Three trends shaking up event sector

The event market is increasingly focused on a select, few superstars. A mere 1 per cent of the top superstars account for 60 per cent of concert and streaming revenues and record sales. That is leading to even bigger and more spectacular multimedia shows, including those by Taylor Swift, who regularly arrives at concert halls with up to 50 lorries full of equipment. The U.S. singer-songwriter holds sway on merchandising thanks to her huge fan base. The "Swift effect" sent hotel prices through the roof shortly after the concert dates were announced, according to German price portal Check 24. "Smaller artists and agencies are left trailing behind," said Johannes Everke, Managing Director of the Bundesverband der Konzert- und Veranstaltungswirtschaft e.V. (BDKV) in Hamburg. But the lesser-known artists are indispensable to the scene. The diverse bar and music scene in Hamburg thrives on countless pubs and nightclubs with promising, up-and-coming young artists.

The second trend is that new technologies such as artificial intelligence and virtual and augmented reality are bringing entirely new, immersive experiences to the concert business. "The industry would be well advised to keep up with these trends as fans are becoming more demanding. Musicians and promoters should ask themselves whether they can enhance, expand or extend their analogue work with new technologies," said Everke. The ABBA Voyage is a prime example with four virtual avatars or "ABBAtars" representing the Swedish band as they appeared in 1979. Concertgoers see younger versions of the real artists during their virtual concert residency at the Abba Arena in London. This demonstrates the huge potential of immersive content for the event industry

All kinds of emotional experiences are possible when the boundaries between space and screen become blurred. Even a QR code in a digital space can enhance the experience, create added value and boost brand loyalty as a recent pilot study by Hamburg's Macromedia University and the BDKV has shown. However, generative AI is also fuelling existential fears. Around 71 per cent of respondents surveyed by GEMA fear that composers will no longer be able to earn a living from their work as AI-generated music gains pace.

“Music is made in Hamburg" and the local music industry accounts for a significant share of the national music industry, according to a survey done by Oxford Economics on behalf of Hamburg Music. Nearly 20 per cent of the music industry’s gross value added, or EUR 1.03 billion, was generated in the Hamburg region in 2019. As a centre of the music industry, Hamburg thus has huge economic clout in Europe and Germany, which is the world’s fourth largest music market. The Elbphilharmonie concert hall and international music events such as the Reeperbahn Festival have reinforced the trend in Hamburg's favour. "We have everything on site in Hamburg - players and service providers along the entire value chain,” Everke pointed out.

Money is earned mainly on the margins of events, according to the third trend. Visitors to the upcoming OMR Festival, for instance, move out to hotels on the outskirts of Hamburg. And organisers of OMR have also urged residents of Hamburg to open their doors and make bedrooms available to visitors. "OMR shows that focusing on your analogue product can be beneficial and credibly broaden the brand with new products. This has allowed OMR to retain the loyalty of its target group and has grown the depth of added value and developed new revenue streams," said Everke. Global stars such as Kim Kardashian and U.S. artist Jeff Koons are expected to attend this year's Online Marketing Rockstars (OMR) festival on May 7-8. Launched in 2011 as a small-scale, marketing workshop, OMR has long since morphed into Europe's gargantuan digital festival.

More than 70,000 expected visitors to OMR in Hamburg's exhibition halls show that live events are still alive and well. Cinema did not spell the end of theatre, and going to a live concert remains a human urge. Experiencing music up close with thousands of other people has a huge ripple effect. Such vibes will be palpable in midsummer when Taylor Swift takes to the stage on July 23-24 and especially in Hamburg's many small pubs and bars. 
kk/mm/pb