Mixed results for Dutch business in annual report

The live music business in the Netherlands achieved increases in revenue and visitor numbers last year, but costs increased “sharply” and “worryingly”, according to the sector’s latest annual report.

Published this week, the Association of Dutch Music Venues and Festivals’ (VNPF) Pop Stages and Festivals in Figures 2023 study paints a mixed picture of the market, which could yet face further hardship via a proposed tax rate hike from 9% to 21%.

“While the sector report shows some positive developments, such as increasing revenues and visits, there are several concerns and some other risks that emerge from the figures,” concludes the organisation.

Due to the effects of the strict Covid-measures imposed on the industry during 2020-22, the report compares the latest figures with those from 2019. The VNPF, which represents 120 members, says income generated last year by its 70 venues amounted to €199.9 million in 2023 – an increase of 25%. Box office takings soared by 30%, while hospitality revenues and subsidies both rose by 27%.

However, expenditure was up 24% to €198.5m for an overall net positive of just 0.7%. What’s more, 38% of those venues recorded a loss over the 12-month period.

“The continuous passing on of higher costs in ticket prices can lead to negative price elasticity, with higher prices resulting in a decrease in the number of visits”

“This was the result of a general increase in the prices of goods and services, while there were fewer performances by artists,” notes the trade body. “The continuous passing on of higher costs in ticket prices can lead to negative price elasticity, with higher prices resulting in a decrease in the number of visits.”

VNPF venue members staged a total of 25,341 performances last year – down 5% compared to 2019, while the share of international artists declined from 41% to 32%.

“The 2023 data show a decrease in the number of artist performances, especially by international artists,” says the study. “Venues with smaller programme budgets sometimes have to be more cautious with financially uncertain or unprofitable programmes, such as programming artists at the beginning of their careers.

“Additionally, concerts, club nights, and festivals are becoming less accessible to large parts of the public due to higher ticket and catering prices.”

Nevertheless, visitor numbers jumped 11% to 5.8 million, with paid attendance increasing by 18% and the number of sold-out concerts and club nights “significantly higher” than in 2019, while employment sprung 7% to 8,372. In addition, festivals attracted 2.6m attendees in 2023, bringing the total number of visits to VNPF venues and festivals to 8.4m.

The report goes on to address the government’s controversial proposals to increase the VAT rate for concert, festival, sports and museum tickets (as well as books, hotels and newspapers) by 12 percentage points from 2026.

“Higher VAT rates will lead to higher prices, which will put pressure on the accessibility and affordability of culture”

“Higher VAT rates will lead to higher prices, which will put pressure on the accessibility and affordability of culture, events, books and media for the public,” states the report. “This increase will be at the expense of supply, especially in peripheral regions, and will reduce the earning capacity of self-employed people and institutions. Moreover, it will jeopardise the livelihood of artists and performers.”

The VNPF is part of a coalition of Dutch organisations to launch a joint campaign against the plans, which it warns will have a “significant impact” on the country’s cultural and creative sector. A full-page advert appeared in every national and regional newspaper on 3 June with the message #nohigherebtw (nohigherVAT) on behalf of the alliance.

The sector currently contributes €26 billion (3.4%) annually to the Netherlands’ GDP and accounts for almost one in 20 jobs in the Netherlands.

“The VAT increase will have negative economic consequences,” it adds. “For example, it is expected that this measure will lead to 1.5 million fewer visits to festivals and 900,000 fewer visits to performing arts – including pop culture. This will put further pressure on the financial position of the pop sector, which could lead to a loss of employment and a decrease in the number of available pop cultural programmes and events.

“This will mainly affect the middle class and people with a small wallet, which is at odds with the government’s goals of improving subsistence and stimulating entrepreneurship.”

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