Revenue / 06.03.20
Post-Pandemic Music Industry Predictions: The Consolidation of Power
Forbes (05/29/20) Penick, Brian
The coronavirus pandemic will likely accelerate the trend of consolidation in the music industry, whose prospects have improved in recent years thanks to a spate of capital, mergers, acquisitions, institutional interest and new technology. Goldman Sachs forecast last year that the global music industry's value would more than double to almost $131 billion by 2030. Although last month it projected the pandemic would affect 75% of live music sector revenues, Goldman's 2030 valuation was upgraded to $142 billion. The live event space has been a very active center for acquisitions in the last decade, with Paradigm acquiring The Windish Agency and AM Only; United Talent merging with The Agency Group and Greater Talent Network; and LiveNation's acquisition of festival properties C3 Presents, AC Entertainment ACEL, and others. These developments support the conviction that COVID-19 will drive further consolidation. For example, festivals and conferences may be amenable to bids after losing ticket sales, sponsorships, artist deposits, and ticket refund lawsuits. Music service agencies heavily reliant on client income from tours and album releases also may be eyeing mergers with complementary companies.
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Tags: Music , COVID-19 , Coronavirus