Livestreaming: What happens next?
A panel of industry experts debated what the future holds for livestreaming following the return of touring.
The ILMC session: Livestreaming: On trial was presented by Eleven Management’s Estelle Wilkinson, with speakers Ric Salmon of Driift, Grazia Tribulato of LiveNow, Max Wentzler of Zart Agency and agent Steve Zapp of ITB on hand to pass judgement.
While the format flourished during the pandemic, concerns have been raised that it has fallen down the list of priorities amid the return of IRL concerts.
But Driift CEO and co-founder Salmon, whose company has sold hundreds of thousands of tickets for livestreamed gigs with acts including Nick Cave, Niall Horan, Kylie Minogue, Biffy Clyro, Andrea Bocelli and Laura Marling, said he is convinced it is here to stay.
“I’d be shocked if it doesn’t become just part of the standard lexicon of what we do”
“I think we need a couple of years for us all to work out where this is going and hopefully, businesses won’t lose too much money through that process,” he said. “Unfortunately, development in [the digital] sector tends to be slowed down and stymied by arguments and disagreement, and it would be nice if we can find a way of that not happening this time.
“But in long term… I’d be shocked if it doesn’t become just part of the standard lexicon of what we do.”
Germany-based Zart Agency launched Zart.tv in 2020, with the first hybrid livestreaming concert with AR content in the country. Wentzler said he had been left scratching his head at the reluctance of certain parties to embrace the fresh opportunities created.
“There’s a potential revenue stream… And people are shutting their doors to it”
“What I think is a bit mind boggling about this whole conversation is there’s a potential new revenue stream… And people are shutting their doors to it,” he said.
“In five years, I would love to see labels really understanding the potential, especially with younger artists and up and coming hot artists.
“What I’m seeing right now in Germany – because of state funding – is that a lot of venues now have five, six cameras, all remote controlled. The house technicians are actually learning to do sound and do video at the same time. We’ve seen this a lot in jazz clubs in Germany, and they’re doing a lot of revenue – some that I’ve talked to have been doing six figures. I would love to see that business model being extrapolated on to bigger areas.”
Zapp’s artist roster includes Biffy Clyro, who played a behind-closed-doors global livestream show from Glasgow Barrowlands in 2020 to launch their A Celebration of Endings album. He spoke of the advantages offered by the format, particularly geographically.
“[There are] certain countries that you can’t tour because it’s too expensive to get to,” he said. “The streaming scenario is an opportunity to get the artist to be seen in those countries. You could put a bit of a spend behind it and maybe try and build it to then be able to afford to tour in the future.”
“If it’s a standalone livestream, completely outside of any campaign that’s going on, it’s really difficult to market”
LiveNow’s most successful livestream to date was Dua Lipa’s Studio 2054 livestream, which saw more than five million people tuning in live, according to organisers. However, more generally, Tribulato advised a certain amount of education on livestream events was still required for consumers.
“I think everybody is still quite confused on what are they going to get when they buy a ticket for a livestream,” she said. “When they get a ticket, what do they get? Are they watching the show live? Are they watching a pre-recorded show? Can they watch it after 24 hours? Can they watch it forever? There’s still a lot of confusion. and a lot of marketing is spent on actually explaining what it is.”
Tribulato suggested it makes more sense to position livestreams as part of an artist’s wider promotional campaign, rather than a one-off concert.
“If it’s a standalone, completely outside of any campaign that’s going on, it’s really difficult to market,” she said. “So what we tend to do is ‘tentpole events’, as we call them: big events… in the campaign of the artist. So I think the main task is to find a way to incorporate the livestream in the cycle.”
Salmon countered that Driift had seen considerable success with The Smile’s groundbreaking trio of gigs in London in January, where each performance by the Thom Yorke and Jonny Greenwood side project was held in front of a seated audience of 1,200 and livestreamed in real time for a different timezone.
“I don’t think you can make a blanket rule that they don’t work in isolation,” he said. “Admittedly, it was with a couple of famous people from a very famous band, but it was the definition of ‘in isolation’, because it was a launch event, and the first time they’d ever done anything, and the first time anyone had ever heard any of the music.
“Now it’s slightly different, of course, because it’s an offshoot from Radiohead so you’ve got a ready made fan base. But it was phenomenally successful and vastly outperformed our expectations.”
“The pandemic accelerated the understanding of the sector so rapidly”
Driift sold more than 85,000 tickets for Little Mix’s livestream from The O2 in London last month, which marked the final date on the group’s Confetti Tour.
“There’s loads of evidence that consumers want this stuff,” said Salmon. “There’s a convenience to it and there’s a geographical reach that you can achieve with with livestreams that you can never reach with physical shows, so there’s a demand for it.
“We were very fortunate that we were working in this vacuum of the pandemic, so we had this captive audience. But it accelerated the understanding of the sector so rapidly. It’s now a case of us as an industry catching up with that and working out how best to use it. Because, frankly, we’d be fucking mad not to find a solution for it going forward.”
Salmon also addressed discussions with performance rights organisations (PROs) over the livestream tariff, including the well-documented dispute with PRS for Music.
“One of the biggest realisations we had at the beginning of all of this was there was there was no precedent,” he said. “There was no licensing structure for this stuff, which was kind of remarkable in the fairly advanced industry we think we are, and so it’s been a challenge.
“The labels have a very vocal view. The publishers have a very vocal view. Artists, managers, songwriters and everybody in between have a very vocal view. Some PROs have been very robust in their negotiations, others have been a lot more understanding and open-minded. But generally speaking, we’ve got it to a fairly good place and I think we’re getting to a point now where [Driift] will be signing some licensing agreements with the PROs that don’t set a terrible precedent.”
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LIVENow partners on Lizzo and Gorillaz events
Livestream company LiveNow has announced upcoming presentations with Lizzo and Gorillaz.
