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Market Report: South Africa

Historically one of Africa’s go-to countries for uplifting traditional sounds, the ongoing economic challenges of the past few years have stifled the live entertainment market of late. But the industry mood remains buoyant, with several key developments in the pipeline.

Primary ticketing
Ticketmaster entering the market in 2022 has shaken up a South African landscape previously dominated by Shoprite’s domestic provider Computicket. Ticketmaster bought the leading self-serve outlet Quicket in July 2024, giving it a further foothold in Nigeria, Uganda, Kenya, Zambia, and Botswana.

“Partnering with Quicket will supercharge our mission to elevate Africa’s dynamic live events to the global spotlight they truly deserve,” said Ticketmaster president Mark Yovich. “Together, we are igniting a new era of unparalleled growth for African entertainment.”

 

“Together, we are igniting a new era of unparalleled growth for African entertainment.”

 

The multinational has sparked a technological rush amongst the more traditional players. Webtickets, who primarily focussed on sports and music festivals in the past, have explored dynamic pricing in association with Event Dynamic and offer Pick n Pay and Boxer instore purchase options, while Quicket was working on AI-based recommendations when it was acquired. Other local players are Ticketpro, who focus on sport, and Howler, who concentrate on dance festivals. Event discovery and ticketing platforms Zishapp, Pocketplan, and Appening also operate.

Distribution of sales
Digital ticketing is the norm. Ticketmaster conducts its entire sales business online with 95% of its tickets delivered digitally, up from 80% in 2023. Other means of distribution are thriving, too.

 

“There is often a big difference between online versus in-store purchases”

 

“There is often a big difference between online versus in-store purchases,” says Webtickets marketing manager Thomas Stavrides. “This depends on the event in question and the target audience, where certain demo- graphics choose to purchase their tickets in store at Pick n Pay or Boxer stores, while others choose to purchase online using credit card, EFT, or one of our other online payment methods. We’ve seen consistent growth in our sales through Pick n Pay stores over the past three years.”

Secondary ticketing
Viagogo and Facebook Marketplace offer secondary ticketing options, but their unregulated nature makes them a significant risk for consumers. “We and our competitors always strongly advise against buying pre-purchased tickets from anywhere, as the risks are very high due to fraud,” says Stavrides.

International/domestic splits & genres
With a small market of consumers with enough money to attend large events, South Africa has historically attracted only a few international artists a year, of only the highest, broad-appeal level.

Local acts in the R&B, gospel, and regional house style, amapiano, have been blossoming as social media stars, though, creating new emerging markets and making up the majority of events here. There are hopes that, as local acts become better known globally, this will encourage more international acts to visit.

Cultural analysis
Despite its economy remaining static in 2024, demand is on the rise. “There is a huge appetite for events and entertainment in the emerging sector, with the number of events on Webtickets in this market having more than doubled over the past 24 months,” says Stavrides, while optimism in the African market is driving major infrastructure works on the continent.

 

“Exciting changes are on the horizon for venue development”

 

“Exciting changes are on the horizon for venue development,” says Ticketmaster’s South African MD Justin Van Wyk, “especially with Live Nation and OVG supporting Africa’s first purpose-built arena, set to open in Lagos, Nigeria, by the end of next year.”

Taxes & charges
“The most common rates models are, firstly, a simple commission charged to the client on the ticket price, and secondly, where a transaction fee is charged to the customer,” says Stavrides. “In terms of taxes, VAT (15%) is charged by the ticket company on the commission they earn on a sale.”

Country Profile: South Africa

South Africa’s live music scene is faced with a post-pandemic reality defined by shrinking consumer disposable income and the need for innovation, especially following the loss of the 80,000-capacity Ticketpro Dome in Johannesburg, which has been converted into a car showroom.

Yet key promoters, including Live Nation-owned Big Concerts, Showtime Management, Glen21 Entertainment, and Breakout Agency, are adapting to the challenging conditions with creativity as much as possible.

The loss of the nation’s premiere large-scale venue in 2021, coupled with the further blow of the pandemic, saw many live industry personnel move to the Middle East and Europe to seek work, leaving local promoters in a bind. Glen Netshipise of Glen21 and Damon Forbes of Breakout, however, resorted to creative solutions such as using old warehouses and unconventional spaces to keep shows alive. Forbes says a “can-do mindset” is key, suggesting that focus has tilted towards “finding a way to make shows happen” rather than being hampered by a situation beyond their immediate control.

The aftermath of the lockdowns (the nation had some of the longest and strictest restrictions in Africa) was marked by a peak in audience appetite for live music. “We had a honeymoon period of about a year where people were very keen to just go out – business was booming,” Tony Feldman of Showtime Management says.

