ILMC 36: The Venue’s Venue: New Frontiers
Experts in venue operations, events strategy and promoting convened at ILMC 36 to analyse the potential of new arenas in emerging and established markets.
Moderated by IQ Magazine’s special projects editor James Drury, The Venue’s Venue: New Frontiers panel featured Live Nation’s Phil Bowdery, Co-op Live’s Gary Roden, D.Live’s Daniela Stork and ASM Global’s Marie Lindqvist and Tim Worton, who discussed what the developments mean for customers, existing venues and touring routes.
Drury kicked off proceedings at London’s Royal Lancaster Hotel by citing several findings from studies conducted by the European Arenas Association (EAA) and the National Arenas Association (NAA). Both indicated that overall attendances grew by 16% in 2023 (27,991,247 people) when compared to 2022 (24,224,783). Due to increased post-pandemic production and touring costs, average ticket prices also rose by 7% in 2023 (€62.04) when compared to 2022 (€58).
According to Worton, those figures were also reflected in the Asia-Pacific (APAC) region.
“We came out of Covid a lot later than other territories, so our 2022 numbers were lighter compared to the rest of the world,” he explained. “However, our 2023 numbers were in line with or slightly higher than in 2019, which I credit towards a pent-up post-Covid demand to finally go out and watch live entertainment.”
“I’ve already sold out five new shows in January this year. I can’t remember the last time that happened”
Worton also confirmed a new multi-purpose facility opening up in Bangkok, as well as the 50,000-capacity Kai Tak Sports Arena in Hong Kong.
“2023 was a very strong year for us in general,” noted Lindqvist, referencing the fact that several European markets didn’t register full years in 2022. “‘23 has been a great year for stadium shows in particular.”
“I’ve already sold out five new shows in January this year,” added Bowdery. “I can’t remember the last time that happened.”
Roden has been overseeing the development of Manchester’s Co-op Live, which is scheduled to open in April, and is looking forward to what the venue can offer from a business and entertainment standpoint.
“At 23,500 capacity, it’s going to be the biggest indoor arena in the UK, and given Manchester being a huge regional market, the city can definitely take a second arena,” he said, adding that this year’s MTV Europe Music Awards will be held there in a collaborative effort with Manchester City Council — further emphasising how governmental organisations are waking up to the value of using music as a city attraction.
“Our energy costs went up by 50% last year. Staffing costs have also gone through the roof”
Another point of discussion was the new types of “concert content” being advertised and played in arena shows. Worton praised the rise of Asian and Indian pop shows, while Stork elaborated on the importance of working with less established acts and promoters.
“We always attempt to build and foster relationships with promoters who haven’t had a long history in the business, and we try to go the extra mile to help them set up shows in our venues,” said Stork, who added that D.Live has a great track record with specialty bands who aren’t associated with their regular shows.
“It’s challenging sometimes, but it’s also good fun because it’s something really different,” she said.
The panel also reached a unanimous agreement when it came to discussing the most significant cost challenges. “Our energy costs went up by 50% last year,” said Worton. “Staffing costs have also gone through the roof.”
However, Lindqvist stated the rise in energy bills enabled her team to “make all the necessary investments for reducing energy consumption that ensure environmentally-friendly standards”.
“It’s a very clear trend in all the markets… People want to upgrade their experience, and it’s something that we’re accommodating towards”
When quizzed about the increasing size of production sets and whether a reduction in the number of trucks artists require for their shows, Bowdery stated that such acts are mainly “thinking about their fans” while admitting that their concerts will only get bigger.
“They’re artists, so they want to make sure that everyone enjoys their shows,” he said. “It’s a sign for our times.”
The panel further commented on the shifts in consumer trends when it comes to a preference in premium VIP experiences over general admission tickets, despite a marked increase in the global cost of living.
“It’s a very clear trend in all the markets, which is why we’ve also shifted towards a more B2C model,” Lindqvist said. “People want to upgrade their experience, and it’s something that we’re accommodating towards. This trend is shaping up how we’re going into the market and how we engage with our customers around those different opportunities.”
In closing, the panel explored the role sustainability plays into their operations, which has become a top priority for them. Examples included the banning of single-use plastics, constructing washing stations, selling reusable cups, and more.
“Our buildings have been running on renewable energy for a few years now,” said Stork. “I think everyone from fans to artists have the right to expect that we try our best to be as sustainable as possible.”
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Touring chiefs call for live industry ‘reset’
The roadmap to rebuilding the live industry back to pre-pandemic levels was up for debate during ILMC’s annual health check on the venue sector.
Co-chaired by ASM Global SVP Marie Lindqvist and Rockhal Luxembourg CEO Olivier Toth, The Venue’s Venue: Reconnect and reopen panel pored over the remaining challenges for venues around the world as they reopen from close to two years of inaction.
Production manager and 2022 Gaffer Award winner Phay Mac Mahon discussed the staffing issues he had experienced when returning to the road for a US tour last September.
