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Entertainment Venues - US - March 2010

This report explores the live entertainment market in the US. It provides insight into the external and internal factors affecting sales, consumption and consumer trends, and what they mean for future sales, promotional campaigns and industry innovations. This report is a follow-up to Entertainment Venues—US, January 2009. It provides an in-depth examination of the live entertainment market for industry promoters, venue operators, artist managers and live event marketers interested in pursuing opportunities to innovate trends within segments and to evaluate the competition. Sales and analysis covers annual ticket volume of the top 50 venues in five separate venue categories and annual gross sales of the top 100 tours.

Specific questions that are answered in this report include, but are not limited to, the following:

  • How is the market segmented by venue and what venues are stagnating and which have grown in ticket volume?
  • How has the secondary ticket market affected the primary ticket market in regards to pricing?
  • How are consumers learning about concerts and which forms of media are most effective in getting the message out?
  • How has the rise in ticket prices affected consumer behavior?
  • Which concert promoters control the market and what have they done to remain competitive?
  • How will the approved merger between Live Nation and Ticketmaster affect the live entertainment market?
  • Which tours grossed the most in 2009 and how do these numbers compare to previous years?
  • How have multi-day destination festivals affected the overall market in terms of ticket volume and revenue?
  • What ancillary items such as T-shirts and food/beverages do consumers purchase most or least while attending concerts?

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Sales data
            • Consumer survey data
              • Advertising creative
                • Abbreviations and terms
                  • Abbreviations
                    • Terms
                    • Executive Summary

                      • 2009 revenues increase 10% from previous year, helped by rising prices
                        • Ticket volume increases 12% in 2009 due to heavy discounting in recession
                          • Average ticket price more than doubles over 12-year period to about $63
                            • Top 100 tours represent more than half of total market revenue
                              • Top 50 venues in leading markets responsible for 90% of top tour volume
                                • Arenas leading venue segment for ticket sales; losing share to festivals
                                  • Live Nation, Ticketmaster merger expected to shake up how industry is run
                                    • Music sponsorship spending totals $1.08 billion in 2009, up 3.8% from 2008
                                      • Consumer survey findings
                                      • Insights and Opportunities

                                        • Follow zero-tolerance rule with incentive for fans to purchase legitimately
                                          • Start a loyalty program by lowering prices for hardcore fans
                                            • Invest in mobile ticketing to drive box office convenience, sales
                                            • Inspire Insights

                                                • Trend: Advertising Everywhere
                                                  • Advertising now involves multi-platforms and consumer involvement
                                                    • Advertisers need to participate with fans opposed to direct sponsorships
                                                    • Market Size and Forecast

                                                      • Key points
                                                        • 2009 revenues increase 10% from previous year, helped by rising prices
                                                          • Ticket volume increases 12% in 2009 due to heavy discounting in recession
                                                            • Figure 1: Total U.S. concert industry ticket sale revenues, at current prices, 2004-14
                                                            • Figure 2: Total U.S. concert industry ticket sale revenues, at inflation-adjusted prices, 2004-14
                                                            • Figure 3: Average ticket price for the top 100 tours, 1997-2009
                                                            • Figure 4: Total tickets sold for the top 100 tours, 2003-09
                                                          • Top 100 tours represent more than half of total market revenue
                                                              • Figure 5: Total ticket grosses of the top 100 tours, at current prices, 2004-14
                                                              • Figure 6: Total ticket grosses of the top 100 tours, at inflation-adjusted prices, 2004-14
                                                          • Segment Performance

                                                            • Key points
                                                              • Top 50 venues in leading markets responsible for 90% of top tour volume
                                                                • Figure 7: Total tickets sold for the top 100 tours, 2003-09
                                                              • Arenas leading venue segment for ticket sales; losing share to festivals
                                                                • Figure 8: U.S. tickets sold, by venue or site, 2007 and 2009*
                                                            • Segment Performance—Arenas

