LIVE MUSIC SPONSORSHIP Insights by Repucom 3 MUSIC IS ALL AROUND US We listen to it, stream it, buy it, download it, share it, play it, consume it live and potential of live music sponsorship. Furthermore, half and react to it in all sorts of different ways. It stirs emotions and straddles ter- of the 86 per cent interested in music profess to be ‘very ritories; young or old, and across a multitude of genres, music provides a pas- interested’, highlighting music’s emotional pull. By way of sion point for millions of people all over the world – and presents a valuable comparison, only 41 per cent of people are ‘very inter- opportunity for brands and promoters to align themselves with significant ested’ in watching TV, 32 per cent ‘very interested’ in groups of concert attendees or festival-goers. In terms of interest, across the sport, and 45 per cent ‘very interested’ in films and cine- major markets of France, Germany, UK, USA and Japan, interest in music ma. In such a vibrant marketplace, the opportunity for LIVE MUSIC 2016 surpasses sport, watching television and film/cinema, underlining the power brands is clear. Music offers a multitude of opportunities for brands to engage with fans Interest in music versus other leisure activities but selecting the right property, ensuring the right fit, and the right activation strategy is not a quick decision. It is a complex marketplace, full of moving parts. Opportunities for sponsors can range from a major global three-day festival, at the top level, down to a small gig in a local pub, club or arena. And Music transcends all demographics far more than any other leisure activity, that’s before you consider the many genres of music, each with its own values, which is reflected in the high interest levels – regardless of nationality, culture and fan groups. there are very few people in the world who do not like music of some kind. Repucom’s first global live music sponsorship report has been designed to examine the current landscape, from festivals to venues, tours to artist endorsements; this report concentrates on the young (14– 34 year olds) Paul Smith music audience in the five major global music markets: the USA, UK, France, Founder and CEO, Germany and Japan. Repucom FilM/Cinema 83% Like all entertainment, the music industry is being impacted by new tech- nologies – in fact music bore the brunt in terms of its traditional commercial model well over a decade ago but has adapted and streaming services in particular are creating new opportunities, while new media platforms and Sport 59% distribution methods are providing additional scope for brands to align themselves and interact with the world’s top artists. Promoters and sponsors of live music events, meanwhile, are able to amplify their message well be- Watching TV 79% yond those fans who are on-site at a festival or major show. Technology is drawing promoters, brands, artists and fans closer together than ever before. GLOBAL TOP 5 MUSIC CONTENTS MARKETS music 86% FRANCE | GERMANY | UK | USA | JAPAN 04 I AUDIENCE 12 I SPONSORSHIP Understanding the music fan, across Opportunities in music sponsorship range different genres, is vital for potential sponsors. from venues to artists to tours and festivals. FRANCE GERMANY UK USA JAPAN 08 I MEDIA 18 I ARTISTS MUSIC 88% MUSIC 85% MUSIC 84% MUSIC 89% MUSIC 81% How music fans consume – and share – Beyond sales, the marketability and awareness content from festivals and concerts. of major artists are key metrics for brands. SPORT 60% SPORT 64% SPORT 53% SPORT 62% SPORT 57% WATCHING TV 77% WATCHING TV 74% WATCHING TV 87% WATCHING TV 83% WATCHING TV 76% FILM/CINEMA 89% FILM/CINEMA 83% FILM/CINEMA 86% FILM/CINEMA 82% FILM/CINEMA 73% Base: 14– 34 year olds. Source: Repucom Market Research ©2015 Repucom Insights by Repucom 5 Audience WHAT TYPES OF MUSIC ARE PEOPLE LISTENING TO AND INTERESTED IN? While pop and rock music dominate the top five markets – and only in the things to different people – artists and bands might initially USA do more people like rock than pop – further down the list market specific describe themselves, or be described, as ‘alternative’ be- preferences become clearer. Rap and hip-hop, for example, is more popular in fore gaining popularity and becoming more mainstream the United States than other markets, while 29 per cent of people in Japan, far rock acts. Heavy rock and heavy metal, meanwhile, are more than any other market, like classical