fbpx

PROFILE

MY SUBSCRIPTION

LOGOUT

x

The latest industry news to your inbox.

    

I'd like to hear about marketing opportunities

    

I accept IQ Magazine's Terms and Conditions and Privacy Policy

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”

Changing Landscape
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.

Online events hosting service Hopin has been on a strategic shopping spree, acquiring the likes of Attendify, Boomset, Jamm, Streamable, StreamYard and Topi in its attempts to bolster its portfolio.

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.

The Future
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.”

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

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.”

 


Read this feature in its original format in the digital edition of IQ 97:


This article forms part of IQ’s Covid-19 resource centre – a knowledge hub of essential guidance and updating resources for uncertain times.

Get more stories like this in your inbox by signing up for IQ IndexIQ’s free email digest of essential live music industry news.

Major streaming services to branch into virtual events

Spotify is developing a feature that will alert fans to an artist’s upcoming virtual events, according to a tweet by reverse engineer Jane Manchun Wong.

The streaming service ordinarily lists an artist’s live events on their profile page, but according to Wong (via TechCrunch), it is now transforming that feature into virtual events discovery.

The platform already works with ticketing partners including Ticketmaster, Songkick, Resident Advisor, Eventbrite, AXS and Japan’s eplus, and therefore virtual event listings wouldn’t be difficult to implement.

The feature isn’t yet available in the public-facing version of the Spotify app.

Elsewhere, Jay-Z’s streaming service Tidal has spent US$7 million on tokens issued by the company behind Sensorium Galaxy, a new VR “social metaspace” in which users can attend alternative-world concerts, nightclubs and festivals through a VR headset.

Through the purchase, Tidal has acquired access to broadcast their content within Sensorium Galaxy, which is due to launch publicly in early 2021.

Sensorium says that its “Social VR technology” is poised to “provide unprecedented ways for artists”

Lior Tibon, COO of Tidal, says: “Our relationship with Sensorium provides Tidal with the opportunity to gain exclusive rights for its stellar artist roster to have their shows and music broadcast exclusively within Sensorium’s themed virtual entertainment worlds.

“The Sensorium Galaxy is a next-generation platform for entertainment consumption which will elevate the connection fans have with their favourite artists, and bring artists’ vision to life in a new and exciting way.”

Sensorium says that its “social VR technology” is poised to “provide unprecedented ways for artists, performance venues, game publishers, and virtual influencers to entertain and engage fans globally across interactive environments”.

Alongside Jay-Z, Tidal’s artist co-owners include Lil Wayne, Rihanna, Calvin Harris, Daft Punk and Coldplay’s Chris Martin.

Earlier this week, it was announced earlier this week that streaming service Napster will be acquired by live music virtual reality platform MelodyVR.

The US$70 million acquisition will eventually combine Napster’s library of over 90 million audio tracks and Melody VR’s catalogue of virtual live music shows, to create a platform where users can stream music and experience immersive live performances.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Immersive music startup MelodyVR acquires Napster

Live music virtual reality platform MelodyVR is acquiring Rhapsody International, which operates as music subscription service Napster.

The US$70 million acquisition will eventually combine Napster’s library of over 90 million audio tracks and Melody VR’s catalogue of virtual live music shows, to create a platform where users can stream music and experience immersive live performances.

“For music fans today, live and recorded music are intrinsically linked. We are as keen to see our favourite artists perform live as we are to listen to their albums,” says MelodyVR CEO Anthony Matchett.

“Our purchase of Napster, one of the music industry’s original disruptors, is born out of our wish to deliver the world’s foremost music experience, available seamlessly across audio and visual media and in turn presenting a truly next-generation music service.”

Napster CEO Bill Patrizio commented: “This is a tremendous outcome for two organizations with complementary platforms and loyal audiences, and we could not be more excited to be moving forward as one company.”