                                                              • Key points
                                                                • Arenas offer more revenue potential than competing venues
                                                                  • Madison Square Garden dominates arena ticket volume at 7% of market
                                                                    • Figure 9: Top 10 U.S. arenas per tickets sold, 2009
                                                                • Segment Performance—Amphitheaters

                                                                  • Key points
                                                                    • Amphitheaters at risk due to rising gas prices, aging infrastructure
                                                                        • Figure 10: Top 10 U.S. amphitheaters, by tickets sold, 2009
                                                                    • Segment Performance—Theaters

                                                                      • Key points
                                                                        • Generous capacities, amenities make theaters safer bets for promoters
                                                                          • Radio City Music Hall dominates theater ticket volume sales
                                                                            • Figure 11: Top 10 U.S. theaters per tickets sold, 2009
                                                                        • Segment Performance—Clubs

                                                                          • Key points
                                                                            • Clubs establish close ties with community, ticket buyers
                                                                              • House of Blues franchise threatens regional club operators
                                                                                • Figure 12: Top 10 U.S. clubs, by tickets sold, 2009
                                                                            • Segment Performance—Outdoor Stadium/Festival Sites

                                                                              • Key points
                                                                                • Of top 100 stadium/sites, only 33 are in the U.S.
                                                                                  • Destination festivals driving stadium/outdoor site segment
                                                                                      • Figure 13: Top 10 U.S. outdoor stadium/festival sites, by tickets sold, 2009
                                                                                  • Market Drivers

                                                                                    • Live Nation, Ticketmaster merger expected to shake up how industry is run
                                                                                      • Competition worries merger will force them to share revenues with Live Nation
                                                                                        • Merger will put majority of A-list touring talent under Live Nation’s control
                                                                                          • Proposed bills designed to force more transparency in ticketing process
                                                                                            • Corporate ticket spending faring better in 2010 than previous year
                                                                                              • Figure 14: Venues with above-average corporate-owned ticket volumes, 2009
                                                                                            • Total corporate sponsorship spending expected to grow 3.4% in 2010
                                                                                              • Music sponsorship spending totals $1.08 billion in 2009, up 3.8% from 2008
                                                                                                • Music spending increases from categories not typically music-oriented
                                                                                                  • Sponsorship categories expanding as music events become more lifestyle-oriented
                                                                                                      • Figure 15: Music sponsorship spending on entertainment venues and tours, 2006-09
                                                                                                    • Average ticket price more than doubles over 12-year period to about $63
                                                                                                        • Figure 16: Average ticket price for the top 100 tours, 1997-2009
                                                                                                      • Live Nation’s “360 deals” driving up artist exclusivity, ticket prices
                                                                                                        • University venues becoming more prominent players in market
                                                                                                          • Declining music sales may create ripple effect on future box office sales
                                                                                                            • Entertainment venues both isolated from, affected by declining music sales
                                                                                                                • Figure 17: Top-grossing world tours, 1997-2009
                                                                                                            • Promotion Channels

                                                                                                              • Key points
                                                                                                                • About 83% of market controlled by two leaders: Live Nation and AEG Live
                                                                                                                    • Figure 18: Top 10 U.S. promoters, by tickets sold, 2007 and 2009
                                                                                                                  • Live Nation controls half of the top 10 concerts of 2009; AEG four
                                                                                                                    • Figure 19: Top 10 U.S. concert grosses, 2009
                                                                                                                  • Promotion companies set prices, control costs of entertainment events
                                                                                                                  • Promotion Channels—Live Nation Inc.

                                                                                                                    • Key points
                                                                                                                      • North American revenues drop 4% in 2009 while international rises 11%
                                                                                                                        • Figure 20: Live Nation revenues, at current and constant prices, 2004-09
                                                                                                                        • Figure 21: Live Nation revenue streams, 2008 and 2009
                                                                                                                    • Promotion Channels—AEG Live

                                                                                                                      • Key points
                                                                                                                        • AEG Live controls 21% of ticket volume sales, second to Live Nation
                                                                                                                          • Cancelled 50-date Michael Jackson residency in London creates setback
                                                                                                                            • Company avoids amphitheater market in favor of arenas, theaters, clubs
                                                                                                                            • Promotion Channels—Other

