Market Report: China
Following a banner 2023, which saw soaring ticket sales, multi-day artist shows in major cities, and a glut of new festivals across provincial regions, China’s live entertainment sector continues its seemingly unstoppable growth.
Primary ticketing
Despite box offices’ availability at venues of all sizes, digital ticketing remains the foremost option for a large majority of live-event attendees. Ticketing powerhouses such as Damai and Maoyan have also incorporated blockchain technology to combat fraudsters and scalpers.
Six years after Alibaba announced its acquisition of Damai, the fourth quarter of last year saw the multinational tech behemoth’s film division pay $167m for a majority stake in the ticketing operator’s parent company Pony Media Holdings. The conditional agreement for the purchase will reportedly allow the expansion of Damai’s brand for event production and promotion, venue operation, and artist management.
With its profits rising more than eightfold since last year, Maoyan has seen numerous gains since Covid restrictions ended at the start of 2023, recording a year-over-year increase of 105.1% in revenue compared to 2022 and a 766.2% rise in profit during the same period.
High demand for tickets has seen a sharp rise in scalpers, who continue to exploit an unregulated market
Distribution of sales
As mentioned, online purchases remain the most common. “It’s quite popular to show a QR code or a digital ticket when entering a venue,” said Lesley Zhang, market expert and head of Creative China. “However, for free tickets in collaboration with some sponsors, customers are usually given physical printed tickets rather than the digital option.”
The introduction of blockchain technology is making ID verification a much easier process as it’s still compulsory to bring government ID to attend a show.
Value of market
According to an annual report published in June by the Communication University of China, the overall live entertainment market will reach $3.7bn by the year’s end – an increase of 31.8% compared to 2019, and an increase of 122.3% compared to 2022. Statista’s projections are that event ticket revenue will reach up to $10.4bn by 2027.
Secondary ticketing
High demand for tickets has seen a sharp rise in scalpers, who continue to exploit an unregulated market. “Due to high demand, some fans face difficulty in buying tickets legally, so they’re forced to seek alternative methods in the form of secondary ticketing platforms,” explains Zhang, adding that the second half of 2023 saw stricter regulations when attempting to buy tickets online.
“There has been a slow increase in some international acts performing in China”
As a response, the Ministry of Culture and Tourism and the Ministry of Public Security last year implemented real-name verification for ticket purchases, which requires the ticket purchaser and the spectator to be the same person. The method also prevents one ID-card holder from booking more than one ticket.
International/domestic splits & genres
Domestic artists continue to dominate the live event ecosystem in China, with various acts performing to sold-out crowds at big city venues, regional festivals, and smaller ‘live houses.’ However, the Chinese government’s decision last year to accept applications for foreign acts to return should see a steady increase in international headliners.
“There has been a slow increase in some international acts performing in China,” says Zhang. “It’s good to know that restrictions are slowly being lifted, and I’m sure that booking agents are in the process of convincing Western artists to come over and perform.”
Last year’s ruling also saw China finally lift its ban on K-Pop, which was in effect from 2016.
“Festivals are likely to sell more tickets, draw bigger crowds, and potentially acquire sponsors for different brands”
Cultural analysis
The first half of 2024 saw independent music companies Modern Sky and Bubbling Boiling launch and promote 12 festivals in 26 days and four in nine, respectively – a clear indication of a booming Chinese music festival market that has seen major demand and growth over the past year despite decreasing attendances at smaller venues.
According to Zhang, the emphasis on large-scale concerts and multi-day music festivals is attributed to both promoters and attendees. “Festivals are likely to sell more tickets, draw bigger crowds, and potentially acquire sponsors for different brands,” she says. “Domestic promoters are also more amenable to tour different cities and work with different artists, leading to ticket sales being driven upwards due to diverse lineups.”
Taxes & charges
In February 2019, the Chinese tax office bureau announced that every foreign artist and/or band must pay at least 20% tax on all ticket sales. However, VAT has been reduced to 9%, and entertainment expenses are tax-deductible up to less than 60% of the costs incurred and 0.5% of the sales or business income of that year. Furthermore, larger ticketing companies now charge an average of 11%, whereas smaller operators charge anywhere between 5% and 7%.
Country Profile: China
Despite opening its borders to the rest of the world in January last year, performances by domestic acts still massively outweigh their international counterparts in the concert halls and festival stages of mainland China.
This particular disparity hasn’t slowed down the country’s post-pandemic momentum, though, with market revenue projected to reach almost $3.7bn by 2024’s end (an increase of 122.3% compared to 2022, according to the Communication University of China), proving China’s rapid growth and potential within the global live events sector.
“This growth is reflected not only in increased box office revenue and a rise in audience numbers but also in a significant increase in the number of performances,” says Jane Xu, PR manager of indie music company Modern Sky — a major player in the Chinese festival circuit, having held 156 editions of their flagship event Strawberry Music Festival across 48 cities since first launching in 2009.
“The costs of renting venues right now are at least 30% to 50% higher than it was before the pandemic”
However, the elevation in costs presents one of the biggest challenges. “The costs of renting venues right now are at least 30% to 50% higher than it was before the pandemic,” laments Ai “AJ” Jing, founder of Haze Sounds and former international booker at Taihe Music Group, adding that the current economic situation in China has forced fans to “be more selective of who they’re buying tickets to see.”
Jing also notes that the concert-going public usually tends to be younger than a festival-going audience. “You are likely to see people in their 40s or older attend festivals or niche genre gigs such as jazz,” he says, also citing a “new generation of gig-goers who have never seen a Western performer on stage before.”