“Our wish is to deliver the world’s foremost music experience… a truly next-generation music service”

“The product, technology and cultural synergies of Napster and MelodyVR will bring tremendous innovation for music lovers, artists and the entire music industry. Good things come from being together, and we look forward to creating a powerful platform that combines our strengths and offers an even wider range of content to consumers, creators and advertisers.”

The UK-based MelodyVR broadcast its first live concert in virtual reality in 2018 with Liam Payne in London, after releasing its app – touted as the world’s first dedicated virtual reality (VR) music platform – in 2019, and subsequently partnering with O2 in the UK.

Since Covid-19 hit the industry, the company has delivered a digital edition of Wireless festival in London and live music VR series, Live from LA, which has featured artists including Cypress Hill, Kesha, John Legend and Tori Kelly.

The shows were available to watch in 360° for free via the MelodyVR app and VR headsets.

MelodyVR and Napster, which is currently 84% owned by RealNetworks, will operate independently for the foreseeable future.


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Final line-up for VR Wireless Connect revealed

Festival Republic and MelodyVR have announced the full line-up for Wireless Connect, a three-day virtual reality music festival taking place from 3 to 5 July.

The event will see exclusive performances – filmed in MelodyVR’s LA studio and custom-made studio in Alexandra Palace, London – from acts including Stefflon Don, Mist, Steel Banglez, Jay1, as well as additional footage from Wireless 2019 featuring Skepta, Young Thug, Rae Sremmurd and more. 

Other performances will come from Yungen, Unknown T, Big Narstie and Deno in the UK and from Saweetie, iann dior and 24kGoldn in the US. The full line-up and schedule can be found here.

Wireless Connect will be available in 360​° immersive virtual ​reality on smartphones and VR headsets via the MelodyVR app. It will also stream on the Wireless Facebook Live and YouTube channels.

Free to watch, Wireless Connect fans are encouraged to make a donation to the Black Lives Matter movement

Free to watch, Wireless Connect fans are encouraged to make a donation to the Black Lives Matter movement via a Crowdfunder, which launches at 5 p.m. BST today (29 June).

Radio station Capital Xtra will air artist interviews and provide the soundtrack to those bringing the festival experience to their home.

A celebration of rap, grime, hip hop and RnB, Wireless Festival was forced to cancel its fifteenth anniversary edition this year due to the coronavirus pandemic. Acts billed to play the event in London’s Finsbury Park included ASAP Rocky, D-Block Europe and Lil Uzi Thug.

Ben Samuels, North America president of MelodyVR, was one of a number of music industry innovators to take part in the IQ Focus Innovation Session last month. All previous IQ Focus sessions can be watched back here.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Kiss, Iron Maiden to headline virtual Download fest

Festival Republic has revealed the line-up for the virtual version of Download Festival, Download TV, with exclusive footage from headliners Kiss, Iron Maiden and System of a Down.

Download Festival was among the first major UK events to cancel it 2020 edition due to the coronavirus outbreak.

In its place, Download TV is airing on the original festival weekend, from 12 to 14 June, available to watch on the festival’s social channels and on YouTube. Fans can subscribe to Download TV on YouTube here.

The virtual event will feature a day time programme of interactive activities, live artist Q&As and lockdown performances, with the evenings bringing footage of live performances from the acts billed to play the event this year, including Korn, Deftones, Babymetal, Frank Carter & The Rattlesnakes, Creeper, the Offspring and the Darkness.

Past Download performances from headliners Kiss and System of a Down will be resurfaced for the event, while Iron Maiden promise “something just for Download TV”.

Festival Republic has revealed the line-up for the virtual version of Download Festival, Download TV, with exclusive footage from headliners Kiss, Iron Maiden and System of a Down

Download fans are encouraged to put tents up in their gardens, wear festival merchandise and send photos and videos in to the festival page to ensure a “celebration of the Download community”.

Fellow Festival Republic event Wireless Festival is also taking place in a virtual form this year, partnering with music-focused virtual reality company MelodyVR to produce Wireless Connect. From 3 to 5 July, pre-recorded live performances will be brought to Wireless fans in 360° virtual reality.