                                                                                                                              • Key points
                                                                                                                                • Regional players control 20% of the live entertainment market
                                                                                                                                  • Field Entertainment
                                                                                                                                    • MSG Entertainment
                                                                                                                                      • Jam Productions
                                                                                                                                        • C3 Presents
                                                                                                                                        • The Secondary Ticket Market

                                                                                                                                          • Key points
                                                                                                                                            • A fifth of respondents pay either up to $49 or up to $149 at broker sites
                                                                                                                                              • Figure 22: Price paid over ticket’s face value via third-party broker, December 2009
                                                                                                                                            • Primary market battles to keep revenues from secondary market
                                                                                                                                                • Figure 23: Top 20 secondary ticket sellers, February 2010
                                                                                                                                            • Innovation and Innovators

                                                                                                                                              • Live Nation promotes special discount day covering several price points
                                                                                                                                                • FanSnap consolidates broker sites, allows users to set alerts for seats
                                                                                                                                                  • Festivals offer presale, layaway offers to help consumers in recession
                                                                                                                                                    • Ticketmaster finds success with paperless ticketing for 1 million fans
                                                                                                                                                    • Advertising and Promotion

                                                                                                                                                      • Social media can be used to not just inform, but to entertain consumers
                                                                                                                                                        • Twitter allows operators to target consumers market by market
                                                                                                                                                          • Multi-platform partnership with ABC used to buoy the return of Lilith Fair
                                                                                                                                                            • Partnerships with credit card companies, sponsors provide fan exclusivity
                                                                                                                                                              • Online promotions allow venue, tour operators to track consumer info
                                                                                                                                                                  • Figure 24: U.S. online advertising spending, 2008-13
                                                                                                                                                                • Live music events are often partnered with resorts, casinos, parks
                                                                                                                                                                  • Figure 25: SeaWorld San Antonio ad, 2010
                                                                                                                                                                  • Figure 26: Universal Orlando Resort ad, 2010
                                                                                                                                                              • Consumer Frequency at Live Entertainment Events

                                                                                                                                                                • Key points
                                                                                                                                                                  • Majority of respondents not seeing concerts; a third more frequent
                                                                                                                                                                      • Figure 27: Consumer frequency at live entertainment events, by gender, December 2009
                                                                                                                                                                    • Frequency of one to four concerts ever six months appeals to those aged 18-24
                                                                                                                                                                        • Figure 28: Consumer frequency at live entertainment events, by age, December 2009
                                                                                                                                                                      • More than half of all household income groups do not attend live music events
                                                                                                                                                                          • Figure 29: Consumer frequency at live entertainment events, by household income, December 2009
                                                                                                                                                                      • Where Consumers Go For Live Music Events

                                                                                                                                                                        • Key points
                                                                                                                                                                          • Sports arenas rule as top choice; street fests an alternative to paid events
                                                                                                                                                                              • Figure 30: Where consumers attend live music events, by gender, December 2009
                                                                                                                                                                            • Younger respondents more inclined to attend arenas; older less so
                                                                                                                                                                                • Figure 31: Where consumers attend live music events, by age, December 2009
                                                                                                                                                                              • Small clubs are favored evenly, from low-income households to high
                                                                                                                                                                                  • Figure 32: Where consumers attend live music events, by household income, December 2009
                                                                                                                                                                              • What Motivates Consumers to Purchase Tickets

                                                                                                                                                                                • Key points
                                                                                                                                                                                  • Artist loyalty is what motivates ticket sales the most among respondents
                                                                                                                                                                                      • Figure 33: What motivates consumers to purchase a ticket to a live music event, by gender, December 2009
                                                                                                                                                                                    • Adults outside college age show more openness to seeing unknown artists
                                                                                                                                                                                        • Figure 34: What motivates consumers to purchase a ticket to a live music event, by age, December 2009
                                                                                                                                                                                      • Upper-income households most motivated by pop charts, online hits
                                                                                                                                                                                          • Figure 35: What motivates consumers to purchase a ticket to a live music event, by household income, December 2009
                                                                                                                                                                                      • What Prevents Consumers from Purchasing Tickets

