched with a £500k investment from Arts Council England, and the figure includes loans of £150k from Preston City Council and £500k from Arts & Culture Impact Fund.
According to MVT, 93% of GMVs are tenants with the typical operator only having 18 months left on their tenancy.
The issue of ownership underpins almost every other challenge that GMVs have faced during the last twenty years, says MVT, including gentrification, noise complaints, under-investment, poor economic models, and an inability to plan for the future.
In other MVT news, the organisation has appointed three key hires, with Sophie Brownlee joining as external affairs manager and Kimberley Goddard taking on the role of fundraising manager in a part-time capacity.
In addition, Sophie Asquith has been promoted to be the new venue support team manager, overseeing the work of the UK’s venue coordinators and heading up MVT’s Emergency Response Service.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
Private equity & live music: Who owns what?
It was recently reported that Providence Equity Partners-backed live giant Superstruct Entertainment was being readied for a sale, with a formal auction process set to be launched within weeks.
Providence was said to be working alongside banks Liontree and HSBC to gauge interest after planning the sale last summer, with Blackstone and CVC highlighted as potential bidders.
The report once again brought the international touring industry’s relationship with private equity (PE) into focus, with a number of the world’s biggest companies now wedded to that world. Ticketing guru Tim Chambers tackled the increasingly hot topic in a recent op-ed for IQ.
“The corporatisation of the live music industry to form a series of vertically aligned international conglomerates has attracted the attention of a growing number of private equity and capital investment groups, all, it seems, subscribers to the notion of perpetual sector growth,” he said.
“PE investments are made in the belief that they will lead to a profitable return, rather than any abstract concerns such as great art or a vibrant and diverse live music ecosystem.”
Providence expanded its music portfolio in 2022 with a strategic investment in agency giant Wasserman
Superstruct, the second-largest festival promoter on the planet after Live Nation, was founded in 2017 by Creamfields founder and ex-Live Nation president of electronic music James Barton and Roderik Schlosser while at Providence Equity Partners.
Providence expanded its music portfolio in 2022 with a strategic investment in agency giant Wasserman, and also backs Ambassador Theatre Group and Tait (Towers). In addition, it bought into Sweetwater, the leading US retailer of musical instruments and audio equipment, in 2021.
Last year meanwhile, it acquired audio specialist d&b Group along with a minority stake in Populous, an architectural and design firm for sports and entertainment venues, whose portfolio spans 3,000 projects including London’s Wembley Stadium and the Las Vegas Sphere.
Sixth Street-backed premium experiences specialist Legends revealed an agreement to purchase venue management giant ASM Global in November last year. The reputed $2.4 billion deal is planned to lead to the creation of a premium global live events company.
Silicon Valley-based PE firm Silver Lake announced last month it is to acquire all outstanding shares WME parent company Endeavor. Silver Lake made its initial investment in WME in 2012 and bought fashion and sports-focused talent agency IMG for $2.4 billion in late 2013, rolling up both acquisitions into WME-IMG. The mega-agency was rebranded as Endeavor in 2017.
Furthermore, Silver Lake acquired Australian live entertainment behemoth TEG from another investment company, Affinity Equity Partners, in 2019, in a reputed A$1.3bn deal, and also owns shares in Oak View Group and invested in sports merchandise company Fanatics.
“Arguably, only other PE-backed entities have the means to undertake such large-scale acquisitions, and so the concentration of ownership within the sector will inevitably continue”
Global investment firm Blackstone got in on the act in 2018, snapping up the UK’s NEC Group in a deal reportedly worth more than £800 million and looks poised to acquire song management company Hipgnosis Songs Fund.
In 2018, Netherlands-based multinational investment firm Waterland Private Equity acquired six leading Scandinavian promoters and agencies – ICO Concerts and ICO Management and Touring (Denmark), Friction and Atomic Soul Booking (Norway) and Blixten & Co and Maloney Concerts (Sweden), bringing them together as All Things Live.
Elsewhere, Artémis, an investment firm led by billionaire French businessman Francois-Henri Pinault, acquired TPG’s majority stake in Creative Artists Agency (CAA) last year. PE company TPG had upped its 35% stake in CAA to 53% for a reported $225 million in 2014. The previous year, “purpose-driven global investment organisation” EQT entered the global touring business to become the largest outside shareholder in United Talent Agency (UTA).
US businessman Ron Burkle’s private equity firm Yucaipa Companies invested in booking agency Day After Day Productions in 2022, adding to existing live music interests such as booking agencies Artist Group International, X-ray Touring, APA and K2, Primavera Sound and Primavera Pro, and promoter Danny Wimmer Presents. APA and AGI merged to form Independent Artist Group (IAG) last year.
Plus, Chicago-based PE company GTCR made a “strategic investment” in American ticket exchange Vivid Seats back in 2017, and South by Southwest’s newly announced SXSW London spin-off will be produced under licence from SXSW LLC by Panarise, a live entertainment company established and owned by private investment vehicle Panarae. According to documents obtained by CMU, Panarae is associated with Ali Munir, an investor and director of SXSW’s majority owner, Penske Media Corporation.