Lizzo will be the final 2021 headliner for American Express Unstaged digital music series on 4 December. The performance will take place in Miami in front of a live audience and will stream exclusively on the LiveNow platform and will be available to watch on demand for 48 hours.
Past Unstaged headliners have included Sam Smith, Alica Keys and Maroon 5.
In addition, LiveNow has partnered with Trafalgar Releasing to bring Gorillaz present Song Machine Live From Kong to the big screen. Captured at the band’s Kong Studios HQ in London, the “star-studded virtual experience”, will be broadcast in cinemas worldwide for one day only on 8 December.
LiveNow previously worked with Gorillaz on their livestream event, Song Machine Live, which was broadcast live around the world with three shows across three time zones on 12-13 December last year.
We look forward to welcoming cinema audiences to experience their outstanding live show on the big screen
“We saw great success with Gorillaz’ previous cinema event Reject False Icons, and we look forward to welcoming cinema audiences to experience their outstanding live show on the big screen, with immersive surround sound and exclusive bonus content,” says Trafalgar Releasing CEO Marc Allenby.
James Massing, chief commercial officer at LiveNow, explains the firm’s goal is to give fans “unparalleled access to the ultimate live music experiences”.
“Last year, we brought Gorillaz fans a one-off opportunity to watch the band perform their critically acclaimed album during a time where live music stopped,” he says. “We’re proud to share the performance once again but on the big screen.”
Other music events broadcast by LiveNow in 2020 included some of the biggest live streams of the year, including One World: Together at Home, Dua Lipa’s Studio 2054, Ellie Goulding’s Brightest Blue Experience, Gorillaz’ Song Machine Live from Kong and Pete Tong’s O Come All Ye Ravers.
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How does livestreaming fit in a post-pandemic industry?
The livestreaming gold rush is far from over. As live gigs and festivals return, the future for this fledgling industry looks rosy, as artists around the world now know that they can leverage the global reach of the internet to allow fans to remotely view their performances.
Whereas the argument in 2019 was that people surely wouldn’t pay for tickets to watch something on their computer screen, the reality of the past 18 months has debunked that theory, while technology has also allowed those viewers to watch their favourite artists on their wide-screen TVs.
“We’ve had a year of almost working in a vacuum,” notes Driift co-founder Ric Salmon. “In this phase, now, where life returns to normal as touring starts, managers, agents and artists themselves will become hyper-focused on trying to get back out on the road and generating as much money as possible, so understandably the focus might fall away a little bit from doing live streams.
“We’ve pre-empted it for months, but now we have to see how livestreaming will fit in the overall plan for an artist. I don’t think we have the answers to everything yet, but there’s still a huge amount of interest and there’s a lot of new business coming our way.”
“[StageIt] did 6,400 shows in 2020. That’s about a third of what Live Nation does”
While some predict a temporary downturn in livestreaming activities, others are more bullish about the prospects as touring resumes.
“The past year has been bananas,” states Stephen White of San Francisco-based StageIt. “We did 6,400 shows in 2020. That’s about a third of what Live Nation does, so it was a crazy year for us, in terms of volume, as artists just didn’t have other ways to connect with their fans.
“When I took over as CEO in May of 2020, we immediately started a venue programme, as we knew that without some sort of revenue stream these venues were going to die. So, we started putting cameras into venues where folks wanted to work exclusively with us, figuring out how to bring in mobile crews safely, and really getting venue staff trained on how to do this, so that the sound and lights guys can also operate the live stream without a huge learning curve.
“That was massively important for us as it established a network of venues that were already using the platform. And now that they are starting to reopen, we’re not seeing any downturn. If anything, what we’re seeing is, the more shows there are, the more opportunities there are to live stream.”
“The more [in-person] shows there are, the more opportunities there are to live stream”
When Live Nation acquired streaming platform Veeps in January, it became apparent that partnerships between livestreaming platforms and venues would play a major role in the future of the business.
Veeps is installing its technology in more than 60 Live Nation venues, including institutions like The Wiltern in Los Angeles, where From the Wiltern shows are already available to stream from $15 (€13) a ticket.
Elsewhere, YouTube is working on a new 6,000-seat theatre in Los Angeles from where it intends to stream shows, while on a smaller scale, streaming platform Mandolin recently agreed an exclusive partnership with City Winery to stream concerts from its eight music venues around North America.
However, the fact that a venue signs a deal with a livestreaming platform does not necessarily mean that the artist will agree to that service streaming their show, because broadcasting contracts are usually thrashed out between the artist/artist management and the streaming service itself.
“The agents and promoters are coming back into the picture, so we’re having to do a bit of that education cycle again”
But the landscape is changing and Live Nation’s deal with Veeps, in particular, is prompting some to envisage new exclusivity clauses appearing in promoter contracts to cover streaming rights.
That doesn’t deter White, who notes that if a venue has an existing agreement with the likes of StageIt, that presence will give the incumbent platform an advantage when it comes to any visiting act.
He comments, “One thing that has been really interesting for us is that we’re now having a different set of conversations. Through the pandemic, all of the efforts from our side were with the artist – either directly with the artist or, in some cases, through artist management.
“All of a sudden, now that the world is re-opening, the agents and promoters are coming back into the picture, so we’re having to do a bit of that education cycle again.
“[Agents] are now seeing us as a service provider rather than a chequebook”
“We know that artists are probably going to perform fewer times on a tour but do bigger shows as they try to address sustainability.”
That’s a scenario the hierarchy at UK-based LIVENow also recognises. “During lockdown, some agents struggled to find out where their place in the ecosystem was and some were trying to generate revenue for their clients,” says chief content officer James Sutcliffe.
“There were some tough conversations because the approach was ‘my client wants to do a live stream, make us an offer.’ But now, they are back to their day jobs and we’re having much more sensible and collaborative conversations. It’s not true of every agent and every agency, but, generally, they are now seeing us as a service provider rather than a chequebook.”