                                                                                                                                                                                        • Key points
                                                                                                                                                                                          • Ticket prices, fees, dominate why consumers staying away from venues
                                                                                                                                                                                              • Figure 36: What prevents consumers from purchasing tickets, by gender, December 2009
                                                                                                                                                                                            • All under-65s are concerned about high ticket prices
                                                                                                                                                                                                • Figure 37: What prevents consumers from purchasing tickets, by age, December 2009
                                                                                                                                                                                              • Households up to $100K+ equally turned off by high ticket prices
                                                                                                                                                                                                  • Figure 38: What prevents consumers from purchasing tickets, by household income, December 2009
                                                                                                                                                                                              • Ancillary Items Purchased at Live Music Events

                                                                                                                                                                                                • Key points
                                                                                                                                                                                                  • Food, drink rate highest among concert-goers; T-shirt highest non-food item
                                                                                                                                                                                                    • Figure 39: Ancillary items purchased at live music events, by gender, December 2009
                                                                                                                                                                                                  • Alcoholic drink purchasing goes to age 35 before dropping to below half
                                                                                                                                                                                                    • Figure 40: Ancillary items purchased at live music events, by age, December 2009
                                                                                                                                                                                                  • Households earning $75K and more double rates for posters, programs
                                                                                                                                                                                                    • Figure 41: Ancillary items purchased at live music events, by household income, December 2009
                                                                                                                                                                                                • How Consumers Learn About Entertainment Events

                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                    • Broadcast media rule as the primary way to reach music fans
                                                                                                                                                                                                        • Figure 42: How consumers learn about entertainment events, by gender, December 2009
                                                                                                                                                                                                      • Broadcast media rule; online, print ads switch as respondents age
                                                                                                                                                                                                          • Figure 43: How consumers learn about entertainment events, by age, December 2009
                                                                                                                                                                                                        • Online rises in importance once households reach $75K and above
                                                                                                                                                                                                            • Figure 44: How consumers learn about entertainment events, by household income, December 2009
                                                                                                                                                                                                        • How Consumers Purchase Tickets to Live Music Events

                                                                                                                                                                                                          • Key points
                                                                                                                                                                                                            • Half of respondents purchasing though Ticketmaster; a fifth in person
                                                                                                                                                                                                                • Figure 45: How consumers purchase tickets to live music events, by gender, December 2009
                                                                                                                                                                                                              • Ticketmaster dominant choice of majority of households earning $50K+
                                                                                                                                                                                                                  • Figure 46: How consumers purchase tickets to live music events, by household income, December 2009
                                                                                                                                                                                                              • Race and Hispanic Origin

                                                                                                                                                                                                                • Key points
                                                                                                                                                                                                                  • Hispanics most active participants in live music attendance
                                                                                                                                                                                                                    • Figure 47: Consumer frequency at live music events, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                  • Blacks, Hispanics more likely to attend street festivals compared to whites
                                                                                                                                                                                                                    • Figure 48: Where consumers attend live entertainment events, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                  • Hispanics more likely motivated by environment than are blacks, whites
                                                                                                                                                                                                                    • Figure 49: What motivates consumers to purchase a ticket to a live music event, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                  • Hispanics most active purchasers at live entertainment events
                                                                                                                                                                                                                    • Figure 50: Ancillary items purchased at live music events, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                  • Broadcast media most popular with blacks, Hispanics
                                                                                                                                                                                                                    • Figure 51: How consumers learn about entertainment events, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                  • Hispanics more likely to use purchase at venue box office than peers
                                                                                                                                                                                                                    • Figure 52: How consumers purchase tickets to live music events, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                • Cluster Analysis

