Live biz drives electronic music value to $11.8bn

The global live scene was the biggest driver as the value of the electronic music industry grew by 17% to $11.8 billion (€11bn) last year, according to the newly published IMS Business Report 2024.

Live revenues were up 35% in 2023 – the strongest growth of any sector by a wide margin – as the takings of 15 of the world’s leading music companies, across labels, publishers, DSPs and live, soared by 18%.

The report, which is authored by MIDiA Research’s Mark Mulligan, was presented yesterday on the first day of the annual IMS (International Music Summit) Ibiza conference, which is being held at the Mondrian Ibiza and Hyde Ibiza hotels in Cala Llonga from 24-26 April.

“2022 was an unusual year, in that it reflected the post-pandemic bounce back effect for live,” says Mulligan. “There was a risk that 2023 would struggle to live up to those inflated expectations, but instead the electronic music industry grew strongly once again, with impressive growth across virtually all of its constituent parts.”

Festivals and clubs continued to dominate revenues, making up nearly half of the industry total. Ibiza club ticketing revenue reached €141 million in 2023, up 14% year-on-year and 76% from the last pre-pandemic year of 2019. The average ticket price increased from €44 in 2022 to €51 in 2023, illustrating the strength of demand.

“Pent-up lockdown interest has translated into two years of increased demand, with tickets both more expensive and sold in larger quantities”

“The pandemic rocked the live music sector, but it ended up triggering what Pollstar called a ‘new golden age’ for live music,” it continues. “Pent-up lockdown interest has translated into two years of increased demand, with tickets both more expensive and sold in larger quantities.

“With streaming an increasingly commodified and convenient experience, the contrast with the vibrant, fan-fuelled live experience is becoming ever more pronounced.”

A total of 66% of survey respondents said they saw the number of events and bookings increase on the previous year, with 65% reporting an upturn in booking fees. However, just 12% said they found securing bookings easier than in 2022 – 40% said gigs were generally paying less (15% disagreed and 45% were neutral) and 41% said they were finding it harder to get gigs (17% disagreed/41% neutral), with 51% saying DJing was a bigger source of income than royalties (24% disagreed/24 neutral%).

“Survey respondents from the live sector saw their industry continuing its return to growth in 2023, with all metrics improving except securing bookings,” says the report. “On the DJ side, this means more DJs competing for slots. On the events side, it means more competition for the best DJs. DJs are finding the post-Covid world to be one in which gigs are harder to find and they are getting paid less for them.”

The study points out there was also notable growth in festivals/clubs, recordings and publishing, while Tomorrowland’s TikTok LIVE reached 16 million unique viewers across both festival weekends. As a result, Tomorrowland became the biggest festival account on the platform with 5.7 million followers.

“The pent-up demand experienced in 2022 is also reflective of a new generation coming through who are proving to be passionate, loyal, and keen to experience everything possible”

“The new IMS Business Report reflects how deeply electronic music is now integrated into mainstream culture – from festivals to films, finance to fashion – with the genre now ever-present in society,” adds IMS co-founder Ben Turner. “We had shifted from segregated stages or one-off moments to an always-on culture that is hard to get away from.

“It’s testament to the industry that the valuation is now showing continual growth post-pandemic. The pent-up demand experienced in 2022 is also reflective of a new generation coming through who are proving to be passionate, loyal, and keen to experience everything possible.”

On gender issues, 82%  of participants felt the industry was doing well with regards to diversity of lineups and employees, compared to 61% on ensuring safe performing environments, 59% on robust reporting measures for inappropriate behaviour and 56% on ensuring safe collaboration spaces.

“Respondents are broadly positive about the electronic music industry’s approach to supporting non-male artists and staff,” it surmises. “But with many women still facing challenges, there may be a perception gap between how positive things look versus how they actually are.

“Women creators are nearly twice as likely as men to discover they are being paid less than their peers in the same or similar roles. When these creators are held back from progression at every stage, how can we expect the industry to be diverse? If we want to see more diversity in headliners, the work begins with treating — and paying — all creators fairly from the start.”

The next edition of IQ Magazine will feature an in-depth health check on the electronic music sector by DJ Mag editor-in-chief Carl Loben, in partnership with IMS. Revisit last year’s report here.

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