Performances will be recorded from MelodyVR’s studio in Los Angeles and the 10,400-capacity Alexandra Palace in London. The Wireless Connect line-up will be announced in due course.

MelodyVR’s Ben Samuels was among tech leaders to take part in IQ Focus panel The Innovation Session yesterday, discussing the most effective ways to monetise virtual shows. The panel is available to watch back on YouTube or Facebook now.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

‘The future is bright’: Tech leaders talk monetising virtual shows

The heads of some of the industry’s most inventive companies starred in the most recent IQ Focus panel, appropriately called The Innovators, which discussed the flurry of innovation going on behind the scenes during the ongoing halt in concert touring.

Dice’s UK managing director, Amy Oldham, began by speaking on the importance of “identifying the value” in new platforms and innovations. “In the beginning [of the pandemic], there was a lot of noise and a lot of not-very-good-quality shows,” she explained.

“Lewis [Capaldi] is a great example” of what the industry should be working towards, she added. “We did his show exclusively a few weeks ago. He did an acoustic set of the first album, and it actually felt like being on a night out – you had people taking photos of themselves hugging the TV saying it’s the best £5 they ever spent.”

Tommas Arnby of Locomotion Entertainment said his client, Yungblud – whose Yungblud Show Live (described as a “rock-and-roll version of Jimmy Kimmel”) was one of the early highlights of the livestreaming boom – was supposed to be “doing five sold-out Kentish Town Forums” in London this week, and his online presence is “about how to recreate that” live experience.

“In the very beginning these bedroom and kitchen performances played an important role,” but now people expect a more polished experience, said Ben Samuels, MelodyVR’s president and GM in North America. “What we’re doing is investing a lot to ensure these shows look and feel fantastic. […] They should be the best thing to actually being on stage or in the front row of a real show. So production values have been crucial to us.”

“Artists have to feel comfortable and confident about charging for their content”

Sheri Bryant, president of online ‘social VR’ platform Sansar, said a virtual concert should be looked as “additive; it’s not going to replace the live performance”.

Oldham – who revealed that Dice is now selling tickets in at least 113 countries following the launch of its livestreaming platform, Dice TV – agreed that while everyone on the panel is doing a great job keeping fans engaged while touring is on hold, “one thing we haven’t nailed is giving artists confidence that just because they’re doing something on a stream doesn’t mean we shouldn’t be charging.

“All the movie studios are shut, and yet we don’t see them dropping films online and saying, ‘Just pay what you fancy!’ Artists have to feel comfortable and confident about charging for their content.”

Chair Mike Malak, from Paradigm Talent Agency, compared charging for online video content to the transition in the recording business from fans pirating music to (legally) streaming it, noting that “we all grew up watching free YouTube videos”.

Bryant said Sansar wants “everyone to be able to experience” the platform, suggesting offering both a free tier and a “VIP experience” that could include perks for those who’ve paid, such as meet and greets with an artist or special powers inside its virtual world.

“The most important thing for us is to show agents and managers that people had a great time,” said Prajit Gopal, CEO of livestreaming platform Looped. “That’s always been really important – going back to them and showing them,‘Here’s the reaction, and this is why you should be charging for it.’”

“Imagine if this happened 20, 30, 40 years ago – it would have been catastrophic”

With talk turning to sponsorship in virtual events, Oldham warned that “sometimes you can oversaturate an artist by doing too many partnerships”. However, Bryant said the music industry has much to learn from the wider entertainment business when it comes to getting its talent out there.

“Look at how the YouTube stars, the Twitch streamers got big: through hard work and with lots of exposure,” she said. “If you’re good and you’re getting out there, you’ll see that growth. I don’t think people should be precious about exposure – you want to be across as many platforms as possible, because you never know when one of them will see a big spike [in traffic].”

The discussion ended on a positive note, with Samuels highlighting how fortunate the live music business is to have all this technology at its disposal at such a difficult time.

