Live concert revenue is expected to drop-down by 64% in 2020, a staggering $18 billion dollar drop as reported by PricewaterhouseCoopers (PwC) in their Global Entertainment & Media Outlook. Further, the report estimates that $17 billion has been depleted from the value of the global music industry as a whole.
In total, live music is expected to generate $10.4 billion in 2020, a steep decline from 2019 where it generated $29 billion and falling short of the $30.4 billion generated by recorded music this year.
The report illustrates for the first time the devastating impact that the coronavirus has had on live entertainment with numerous restrictions place on live concert events.
However, the 2020–2024 Outlook report shows that live music will rebound in 2021, with worldwide revenues growing by 82.6%, to over $19 billion, as live entertainment resumes.
Mark Maitland, PwC’s UK head of entertainment and media, says a similarly strong recovery is expected in 2021 for other industries reliant on “in-person” experiences.
“Parts of the media sector have been hit very hard by the COVID-19 pandemic, particularly in-person activities or those reliant on advertising revenue. This will drive a c. 7% decline in sector revenues in 2020, but in recent months we have already seen improving performance, and as such, we expect the sector revenues to return to 2019 levels in 2021.”– Mark Maitland
In 2020, the report states that music streaming specifically is worth $20.4 billion, with a predicted compound annual growth rate (CAGR) of 11.32% going into 2024.
Music streaming isn’t the only sector to have done well out of lockdown. Where physical experiences, such as live music, cinema, and theatre, have been particularly hard hit by the downturn, home entertainment is booming, according to PwC, with video games, Netflix, and other video streaming services being the chief “beneficiaries” of the COVID-19 crisis.
This news was originally reported by IQMag.
Leave a Reply