Mintel reports on live industry growth

Thursday September 20, 2007

The Mintel Live Entertainment and Music Concerts study – which was presented at the Music Week events organised Live & Direct conference - found that the live music market is now worth £743m, as the number of people attending concerts has rocketed.

However, the traditional youth market is no longer the biggest market for live music: according to Mintel research, a greater proportion of 45-54 years olds (62%) are watching live music than 18-24 year-olds (50%). The 25-34-year old market follows close behind, with 58% of respondents regularly enjoying live shows.

At the same time, the pre/no-children audience group is being overtaken by third-agers. Cash- and time-rich music fans of 55 and over, who are free of dependent children, grew up with live music and are increasingly enjoying seeing their peer-group bands perform. Mintel says that this market could increasingly be targeted with more major, comfortable venues.

Senior Mintel analyst Richard Cope told the Live & Direct conference, “A lot of buzz in the media at the moment is about youth and the media but when you it comes to concert going it is not the case, when you hear about the discontent about the age of the audience at Glastonbury you realise the audience is growing older and richer.

“By 2012 the family market will be in decline, while the over 65 year old age group will be at the 11m mark, the teen market will only be at 4m. At the same time the AB economic group made up of 14m adults will grow by 7.5% giving us huge scope for private boxes, VIP tickets and pay-for afters shows.”

However, at the same time, a burgeoning under-age live music scene is emerging, with its own festivals, venues and promoters joining the ranks of the live music industry.

Mintel research also covered the reasons given for going to gigs, with “atmosphere” coming out on top - nearly three quarters of respondents gave this as their motivation for watching live music, compared to half of fans who go to gigs because they have bought the artist’s music.

Mintel’s research also indicates that social networking sites and downloading have promoted, rather than damaged, the live music market, with regular internet users more likely to go to gigs.

In addition, the internet accounts for half of tickets sales, although urban music fans are most likely to be impulsive ticket buyers, opting to buy tickets from touts or from the venue on the day.

The fact that over a quarter of fans buy tickets on the day or through the venue underlines the potential for one-stop ticket and music record shops, according to Mintel. Sales through online auction sites and touts total 4%.

The study also found that rock fans are the most devoted live music goers, with half of them attending a music concert in the last three years and nearly 18% going to a festival in the same time period.

Pop fans follow a close second, with more than 45% going to a concert and 9% attending a festival in the same period. Dance music trails far behind - only 7% of dance music fans go to live dance concerts and the same amount attend festivals.

Cope says, “The fact that some music fans go to gigs on a monthly basis shows there is tremendous potential for loyalty schemes and priority booking schemes.”

Yet, despite this good news, Mintel urges companies to remember “nursery ground” venues by nurturing pubs and bars in the same way the music majors have bankrolled indie labels, while still allowing them to still keep a sense of identity.

Nearly 40% of music fans have seen cutting edge and DIY acts at a pub or a bar and, of 1,500 people asked, over a third had enjoyed live music in a pub, compared to 22% in a concert venue.