Unveiling Europe’s Festival and Venue Ownership Report

Understanding the complex landscape of festival and venue ownership in Europe reveals significant insights into the live music industry. The latest report identifies how key players operate behind the scenes, influencing financial risks and revenue distribution.

Key Players in Europe’s Live Music Scene

The report highlights that four major organizations dominate the ownership of over 150 significant music festivals across the European Union. These organizations include:

• Live Nation: Operates around 120 subsidiaries within the EU, with global revenues of approximately $16.7 billion as of 2022.
• Anschutz Entertainment Group (AEG): Recognized as the world’s second-largest live music promoter, AEG combines concert promotion with ownership of major venues, including the O2 Arena in London.
• CTS Eventim: A leading provider of ticketing and live entertainment services, it generated €1.9 billion in 2022 and operates ticketing platforms across Europe.
• Superstruct Entertainment: Recently acquired by KKR and CVC Capital Partners, owns more than 80 music festivals in Europe and Australia.

Recent Developments and Acquisitions

The ownership mapping project noted critical structural changes, particularly with Superstruct’s acquisition by private equity firms. It shows that major operators are expanding their festival portfolios significantly:

• Live Nation: Increased festivals from 74 to 78.
• Superstruct: Grew from 34 to 63 festivals.
• CTS Eventim: Expanded from 42 to 51 festivals.
• AEG: Increased its festival ownership from 5 to 10.

Consolidation Trends in Venue Ownership

The report emphasizes a trend toward consolidation in larger arenas and stadiums rather than smaller venues. Key takeaways include:

• Major operators like AEG and Live Nation are increasingly involved in high-capacity venues.
• These venues are integral to the current surge in arena and stadium tours.

Impact on Smaller Venues

While the larger corporate entities thrive, most small and medium-sized venues remain independent. These venues serve as critical entry points for emerging artists, often operating with slim margins under financial pressure:

• They are seen as “incubators” for new talent.
• These venues absorb significant artistic and financial risks for developing artists.

The Role of Ticketing in the Live Music Market

Another significant aspect is the control of ticketing. Major groups like Live Nation own Ticketmaster, the world’s largest ticketing platform. This ownership is often discussed in terms of market concentration and its effects on diversity:

• Concerns about speculative resale practices and market access emerge frequently.

Conclusions from the European Mapping Project

The report indicates that while the number of major operators may seem limited, a few transnational groups are responsible for a large portion of high-capacity festivals and arenas in Europe. This concentration raises questions about the flow of revenue.

As artists transition from smaller venues to major festivals and tours, the additional income typically does not benefit the grassroots venues that supported them initially. Current systems in most European countries lack structured mechanisms to redistribute funds back to these foundational venues.

Overall, the European Mapping Project provides valuable insights into how ownership structures influence the live music ecosystem in Europe, calling for increased transparency and informed discussions among stakeholders.