Nevertheless, there’s no escaping the numbers. Steve Machin reveals his former company, LiveFrom, paid out substantial sums to its artist partners in the past year. “LiveFrom did 400 shows last year, using about 1.5 petabytes of streaming data, and we wrote cheques to artists for $3million [€2.5m],” Machin tells IQ.
“There is a lot of content that has been filmed, shown once and is languishing, so there’s a wealth of under-monetised stuff”
“That $3m came from tickets and merch. We would bundle packages so that we’d have, for instance, a $10 [€8.50] ticket; a $30 [€25.50] ticket with a T-shirt; and a $70 [€59.30] ticket with a T-shirt and poster.
“We also got into a super bundle that involved a moderated Q&A with the band, which was a $75 [€63.50] ticket for a limited run of tickets. But we did it for a week, so you’d do 15 meet-and-greets a day, Monday to Friday, then the show would go out on the Friday night, and you’d have the Q&A afterwards. It generated a lot of money.”
While LiveFrom was all about live-streaming shows, Machin’s new operation, Concert Vision is developing a different business model. “It’s going to be like Disney Plus for concerts,” he says.
“So, we’re going to be licensing everything from Blondie or The Ramones at CBGBs, all the way through to all the Eagle Rock catalogue and then stuff that’s taking place in a month’s time. There is a lot of content that has been filmed, shown once and is languishing, so there’s just a wealth of under-monetised stuff for a mix of casual and super fans.”
Hundreds of new enterprises have taken advantage of the demand for entertainment over the past year, with varying degrees of success
Competition & consolidation
The relatively low cost to entry in the livestreaming sector means that hundreds of new enterprises have taken advantage of the demand for entertainment over the past year, with varying degrees of success.
Other players such as Flymachine are expected to target independent venues, making it the indie to Live Nation’s Veeps, much in the way that Ticketfly was the indie to Ticketmaster.
And elsewhere, pure-play tech players like Mandolin and Maestro are offering back-end services, while other platforms such as Moment House have been compared to a Patreon model for music artists, thanks to its fan engagement capabilities.
“It will be tough for some of the smaller platforms to sustain a real business when they do not have the volume of performances”
“There are already a few companies that have quietly disappeared, and I think there will be a few more go the same way,” observes Salmon.
“There was a moment in the middle of it all when there were a bunch of crazy offers flying around – bidding wars between streaming companies and platforms who had only in been in business for a month – and that was not sustainable. So, in many ways, a bit of consolidation is probably a good thing.”
StageIt’s White agrees. “A lot of the companies that started in 2020 are now at the one-year anniversary and are wondering what to do as they figure out how to be a real business,” he says.
“It will be tough for some of the smaller platforms to sustain a real business when they do not have the volume of performances, so we’ll continue to see consolidation over the course of the next 12 months, in pretty significant ways.”
“The pandemic has been a catalyst for people taking livestreaming really seriously”
One operator that is benefitting from the mergers and acquisitions element is Melody VR, which in August 2020 pulled off the surprise purchase of Napster.
“We’ve rebranded as Napster, but we’re still operational as Melody VR,” explains Melody VR founder and CEO Anthony Matchett. “We’re re-building the Napster platform to have a lot of Melody’s content, to give it a real edge and create a service that isn’t really out there.”
Matchett is quick to acknowledge the role that the pandemic has played in helping to establish the credentials of livestreaming.
“It’s one of the sectors that got overlooked when it really probably shouldn’t have been,” he says. “But the pandemic has been a catalyst for people taking livestreaming really seriously, which is interesting because when you can’t tour, you suddenly realise that there was maybe a different way to do things, all along.”
“To say that it is here to stay would be an understatement – it’s very much part of the fabric now of live performance”
In terms of business models, StageIt’s White reveals that his company now operates on an 80/20 split with the artists – a deal he believes will become the industry norm. He adds, “To realise that you can still have an experience – which is not the same as being there – but you can do it from the comfort of your living room, on your big-screen TV, across your nice hi-fi system, and not have to pay $14 for a beer, has been a real eye-opening experience for a lot of people. Both fans and artists figured it out, so to say that it is here to stay would be an understatement – it’s very much part of the fabric now of live performance.”
The importance of control
Unsurprisingly, for a business that relies heavily on technology, there have been a number of broadcasting failures that have hit the headlines over the past year – notably a Marc Anthony show, and a live stream from the site of Glastonbury Festival. Despite such problems, consumer confidence has remained high, while for the streamers themselves, the lessons appear to revolve around ensuring they have control over all aspects of operations.
“There have been enough bad live streams where customers are asking why they paid £15 or whatever, especially with bands you thought would have done better. And fans only have so much patience with that stuff,” notes Driift’s Salmon.
“Look at what happened with us at Glastonbury: we delivered something that I’m hugely proud of, artistically, but with the access code issues that we had, which affected about 25% of ticket purchasers […] If anything is anything other than perfect these days, if you cannot access it immediately, we’re out, and that’s one of the great challenges of all of this.”
“Having numerous providers of tech trying to interlink with one another is where issues can occur”
Dissecting the Glastonbury experience, Salmon tells IQ, “The biggest takeaway for us was that having numerous providers of tech trying to interlink with one another is where issues can occur. Ultimately, the best solution is for a platform or a company like Driift to have everything housed within one vertical – to have ticketing, access codes, stream hosting, the video player itself all within one singular ecosystem.”
That’s a concept Napster’s Matchett recognises. “We don’t rely on anyone external, apart from internet providers,” he says. “So, the servers, the back end, the cameras, are all ours, because you cannot really rely on a third party when you are going to put your name to something. Ultimately, it’s your responsibility to the fan and the artist, so we do everything in-house to give us greater control. It’s more costly, but it provides stability, and artists knowing your stream isn’t going to fall over, is a really important element.”
Thankfully, the sector has seen many more successes than failures, with some events like LIVENow’s Studio 2054 show with Dua Lipa, in November 2020, introducing millions of new customers to the livestreaming concept. That event, along with the company’s growing roster of shows, has required an army of people to join the operation’s ranks.
