Dance music festivals and clubs lose 78% of value
Prevented from opening by Covid-19 restrictions, nightclubs and dance music festivals lost more than three quarters of their value in 2020, according to new data from the International Music Summit (IMS).
Using data from Viberate and Reisdent Advisor, the IMS Business Report 2021, a copy of which can be requested by clicking here, calculated that €3.4 billion, or 78%, was wiped off the value of venues and festivals last year, as more than 200 electronic music festivals were forced to cancel.
Compounding the damage was a late, scaled-back 2020 season in Ibiza, while searches for flights for 2021 have yet to take off amid ongoing uncertainty, according to the report. IMS’s own flagship event, IMS Ibiza, was among the summer 2020 casualties.
“A huge rebound can be expected as the live industry finds safe routes to reopening”
However, “a huge rebound can be expected as the live industry finds safe routes to reopening”, it continues, while the demand for live dance music events events is bigger than ever: the value of festival tickets sold in March 2021 was more than the whole of 2020 combined, an increase of 4,000% year on year.
In total (including recorded music and DJ software/hardware), the global electronic music market declined 54%, to $3.4bn, the IMS Business Report estimates.
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Event Genius expands with new ticketing deals
Ibiza superclub Amnesia and German festival promoter Cosmopop have signed primary ticketing deals with UK-based Event Genius.
Amnesia, one of the island’s most established clubbing destinations, will use Event Genius’s egTicketing, egMarketing and egTravel products from its 2021 season onwards, while while Cosmopop – whose events include Love Family Park and Time Warp (both 20,000-cap.) – will utilise the company’s entire end-to-end solution, including egTicketing, egMarketing, egTravel and egAccess.
Festicket and Event Genius CCO Yonas Blay says: “Cosmopop and Amnesia are both huge organisations in Europe’s clubbing community and it’s an honour to be working alongside them both. It’s been a tough year for everyone across the events industry, which makes it all the more encouraging when promoters of this nature put their faith in us to help them in the return to live events.”
“Cosmopop and Amnesia are both huge organisations … and it’s an honour to be working alongside them both”
“Ibiza has always been a melting pot for clubbers across the world. For that reason, we need a ticketing provider who is as equally at home in Ibiza and Spain as they are in the UK, France, Germany, the Netherlands, Italy and beyond,” comments Sergi Blaya Cutillas, brand manager for Amnesia. “Having the ability to sell and promote our events to clubbers all across the world in their native language, currency and payment method through Event Genius’s egTicketing, egTravel and egMarketing solutions is a great bonus for us.”
Robin Ebinger, director of Cosmopop adds: “We’ve been working with Festicket for some time as a ticketing allocation and travel partner, so we always trusted their ability to deliver great results. As soon as they partnered with Event Genius and explained their new tailored, end-to-end primary product that we could use across all our events and venues to help streamline our operations, we knew it was the right decision to take our relationship to the next level.”
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IMS: Covid-19 set to cost electronic sector $4bn
After slight growth in 2019, the value of the global electronic music industry is estimated to fall by 56% this year due to the Covid-19 pandemic, the latest edition of the annual International Music Summit (IMS) business report has revealed.
The yearly report, which is usually presented at the IMS conference in Ibiza, this year cancelled due to the pandemic, states the value of the electronic is sector is set to fall from $7.3 billion to $3.3bn this year, with dance and electronic clubs and festivals set to lose 75% of their income, equivalent to $3.3bn.
By 20 April, around 350 electronic music festivals had been cancelled or postponed, the majority in Germany, with almost 9 million fans unable to attend. According to event discovery and ticketing platform Skiddle, around 4,000 electronic music events in total have been affected by Covid-19 so far.
In Ibiza alone, 2m club tickets were sold last year, with clubbers spending €260m and contributing €500m to the local economy. Bigger clubs and mid-sized venues (over 300-cap.) on the island are to remain shut this season.