In conclusion, Chambers, who serves as a ticketing advisor, consultant, and non-executive for various live entertainment operators, pondered whether the marriage between private equity and live entertainment had become too big to fail.
“In short, the PE strategy is to increase the volume of events by extending the territorial reach, improving the physical environment where events occur, and by then extracting more from audiences via value-add bundles, packages, and surge-pricing,” he said. “The consolidation of the live entertainment sector by a diminishing number of ever larger congloms has therefore been both a cause and effect of the influx of new capital.
“After the economic impact of layers of (vertical) consolidation and (horizontal) aggregation, the squeezing of costs, and the surge-pricing of audiences, to whom can PE-owned live music congloms sell as part of their exit strategies? Arguably, only other PE-backed entities have the means to undertake such large-scale acquisitions, and so the concentration of ownership within the sector will inevitably continue.”
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
Endeavor posts Q1 loss despite WME growth
WME parent company Endeavor suffered a $303.5 million (€281.6m) net loss in the first quarter of 2024, despite “brisk demand for our sports and entertainment content, live events, and premium experiences”.
The Los Angeles-based sports and entertainment giant today (9 May) announced financial results for Q1, as it awaits the completion of Silver Lake’s $13bn acquisition.
While the firm reported a consolidated revenue of $1.850bn, three of its four segments saw a decline in revenue.
Representation revenue was $345.3m for the quarter, down $4.9m or 1.4% compared to the first quarter of 2023, though the loss was “partially offset by growth in WME’s music, talent, sports, and comedy divisions”. Adjusted EBITDA was $65.2m, down $19m or 22.6% year-over-year.
WME’s roster includes Justin Timberlake, Adele, Bruno Mars, Pearl Jam, The Killers, Bjork, Foo Fighters, Stormzy, St Vincent, Shakira and Snoop Dogg among others.
“We remain focused on maintaining our momentum through the year while working toward the close of our transaction with Silver Lake”
In addition to WME, Endeavor is also the parent company of sports booking outfit IMG, events business On Location, marketing agency 160over90 and sports data and technology properties IMG Arena and OpenBet.
The firm’s Events, Experiences & Rights segment revenue was $744.9m for the quarter – down $55.9m or 7% compared to the first quarter of 2023 – and was “primarily impacted by a decrease of $90m from the sale of IMG Academy in June 2023”.
The Sports Data & Technology segment revenue was also down, collecting $90.7 m for the quarter, a decrease of $10.1m or 10.1%, compared to the first quarter of 2023. The firm says this was primarily impacted by the loss of certain data rights at IMG ARENA.
However, Owned Sports Properties segment revenue was $685.4m for the quarter, up $332.1m or 94.0%, compared to the first quarter of 2023. The increase in revenue was mainly attributed to the acquisition of WWE in September 2023, which contributed $317m in revenue during the first quarter.
The earnings report is likely to be one of the company’s last as a public company, as the firm is expected to be acquired by majority shareholder Silver Lake by the end of the first quarter of 2025.
In today’s results, Endeavor CEO Ari Emanuel said: “We remain focused on maintaining our momentum through the year while working toward the close of our take-private transaction with Silver Lake.”
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.
US festival to be powered by 100% renewable energy
California’s Mill Valley Music Festival says it will be the first US festival powered by 100% renewable energy.
The coming weekend’s edition (11-12 May) – featuring Fleet Foxes, Greensky Bluegrass and Three Sacred Souls – will operate solely on mobile zero-emission batteries produced by local firm Moxion, which partly powered the 2023 edition.
By switching from diesel generators to Moxion batteries, the San Francisco event will reportedly avoid around 4.5 tons of greenhouse gas emissions.
Founded in 2022, Mill Valley Music Festival is organised by the Noise Pop Industries and Mill Valley Chamber of Commerce which called the move “a crucial leap forward”.
“Our city has identified reducing greenhouse gas emissions as a major reduction strategy, along with renewable energy, energy efficiency, EV infrastructure, green building and waste reduction,” says Jim Welte, executive director, Mill Valley Chamber.
“We hope this inspires more eco-friendly practices across the board”
“We’re thrilled to be the exclusive energy source for MVMF this year,” says Paul Huelskamp, CEO and co-founder of Moxion, which also powers events including Californian music festival BottleRock and TOUR PGA Championship.
“Moxion was born right here in Mill Valley, so it’s incredible to see the festival become a sustainability leader. We hope this inspires more eco-friendly practices across the board.”
Mill Valley Music Festival follows in the footsteps of Barcelona festival Cruïlla, which last year was powered solely by electricity from the grid.
Similarly, the main stage at Ireland’s Electric Picnic 2024 will be powered by the grid, while British band Massive Attack has announced an outdoor show powered by battery and solar power.
AGF (A Greener Future) recently hailed “significant areas of improvement” in festival sustainability after surveying more than 40 European events. The sustainability not-for-profit released its Festival Sustainability Report, comprising data analysis on mobility, food & drink, water & sanitation, power & fuel use, waste & recycling, and carbon emissions at events on the continent.
Last month, a range of industry figures shared their sustainability priorities for the live music business to mark Earth Day 2024.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.