LIVENow’s chief commercial officer, James Massing, who became employee number 12 in September 2020, reveals: “We’re now at more than 100 staff!”
“When the pandemic hit and live paused, we had to then create our [own] events”
Indeed, the pandemic meant a rapid re-examination of LIVENow’s remit was needed as the company pivoted to take advantage of the situation. “The business was originally set up to stream live events that were happening: we wanted to be the go-to place to stream an event anytime from anywhere in the world,” continues Massing.
“But when the pandemic hit and live paused, we had to then create our [own] events, and that’s why shows like Dua Lipa’s Studio 2054 originated.”
Acknowledging that control over such events is crucial, Massing adds, “We became a virtual venue, a promoter and a ticketing platform – we were investing in the content, investing in the show and then we were monetising that content through pay-per-view ticketing sales, bringing sponsors on board, sub-licensing after the event, and selling merch, which is a simple formula and very similar to what live music promoters do.”
Economies of Scale
While livestreaming allows artists to tap into a global reach, it’s not just established acts and big corporations that have been benefitting from the opportunities that the technology can deliver.
“We’ve also been approached by artist management and a couple of labels who would like to do album release events using our software”
Berlin-based promoters Z|art agency tapped into the possibilities of livestreaming to help expand its capabilities during the pandemic. MD Max Wentzler says the broadcast element will play a bigger role in the business as physical touring returns.
“As promoters of international acts, sometimes we only get two or three markets to play in and sometimes those markets are more of a logistical decision rather than based on the fans,” says Wentzler.
“Germany is huge and we have a lot of people living in densely populated areas outside of the popular media cities, which often means those people cannot get to the actual gig.”
He continues, “We see ourselves as an add-on to existing shows. We’ve also been approached by artist management and a couple of labels who would like to do album release events using our software – something we’ve successfully done for Giant Rooks who went into the charts at number three after the show.”
“Being existing promoters means we know the politics of the business… a pure tech company does not have the same knowledge”
Wentzler reveals that Z|art received funding from the German government to help it develop its livestreaming platform, while more recently, CTS Eventim has inked a deal for Z|art to distribute content.
“It was only us [in Germany] at the beginning, but relatively quickly there have been a couple of other livestreaming platforms that have launched here. They are more tech companies that developed software for conferences and other areas but who see music as a great market where there is high demand.
“But we’re still a little ahead of the curve, because we’ve been doing it a bit longer than the others, and the fact that we’re also existing promoters means we know the politics of the business and what is involved in putting together a show, whereas a pure tech company does not have that same knowledge.”
Of course, the ability of livestreaming to reach every device screen on the planet can pay dividends for acts hoping to build a fanbase. That realisation spurred Liverpool Sound City organisers to become early adopters of the technology.
“Fans of grassroots music from around the world are also coming into the platform to discover new talent”
“We’d been looking to branch out through some kind of digital strand for the company, even pre-pandemic,” explains Sound City marketing manager Sean Fay who talks up streaming’s ability to connect to a global audience, “because Sound City at its core is a music festival for new music discovery.”
He tells IQ, “For instance, we had a band called Say Sue Me from Korea, who are capable of selling out arenas in their own country, and we brought them to arguably the most famous music city in the world, Liverpool, where they played a tiny venue like the Cavern Club. But their hardcore fans back in Korea would love to see that, so that’s one of the reasons behind our investment into livestreaming.”
The move was accelerated when it became apparent that Fay and his colleagues could not even put on a gig by a band from around the corner. “It became a question of how can we continue to provide entertainment to audiences who come to our festival for music discovery, off the strength of our curation, as well as how we could help to support artists through the pandemic.”
As a result, Sound City launched its Guesthouse platform in April 2020, and since then, it has showcased more than 300 artists. “Everyone is looking forward to getting back out to gigs and festivals, but Guesthouse is very much here to stay as it’s a new opportunity for artists and we really believe it can continue to grow in the future. Fans of grassroots music from around the world are also coming into the platform to discover new talent,” reports Fay.
“We’ve found over the past 16 months is that a lot of artists do not have a good way to communicate with their fans”
Wentzler says Z|art is also advising acts on how they can use the broadcast format over a longer period of time “to help build a fanbase and strengthen those artist/fan community relationships.” He discloses, “One of the things we’ve found over the past 16 months is that a lot of artists do not have a good way to communicate with their fans – they maybe have Instagram or Facebook, but that’s not wholly reliable with the way the algorithms work.”
And, of course, the soar-away success of livestreaming has also led to the birth of a support industry. Switchboard Live, for instance, has a remit to help operators boost the number of eyes that see their content.
“Our SaaS [software as a service] application was built to manage the distribution and syndication of live content to more than one social channel,” says Switchboard Live CEO Rudy J. Ellis. “Our end goal is to get any type of live content creator or publisher more viewers on their live streams by leveraging multi-streaming, which is the ability to take that one single stream and publish it to multiple social destinations at the same time.”
Recently, Ellis oversaw the launch of a new product called StreamShare that allows clients to invite participants, sponsors, brands, influencers and ambassadors to opt-in their own social channels, so that they can also carry content live.
“What we’ve built was germane to the pandemic, where now you have more people watching content on different platforms”
“Switchboard Live has experienced 4x growth in monthly subscribers since the beginning of the pandemic, primarily due to the fact that a lot of people were scrambling to figure how they could take an in-person event to online.”
Ellis adds, “What we’ve built was germane to the pandemic, where now you have more people watching content on different platforms. Some people who have a Facebook account may not have a YouTube account, for instance, so we are facilitating the video to make it to those platforms.”
Experience is Key
With so many platforms now competing for attention, those that are focussing on the details may well emerge triumphant, as delivering excitement to fans who watch online will undoubtedly help persuade those consumers to return again and again.