DJ and artist income is predicted to fall by as much as 61%, from $1.1bn in 2019 to $400m in 2020. Earnings of the top-ten electronic artists had increased 4% year-on-year in 2019, with the Chainsmokers ($46m) and Marshmello (40m) coming in as the highest earners.
Despite a bleak outlook for 2020, the IMS report notes that the positive trends that led to growth in 2019 – the first since 2016 – “should help fuel a strong recovery in the coming years”.
“The value of the global electronic music industry is estimated to fall be 56% this year due to the Covid-19 pandemic”
The report also details the sector’s livestreaming success. It it predicted that streaming will grow by 18% in 2020, with continued growth expected to generate around $100m in additional revenue for the dance and electronic sector this year.
In May 2020, seven of the ten most watched music streamers on Twitch were electronic focused, totalling 6m viewer hours. EDM promoter Insomniac racked up 2.6m viewers hours by running virtual versions of their events, including the Electric Daisy Carnival rave-a-thon. The promoter is putting on digital editions of Secret Project, Peekaboo and Awakening festivals later this month.
The IMS report also shows that DJs who performed in the video game Fortnite, following the initial success of Marshmello, saw their Instagram followers grow by ten times during and after the event.
Dillon Francis, Steve Aoki and Deadmau5 played the launch of the game’s virtual hang-out Party Royale mode, adding a collective 55,000 to their Instagram followers in four days.
Overall, however, it is believed that livestreamed events, as well as other alternatives including drive-in shows and socially distanced club nights, are “unlikely to be commercially viable, with live streams serving predominantly to raise money for good causes and capacities art physical shows greatly reduced.
Some platforms have started to adapt to paid-for models, the report notes, with Soundcloud introudincing a ‘support link’ button for fan contributions; TikTok launching ‘donation stickers’ for good causes; and Festicket allowing the sale of merchandise. Brands including Coca-Cola, Amazon and Henieken have also sponsored DJ live streams.
This article forms part of IQ’s Covid-19 resource centre – a knowledge hub of essential guidance and updating resources for uncertain times.
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Ibiza clubs remain closed as Spain enters phase 3
The world-famous nightclubs of Ibiza will remain closed for the foreseeable future, even after being granted permission to reopen by the Spanish government, local authorities have announced.
‘Phase three’ of Spain’s post-coronavirus reopening plan began on Monday (8 June), with clubs and bars allowed to reopen at a third of their capacity and with a maximum of 80 guests. This follows phase two – under which capacities were limited to 50 people indoors and 400 outdoors – which ran from 25 May to 8 June, and during which a number of live events, including several open-air concerts, took place.
However, under Spain’s federal decentralised, quasi-federal structure, the country’s various autonomous communities are entitled to set their own timetable for restarting live entertainment. In the Balearic Islands, which include Ibiza, clubs such as Pacha, Amnesia, Hï Ibiza, O Beach and Privilege will remain closed for the time being, according to Balearic president Francina Armengol.
“We are not in a position to allow nightlife. It is not a priority”
In a press conference on Sunday, Armengol told reporters that in order to “guarantee safety at all times”, venues in Ibiza, Majorca, Minorca and Formentera will stay closed, further delaying the start of the traditional Ibiza season, which transforms the island into a party mecca throughout the summer.
“We are not in a position to allow nightlife; it is not a priority,” she said, adding that the spike in Covid-19 reinfections in other countries (ie South Korea) has been caused by the reopening of leisure and entertainment, and the “celebration of holidays”. “We will not take any wrong steps,” she explained.
Summer tourism is worth more than €750 to Ibiza. The island will welcome back its first foreign tourists this month as part of a trial scheme for nearly 11,000 Germans.
Pino Sagliocco: 40 years in the music business
Just how do you organise a surprise feature for the shrewdest, most organised man in the music business?
