Concert refers to live performances in front of the audience, usually musical performances. Music can be performed by individual musicians or a group performance of music, and singers usually perform on stage. The concert is a carnival festival for fans. Generally speaking, a concert refers to a popular concert. Concerts and live performances are usually held in various venues such as small live singing venues, theaters, parks and even large gymnasiums.
No.1
Concert Industry Chain Analysis
Concert Market Value Chain can generally be divided into three parts: content production aspects, concert preparation aspects, and performance aspects.
Content production
is the creation and performance content, and the content production is undertaken by record and entertainment companies, independent artists, enterprises and public institutions.
Concert preparation
In terms of concert preparation, the concert organizer plays a core role, and is usually responsible for the overall coordination and planning of the entire concert preparation process, from obtaining the performing artist's concert and program rights, booking the concert venue, arranging content production, publicity and promotion concerts, arranging concert sponsorship, investing in concerts, preparing budgets, ticketing, arranging artists' accommodation, coordinating other logistics work arrangements, and even purchasing technical production and creative solution services.
At the same time, technical production and creative solution service providers provide comprehensive technical production and creative solution services to implement the customer's philosophy, including providing creative design and concepts, designing feasible execution plans, contacting venue rental dealers for setting matters, designing execution plans, providing technical support for lighting systems, sound systems, rigging equipment, benches, auditoriums, lifting devices and other special effects devices, through special props and performance equipment, monitoring and coordination of all technical aspects of concert projects, and providing on-site installation and disassembly services after the performance.
Furthermore, there are other service providers that support the concert preparation process, including venues, ticketing companies, advertising and promotion agencies, and security guards. In addition, there are also concert investors who can play an active role as co-organizers or simply passive investors to support the concert by providing funds and sharing the returns of the concert projects or sharing the losses of the concert projects. Concert sponsors will also provide products.
Performance
Concert participants are the general public, and the public spends money or equivalents to purchase concert tickets to attend the concert.
▲Source: Frost Sullivan
No.2
Current Concert Market Situation
With the continuous development of China's economy, the total number of concert programs held in China has increased from about 1,400 in 2013 to about 2,800 in 2018, with an average annual compound annual growth rate of 14.9%.
box office is a source of major revenue for concerts and a key indicator for measuring the development of the Chinese concert preparation market, and the box office of Chinese concerts is also growing. In 2013, the total box office of China's concerts was 2.1 billion yuan, and by 2018 this figure reached 4.4 billion yuan, with an average annual compound annual growth rate of 15.9%. As of 2018, the market for concert preparation in China was relatively scattered, with about 500 market participants.
▲Source: China Performance Industry Association, Frost Sullivan (the number of events is approximately integer)
No.3
Drive power analysis of Chinese concerts
The main driving forces of the Chinese concert preparation market include:
Driver factor-
Disposable income increases, thereby supporting the increase in the expenditures for leisure and entertainment needs of Chinese residents, such as expenses for interests, hobbies and entertainment activities.
With the development of the macro economy, the disposable income of residents in my country has continued to grow, and residents' consumption capacity has greatly improved. In 2018, the per capita disposable income of reached 28,228 yuan, an increase of 8.7% year-on-year. After deducting price factors, the actual increase was 6.5%. The continued growth of per capita disposable income of residents has laid the certainty of the domestic consumption upgrading trend and driven consumption in the entertainment market.
▲Data source: Bureau of Statistics and China Business Industry Research Institute compiled
▲Data source: Bureau of Statistics and China Business Industry Research Institute compiled
Driver factor 2
As the mass media and entertainment market grows, Chinese audiences have come into contact with more concerts of different styles and are popular among Chinese audiences. At the same time, the Greater Bay Area construction plan was launched in 2017 to promote cultural exchanges in Hong Kong, Macao and China. Hong Kong artists are encouraged to perform in China more frequently and will continue to penetrate the Chinese market. This phenomenon has made the Chinese market more diversified and the quality has also improved.
Drivers 3
As China sets the tertiary industry as the core direction of future development, the cultural, sports and entertainment industries will see higher growth. Relevant policies and guidelines to support the cultural, sports and entertainment industries have been issued. The 13th Five-Year Plan promotes the art and entertainment industry and is expected to become one of the pillars of China's economy in 2020.
No.4
China Concert Market Forecast
Looking to the future, the total number of concert programs in China is expected to continue to grow rapidly, and will reach about 5,800 shows in 2023, with an average annual compound annual growth rate of 15.7% from 2018 to 2023. In addition, it is estimated that by 2023, the total box office of the concert will reach 9.6 billion yuan, with an average annual compound growth rate of 16.9% from 2018 to 2023.
▲Source: Compiled by Frost Sullivan, China Business Industry Research Institute (the number of sessions is approximately integer)
