Execs talk investment opportunities in live music
A trio of leading live music executives have shared their views on the areas of the business most ripe for investment.
With the market bouncing back internationally following the Covid shutdown, Mumford & Sons musician and venue boss Ben Lovett, Oak View Group (OVG) International’s Jessica Koravos and Jarred Arfa, COO of Artist Group International, weighed in on the biggest opportunities for the industry.
Speaking during the Industry Investment: Field notes panel at the recent ILMC in London, US-based Arfa suggested the concept of Live Nation’s upcoming “emo nostalgia” festival When We Were Young in Las Vegas, which has expanded to three days due to demand, pointed a way forward for the industry.
“There are obviously so many festivals out there, but we’re seeing a lot of success where they’re focusing on specific niches,” he said. “People want to be part of that moment in time and relive that, as opposed to, ‘Let’s give everyone a little flavour of everything.’ Those that are focusing on specific genres, or overfeeding one time period, are seeing some success and a point of distinction.”
“The pandemic has made people really appreciate those coming together moments that maybe they took for granted before”
Koravos, who is also president of Andrew Lloyd Webber’s Really Useful Group, which oversees some of the world’s biggest theatrical titles, said Covid-19 has prompted a change of mindset in the public when it comes to live shows.
“One thing that pandemic has absolutely done is made people really appreciate those coming together moments that maybe they took for granted before,” she said. “Flipping hats and talking about the West End and theatre for a second, what’s very interesting to me is that what’s very successful in the West End right now is the shows that have been there the longest.
“I see it with Phantom of the Opera, which has flipped its age demographic down by 10 years over the course of the pandemic, and I think it’s because of exactly that – you take for granted that something that’s always been there will keep being there. But I don’t think that’s the assumption anymore.
“People want to go see Billy Joel at [Madison Square] Garden. They want to go see Phantom of the Opera. They want to make sure they are appreciating the things that might not always be there.”
“There are just not enough good venues. It’s really that simple”
TVG Hospitality co-founder Lovett urged would-be investors to put their faith (and finances) in the independent sector.
“I would back indie promoters,” he said. “Everything’s getting so algorithmic, we could end up with pretty watered down creative inputs into our lives unless those indie promoters go and stick their neck out. So I would say, invest money into those indie promoters… If we can get some great promoters coming through, it’s going to be good for everyone.”
Earlier this year, TVG Hospitality announced the closing of $50 million in new funding to expand its team and venue portfolio in the UK and US, backed by a heavyweight list of investors including OVG, founded by Tim Leiweke and Irving Azoff.
TVG is bidding to create the next generation of music venues alongside elevated hospitality offerings in order to enhance the artist and fan experience and create gathering spaces as community assets. The company’s current portfolio includes London music venues, Omeara, Lafayette and the Social, and broader hospitality offerings at Flat Iron Square and Goods Way.
“This is going to be the most exciting few years”
“Across the board, I think what Tim and Irving saw – and the same issue that we were trying to solve – is there are just not enough good venues. It’s really that simple,” said Lovett, whose latest project – the 8,000-cap Orion Amphitheater in Huntsville, Alabama – opened earlier this month.
“For the last couple of decades there just hasn’t been enough investment into truly inspiring places,” continued Lovett. “There are people buying incredible bars and restaurants and hotels, and there’s lots of other things that are being constantly being reimagined and the envelope is being pushed. But when it comes to music venues it’s just stagnated. And this is going to be the most exciting few years where all of these new venues are going to [launch].”
OVG has already opened the Climate Pledge Arena in Seattle, Moody Center in Austin and the UBS Arena in Long Island, New York, with schemes also on their way in Manchester, Baltimore, Coachella Valley and Cardiff.
“Venues are very expensive,” added Koravos. “The 2,000 seaters are expensive, the 20,000 seaters are super-expensive, so investment is a crucial part of getting those off the ground. But the whole point of Oak View Group is really just looking around at the fact that, around the world, the big music venues are actually all buildings that were built 20 years ago or more, for the most part.
“They were built for sports for the most part, not by anybody who knew anything about the content about what needed to go in them and what the fan needed to experience. So at Oak View, our whole reason for being is to build the best experience in the best markets.”
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