It began when Pino Sagliocco took part in the Think Tank at ILMC 30 and a number of “accidental” meetings and conversations since: lunch, drinks and enough scribbled notes to fill a book. But as we go to press, Pino is still blissfully unaware of our birthday/work anniversary surprise, so thank you to each and every one of you who managed to keep this secret.
It’s somewhat ironic that Spain’s most popular promoter is an Italian. Born in the village of Carinaro on the outskirts of Naples, in 1959, Pino contends that he never really fitted in.
“I was an alien in my own village,” is how he describes his childhood. “I was pretty good at school but I had no passion for it and I became used to just sitting in class and reading by myself. I was tall and looked a lot older than I was and I simply didn’t belong in my village any more,” is his explanation of why he left home at just 12 years old.
Setting off on his adventures, Pino simply walked to the village railway station with no clothes other than the jeans and t-shirt he was wearing and boarded the first train. When the train stopped, he found a hotel next to the station, asked for a job and began his working life carrying luggage for guests. Next, he found himself selling fruit in the local market, building the foundations of what would become a highly successful entrepreneurial career.
Making Friends with Folk
“At the age of about 15 or 16 I joined a hippy community and entered an alternative cultural world,” he says. It was in this environment that he started to become involved in music, organising concerts and events for the likes of The Chieftains and other folk acts.
“Franco had recently died and the city of Barcelona was just full of energy, so it was an exciting time and place to be”
Then, as is the case in so many epic tales, along came a girl. “She was from Barcelona, so at the age of 18, I moved to Spain,” he recalls. “Franco had recently died and the city of Barcelona was just full of energy, so it was an exciting time and place to be.”
Now, with a growing appetite for promoting, Pino set about building his business, starting out with a show by Celtic harp legend Alan Stivell using a local Barcelona church as a venue. “I wanted to do things that nobody had done before, so everything had to be a bit different to make the experience special – I remember doing shows with Greek singer Georges Moustaki, who was the boyfriend of Edith Piaf.”
Interested in anything avant garde, Pino found himself falling in love with Studio 54 in Barcelona and, exercising his legendary powers of persuasion, cajoled the club’s owners into allowing him to put on similarly branded events in Ibiza and Madrid.
“At the time, all the bands that were coming to Spain were big and established acts – Guy Mercader had the likes of The Stones etc, sewn up. But I got bands like ABC, Spandau Ballet, Talk Talk, Imagination, Simple Minds and Sade to start coming to Spain when they were still relatively unknown,” says Pino.
Having established Ibiza as his second home, one evening Pino bumped into Queen drummer Roger Taylor in one of the island’s nightclubs. “It was 1985 and Roger was kind enough to introduce me to the band’s manager, Jim Beach, and on the back of that, I got to work on the Magic Tour.”
Pino’s association with Queen and iconic frontman Freddie Mercury started there. The Queen tour broke the mould in Spain, as it visited the country in August, a month when everything traditionally closes down for holidays. Anxious that the three dates in Barcelona, Madrid and Marbella would flop, Pino convinced Mercury to do a press interview ahead of the first show – something that the singer rarely did – and the result was three massively successful nights.
“I wanted to do things that nobody had done before, so everything had to be a bit different to make the experience special”
“Around the same time, I was getting an idea to do something big for television in Ibiza and one night I was hanging out with a Spanish band at my house when an interview with Queen was shown on TV that I had never seen before. During the programme, Freddie was asked if there were any Spanish artists he would like to work with and he mentioned the opera star, Monserrat Caballé.”
Following much collaboration with Jim Beach, Pino managed to arrange a meeting between the two singers on 24 March 1987 at a hotel in Barcelona, where Mercury brought along a demo of a song he had co-written in the hope Cabellé would agree to record a duet with him.
“On 29 May they opened my Ibiza 92 show with the premiere of the song ‘Barcelona’ – it was magical,” says Pino, adding that acts also on the bill for that TV extravaganza from the White Isle included Duran Duran, Spandau Ballet, Chris Rea, Poison, Nona Hendryx, Marillion and Spanish acts Hombres G and E Último de la Fila.