Revealing that Z|art has established set-ups that allow events to break even after just 300 or 500 ticket sales, Wentzler says that the company has spent much of the last year creating something unique.
“We’ve tried to emulate the gig experience, so that when you buy a ticket you get to the venue door and enter into the foyer”
“My business partner, Hauke [Steinhof], and I have always been interested in technology, behavioural economics and psychology, and we’ve approached our events in a way that we try to create an experience from the point you buy a ticket to when you leave the show as well. So, we brought that same ethos to our livestreaming concept,” says Wentzler.
“We’ve tried to emulate the gig experience, so that when you buy a ticket you get to the venue door and enter into the foyer where there is a merch stand and a virtual bar. If you visit the merch stand and click on an item, it will directly link to the band’s online merch store, so 100% of the revenue goes to the artists.
“The virtual bar is a pure interactive space where you’re thrown together with four or five random fans from wherever in the world they’re watching. And in the concert room you’re thrown together with four random people to emulate the people around you at a gig: you can interact with them, or mute them, which is maybe something we’d like to have in real life when we’re at a gig too.”
And as a promoter, Wentzler has already identified solutions to address key areas of concern for event organisers. “If a show in Berlin is sold out but Hamburg isn’t, we can geoblock off Hamburg plus 20 or 30 or 40 kilometres. And then, if Hamburg also sells out, we can bring those people back in.”
“If a show in Berlin is sold out but Hamburg isn’t, we can geoblock off Hamburg plus 20 or 30 or 40 kilometres”
Licensing & Rights
Although the revenues are flowing, the elephant in the livestreaming room remains the question over rights, which many territories are still trying to come to an agreement on.
Concert Vision’s Machin declares, “The bit that remains elusive is the licensing and the rights stuff, and there will be a natural coalescing around the organisations that get those rights nailed down.”
Napster’s Matchett comments, “A lot of people who have entered the space don’t really understand the rights. So maybe as well as consolidation, we’ll just see some of the start-ups who lacked the tech infrastructure or the means to secure the rights licences just fading away.”
Machin adds, “The licensing side is definitely going to become a driver in livestreaming as the market matures. The rights stuff is going to bite a load of people on the ass. It needs solving and we have a solution that Concert Vision will be marketing later in the year.”
“The rights stuff is going to bite a load of people on the ass”
Noting that the rights issues become hugely complex when multiple territories are involved, Machin predicts that some platforms may opt to only operate in certain countries. “National players might spring up, so that anyone that does a deal with the PRS in the UK might end up having a different approach and a different model to someone else in the States who has a deal with ASCAP or BMI,” he says.
Far from spelling the end of the livestreaming boom, the return of live events is invigorating action in the sector, with many predicting that most tours will now involve at least one livestream show.
Napster’s Matchett says, “From the artist side, if they’re already doing the show, they can see the livestreaming side as pure upside. If they can sell an additional 40,000 tickets for the live stream, then wonderful. That’s part of the mentality shift: people now realise there is actual money in livestreaming, whereas a few months ago I’m not sure anyone had really done it that successfully.”
While the livestreaming business is having a significant impact on the popular music world, Wentzler says Z|art is taking lessons from its classical compatriots. “The philharmonic in Berlin has been running its own livestreaming for years, so we can maybe look to the classical world to learn a bit more and take that as inspiration,” says Wentzler. “In fact, we’ve recently started to do dynamic pricing on ticketing – something the classical world has been doing for years too.”
“The future will depend on where you fit your livestream element”
Predicting massive growth in the years ahead, StageIt chief Matchett is eyeing global expansion. “Overall, what we’re going to see is just 100% more livestreaming,” he states. “Our user base and artist base is broader than North America. It’s still about 65% North America, but we’ve got quite a footprint in Ireland and the UK, and we’re now live in South Africa and Nigeria and starting to do a good volume of shows there.”
Sutcliffe is similarly optimistic about the year ahead for LIVENow, highlighting that the pent-up demand for live music brings real opportunities. “There are going to be waiting lists of people who could not get a ticket to the actual show for any number of reasons […] and that’s where livestreaming can really layer in.”
Machin concludes that the development of the online gig will open doors for operations like Concert Live to introduce other entertainment packages for fans. “Imagine it’s David Bowie’s birthday, so you do a Bowie Weekend where you make available all of his concert video for fans to watch, but crucially you also allow those fans to interact, because we’ve discovered that the ability for fans to connect around the world is a significant part of the streaming experience.”
Driift’s Salmon believes that there is still some evolution needed in livestreaming, but the format has now been established, thanks to the revenues it can provide. “The future will depend on where you fit your livestream element,” he says.
“We’re finding our position within the music ecosystem, working with people rather than against them”
“Do you fit it around an album campaign, or an album launch, or an album announce, or a tour announce, or the beginning of a tour, or the end of a tour? I think you can look at it in all those ways, but it will all depend on the type of artist, type of demographic, genre of music and so many other factors.”
Massing highlights the growing desire of artists to cut their carbon footprints as another driver. “We know that artists are probably going to perform fewer times on a tour but do bigger shows as they try to address sustainability,” he says.
“We’re finding our position within the music ecosystem, working with people rather than against them,” continues Massing.
“LIVENow has sold tickets across 190 countries, our platform is in ten languages, and we have a proven ability to reach and engage audiences live for the artist. So we’re expecting huge growth in terms of the number of events on the platform in the year ahead.”
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I stream, you stream, we all stream (for live streams)
If there was one positive story to emerge from the unrelenting stream of bad news that was 2020 in live music, it was the dawn of the live stream. From the feel-good, lo-fi bedroom shows of March 2020 to the slick, professional ticketed events that become the norm by the end of the year, the willingness of fans to first consume, and then pay for, concert content beamed to the comfort of their homes was a small glimmer of light for the industry in the darkest year in memory.
A year on from the global shutdown that devastated the international live music business, how has the livestreaming market evolved, and where do paid-for concert broadcasts fit into touring plans in future – particularly when non-socially distanced shows are possible once again?