 

“We had a honeymoon period of about a year where people were very keen to just go out – business was booming”

 

However, this post-pandemic high was short-lived, as Netshipise notes: “Compared to the past two years, when almost all the shows were selling out, this year, it’s slowed down a little bit. People are being more selective about where they spend their money.” This means strategic marketing is even more important, as all three promoters attest that digital platforms, especially social media, are now major tools in their arsenal for reaching younger audiences, compared to traditional methods. However, radio remains effective for older demographics.

The rising cost of booking international artists, and the resulting increase in ticket prices, comes at a challenging time for SA. The country has recently seen waves of load- shedding [electricity blackouts], which have caused businesses to shut down and reduced people’s spending power. The instability of the rand further turns the screws, making it tougher for people to be convinced to spend money on live music, which now competes with seemingly more affordable entertainment options.

“We’re fighting against other forms of entertainment: TV, Netflix, restaurants,” Netshipise explains. “There’s less disposable income, and people are asking, ‘Should I invest in a concert ticket or television?’”

By nurturing artists early in their careers and helping them build a fan base in South Africa, Forbes has seen success with acts like Myles Smith and Rainbow Kitten Surprise. He emphasises the importance of bringing artists to South Africa while they are still “on cycle” and in the middle of a campaign, rather than waiting until phase-out. “Trying to get an artist when they are buzzworthy or in the media is important to me,” he notes. This strategy has paid off, with artists like Calum Scott and JP Cooper returning for multiple tours and growing their audience and ticket sales with each visit.

 

“There’s less disposable income, and people are asking, ‘Should I invest in a concert ticket or television?’”

 

Feldman envisions a future where South Africa is integrated into a broader touring network, connecting cities in the Middle East, Australia, or India. “It’s about creating a route that makes sense for artists,” he says. Netshipise, who handled booking of Kendrick Lamar, Boys II Men, J Cole, and The Chainsmokers, agrees, citing a logistical nightmare: “South Africa is far from the main touring circuits, and there’s no current routing in Africa that works. Artists ask, ‘Is it worth traveling all the way to South Africa for one or two shows when we could do multiple dates in Europe or the US?’”

However, he believes that if a route could be established through cities like Lagos, Accra, Cape Town, Johannesburg, and Nairobi, South Africa would be a more viable stop. Forbes adds, “Working with promoters across different territories is great, but there’s still concern about travelling around Africa. Getting from South Africa to Lagos, including moving equipment, is nearly impossible.”

South Africa is witnessing a rise in DJ-driven events, thanks to Amapiano (a subgenre of kwaito and house music), alongside a growing interest in country music and family- friendly entertainment. Meanwhile, the reception towards musical theatre events has slowed, as the younger audience hasn’t embraced it as much as promoters had hoped.

Arena Market: South Africa

South Africa’s arena scene has faltered since the closure of Johannesburg’s 20,000-capacity Ticketpro Dome in September 2021. After its closure, Durban’s International Convention Centre Arena (Durban ICC) and Pretoria’s SunBet Arena (10,000 each) became the African nation’s biggest arena-level venues.

Durban ICC hosted its most recent show with Bryan Adams in December 2017. Paw Patrol LIVE will stop by this year, and the Mandela African Boxing Cup was held in April.

SunBet Arena, located in the grander Time Square Casino, is operated by the gaming and hotel group Sun International. Late last year, potential acquisition talks swirled around Sun International – which owns roughly half of the casino market in South Africa – but no definitive outcome has come to pass at the time of writing. The gambling-focused company reported 5.5% year-on-year growth for 2023, bolstered by its December acquisition of Peermont Group, a ZAR7.3bn deal including 11 venues and an online sports betting site.

The Grand Arena in GrandWest Casino is also owned by Sun International, creating a dynamic pairing for the entertainment and hospitality company. The arena duo,
located roughly 1,450km from each other, attracts approximately 95% of all international shows, says Nikki Botha, marketing manager at GrandWest.

 

“Roughly 80% of all shows come to the Grand Arena in Cape Town and the SunBet Arena in Pretoria.”

 

“Given the long-haul considerations, it makes financial sense for promoters and organisers to include both cities on their tours,” Botha says. “Roughly 80% of all shows come to the Grand Arena in Cape Town and the SunBet Arena in Pretoria.”

Since the pandemic, GrandWest has invested in a few improvement projects, including a ZAR15m total refit of its audio system – which can be reconfigured for different types of events, such as boxing – and a new flexible spotlight option to improve its concert capabilities.

National promoters Big Concerts will bring a handful of artists to both Sun International arenas over the next year, including James Blunt, Kool & The Gang, and Andrea Bocelli. The Live Nation subsidiary also brought Take That, Bryan Adams, and Westlife to the pair of arenas in the past year.