“The TV show was seen in 31 countries worldwide and the collaboration between Monserrat Caballé and Freddie Mercury was a huge hit. They performed together for the last time in 1988 when they sang the song to celebrate the arrival of the Olympic Flag in Barcelona from Seoul.
“I had been asked to organise something for the occasion, so they performed to 100,000 people in front of the Fountains of Montjuïc and shared a stage with Spandau Ballet, Eddie Grant, Jerry Lee Lewis and Suzanne Vega, as well as Rudolf Nureyev and flamenco dancers, with Freddie and Monserrat closing the show. It was amazing – I won a gold medal for the show, which I like to joke was the first gold given for the Barcelona Olympics.”
Continue reading this feature in the digital edition of IQ 82, or subscribe to the magazine here
Trailblazer: Tony Truman, O Beach Ibiza
Welcome to the latest edition of Trailblazers – IQ’s regular series of Q&As with the inspirational figures forging their own paths in the global concert business.
From people working in challenging conditions or markets to those simply bringing a fresh perspective to the music world, Trailblazers aims to spotlight unique individuals from all walks of life who are making a mark in one of the world’s most competitive industries. Read the previous Trailblazers interview, with Cambridge Folk Festival’s Becky Stewart, here.
Next up is Tony Truman, co-founder and operating partner of O Beach Ibiza, a beach club which debuted as Ocean Beach Ibiza on the Mediterranean party island in 2012.
Alongside business partner Duane Lineker, Truman’s vision was to create a ‘daytime destination’ on the west coast of Ibiza. Specialising in daytime parties, the 2,000-capacity venue has hosted performances by the likes of Ibiza House Orchestra, Sandy Rivera, Horse Meat Disco and DJ Spoony, and is now firmly established as a clubbing institution in the highly competitive Ibizan market.
But before he was a nightclub baron, Truman was a tearaway youth who just wanted to go to his school’s end-of-year party…
How did you get your start in the industry?
I started out in the business when I was very young. I was 15 when I was expelled from school for being somewhat of a naughty boy, and because of that I was banned from going to the famous final-year party. Even though I’d been chucked out of school I still asked if I could go, because it had a reputation of being so good – but they said no, obviously! I was absolutely devastated as everyone went to this party, including all my friends. It was actually my mum who suggested I have my own party… and, with that, I did! I hired a boat on the Thames in London, but the only night I could hire it was the same night as the school party. I took a gamble, hired it and had 250 people turn up to my party. Only 17 attended the school party! It was then I found my making and started my path as a party promoter.
That same year was the first-ever trip I made to Ibiza with my family and friends. We met some older lads that showed us the ropes, taking us to all the big superclubs such as Ku, and I was blown away at the scale of the venues and the events. I knew for sure that this is what I wanted to do and where I wanted to be.
Tell us about your current role.
I, along with Duane Lineker, one of my business partners, am an operating partner of O Beach (formerly Ocean Beach) Ibiza, as well as a number of other businesses we have collectively on the island. The role differs between winter and summer: in the winter there is a lot of planning – whether that be recruitment or events, as well as dealing with many day-to-day business decisions – so this is where a lot of my time is taken up with work.
As soon as summer begins, this is where the fun part of my job starts. I spend a lot of days hosting at my table in the beach club, which consists of a lot of partying with lots of people from the island, other industry associates and friends, celebrity guests and, of course, my own family and friends. It really is lots of fun and I get to see the venue in action – but now I’m getting older, it may be time to reduce that to maybe three or four times a week!
There is obviously serious daily work to do but, luckily, I have an amazing team and partner to do most of mine for me.
“I am proud we took an derelict old car park in the wrong end of town and turned it into one of the most famous beach clubs in the world”
What is the most rewarding aspect of your job?