According to James Sutcliffe, chief marketing and content officer for LiveNow, the concert market is playing catch-up with sports, where pay-per-view (PPV) events – particularly with combat sports such as boxing, as well as ‘sports entertainment’ like professional wrestling – have long been the norm.
Unlike many companies in the livestreaming space, LiveNow “wasn’t, as a business, conceived in reaction to the pandemic,” explains Sutcliffe, who joined the company just before Christmas. Part of the Aser Ventures Group, whose Eleven Sports network holds broadcast rights to the Premier League, Serie A, La Liga, Uefa Champions League and Formula 1 across its platforms in Europe and east Asia, LiveNow was born out of Aser founder Andrea Radrizzani’s desire to “apply the things he’d learnt” in live sports to music, Sutcliffe continues.
Learning from its sister company’s experience in the sporting world, world, LiveNow was able to provide the industry with a quality product, free of the technical problems that plagued some newer platforms, right out of the gate, says Sutcliffe. Music events broadcast by LiveNow in 2020 include some of the biggest live streams of the year, including One World: Together at Home, Dua Lipa’s Studio 2054, Ellie Goulding’s Brightest Blue Experience, Gorillaz’ Song Machine Live from Kong and Pete Tong’s O Come All Ye Ravers, as well as a number of smaller livestreamed shows.
Another firm well placed to capitalise on the pause in physical events is Sansar, whose president, Sheri Bryant, says the digital concert boom of the past year is validation of its vision for social live experiences in the virtual realm.
“I think we’re way off having thousands of people in a field again, unfortunately”
Formerly part of Linden Lab, the developer of Second Life, Sansar launched in 2017 but came into its own over the last 12 months, with its platform used to create virtual-world festivals and venues for Glastonbury Festival’s Shangri-La (Lost Horizon), UK promoter LWE (Tobacco Dock Virtual), London Mela festival (Melatopia), German club Boothaus and Serbia’s Exit Festival, among others.
“We’ve believed in this for years,” says Bryant, who adds that 2020 “was a case of right place, right time” for Sansar, which found itself in high demand and years ahead of its newfound competition in the virtual concert space. “Now, it’s about fundraising and trying to grow as fast as possible, as we can’t keep up,” she continues. “We’re having to turn people away.”
For MelodyVR – which launched in 2018 as the first virtual-reality (VR) music platform – concerts will form part of a wider digital music offering that also includes music streaming from Napster, whose parent company, Rhapsody International, it acquired last year. The AIM (London)-listed company will soon rebrand as Napster Group, launching a new, integrated Napster app later in 2021.
It, too, was responsible for some of 2020’s most-talked-about streams, including Wireless Connect, a three-day VR stand-in for Wireless festival in July, and Live from O2 Academy Brixton with the likes of Fontaines DC, Blossoms and Tom Grennan, and hopes to build on that success this year – Covid-19 allowing – says Steven Hancock, co-founder and chief relationship officer of MelodyVR.
“We’re all on tenterhooks to see what the big promoters do – our strategy is to see what live looks like in its traditional sense,” he explains. “We’ve got some ideas around big showpieces, but there’s no requirement for us to rush this year.” (MelodyVR recently raised just over £8 million to help build and launch its new app.)
“But what we do know,” he adds, “is that ‘hybrid’ shows” – livestreamed concerts with a small, often socially distanced physical audience – “are going to become the norm. I think we’re way off having thousands of people in a field again, unfortunately.”
“Right now, as a promoter, there are very few other ways of making any money”
“I don’t perceive any concerts of note this year,” agrees Conal Dodds, co-founder and director of promoter Crosstown Concerts, which has partnered with PPV concert platform Stabal for its own on-demand shows, the first of which – a reunion concert by British folkies Bellowhead – took place in December.
Expanding into live streams is “completely inspired by Covid,” Dodds says. “People’s summer schedules are evaporating, festivals are tumbling away by the day… right now, as a promoter, there are very few other ways of making any money.”
Unlike one-and-done streams that can’t be watched back, Crosstown gives fans the opportunity to buy a deluxe ticket that gets them 30 days to watch the show, as well as additional exclusive content. “Anecdotally, 60-70% of sales so far have been for the more expensive of the two ticket options,” says Dodds.
Both Dodds and Bryant say they see a place for part-physical, part-digital hybrid concerts as restrictions on real-world events are gradually lifted – Bryant says almost all major Sansar-hosted shows in 2021 are “‘parallel’ events” – as does Russ Tannen, chief revenue officer of concert discovery and ticketing platform Dice, which rapidly repositioned itself as a platform for ticketing and promoting live-streams in the early days of the pandemic.
“We made a call in April that it was time to give livestreaming a go,” recalls Tannen. “I was very sceptical – we’d never talked about livestreaming before the end of March – but obviously it took off very quickly and before long we’d had thousands of streams entered into the app.”
Dice’s live-streaming successes to date include a string of shows with Ric Salmon and Brian Message’s Driift, including Laura Marling, Nick Cave and Kylie Minogue (who sold 30,000+ tickets), Rough Trade, David Bowie’s Lazarus and DJs David Guetta and Bicep – as well as thousands of events with emerging and mid-level artists, whose fans are willing to pay similar money for digital concerts, at least during the pandemic.
The concert market is playing catch-up with sports, where PPV events have long been the norm
“It’s obviously Nick Cave, Kylie, etc., that got lots of headlines, but there’s actually a really interesting middle section of emerging artists, people like Black Country New Road, Cinematic Orchestra, who are also putting on viable shows and delivering really great live experiences,” Tannen says.
As to the hybrid question, “what we saw before lockdown is that socially distanced hybrid shows were selling really well,” he adds, “so I think we will see more of those – they will happen again and they will sell.”