“On the production side, we reckoned we were about 30% down on staff, so I think it’s going to be a tough year,” he said. “But let’s face it, we built this industry from nothing. We’re now going to have to redo it. We did it once, we can do it again.”
“They’re are not enough trucks or buses out there. Smaller acts are cancelling festival slots because they can’t afford to fly”
He added: “The biggest problem is that nobody has toured for two years, so everything got put back. The stuff that didn’t tour in 2020 got put back to this year. And then the stuff that didn’t tour in 2021 has been put back to this year, so we have a supply situation – there are not enough companies out there with equipment.
“There are not enough trucks out there, there’s not enough buses. Smaller acts that can’t get buses and can’t get trucks have to fly and their schedule is too tight. So they’re actually cancelling because they can’t afford to fly to festivals, etc, and that’s becoming a bigger issue. The bigger acts booked a long time ago, so they have the stuff.”
ATC Live agent Alex Bruford said the overwhelmingly positive response to the return of concerts had demonstrated how important live music was to people, but warned the anticipated boom in ticket sales was yet to materialise.
“There is a lot of talk about the ‘roaring ’20s’ and how, when we reopened, we’d all get back to business super-quickly and other things would be great again immediately. And, as we all have found out, that has not been the case so far,” he said. “There have been some hot shows that have sold a lot of tickets and some festivals that have gone up at the right time and sold a lot of tickets. But on the whole, it’s definitely a mixed bag out there in terms of ticket sales. A lot of shows are underperforming and a lot of artists are wondering why they’re not where they were two or three years ago.
“Chatting to a few other agents about this, it does feel like there’s been a bit of a reset button pushed in the whole touring industry and people are having to be very careful. None of us know exactly how the autumn is going to play out yet… It’s super-busy and it’s great to have people back, but there are definitely a lot of challenges ahead before we rebalance.”
“I feel there is a limit on ticket prices. Don’t push your luck with audiences”
On whether ticket prices would need to increase, Rock Werchter promoter Herman Schueremans, CEO of Live Nation Belgium, expressed caution.
“I feel that there is a limit on ticket prices,” he said. “Don’t push your luck with the audience. They were very loyal to us in the previous two, three years. People stayed extremely loyal by keeping their tickets and those people will say, ‘Look, we’ve already bought X amount of tickets… And we have to pay all of our bills,’ so they will make a choice.
“We have to solve the problems together. I don’t see any other solution. We need to get as strong and be creative and rethink things, instead of just repeating ourselves. But I think it’s a creative process. And it should not only come from the artists, but it should come from all of us.”
Rotterdam Ahoy CEO Jolanda Jansen shared similar sentiments.
“There is no easy solution and there’s also not one solution,” she said. “We survived the crisis together, so we need also to [overcome] these challenges together.”
“I’d like to see transparent costs across the board”
Mac Mahon warned that artists and management were in for a “wake up call”, due to many still working off budgets from 2020.
“All the costs have gone up,” he said. “There was a time that you a trucking float included fuel; there was a time you got a shipping quote, and it included fuel; if you were chartering an aircraft it was included… So all these things are going to make a huge difference to the bottom line for the artist.
“It’s going to be very interesting when the manager has to sit down with that artist and tells them there was a time that we could ship a sea container from London to Los Angeles door to door for £7,000 but now it’s £20,000.”
Summing up, Bruford made an impassioned plea for the “reset button” to be pressed on transparency across the industry.
“I’d like to see transparent costs across the board,” he said. “I’d like to be having conversations with people where when we’re discussing a show deal, every aspect of the income of that show is discussed and then split fairly between all the stakeholders in that show. I’d like to see no more rebates. I’d like to see ticketing fees kept under control, I’d like to see merch costs kept under control…
“All of these things are taking slices out of the revenue pot, making it harder to make the show actually financially viable, and then pushing up the ticket price. And as the ticket price gets pushed higher and higher, we all collectively sell less tickets, so we’re actually eating our own lunch by doing that.
“I’d like to be in a situation where we can have these open conversations and have all those costs on the table upfront and go, ‘Okay, how are we fairly splitting this?’ I’ve done a couple of tours recently where it has been like that and it is so refreshing. And I think that’s needs to be the way forward.”
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IQ Focus: The Top 10 sessions so far
Since launching IQ Focus, a weekly series of livestreamed panels that debuted in May, we’ve been inviting heavyweights from the international live music business to discuss issues ranging from the trials and tribulations of a pandemic to the systemic racism brought to light by Blackout Tuesday, and everything in between.
But it hasn’t all been doom and gloom. The Innovation Session, for example, heard panellists discuss the flurry of innovation, fledgeling business models, and new ideas that have come out of the coronavirus crisis. Staying Safe & Sane During Covid presented expert opinions on how to protect the mental health and wellbeing of music professionals and artists. What all these sessions have had in common is a sense of optimism, opportunity and determination, as our industry forges ahead into the unknown.
This week we’re taking some time off from IQ Focus, but in the meantime, please enjoy our top ten sessions from the past couple of months and don’t forget to subscribe to our YouTube channel to receive notifications about future IQ Focus sessions.