Standing on the stage day after day and seeing all the happy faces on the dancefloor and all around the beach club – people having the time of their lives, having fun, laughter all around and, ultimately, making happy memories that will last forever. The fact that I am in a position to give people that opportunity to have real fun and be themselves, and also for my staff, who love doing the job they do.
And the most challenging?
The most challenging is to keep at the forefront of what we are doing – making sure you are constantly giving people what they want in a world where trends change all the time. Staying on top of a competitive market like Ibiza is hard work, as you are up against some of the biggest and best clubs in the world, but a bit of competition is what keeps the magic alive and keeps you spontaneous.
What achievements are you most proud of?
I am most proud of my family and the close bond we share, as well as the fact I have so many lifelong friends from school and my younger years who are still around me and working with me.
From a business perspective I am proud that we took an old derelict car park in the wrong end of town – they said – and in six short years have become one of the most famous and best beach clubs in the world, all without putting on the biggest promoters and biggest artists. It’s all been down to our core values, determination and an amazing team.
How has the business changed since you started out?
The biggest change I have seen is the volume of people we get through the doors. We are sold out most days of the week now, and when you host 155 parties back to back there’s a lot of work involved for the entire team. The first year, we only had one semi-busy day a week, and the following year three busy days – and from there, it just grew and grew into the machine it is today.
“Never forsake your dignity for the sake of your destiny”
What, if anything, could the music industry do better?
A saying we created, and stand by in our values, is, “We are here to celebrate, not educate”, and this is directed at our music policy. This is because we play what our crowd want and not necessarily what is current and supposedly ‘cool’.
When we opened, the music industry was at a point where you could be looked down on if you weren’t playing the ‘right’ music and most up-to-date sounds, which I personally felt was wrong. For me, there is room for all types of music that’s right for the occasion, and that’s where I feel we got it right with O Beach Ibiza.
Who, or what, have been the biggest influences on your career so far?
One of my best friends has been one of the biggest influences. When things were not going quite right in my life a number of years ago, he was one of the loyal people who stood by my side, who always believed in me and who always pushed me by telling me not to give up. So, Mr Barry, I still thank you from the bottom of my heart!
I also think one of the biggest things that has had an impact on my life is becoming a father, as suddenly I realised I had to grow up fast as I had another life depending on me. I am so grateful this happened, as it put all of the surreal crazy life into perspective and made me realise what was important.
What advice would you give to someone hoping to make it in music?
Anything is possible if you are determined and set your mind to it, and believe in it – and above all in yourself. Never forsake your dignity for the sake of your destiny.
If you’d like to take part in a future Trailblazers interview, or nominate someone else for inclusion, email IQ’s news editor, Jon Chapple, on firstname.lastname@example.org.
Millennials drive “healthy, successful” EDM mkt
Electronic music conference International Music Summit (IMS) today released the 2017 edition of its annual IMS Business Report, which reveals that dance music shows are overwhelming the live music events of choice for generation Y.
The report, researched and compiled, as in 2016, by Danceonomics’ Kevin Watson, finds that while live concerts with one headliner are the biggest draw for the US general population, club shows – and, to a lesser extent, intimate concerts – are especially popular among millennials, with that age group attending 36–39% more dance events with live DJs:
The report also spotlights the “huge growth” in electronic dance music (EDM) in Latin America; the acquisition or launch by fast-growing UK outfit Global of three dance music festivals (South West Four, Snowbombing Canada and Hideout); and the pioneering use of new technologies, including VR, live streaming and chatbots/AI, by several high-profile DJs and clubs.
As a whole, the value of the industry is up 3%, to US$7.4 billion, in what IMS calls an indicator of a “healthy and successful industry”.
But it’s not all good news: Gender diversity, says IMS, remains “a key issue” after analysis by Thump revealed that of 24 of the biggest EDM festivals in 2016, an average of just 17% of performers were female.