music. Electro and dance is most the most polarising of the main music styles: 26 per cent popular in France. Over two-thirds of people in the UK and USA enjoy alterna- globally ‘don’t like it at all’ compared to 4 per cent for pop AUDIENCE tive or indie music, although the definition of the genre is likely to mean different and 7 per cent for rock. Whether attending a concert, travelling to a music festival or Interest in different types of music simply watching an artist perform at a club or pub, understanding TYPES OF MUSIC the music audience is a fundamental for potential sponsors. TOP 5 MUSIC FOLK MARKETS REGGAE 17% Pop POP 20% Rock CLASSICAL 55% 24% Rap/Hip-hop RnB/Soul ROCK HARD ROCK Electro/Dance/Techno HEAVY METAL 49% 25% Alternative/Indie INDIE Hard rock/Heavy metal ALTERNATIVE RAP Classical 29% ELECTRO HIP-HOP DANCE Reggae TECHNO RNB 33% SOUL 32% 32% Folk FRANCE GERMANY UK USA JAPAN 1 53% 1 61% 1 55% 1 58% 1 51% 2 48% 2 55% 2 47% 2 55% 2 39% 3 40% 3 37% 3 41% 3 42% 3 29% 4 38% 4 36% 4 37% 4 40% 4 19% 5 35% 5 33% 5 36% 5 34% 4 19% 5 34% 4 19% Base: 14– 34 year olds Insights by Repucom 6 7 Audience Audience EVENT ATTENDANCE SPENDING AT MUSIC EVENTS More people across France, Germany, the UK, USA and Japan have at- are more likely to attend multiple concerts in a pub or club, While the average ticket price per festival according to the five major mar- and drink and travel and accommodation. Attendees of tended a music festival than a major arena gig or pub or club show over the past in all likelihood because there are many more events of this kets is €75.5, significant differences emerge across the individual markets. Of events such as Glastonbury and V Festival spend an aver- 12 months. But as expected, given the costs of attending a festival or big sta- type and ticket prices tend to be far cheaper. The propor- the big five, France has the lowest average festival ticket price at €43, while the age of just over €58 on food and drink whilst at a festival, dium show, the majority of people attend only one major event per year. People tion attending more than ten, though, remains small. UK average is just over €112. British festival fans also spend the most on food and over €76 to travel to and from a venue and stay there. Number of festivals attended Spending of live music events visitors (%) VISITED A LIVE MUSIC EVENT IN THE LAST 12 MONTHS? 17 In total, music fans aged 14 to 34 pay SPENDING 36 €17.2 billion every year to experience Festival (indoor/open air) IN TOP 5 Concert in a pub/club live music events in the top 5 markets. 22 MARKETS Concert in an indoor arena Festival indoor/open air 52% (BY %) Concert in a stadium or similar (open air) Concert in an indoor arena 46% 25 Based on 14 – 34 year old event visitors and including tickets, food and drink, travelling and accommodation. Concert in a pub or club 41% Concert in a stadium 36% Ticket prices/Consumer spend (€) or similar open-air TOP 5 MARKETS 112.1 Across the five biggest music markets, the average ticket price for a music 1 music event 75.7 76.8 event is just under €54, while the average NUMBER OF MUSIC EVENTS 2 music events Average ticket €75.5 66.6 spend for food and drink is €24.6 and 3–5 music events price per festival the average travel and accommodation 6–10 music events Top 5 markets ATTENDED IN THE LAST YEAR BY % 43 spend is just over €49. More than 10 music events 8 3 1 2 2 4 1 10 18 13 15 8 12 58.2 33 45.1 41.5 CONCERTS CONCERTS CONCERTS 29 FESTIVALS IN A STADIUM 27.6 56 25 UK 59 IN AN INDOOR 28 IN A PUB OR AVERAGE TICKET PRICE USA JAPAN 26 FRANCE 26 ARENA CLUB OR SIMILAR 62 GERMANY (OPEN AIR) (€) PER FESTIVAL 28 76.4 70.5 Base: 14– 34 year olds 60 UK USA 52.6 JAPAN FRANCE 43.2 GERMANY FESTIVALVenues CASE with a strong STUDY focus on music events and without a sports team as anchor tenant are in bold. Source: Repucom Market Intelligence AVERAGE FOOD AND DRINK (€) SPEND WACKEN OPEN AIR: THE WIDER ECONOMIC PICTURE AT FESTIVALS 1 Wacken Open Air is an annual heavy metal festival held in northern Ger- the region at festival-time, while accommodation out- many. The attendance each year is around 85,000, just under 20 per cent of side the festival campsites generated over €500,000. In AVERAGE TRAVEL which are international visitors, and the festival delivers an economic impact the venue over €5.5 million is generated from food and UK USA AND ACCOMMODATION (€) JAPAN FRANCE to the Schleswig-Holstein region of around €25 million.