“This summer is not going to happen in any major way,” says Sutcliffe, “so that hybrid model will be key as the first step back to live.”Whatever the reason – whether it’s fear of Covid, or maybe because they haven’t got the vaccine – a lot of people are still going to be scared to go back into a stadium, so this allows for both: a [physical] live ‘experience’ and the livestreamed show.”
Interestingly, a large proportion of the people who are buying tickets for live streams aren’t regular gig-goers temporarily shut out of venues, according to Tannen.
“One of the reasons I think they’re going to stick around is that we’re reaching a different demographic,” he says. “Maybe it’s people who have moved out of the city, or are a bit older, or for whatever reason can’t get to a venue, a lot of those people don’t want to be locked out of live music.”
Similarly, Dodds says Crosstown aren’t necessarily focusing on acts the company has promoted before. “We target people that we think there’s an audience for,” he explains. “We’re not really going after a young audience, as I don’t think they’re prepared to pay £10–15 for a concert broadcast – our target, really, is grown-ups.”
“Everyone is interested in capturing that incremental revenue, and livestreaming is part of that”
Even after non-socially distanced, full-capacity shows return, live streams will offer artists and promoters a reliable additional revenue stream for little risk or outlay, Sutcliffe adds. “If you sell out the O2 in London and then do another 20,000 tickets on top, that’s pure profit,” he says. “We don’t want to replace live – nothing beats the live experience – but [with streaming] we’re able to dd a layer of extra value for fans, artists and the industry.”
“The objective used to be 75%, 80% – whatever the magic number was, once you reached that, everyone was happy,” Hancock echoes. “But it seems like now, from the agents and promoters we’ve spoken to in the last year, everyone is interested in capturing that incremental revenue, and livestreaming is part of that.”
Dodds says while it “remains to be seen whether people want to continue [doing dedicated live streams] after live music returns, “it’s definitely something that could augment touring in the future, particularly if all shows on a tour are sold out, or for territories where people aren’t able to tour.”
For some performers, even archive performances can be repackaged and ticketed as a standalone ‘live’ stream – British comedian James Acaster, for example, sold 30,000 tickets at £10 each for a show that was originally filmed at the end of 2019, Tannen explains.
For virtual worlds like Sansar, where fans participate in the show as opposed to simply watching, the key to long-term success is “deeper engagement,” both between fans and artists and between the real and virtual words, Bryant suggests.
“One thing we explored last year is this thing we call ‘windowing,’” she says, “which allows different audience from around the world to mix and mingle, blending the lines of who and what we consider ‘real’.” Windowing, Bryant explains, involves putting up an LED screen on which real-world concertgoers can see and communicate with the Sansar avatars, and vice versa, with those inside the virtual world able to see the physical concert crowd.
“I’m hoping the live streams coming out now might ignite that little spark that we need to plant in the heads of gen Z”
While everyone IQ spoke to sees a place for livestreamed or virtual concerts post-pandemic, all are clear that they must not – and cannot – replace the live experience, instead functioning as an add-on to physical shows that benefits the industry and live music fans alike.
However, from a sustainability point of view, consumer willingness to pay for live-streams could enable artists to reduce the environmental impact of their tours by playing fewer physical dates, Sutcliffe suggests. “I’m romantic about live, but we have to be realistic about the situation,” he says.
“The logistics involved in an international tour – from the many forms of transport to hotel rooms, bars, restaurants – has a huge environmental impact.” From a coronavirus perspective, “that’s also a lot of movement that the world won’t allow to happen again quickly.”
Dodds agrees, stating, “As something to augment tours – maybe by adding a few livestream-only dates, with an extra show filmed at the be ginning of the tour – it’s definitely an option for artists who want to minimise their carbon footprints.”
For Tannen, the hope is that live streams can help get the next generation of concertgoers – for whose attention concerts are competing with video games, esports, YouTube, Twitch, social media and countless other electronic distractions – excited about live music, just as watching and rewatching old pop-punk videos did him at the turn of the millennium.
“I had all these Warped Tour VHSes [tapes], and they’re what got me obsessed with the idea of live music,” he says. “I’m hoping that might be the same with the live streams that are coming out now, that they might ignite that little spark that we need to plant in the heads of gen-Zers. We need to make sure the kids that are coming through want to go and watch shows, the same way we did.”
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This article forms part of IQ’s Covid-19 resource centre – a knowledge hub of essential guidance and updating resources for uncertain times.
Studio 2054: Backstage at the biggest live stream yet
Last weekend, Dua Lipa became the latest global megastar to dip a roller skate into the livestreaming water with her first ticketed virtual show, Studio 2054.
Described as a ‘“kaleidoscopic, rocket-fuelled journey through time, space, mirror balls, roller discos, bucket hats, belting beats, throbbing basslines and an absolute slam dunk of the best times in global club culture”, Studio 2054 eschewed the computer-generated digital FX seen at previous similar events for a neon extravaganza that strutted its way through multiple physical spaces in a specially constructed set at London’s Printworks.
Featuring guest appearances from the likes of Kylie Minogue, Miley Cyrus and Sir Elton John, the 28 November show is believed to have attracted the biggest-ever audience for a paid live stream, with over five million people tuning in live, according to a post-event release put out by organisers.
But what turned out to the biggest streaming event to date wasn’t originally an easy sell to the star involved, says Lipa’s manager, Ben Mawson of Tap Music. “Initially, Dua told me, ‘I don’t want to do one,’” recalls Mawson, who originally pitched Lipa the show that became Studio 2054 shortly after another Tap client, Ellie Goulding, wrapped up her debut live stream, The Brightest Blue Experience, in late August. “She said, ‘I’m waiting for live to come back.’
“I told her to think of it like a movie, or a live music video, and that captured her interest. And in the end she really enjoyed the experience, being back performing live.”
“There’s a lot of cost that goes into into explaining to an audience that it’s not just another live stream”
For the artist, meanwhile, preparations for Studio 2054 began in earnest a few weeks before the (non-socially distanced) show, when Lipa formed a ‘bubble’ with her dancers and other live performers, spending two weeks in a “quarantine house” to ensure the event’s Covid safety.