Better than some rock festivals, at least…
Space to reopen as Hï Ibiza
As predicted by former resident DJ Carl Cox, Ibiza superclub Space, which closed last summer, is to reopen this spring under new management.
The 5,000-cap. club – last year voted the best in the world – will reopen its doors as Hï Ibiza on 28 May, with an opening bash featuring DJs Black Coffee, Luciano, Apollonia, Joris Vorn, Kölsch, Nic Fanciulli, Andrew Oliva and Davide Squillace.
According to new owner Ushuaïa Entertainment, which also runs Ushuaïa Ibiza Beach Hotel, Hï Ibiza “aims to unite the highest standards of music and entertainment, bringing world-class music experiences to a club designed with the dancer in mind. The state-of-the-art club will showcase the most exciting names in electronic music throughout the summer, from the biggest stars in the scene to the leading lights of the underground, continuing the island’s legacy as the party capital of the world. […]
“Hï is a welcome to a new era in Ibiza”
“‘Hi’ is a small word that can be the beginning of a meaningful conversation [or] the start of a beautiful friendship that can lead to a bigger world of discovery. ‘Hi’ is a welcome to a new era in Ibiza.”
The new resident DJ will be Dutch house artist Martin Garrix.
Ushuaïa Beach Hotel and rival club Pacha were raided by Spanish police last September as part of an investigation into tax fraud, reportedly seizing several million euros in cash.
Police find millions of euros in Ibiza club raids
Spanish authorities have found millions of euros in cash at Pacha and Ushuaïa after raiding the Ibiza superclubs as part of a tax fraud investigation.
Local newspaper Diario de Ibiza reports that about 40 officials from the Tax Agency (Agencia Tributaria), some armed with submachine guns and accompanied by police, burst into the clubs yesterday and discovered “several million euros”. A spokesman for the agency is quoted as saying: “We will now check if the amount of money corresponds to what the companies state in their accounts.”
“We will now check tif the amount of money corresponds to what the companies state in their accounts”
The raids came as part of Operation Chopin, a nationwide crackdown on alleged tax fraud in the nightlife industry. Just over two months ago police searched Space and Privilege following the discovery of €2m in cash in Amnesia, much of it stashed in hidden compartments in the walls.
Earlier this week it was reported in Spanish media that Pacha Group, which operates the chain of clubs, is up for sale.
Avicii plays “final gig ever” at Ushuaïa [video]
Avicii, the 26-year-old EDM superstar who earlier this year announced his retirement from touring, played his final show on Sunday, bringing to a close an impressive live career that has seen him break attendance records at clubs and festivals across the globe and contributed to an estimated fortune of US$85 million.
The Swedish DJ’s swansong performance was at the Ushuaïa Beach Hotel in Ibiza (5,000-cap.) – voted the eighth-best club in the world earlier this year – on Sunday 28 August, with support from KSHMR, Seeb, Albin Myers and Mambo Brothers. Footage from the historic show can be seen in the user-shot videos below:
— DJ Mag Latinoamérica (@DjmagLA) August 30, 2016
— Sei (@seiichiro_ibiza) August 28, 2016
Following the announcement of his intention to retire from live performance, IQ wrote in March that Avicii – real name Tim Bergling – has been a “key figure in the transformation of plain ol’ dance music to the global, arena-filling mainstream phenomenon that is ‘EDM’ [electronic dance music] and his retirement will surely be keenly felt by dance promoters and venue and festival owners across the world”. Highlights from Bergling’s live career include breaking a number of attendance records (including at XS in Las Vegas and Mawazine Festival in Rabat) and shifting the most-ever tickets for a tour by a solo DJ, on his debut headline tour of Australia.
In an open letter announcing his retirement, the DJ said he will “never let go of music”, opening the door for a continued recording career, but has made it clear the Ushuaïa show was his “final gig ever”.