“Imagine if this [coronavirus] happened 20, 30, 40 years ago – it would have been catastrophic,” he said. “In a weird way, we’re lucky this happened now, with all these platforms that can continue to bring high-quality content to fans and enable artists to still make a living.”

Arnby agreed: “All these choices, all these ways to connect… The future is very bright.”

The Innovation Session is available to watch back on YouTube or Facebook now.


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Innovators take the virtual stage for IQ Focus panel

Following last week’s The Venue’s Venue: Building Back session, IQ’s popular Focus series of virtual panels turns this Thursday to the flurry of innovation going on behind the scenes during the halt in concert touring.

The Innovation Session will feature insights from a who’s who of music-industry freethinkers and groundbreakers, who’ll discuss with the new ideas and green shoots that are rising from the current situation.

Joining chair Mike Malak, senior agent at Paradigm London, are Sheri Bryant, president of virtual world builder Sansar; Tommas Arnby, CEO of Locomotion Entertainment (Yungblud); Amy Oldham, managing director UK of ticketer-turned-livestreamer Dice; Ben Samuels, North America president of virtual-reality pioneer MelodyVR; and Prajit Gopal, CEO of celebrity video-chat/streaming service Looped.

Expect discussions on livestreaming, 3D venues, tipping, videogaming, virtual worlds and much more.

The Innovation Session will be streamed live this Thursday, 21 May, at 16.00 BST/17.00 CET.

Get an automatic reminder when the live stream starts at Facebook or YouTube.


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Together in Electric Streams: Inside the business of livestreaming

Here’s a great pop-quiz question: can you name the first ever artist to perform live online?

Zooropa-era U2, perhaps, with the band’s prescient satirisation of a dystopian technological future and the emptiness of consumer culture? Or the Rolling Stones, who rode 1994’s Voodoo Lounge – a ragged and glorious return to their rock and roll roots – around the world for 13 months, raking in an astonishing US$320 million?

Or maybe it was Brian Eno, a technological and conceptual pioneer who, at the time of the internet’s invention, was playing around with self-generating musical systems?

Nope. Nope. And nope. It was, in fact, an unknown rock four-piece from California called Severe Tire Damage, who broadcast a 90-minute set in June 1993 and promptly declared themselves “House Band of the Internet” (although you were close if you guessed the Stones – they were fourth).

Of course, a lot has changed in the intervening 27 years: the internet is now the primary means of consuming music for fans the world over, and never more so when you’re quarantined at home for an unspecified amount of time due to a global pandemic.

But as we all know, the rise of streaming services and platforms has been mirrored by a collapse in revenue for artists. Live shows remain one of their few reliable sources of income, yet with concerts now an impossibility for the foreseeable, a huge hole has been left in their earnings. A host of future-orientated new apps, platforms, and digital services – many of them employing virtual and augmented reality – have rushed in, aiming to fill it, but how realistic are some of their claims, and what can artists really hope to earn while replicating gigs in the digital realm?

It should be noted that many of the ideas or tech here are not new. Second Life hosted the first virtual concert back in 2007, while last year, Marshmello gave the “first-ever live performance in a video game,” DJing for 11 minutes in Fortnite.

Understandably, though, there’s a new urgency in the sector, with platforms reporting an explosion in use over the last few weeks as both fans and musicians grapple with the new reality; a captive audience, desperate for entertainment, are glued to their devices.

“Over the last month … active users, watchtime and broadcast hours have all jumped 40–50%”

“Between 22 February and 22 March, revenue from our iOS sales increased by 255%,” says Anthony Matchett, founder and CEO of MelodyVR.

“We’ve had a four-fold increase in new users signing up over the last month,” says Rudiger J. Ellis, of Switchboard Live. “Daily activity on our platform has skyrocketed,” adds Jake Branzburg, president of YouNow. “Active users, watchtime and broadcast hours have all jumped 40–50%.”

