IMS Business Report 2020 details rise in festival alternatives, sponsorship and donation opportunities
With the challenges posed by COVID-19 this year, the IMS Business Report for 2020 has made for interesting reading with information and statistics regarding to the current state of the electronic music industry.
As we have seen in recent months the sector has had to massively adapt as a result of the pandemic, meaning fan and artist behaviours have changed as live music events and festivals saw widespread postponement. Specific parts of the report detail some of the festival alternatives that venues and promoters have had to conjure up to generate some kind of revenue over the course of lockdown. It also details how sponsorship deals and donation opportunities have been affected with artists resorting to live streams as a way to promote their content.
The report has found that the current festival/event alternatives being trialled such as live streams, drive-in gigs and “distanced dancefloors” are unlikely to be commercially viable for organisers moving forward which. Obviously, their future is heavily dependant on how well the virus can be controlled though, in the coming months or maybe even years.
On the other hand, the surge in the number of live streams has provided some relief for artists as they are taking advantage of the many sponsorship opportunities that are coming with them. Streaming platforms have had to adapt to also take advantage of this alternative way of performing and sharing content, with the likes of Mixcloud, Soundcloud and Festicket adapting their services to support musicians. Some of the sponsorships of real note include Kaskade (Coca-Cola), deadmau5 (Amazon) and David Guetta (Heineken).
Finally, not only have we seen an increase in live performances online, but we have also seen streaming figures back on the rise too. Despite a drop in electronic record streams after lockdown was introduced in places such as Europe and the US, an increase in streaming subscription fees should generally benefit the industry overall. The report has therefore calculated that we are likely to see an additional $0.1 billion the electronic (dance) music industry by the end of the year.
For a more detailed look into the IMS Business Report 2020, check out the slides below!
Image Credit: Tomorrowland & IMS Business Report 2020