Live Nation reports soaring concert attendance as small shows struggle
Live Nation reported record growth last year and predicted continued growth in live music for the next decade. But Live Nation and Ticketmaster’s soaring numbers come even as many small to mid-level music venues struggle.
Live Nation’s revenue was up 36% to $22.7 billion in 2023, with operating income up 46% to $1.07 billion. That growth was fueled primarily by increases in concert attendance and the accompanying rise in ticket prices as well as sponsorship and VIP revenue.
145 million fans attended a Live Nation show in 2023, up 20% over 2022, and Ticketmaster sold 620 million tickets, an increase of 13%. Most of that rise in attendance came from shows at large amphitheaters and arenas, and that trend will continue in 2024, according to the world’s largest concert promoter.
Overall, concert ticket sales are up another 6% this year, but arena and amphitheater sales are showing double-digit growth. “This is going to be a great year,” Live Nation CEO Michale Rapino said on Thursday’s earnings call. “We’re pacing ahead on our arena and our amphitheater business, which is the higher-margin business.”
Looking ahead to 2025, audience size for mega-concerts will get even bigger. “(2025) looks like it’s going to be a monster stadium year,” said Rapino.
Small to Mid-Size Shows Struggle
This good news at the high end of the concert market is not translating to success further down the live music food chain.
While there are few stats to confirm the many anecdotal stories of venue struggles in the US, the numbers coming out of the UK and Australia are bleak.
A recent report by the UK’s Music Venue Trust revealed that 125 venues were forced to close their doors permanently in 2023. Overall, 16% of the UK’s small venues closed or stopped putting on gigs last year, and with almost weekly news of more venue and festival closures, the problem may be accelerating,
In Australia, 1,300 small and mid-sized live music venues- one-third of the entire sector- have closed since the start of the COVID pandemic.
Why?
Inflation and rising rent, supplies, and staffing costs are often given as primary reasons for venue closures, but success at the high end of the concert market is also a factor.
A fan’s ability to buy tickets is a finite resource, so when tens of thousands pay $200 to $1,000 to go to a stadium show, millions of dollars that might have been spent at smaller venues are gone. That hurts ticket sales for both venues and artists.
Spotify and other music streamers also deserve a share of the blame.
Local scenes that nurtured the artists that helped fill these smaller venues are also disappearing as music discovery from an unlimited pool of global artists moves online.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
