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London's Venue Market

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London's Venue Market LONDON’S VENUE MARKET AN INTERNATIONAL BENCHMARKING STUDY PRESENTED BY SOUND DIPLOMACY INTERNATIONAL COMPARISONS We benchmarked London’s BERLIN POPULATION GDP PER AVERAGE VENUE TO venue ecosystem against four CAPITA TICKET PRICE POPULATION RATIO The Germany, Austria and other major cities: Berlin, Paris, Switzerland region sold over 1 Madrid and New York City. BERLIN 3.47m €31,504 €51.74 general/ 1 venue = 3.47m 7.3m tickets worth €380m €61.62 concerts people per venue Like London, these four cities in 20165 and has the highest (GAS regional)2 are standard stops on venue average ticket price of all LONDON 8.78m €43,6293 €50.30 general/ 2 venues = 4.39m tours, offering state-of-the-art the regions surveyed in the €50.20 concerts people per venue venues to acts and music fans. report, with a cross-genre (UK & Ireland 4 average of €51.74 and a concert regional) ticket average of €61.62. There is limited parking available onsite Since its opening, the venue has undergone Berlin’s Mercedes-Benz Arena is a with the ability to pre-book online, some technical reFurbishments, such purpose-built €165m, 17,000 capacity along with 400 cycling bays. The venue as introducing Tripleplay technology by venue. It boasts several event suites, is accessible via public transport, installing 200 IPTV (Internet Protocol 6 locker rooms and 4 dressing rooms including From regional train services to Television) screens across the venue’s across its 60,000 sqm oF space. other German cities and international various bars, VIP lounges and concourse.8 2017 had the strongest frst-half for services. All transport operates 24 The screens display scores, statistics and Mercedes-Benz Arena since it opened,6 hours on weekends, making post-show live streaming with almost nonexistent although it already averages 1.3m journeys home easy For audiences. delay, capable oF integrating social media. visitors and 130 events per year.7 Employees are able to control individual screens with their phones or tablets. They also recently upgraded their Wi-Fi ofFering to ease the network pressure 1 IHK Berlin (2015) 2 IQ Magazine (2017) of its 15,000-strong crowds accessing at 9 3 Barclays (2017) once and is developing its own app. 4 IQ Magazine (2017) 5 IQ Magazine (2017) 6 IQ Magazine (2017) 7 AEG (2017a) 8 Williams (2017) 9 IQ Magazine (2017) 2 3 PARIS The venue has a capacity oF 20,300 and ofFers 30 diFFerent layouts For events. POPULATION GDP PER AVERAGE VENUE TO CAPITA TICKET PRICE POPULATION RATIO The AccorHotels Arena reopened It also has 8 smaller rooms, such as lounges, to act as convention spaces. after renovations in October PARIS 2.24m €53,61710 €46.44 general/ 1 venue = 2.24m The venue has recently installed security €58.58 concerts people per venue 2015, selling 1.1m tickets in gates and scanners at all entrances. its first year back. It hosted (Western Europe AccorHotels is in the city centre, regional)11 111 events, 61 of which were less than 900m From Paris Gare de music events. The year after, Lyon, Paris-Austerlitz and Paris-Bercy, LONDON 8.78m €43,62912 €50.30 general/ 2 venues = 4.39m this increased to 1.5m tickets which oFFer access to Metro lines, bus €50.20 concerts people per venue for 178 events, although the services and RER express trains. (UK & Ireland 13 sports events far outsold music AccorHotels Arena says the key to regional) 14 maintaining a competitive edge against events at 101 to 53. The Paris other venues is to provide as many attacks had a short-term amenities and experiences as possible For impact on ticket sales, but the everyone From concert-goers to sponsors industry picked up again in and the artists themselves.17 For customers, this includes a selection oF bars and the second half of 2016, with restaurants oFFering live entertainment sales now exceeding previous to both ticket holders as well as 370 years.15 To date, it has seen screens located throughout the grounds. over 30m spectators, averaging The venue’s new app allows customers to reserve parking, pre-order and pay For 16 130 events per season. meals during intermission and receive event notifcations. Two VIP programmes are also available, ranging From €310 per event to €220,000 per season For dedicated 10 Paris Region (2016) 11 seating, parking and gastronomy. IQ Magazine (2017) 12 Barclays (2017) 13 IQ Magazine (2017) 14 IQ Magazine (2017) 15 IQ Magazine (2017) 16 AccorHotels Venue (2017) 17 IQ Magazine (2017) 4 5 MADRID LA NEUVA CUBIERTA ESPACIO in Madrid was recently purchased by GrupoFriends POPULATION GDP PER AVERAGE VENUE TO CAPITA TICKET PRICE POPULATION RATIO Madrid has three venues which and is undergoing a series oF renovations