It’s a trend confirmed by everyone IQ spoke to, with many choosing to ramp up advertising, expand, or roll out new features to take advantage of this surge.

All these platforms, at their core, fall into variations of one of two concepts: video hosting and streaming platforms, or some form of virtual or augmented experience.

YouNow is the former, allowing anyone to broadcast live video 24/7. So too is Streamlabs, an ‘all-in-one livestreaming app’.

Restream allows users to broadcast live video to multiple social media networks simultaneously; Switchboard Live is a multi-streaming platform geared towards all types of live content; while Switcher Studio makes capturing video from multiple angles and editing it in real time, a cinch.

On the other side is MelodyVR, a platform that claims to put fans “inside huge live performances”. According to Matchett, “Music lovers can watch performances in immersive 360° on smartphones or in VR via headsets. And they can choose where they watch from – from deep in the crowd to on stage with the band.”

“YouNow partners earn anywhere from three to five figures per month by sharing their talents”

Sansar, a new live events destination from the makers of Second Life, goes one step further. “The future of concerts is virtual,” declares their website. “Join the revolution.”

To this end, the company has built an entire virtual universe of thousands of connected, user-created spaces to socialise and perform in. “Audiences of all kinds can come together for innovative events and stunning, photorealistic live performances,” says press and marketing manager Hari Raghaven.

Just like everyone else, artists the world over are in lockdown, too; bored, frustrated, and eager to connect. Many have taken to social media to broadcast rudimentary performances and even clips of their daily lives.

TikTok, Twitch, Instagram Live, YouTube, and Facebook are full of these, with stars such as Coldplay, Christine and the Queens and Keith Urban giving fans raw, unvarnished footage and encouraging a community vibe.

But such posts are not a long-term solution. As ever, the question of monetisation looms large, for promoters and event organisers as much as the artists themselves.

“Restream is not the end platform – we’re just the middleman between an artist and, say, YouTube,” explains Victor Bous, the company’s head of marketing. “We just help you increase your reach, grow your audience, and make your streaming experience better.”

It’s a similar story for Switcher Studio, and Switchboard Live – both are more of a tech solution than a platform explicitly designed to generate income. Streamlabs goes one further and allows donations and tips to be made direct to content creators.

The self-enclosed virtual environments of Sansar and MelodyVR allow for far greater – and, it is hoped, far more lucrative – monetisation

“We take a 0% cut from donations, and handle all main payment methods,” says George Kurdin, Streamlabs’ product manager. On top of that, content creators can sell merch via the platform, and may also monetise their stream on their own via affiliate deals, ads, and direct brand sponsorships.

“For some it has been quite lucrative – we’ve processed over $500m in donations over the last few years.”

YouNow offers an extra tier for those looking to cash in on their audience. “Musicians with a strong following can apply to the YouNow partner programme,” says Branzburg. “YouNow partners earn anywhere from three to five figures per month by sharing their talents. Community members support partners by subscribing to their broadcasts monthly and/or by sending them virtual gifts – the more gifts partners get, the more they trend, and the more they earn.”

But the self-enclosed virtual environments of Sansar and MelodyVR allow for far greater – and, it is hoped, far more lucrative – monetisation.

“Because Sansar is the only live events platform that allows partners to generate multiple revenue streams in customised virtual spaces, we are the go-to platform in the space,” says Raghaven. Access to a fully integrated ticketing system, merchandising and sponsorship offerings, and microtransactions (peer-to-peer tipping, so that fans can send money directly during a live show) are just some of the options offered. The virtual-reality element allows them to go even further, though; Raghaven says artists are only limited by their imagination.

“They can have special tiers of tickets – a more expensive VIP ticket, for instance, that grants special in-world privileges or access (the ability to fly, say, or entry into an exclusive meet-and-greet). They can sell real and virtual merchandise – branded virtual tees, hats, jackets, you name it – that can be purchased for their avatars or in real life, and within their virtual space they can include branding from external sponsors.”