While audiences are more conservative about their spending habits these days, SoundFact China co-founder Regi Wang is a firm believer that the Chinese market needs more diverse content in order to attract more fans of niche genres. “At Sonic Jam, we spotlight bands who specialise in free jazz, experimental noise rock, and so on,” she explains. “While we recognise that they’re not exactly the most popular genres in the market, we do think that there needs to be someone who can give these niche genres more attention.”
Wang, who also acts as Sonic Jam’s programme manager, also stressed the importance of the Chinese market needing to move away from being a “headline market” in order to diversify festival lineups and attendees’ music tastes. “We can’t always follow the crowd, so diversity in what we’re offering in terms of artists and genres on stages across the country is very important.”
“We can’t always follow the crowd, so diversity in what we’re offering in terms of artists and genres on stages across the country is very important.”
Split Works has enjoyed a long-standing reputation as a pioneer in importing international performers to China, having organised tours for Sonic Youth, Death Cab for Cutie, Grimes, Ghostface Killah, and many more since Archie Hamilton co-founded them 18 years ago. While his focus nowadays is towards artist development in order to “build bridges between Asia and the West” via his booking agency Scorched, Hamilton reveals how Split Works has had to manoeuvre around the machinations of promotion giants such as Live Nation and AEG Presents, who also work in the market.
“To combat the risks involved with promoting international acts because the prices are really high, we’re partnering with some big Chinese entertainment companies who are keen to get into the live event space,” explains Hamilton, who had booked electronic duo Honne as the first international act to do a multi-city tour in China since the pandemic.
Another key promoter is Bravo Entertainment, part of Singapore-based Primuse Group. “Our growth in China has been impressive,” says Primuse CEO Marco Rios. “But it’s more than just expansion – we’re recovering the strong position we held before the pandemic. Before Covid-19, we were already hosting major events like the GRAMMY Festival, Summer Sonic China, and Phoenix Festival, each attracting 40,000-50,000 people. The pandemic slowed us down, but now we’re regaining the market share we temporarily lost. With new festivals on the way, we’re rebuilding our foothold in the region and solidifying our presence.”
“To combat the risks involved with promoting international acts because the prices are really high, we’re partnering with some big Chinese entertainment companies who are keen to get into the live event space”
Another major hurdle for promoters remains China’s infamously stringent protocol on what is and what isn’t allowed by international artists. “One of the biggest challenges is managing local regulations across Asia, especially for international artists,” says Rios. “Visa and permit requirements depend on where they’re from, history, sometimes lyrics, and it can get tricky in places like China, Indonesia, and Malaysia. We rely heavily on our local teams to work with authorities and make sure everything is sorted legally. Having a strong local presence really helps us navigate the complexities.”
In spite of these obstacles, there’s plenty of room for optimism in the coming years. Driven by increased consumption of cross-cultural content such as talent shows, anime, and video game music, demand for more diverse live experiences continues to grow. Furthermore, regional social media platforms such as Douyin and Weibo have provided necessary exposure for both domestic and international musicians, emphasising the importance of the Internet as a vital tool for reaching audiences new and familiar.
Arena Market: China
After a three-year wait as the country dealt with the pandemic’s wide-ranging effects, China bid farewell to its “zero Covid” policy by reopening its borders last year. During that time, domestic pop and rock artists took advantage, dominating the live music scene in various venues and livehouses (clubs specifically designed to cater to smaller crowds where local acts are usually booked to perform).
However, given audiences’ increasing interest in western music, there is plenty of opportunity for overseas acts to make their way back to performing in the country despite the strict criteria on lyrics, tattoos, and artists’ backgrounds – which range from political affiliations to merchandise designs.
“It’s quite difficult to promote certain genres to the general audience in order to drive them into attending gigs,” says Lesley Chang, market expert and head of Creative China– a consulting firm that specialises in working with companies in the music industry. “So, even for some of the professionals who work in music, they get the impression that something like jazz is a niche genre for the minority.”
Given that China only opened its doors to the world around “30 or 40 years ago,” Chang also cites social development as a key factor into why certain crowds don’t have a great connection with some genres. “Even for a leading promoter, it’s hard to secure a lineup spot for a headliner at one of our festivals, so that’s a challenge that needs to be resolved. I’m not quite sure there’s a solution for now, but they are incredibly keen on exploring these opportunities. However, there is an impatience from many companies to merge A-level artists with musicians of all levels. It’s hard to break through in the market, so we’re not in a very healthy position in that regard.”
“Even for a leading promoter, it’s hard to secure a lineup spot for a headliner at one of our festivals, so that’s a challenge that needs to be resolved.”
Once referred to as the Shanghai World Expo Cultural Center, the Mercedes-Benz Arena is arguably China’s key venue when it comes to being a pitstop for international touring acts taking the stage in the country. In recent years, the
18,000-capacity arena has seen performances by Sam Smith, Mariah Carey, Jessie J, Troye Sivan, and Jason Mraz; and hosted a two-date show by Westlife in late May.
In Beijing, the key pitstop for the world’s leading artists is the Cadillac Arena (also known as the Wukesong Arena). A multipurpose venue that also showcases basketball and ice hockey events, the arena – which can be configured to host between 9,000 to 19,000 people – has seen Kesha, Metallica, Ariana Grande, and Fall Out Boy on stage in the past, and Jacky Cheung recently performed an April show that spanned nine dates.
While China’s two biggest venues for international artists have seen major success over the years, Chang says that they don’t pay much attention to the market, leading to a lack of communication when it comes to promotion. However, she cited Westlife as a prime example of the importance of retaining a connection with local audiences. “Last year, they toured 11 cities in the country, and they’re scheduled for a few dates in May. We already have the funds here to accommodate them, and they realise how important it is to build relationships with the audience. Despite language barriers and a stark difference in platforms and social media advertising, it’s a lot easier to promote them because they actively engage with the market.”