Study Reveals How Discovery Drives Value for Live Music Industry
July 15, 2015 at 11:35 AM (PT)
EVENTBRITE, the global ticketing and events marketplace which processed 80 million tickets and $1.5 billion in sales last year, released new research conducted by MUSICWATCH that underlines the link between music discovery and live concert attendance.
In the past four years, while spending on CDs and digital downloads has fallen by nearly 50%, spending on live music is up by 66%. The nationwide survey questioned 1,000 people between the ages of 18-49 who attended at least one concert in the past year. The report, "From Stream to Ticket: Mapping the Value of Music Discovery," uncovers how post-discovery behavior is helping drive increased spending on live music.
The study showed that music discovery is now a more integrated process, with fans relying on a mix of not just broadcast radio and TV, but also word of mouth, streaming, social media and live events.
"The linear 'play then purchase' model of radio airplay followed by a trip to the record store has been replaced by an approach of cross-pollination," said MUSICWATCH's RUSS CRUPNICK. "Concert-goers still rely on traditional mediums to learn about music and discover new artists. However, streaming, social and live provide a discovery canvas for a wider set of artists who may not be getting mainstream airplay, ultimately driving more fans to their shows."
When asked about live shows, concerts, or festivals, 33% agreed they discovered music they liked from unfamiliar artists or bands who performed as an opener or additional act. Three out of four fans who discover an artist at a live event said they had purchased a ticket to see that artist perform again. Further, these high-value fans are 15% more likely to attend two or more concerts per month than fans who discover through radio, TV or word of mouth and 28% purchased artist merchandise post-discovery.
Streaming is fueling more attendance at live events. When asked how they discovered artists and bands in the past year, 42% of survey respondents cited audio or video streaming services like PANDORA, SPOTIFY or YOUTUBE, which have grown in participation from 56% of the Internet population in 2012 to 69% last year. Half of the fans that discover a new artist or band through streaming are buying tickets to their show and nearly a quarter purchased artist merchandise post-discovery.
Two out of three respondents say they discover music they like on social networks, and 14% mentioned learning about new artists and bands on FACEBOOK, TWITTER, INSTAGRAM and TUMBLR. Fifty-seven percent who found a new artist or band on social media indicated that they went to see that artist perform live and a third reported purchasing artist merchandise. A single FACEBOOK share yields an incremental $4.48 in ticket sales for EVENTBRITE's music events, further demonstrating the power of social discovery.
"Live events have the power to increase engagement and fuel the independence of musicians. The links we saw in our research between discovery and monetization are very encouraging," said EVENTBRITE Co-Founder/Pres. JULIA HARTZ. "Experiencing music live creates the strongest bond between artist and fan and those who buy tickets to live shows spend nearly twenty times as much on music overall compared to non-ticket buyers. As fans become more emotionally and financially invested, they drive more value to the industry."