FAIRFAX, VA – May 20, 2019 – The live performance space is faring well, due to consumers opting to buy into holistic experiences rather than just isolated transactions. According to Pollstar and PricewaterhouseCoopers, U.S. concert ticket sales exceeded $8 billion in 2018, and average ticket prices are rising as consumers are increasingly willing to spend more for a show. Yet, AVIXA forecasts that in the Americas, pro-AV sales into temporary live events solutions will decline from $10.2 billion in 2018 to $8.6 billion in 2023. Rather than renting pro-AV equipment, a higher percentage of live events producers own equipment and plan to increase the owned portion. AVIXA’s new Market Opportunity Analysis Report (MOAR) Live Performance investigates the opportunities and challenges for pro-AV providers working in the live performance space.
The report focuses on the live performance events themselves, whether in the form of a music concert, theater production, symphony, circus, comedy show, or other event falling within the realm of live entertainment. Unlike traditional AV integration projects, live performances are often a temporary deployment of technology combined with staffing to manage and operate the hardware.
“Consumers’ willingness to increase their spending to get a more engaging total experience suggests more revenue potential for pro-AV businesses, as the industry hangs its hat on delivering exceptional experiences,” said Sean Wargo, AVIXA’s Senior Director of Market Intelligence. “In theory, producers thus seek to invest more in AV to deliver on expectations. Providers then benefit as these companies turn to the experts for best aligning technology with these needs. The question is, does this actually happen? AVIXA’s research shows the answer is a mixed bag.”
Producers do more in house than one might expect. First, they have an increasing tendency to want to own versus lease equipment, possibly consistent with a focus on fixed venues or a desire to have a core of go-to technology options. Second, they employ several resources to manage, deploy, and utilize AV internally. Lastly, these resources are heavily relied on for mid- and late-stage phases of a performance project. Providers are still important but may be relegated to specific tasks, even if early involvement is common. The need for a more holistic view and fewer transactional costs are a provider’s path up-market.
Handling the needs of live events clients clearly requires specialty skills and experience. However, this does not mean AV firms engaged in live performance support consider themselves specialized, as evidenced in their company descriptions. Many are integrators who support live events as one line of business, thanks to the diverse needs of the client base. This is good news, particularly when coupled with the producer results, as it indicates many paths into the market for a provider. The challenge is that performances often must be one of many solution areas offered to generate viable revenues, due to smaller reported project sizes.
MOAR: Live Performance reports on audiences’ preferences when attending performances, including the role technology plays in creating exceptional experiences. The report also explores the viewpoint of purchasers of pro-AV solutions for live performances — those who are responsible for the production of a performance, whether a director, designer, touring company, or other. Lastly, the report studies feedback from AV providers that work in the market.
This report is the seventh in a series of AV market studies. The hospitality, retail, corporate, transportation, sports venues, and education reports were published throughout 2018. A report on corporate events will be published in August 2019. The full eight-report MOAR series is available for purchase as a bundle, which also includes a summary report comparing market results.
To learn more about MOAR: Live Performance, visit avixa.org/MOARLivePerformance. AVIXA members are eligible for discounts.
AVIXA™ is the Audiovisual and Integrated Experience Association, producer of InfoComm trade shows around the world, co-owner of Integrated Systems Europe, and the international trade association representing the audiovisual industry. Established in 1939, AVIXA has more than 11,400 enterprise and individual members, including manufacturers, systems integrators, dealers and distributors, consultants, programmers, live events companies, technology managers, content producers, and multimedia professionals from more than 80 countries. AVIXA members create integrated AV experiences that deliver outcomes for end users. AVIXA is a hub for professional collaboration, information, and community, and is the leading resource for AV standards, certification, training, market intelligence, and thought leadership. Visit avixa.org.