Being based on an actual, real-world show, MelodyVR aims to leverage scale to help performers maximise revenue. “MelodyVR means that no event is ever sold out, and no show is off limits,” says Matchett. “Artists’ performances can reach fans around the globe, both in real time and on demand, in a way that we see as the ‘next best thing’ to physically being there.”

 


Continue reading this feature in the digital edition of IQ 89, or subscribe to the magazine here


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

The show goes on(line): Concerts get creative amid global shutdown

In a matter of weeks, the global live music industry has come to a virtual standstill, with shows called off and fans forced inside by the ongoing Covid-19 pandemic.

But while ‘normal’ concerts are off the cards, a wave of virtual events are springing up to take their place, taking advantage of social media, virtual reality and online worlds to bring fans closer to artists at a time when both concert performer and concertgoer are stuck indoors.

Sweet streams
By far the most popular way of connecting with housebound fans, many of the world’s biggest artists, including Coldplay’s Chris Martin, Pink, John Legend, country singer Keith Urban and Latin star Juanes have streamed live performances on their social media accounts in recent days.

Others, such as Miley Cyrus, Christine and the Queens and Lizzo, are broadcasting largely non-musical content that offering a glimpse into their self-isolating lives, while likes of Bruce Springsteen are making past concerts available for free. UK singer Yungblud, meanwhile, took the opportunity to create The Yungblud Show Live, an anarchic hour-long show (featuring a concert segment, drinking games and a cooking lesson) filmed in LA following the postponement of his upcoming tour.

In the classical music world, the Berlin Philharmonic Orchestra has made its ‘digital concert hall’ video streaming service, featuring over 600 concerts spanning more than a decade, free to all before 31 March.

“We already miss our public very much and hope that in this way we can remain in contact with our audience, at least virtually,” says Olaf Maninger, the orchestra’s principal cellist.

Elsewhere, in Europe’s clubbing capital, promoters have gone one step further by creating a 24-hour ‘virtual club’, dubbed United We Stream, in order to “save Berlin’s club culture in quarantine”. (The German capital’s nightlife been on lockdown since Friday 13 March.)

Launching today (18 March) at 7pm local time, the initiative will see the empty clubs streaming several hours of DJ sets and live performances every day, with the venue changing each night. Participating clubs include the Watergate (which will host tonight’s first show, with Claptone, Monika Kruse and Mathew Jonson), Tresor, Kater Blau, Salon Zur Wilden Renate and Sisyphos.

Fans are encouraged to donate €10, €20 or €30 a month in exchange for a ‘virtual club ticket’, with all funds going directly to a relief fund to support clubs and event organisers during the closure.

“We already miss our public very much”

Faces for radio
Miami’s Ultra Music Festival (UMF) was the first major western festival to fall victim to the coronavirus, having been pulled by city councillors just over two weeks out, on 4 March.

Now reborn as a ‘virtual audio festival’ on US satellite/internet radio platform SiriusXM, Ultra will take the form of an audio-only event, running from Friday 20 to Monday 23 March (its original dates) and featuring live performances by DJs scheduled to perform at Ultra Miami, including Afrojack, Major Lazer, Martin Garrix, Above and Beyond, Armin van Buuren, Nicky Romero and Oliver Heldens.

Ultra Virtual Audio Festival will be broadcast on a temporary SiriusXM channel, UMF Radio (channel 52), which will also air previous Ultra sets by stars such as Marshmello, the Chainsmokers, Kygo and Carl Cox.

Scott Greenstein, president and chief content officer of SiriusXM, says: “With the postponement of beloved events, necessary changes in people’s everyday life and need for social distancing, we know our listeners are seeking a sense of community more than ever.

“To encourage that, we are pleased to be working with Ultra Music Festival to provide our listeners with this virtual audio festival featuring the diverse line-up of artists the UMF delivers year after year, as well as exclusive fresh, new sets from some of the biggest names in dance music.”

