Stay Nation & Goldman Sachs Are Bullish On Stay Music. Others Are Involved

(Hypebot) — Two experiences paint a really constructive image of the dwell music in 2024 and past. However the brand new Goldman Sachs ‘Music In The Air’ examine and the latest Stay Nation report back to traders solely tackle the highest of the market.

The numbers are spectacular.

Goldman Sachs predicts 6.5% progress

In response to the Goldman Sachs “Music In The Air” report, “the dwell music trade continued its robust rebound in 2023 with estimated revenues of $33.1 billion in 2023 versus $26.5 billion in 2022) based mostly on the traits reported by varied trade gamers corresponding to Stay Nation and CTS Eventim.”

“the resilience of live performance spending amidst elevated inflation”

“In 2023, we estimate that the (dwell music) trade grew 25%…” the report continues. “That is pushed in our view by a robust schedule that featured many artists who had not toured since pre-COVID, specifically Taylor Swift and Beyonce, driving each attendances (owing to bigger venues) and pricing energy (as a consequence of perceived shortage of those artists within the brief time period).”

“This additionally as soon as once more demonstrates the resilience of live performance spending amidst elevated inflation and stress on shopper spending and the rising structural demand for experiences, significantly amongst Gen Z and Millennials. Trying ahead, we anticipate dwell music to stay a pretty market with a stable progress outlook (GSe +6.5% 2024-30 CAGR, from +5% beforehand), given robust secular demand and provide tailwinds.”

Lengthy-Time period Development Forward

“Over the long run, we consider that demand for dwell leisure can be pushed by i) supportive demographic and shopper traits, and ii) the elevated consciousness of and social worth attributable to dwell occasions caused by streaming and social media,” the report concludes.

Learn the Goldman Sachs Music In The Air Report right here.

Stay Nation attendance up 21%

Income was up 21% to $3.8 billion at Stay Nation in Q1 2024, and attendance grew 21% to 23 million followers with 77 million fee-bearing tickets bought.

Its Ticketmaster division has bought 112 million fee-bearing tickets up to now this 12 months, up 4%.

“Our Q1 outcomes exhibit that dwell occasions stay a precedence for followers world wide,” mentioned Stay Nation president/CEO Michael Rapino in its newest report back to traders. World fan demand is stronger than ever, extra artists are out on the highway, and extra venues are being added to deliver them collectively.”

Extra Stay Nation Q1 stats

• Live performance ticket gross sales for area and amphitheater reveals have been up greater than 10%
• 85% of full-year reveals at massive venues are already booked, in comparison with 75% final 12 months
• The corporate will add 12 or extra main venues globally in 2024/25 including a complete capability for over 8 million
• Attendance almost doubled for worldwide artists throughout the highest 50 world excursions in comparison with 5 years in the past
• Latin Music
  • Ticket gross sales for Latin reveals within the U.S. are up greater than 10% over final 12 months
  • Confirmed U.S. Latin reveals for Latin are up roughly 40%

Impartial Artists, Venues & Promoters Wrestle

Nearly all the constructive numbers and predictions from Goldman Sachs and Stay Nation tackle the highest 5% of the dwell music market.

Ask the artists, venues, and promoters working beneath the stadium, area, amphitheater, and huge theater degree, and they’ll let you know they’re dealing with skyrocketing prices and decrease attendance triggered partly by elevated competitors on the prime finish of the market.

The UK misplaced 125 smaller music venues final 12 months, and Australia misplaced 1,300 or one-third of its small and mid-sized music venues because the begin of the COVID pandemic. t

Whereas no agency numbers exist for the US, dozens of venues, impartial promoters, and brokers inform Hypebot they’re struggling too.

Even on the prime finish of the pageant market, ticket gross sales at Coachella have been reportedly down 15%, and the New Orleans Jazz & Heritage Pageant, Los Angeles’ Seashore Life Pageant, and Daytona Seashore’s Welcome to Rockville festivals all did not promote out this 12 months.

Tomorrow’s Headliners

Past the quick impact on dwell music’s 95%, weak spot on the mid and decrease ranges of its ecosystem is a warning signal for its prime finish.

The place will tomorrow’s massive venue headliners come from with out a strong dwell touring coaching floor to nurture them?

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Company, and a Berklee School Of Music professor.