Tap estimates that 5m is a conservative estimate for the total viewers, with over 2m people tuning in in China alone. Another major hotspot was India, where Tap and livestreaming partner LiveNow struck a deal with domestic music streaming platform Gaana to provide the show to its subscribers, of whom 95,000 accessed the stream on Friday night alone, and numbers have grown since.
In China, meanwhile, a deal was done with another local streaming giant, Tencent, with fans able to watch the stream via QQ Music, Kugou, Kuwo and WeSing.
“Unless you count pre-internet events like Live Aid, I think we may well be the most-viewed live stream to date,” says Mawson.
Total ‘hard’ ticket sales for Studio 2054 current stand at around 284,000, although LiveNow is still selling on-demand tickets for the show, so that number will likely go up in the coming days.
The final general-admission tickets for the live event were priced at £13.99/€13.99, while catch-up passes are available for a discounted £7.50 until Sunday (6 December).
Tom Middleditch, chief product officer of LiveNow, says it’s crucial that ticketed streamed events like Studio 2054 go off without a hitch. “When people are paying for tickets, the experience has to be good,” he explains. “Livestreaming can always go wrong, but this was about as seamless as it can get.”
“When people are paying for tickets, the experience has to be good”
“I was terrified of the stream freezing,” adds Mawson. “I’ve tuned into some of the other big live streams and a few had major problems. Dua places huge importance on her fans’ experience, so it was key we didn’t get any complaints from users, and we didn’t.”
Middleditch reveals that, at its peak, the broadcast had viewers in 150 countries, with LiveNow’s platform localised towards fans depending on where they were in the world. “I have a lot of experience in sports, so I’m used to high peaks,” he says, “but when you have so many people [watching simultaneously all across the world] it’s a different challenge.”
For Mawson, it was important that Studio 2045 offered a fan experience beyond that of a basic livestreamed concert, as The Brightest Blue Experience – filmed inside the Edwardian V&A Museum in London – had in August.
“It’s hard because you’ve got to get balance right between the scale of idea and the costs,” explains Mawson. “You can’t just say to people, ‘Your favourite artist is doing a performance online,’ because everyone’s doing it, and they’re free.
“The model now has to almost like a TV special, with creative and marketing behind it – there’s a lot of cost that goes into into educating and explaining to an audience that it is an experience that they’re going to want to see, rather than just another live stream.”
The show’s marketing was helped no end by Lipa herself, Mawson says, who was tireless in her promotional efforts in the run-up to Studio 2054. “She kept putting trailers up, announcing guests… It was a very good marketing roll-out that helped to get the word out there.”
“The most important thing was that we didn’t do a show that’s ‘just’ a live show”
“The most important thing, as a manager, was that we didn’t do a show that’s ‘just’ a live show – it wasn’t just a concert in an arena that you can’t go to because of Covid,” Mawson continues. “The focus was on doing something different, and letting fans know we’re bringing something new to the market.”
Equally key to the show’s success was getting the price point right – something both Mawson and Middleditch believe the Studio 2054 team achieved, and which is borne out by the number of people who tuned in. “I’ve seen other shows priced much higher, and that affected their viewer numbers,” says Mawson. “Dua was the right pricing.”
“No one complained about the price, which is very unusual for this kind of event,” Middleditch adds.
While undoubtedly a successful second effort for the Tap-LiveNow partnership, Mawson says there’s still room for improvement with future live streams, noting that while the show “got massive visibility” in certain territories, there were some that underperformed. “I want to get better at the international thing,” he says, given that “Dua is the number-one star in the world”.
“There’s a lot music can learn from sport” when it comes to realising the full potential of the livestreaming model, adds Middleditch. “[Live streams are] never going to replace live – seeing something live is better than watching it on any device – but these kind of events provide so many opportunities for artists and fans.” Whether it’s instead of, or an addition to, an in-person live show, “people will be able to see artists live that they never could previously,” he concludes.
Communion launches livestream series Communion Presents
Communion Music, the UK-based promoter and record label, has announced Communion Presents, a new series of livestreamed performances and conversations with artists filmed at London venue Lafayette.
Communion Presents, hosted on livestreaming service LIVENow, will take the form of a weekly-30 minute show featuring two live performances and interviews hosted by Communion promoter Mazin Tappuni. The first episode goes live on Sunday 29 November and features performances by Olivia Dean and Louis Dunford.
Further confirmed guests include Apre, Chartreuse and Zola Courtney. The first series runs up to 27 December.
Each show will be broadcast for free on LIVENow, which is also home to upcoming live streams by Dua Lipa (Studio 2054) and Gorillaz (Song Machine Live) shows.
“We hope this series with our friends at LIVENow helps bring their live shows to your screens”
“Providing a stage for new music has always been at the heart of what we do at Communion,” comments Tappuni. “During this disaster of a year, we wanted to find a way to continue supporting exciting new artists and creating a livestreaming series seemed the right way to do it. There have been some fantastically memorable streamed shows over the past few months; Dermot Kennedy’s set at the Natural History Museum and Nick Cave’s masterclass at Alexandra Palace were among my favourites.
“Lafayette is London’s best new venue, and while you can’t come and see that for yourself yet, we hope these online shows offer up the next best opportunity to see what makes it so special.”
Lafayette, part of Ben Lovett’s Venue Group, opened in March in King’s Cross, London, with a show by Brit Award winner Dave winning artist, but less than a fortnight later was forced to close because of coronavirus. Lovett, a member of Mumford & Sons and co-founder of Communion, spoke about the impending launch of Lafeyette and his passion for grassroots venues at Futures Forum at ILMC 32.
Continues Tappuni: “2020 has undoubtedly been a difficult year for so many new artists, who haven’t had any opportunities to play in front of their new fans, and we hope this series with our friends at LIVENow helps bring their live shows to your screens.”