UMF 2020 ticket holders will receive an email in the coming days offering access to UMF Radio and other SiriusXM programming.

In the UK, meanwhile, the cancelled Country to Country (C2C) festival – due to take place on 13–15 March at the O2 in London – was replaced a special show on BBC Radio 2, which was originally to have broadcast from the event.

Radio 2’s Country Festival, presented by ‘Whispering’ Bob Harris, Bobbie Pryor and the Shires’ Ben Earle, featured live performances from artists scheduled to play C2C, including Luke Combs, Eric Church, Darius Rucker, the Cadillac Three, Old Crow Medicine Show, Brett Young and Tenille Townes.

“We know our listeners are seeking a sense of community more than ever”

Game on
Passing the time while ill by playing video games is nothing new, but the current period of self-isolation will be the first time many experience a live event inside a virtual world. Marshmello’s groundbreaking Fortnite concert last year opened the floodgates opened for live music in gaming, with rock bands Korn (in AdventureQuest) and the Offspring (in World of Tanks), DJs Ekali (in Minecraft), Reggie Watts and Blasterjaxx and EDM label Monstercat (in Sansar) among those to have organised large virtual concerts since.

Mojang’s Minecraft – the open-ended world-builder which, with nearly half a billion players, is arguably the biggest game in the world today – is no stranger to hosting music events, holding its first live concert, with AlunaGeorge, Broiler and Lemaitre, in March 2016. It also hosted Fire Festival, with Ekali, Arty, Hudson Mohawke, Luca Lush and over 5,000 ‘festivalgoers’, early last year, with another 80,000 tuning in via live stream.

Upcoming live entertainment in Minecraft includes Second Sky-inspired music festival Second Aether, which will take place on 28 and 29 March, and an as-yet-unnamed festival set to take place at Club Matryoshka (a virtual nightclub hosted on a private Minecraft server) on 26 April.

https://twitter.com/ClubMatryoshka/status/1237750285428121600

Sansar, a virtual-reality online world from Linden Lab, the maker of Second Life, also plans to host several virtual live events in the months ahead. Sansar – which has partnerships with Monstercat, Spinnin’ Records and Roddenberry Entertainment (Star Trek), among others – yesterday (17 March) released a guide to creating an event inside the game, touting its credentials as a platform for “free virtual events amid [the] coronavirus emergency”.

“Sansar is no stranger to large-scale live events, and we’re here to help you and your audiences stay safe, productive and connected during the coronavirus outbreak,” says Sansar community manager Galileo Linden, noting that the game can accomodate “a conference for work, an educational workshop, a live performance or even a music festival”.

“We’re here to help you and your audiences stay safe, productive and connected during the coronavirus outbreak”

Reality check
Amid the gloom on global stock markets, MelodyVR maker EVR Holdings was one of few shares not in the red on the London Stock Exchange (LSE) today, its value surging with growing demand for concerts on virtual-reality headsets, according to the London Evening Standard.

In its Covid-19 update to the LSE, EVR says it has has seen a 56% spike in sales for MelodyVR over the past week as most major concerts were cancelled. “MelodyVR’s technology was originally created to enhance the live experience for music fans around the world who were unable to access performances either as a result of their location, age, cost of attendance or ticket availability,” the company explains.

“The restriction of both mass gatherings of the general public and international travel has already begun to adversely impact the global music industry, and while our vision was never to act as a replacement to live events, we believe that our technology affords fans the closest possible opportunity of experiencing the next best thing to actually being at a venue or show without physically being present.

“We have not sought to actively capitalise on the events of the last few weeks, yet having experienced a 56% increase in average sales over the course of the last seven days we anticipate this trend of MelodyVR platform usage to continue.”

Also having a good day is popular rhythm game Beat Saber, which announced today it has sold more than two million copies, cementing its reign as the best-selling virtual reality-exclusive title. “[T]he game has also proven to be a successful platform for artists to connect with fans, selling over 10 million songs through downloadable content,” reads an announcement on the Oculus blog.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.