                                                                                                                                                                                                                    • Explorers
                                                                                                                                                                                                                      • Who they are
                                                                                                                                                                                                                        • Opportunity
                                                                                                                                                                                                                          • Groupies
                                                                                                                                                                                                                            • Who they are
                                                                                                                                                                                                                              • Opportunity
                                                                                                                                                                                                                                • Blanks
                                                                                                                                                                                                                                  • Who they are
                                                                                                                                                                                                                                    • Opportunity
                                                                                                                                                                                                                                      • Cluster characteristics
                                                                                                                                                                                                                                        • Figure 53: Entertainment venue clusters, December 2009
                                                                                                                                                                                                                                        • Figure 54: Venue preference, by entertainment venue clusters, December 2009
                                                                                                                                                                                                                                        • Figure 55: Reasons for purchasing tickets to entertainment venues, by entertainment venue clusters, December 2009
                                                                                                                                                                                                                                        • Figure 56: Ancillary items purchased at entertainment venues, by entertainment venue clusters, December 2009
                                                                                                                                                                                                                                        • Figure 57: Media preference, by entertainment venue clusters, December 2009
                                                                                                                                                                                                                                        • Figure 58: How tickets are purchased to entertainment events, by entertainment venue clusters, December 2009
                                                                                                                                                                                                                                      • Cluster demographics
                                                                                                                                                                                                                                        • Figure 59: Entertainment venue clusters, by gender, December 2009
                                                                                                                                                                                                                                        • Figure 60: Entertainment venue clusters, by age, December 2009
                                                                                                                                                                                                                                        • Figure 61: Entertainment venue clusters, by household income, December 2009
                                                                                                                                                                                                                                        • Figure 62: Entertainment venue clusters, by race, December 2009
                                                                                                                                                                                                                                        • Figure 63: Entertainment venue clusters, by Hispanic origin, December 2009
                                                                                                                                                                                                                                      • Cluster methodology
                                                                                                                                                                                                                                      • Appendix: Other Useful Consumer Tables

                                                                                                                                                                                                                                        • Ticket purchasing and age
                                                                                                                                                                                                                                          • Figure 64: How consumers purchase tickets to live music events, by age, December 2009
                                                                                                                                                                                                                                        • What prevents ticket purchasing by race and Hispanic origin
                                                                                                                                                                                                                                          • Figure 65: What prevents consumers from purchasing tickets, by race and Hispanic origin, December 2009
                                                                                                                                                                                                                                      • Appendix: Trade Associations

                                                                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                                                                        • American Express Company (The)
                                                                                                                                                                                                                                        • AMR Corporation (American Airlines)
                                                                                                                                                                                                                                        • Anheuser-Busch Companies Inc
                                                                                                                                                                                                                                        • Apple, Inc
                                                                                                                                                                                                                                        • AT&T Inc.
                                                                                                                                                                                                                                        • Bloomberg L.P.
                                                                                                                                                                                                                                        • Facebook, Inc.
                                                                                                                                                                                                                                        • Greenfield Online
                                                                                                                                                                                                                                        • Live Nation
                                                                                                                                                                                                                                        • National Basketball Association
                                                                                                                                                                                                                                        • National Football League Inc.
                                                                                                                                                                                                                                        • Nokia Corporation (US)
                                                                                                                                                                                                                                        • Recording Industry Association of America [RIAA]
                                                                                                                                                                                                                                        • Research In Motion (USA)
                                                                                                                                                                                                                                        • Sony BMG Music Entertainment
                                                                                                                                                                                                                                        • Southwest Airlines Co.
                                                                                                                                                                                                                                        • Ticketmaster
                                                                                                                                                                                                                                        • Twitter, Inc.
                                                                                                                                                                                                                                        • U.S. Bureau of Labor Statistics
                                                                                                                                                                                                                                        • Verizon Wireless (Cellco)
                                                                                                                                                                                                                                        • Virgin Mobile Usa Llc
                                                                                                                                                                                                                                        • Walmart Stores (USA)
                                                                                                                                                                                                                                        • YouTube, Inc.

                                                                                                                                                                                                                                        Entertainment Venues - US - March 2010

                                                                                                                                                                                                                                        US $3,995.00 (Excl.Tax)