which will give the former bullfghting regularly host events and MADRID 3.16m €32,81218 €33.43 general/ 3 venues = 1.05m ring better acoustics and increase the €43.74 concerts people per venue concerts: Vistalegre (14,200 capacity to over 12,000 sqm. There will (Latin Europe capacity), WiZink Center also be a range oF services including onsite regional)19 (15,000) and La Nueva Cubierta production services and venue hire, as well as its own ticketing platForm. It is Espacio (soon to be 12,500). currently licensed to operate until 6.30am LONDON 8.78m €43,62920 €50.30 general/ 2 venues = 4.39m VISTALEGRE hosts a broad mix from and has a retractable rooF, which allows it €50.20 concerts people per venue concerts to sports games and conventions. to host events in any weather, as well as (UK & Ireland A €25m development, it opened in 2000 fve dressing rooms for performers (with regional)21 with three spaces: The Venue (14,000 direct access to both street and stage). capacity), The centre (5,000) and Sala San As the economy recovers, there is rising Miguel. It has 20 VIP boxes, as well as a interest in VIP packages and experiences, dedicated Presidential Box, 12 bars, 1,000 and Madrid’s La Nueva cubierta Espacio parking spaces and medical Facilities onsite. is looking to develop their oFFer.23 WIZINK CENTER (previously Palacio de The Spanish heat aFFects venue attendance, Deportes de la comunidad de Madrid) is because consumers don’t want to be a €124m venue used for sporting events indoors during the summer. However, the and concerts. 2016 marked its most region appears to have the most passionate successFul year, with 135 events held fans, with an average attendance oF 9,434 (56 oF which were concerts), showing per concert (the European average is a year-on-year growth since 2014.22 5,826). Venues hosted an average oF 32 There are 6 restaurants on site and events per year, but attendance rates and several VIP experiences including bars sales ratios Far exceeded those oF the rest and dedicated entrances and seats. of Europe. Venue tours and Festivals were particular market leaders in Spain in 2016. 18 Investor Relations (2016) 19 IQ Magazine (2017) 20 Barclays (2017) 21 IQ Magazine (2017) 22 Impulsa Eventos y Instalaciones (2017) 23 IQ Magazine (2017) 6 7 NEW YORK CITY Madison Square Garden is New York’s multi-purpose venue, hosting sports, POPULATION GDP PER CAPITA AVERAGE VENUE TO TICKET PRICE POPULATION RATIO New York City (the 5 boroughs) concerts and Family events. Today’s site opened in 1968 and has since amassed a has a similar (even slightly NEW 8.5m USd $69,074 USd $81 7 venues = 1.2m total building and reFurbishment cost of YORK (New York concerts25 people per venue lower) population than London, almost $2bn, not adjusting for infation.28 CITY Metro area but a lot more venues. It has a capacity oF up to 21,000, covering comprising New 76,000 sqm and was the second-busiest The city itselF has three venues: York, Newark venue in the world in 2016 aFter The Madison Square Garden, the Barclays and Jersey O2, with 1,053,675 tickets sold.29 Centre and Forest Hills Amphitheatre. City)24 But the New York market includes 7 Located in midtown New York city, the venues. They are (with capacities): venue sits directly above Penn Station, LONDON 8.78m €43,62926 €50.30 2 venues = 4.39m giving guests access to subway lines, • Madison Square Garden (19,420) general/ people per venue buses and Amtrak services to cities along €50.20 • Barclays centre (19,000) the East coast (Boston to Washington concerts (UK D.c.). Parking is not directly provided • PNc Bank Arts centre & Ireland onsite, but the venue does oFFer vouchers 27 Amphitheatre (17,500) regional) for local public parking garages. • Nikon at Jones Beach Theatre Amphitheatre (14,400) In 2013, MSG’s sound system was renovated The venue is home to the New York Knicks by Diversifed to include new broadcast (NBA), Rangers (NHL), and introduced • Prudential center (17,500) cabling, an IPTV system, wireless and its frst resident musician in Billy Joel, • Forest Hills Amphitheatre (13,500) satellite (RF) distribution, more television who plays monthly shows there. displays and sound systems From JBL, • Nassau coliseum (17,000). Yamaha, Renkus-Heinz and others.30 Further renovations during that same period 24 Open Data Network (2013) introduced more retail and restaurant 25 Crypto Media (2018) units, a broadcast studio, production 26 Barclays (2017) offces, larger concourses, suspended 27 IQ Magazine (2017) pedestrian paths above the venue 28 Esteban (2014) foor, LED video systems and improved 29 Pollstar (2016) dressing, locker and green rooms.31 30 Daley (2013) 31 Cacciola (2010) 8 9 6.5 CASE STUDY: In 2012, Barclays centre opened in Brooklyn.
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