1. Festival Forum: Here Comes ’21
Hosted by ILMC head Greg Parmley, a panel comprising Europe’s festival elite discuss the collapse of this year’s festival season, as well as predictions for the next. Jim King (AEG Presents), Stephan Thanscheidt (FKP Scorpio), Rachael Greenfield (Bloodstock Open Air), Anders Wahren (Roskilde Festival) and Mathieu Jaton (Montreux Jazz Festival) update us on how they’re coping in unprecedented circumstances; what lessons have been learned, which challenges have been faced and crucially, what the road to recovery looks like.
2. The Agency Business: 3.0
The Covid-19 crisis has presented significant challenges for both multinational agencies and boutique outfits. From juggling investors to dealing with a hiatus from touring, agencies are being forced to reflect on how their companies are structured and seek new opportunities and creative solutions. ILMC head and session chair Greg Parmley asks an all-star panel, what comes next? Guest speakers include Angus Baskerville, (13 Artists) Jules de Lattre (United Talent Agency), Maria May (Creative Artists Agency) and Tom Schroeder (Paradigm Talent Agency).
3. The Venue’s Venue: Building Back
For IQ‘s third focus session, John Langford, COO of AEG Europe, invites leading venue professionals to discuss strategies for weathering the storm, what the key learnings have been so far, and what emerging from life under lockdown might look like. Guest speakers include Lucy Noble (Royal Albert Hall / National Arena Association – UK), Olivier Toth (Rockhal / European Arena Association – Luxembourg), Oliver Hoppe (Wizard Promotions – Germany), Tom Lynch (ASM Global – UK), Lotta Nibell (GOT Event – Sweden).
4. The Innovation Session
While the catastrophic impact of Covid-19 continues to resonate throughout live music, the halt in normal business is seeing a flurry of innovation, fledgeling business models, and new ideas. From an explosion in livestreaming to virtual performances and meet & greets, 3D venues, gaming and tipping, what green shoots are rising from this current situation? Mike Malak, senior agent at Paradigm Talent Agency chairs our fourth IQ Focus session and invites a line-up of free-thinkers and ground-breakers.
5. The State of Independence: Promoters
Across the touring world, independent promoters face similar challenges when looking ahead to business post-Covid-19. While this current period presents many unique challenges for this creative and entrepreneurial sector, it’s one of many pressures they face. So what’s the state of play in Europe, South America and India? And what alternative show formats, and business models are independent promoters adopting to stay ahead? CAA’s Emma Banks hosts the session to ask, as the industry emerges from its current crisis, where the opportunities might lie?
6. Festival Forum: The Next Stage
We’re midway through what would have been this year’s festival season, and it’s a summer like no other. But are we midway through the crisis, or is there still further to go before the festival sector can confidently progress into 2021? With a number of Government support packages in place, and much of this year’s line ups transplanted to next year, how confident are promoters feeling about next year, and are artists and audiences ready to return? IQ editor Gordon Masson hosts this discussion with guest speakers including Cindy Castillo (Mad Cool Festival – ES), John Giddings (Isle of Wight Festival / Solo Agency – UK), Stefan Lehmkuhl (Goodlive – DE), Codruta Vulcu (ARTmania Festival – RO).
7. Grassroots Music Venues in Crisis
One of the hardest-hit areas of the business, grassroots music venues may well also be the first to emerge from the current crisis over the coming weeks and months. Across Europe, the fate of these vital stages on which talent is born and grown, is mixed, with some facing closure. How are our small venues being protected by the organisations and industry around them, and what still needs to be done? And once their doors are open again, how different will gig going be?
8. Beyond Rhetoric: Race in Live Music
Blackout Tuesday brought the industry to a standstill and thrust the topic of diversity in the music business back into view. So just what challenges do black promoters, agents and managers face, and what’s needed to counter systemic racism both within the business, in performance spaces and touring markets? Our next IQ Focus session will ask how changes can be made, and the current momentum can be maintained over the months and years ahead.
9. IQ Focus & The MMF Present: Managing The Crisis
With the bulk of artists dependent on live music revenue and audience connection, the Covid-19 crisis has decimated livelihoods. But what does it mean for their managers – the individuals thrown into salvaging campaigns, rescheduling tours, interpreting contractual changes and navigating the most uncertain of futures? How are their own businesses faring? And what do they see as the challenges – and hopefully opportunities – ahead for the live sector, in what we are all optimistically calling the “new normal”.
10. Staying Safe & Sane During Covid
Staying Safe & Sane During Covid considered how to best protect the mental health and wellbeing of music professionals and artists alike who are juggling disruption to working conditions, employment & financial concerns, a difficult global outlook and more. Chaired by Stacey Pragnell at ATC Live, the conversation featured Lollapalooza Berlin promoter Stefan Lehmkuhl (Goodlive), MITC founder Tamsin Embleton, tour manager Andy Franks (Music Support) and the CEO of mental health and wellbeing festival Getahead, Jenni Cochrane.
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