Recovery Economics Music, Games, Live Streams and the Future of Concerts
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The 20,000 Foot View: In April 2020 Travis Scott’s Fortnite event pulled in million players. While this was happening, the global artist community was scrambling to plug the income and engagement gap caused by cessation of live music, by turning to live streaming. The music industry had just got turned on its head and the solution was to throw everything at the wall to see what stuck. But there is a much bigger opportunity here that goes far beyond lockdown era. This is more than the future of games and music, it is in fact an alternative future for live music. It is the ultimate lockdown legacy.
Key Insights
- Live music to meet the human needs belonging and esteem; post-lockdown it also need to meet the fundamental human need of safety will likely be a mid- to long-term part of life, so the traditional live sector will face a ‘cost of confidence’ as portions of artists and fans alike will initially stay away
- Lockdown came early for the live streaming sector; it is under-developed, under-monetised, under-professionalised
- Virtual concerts streaming and generative virtual performances) become an important component of live music sector as it out of lockdown
- The industry to come together to create universal, extensible discovery layer for concerts else risk it becoming across company siloes like streaming
- A new concert value chain is emerging traditional live companies are not yet – embedded in
- Four key models will emerge: basic; platform; platform; full stack
- The big platforms will favour free events drive scale for advertisers but sector needs a clearly defined model with scarcity key to premium tiers
- Big tech will play the role of and arenas while off-portal destinations artist apps will host smaller, super premium events
- Games represent major near-term opportunity with long-term which can be realised by artist fan bases with specific titles
Companies and brands mentioned in this report: Accenture, Amazon, Alphabet, Apple Glass, Ben Howard, Beyonce, Call of Duty, Dillon Francis, Diplo, Disciple Media, Epic Games, Facebook, Facebook Live, FIFA, Flohio, Fortnite, GigRev, Grand Theft Auto, Hovercast, Instagram Live, Koffee, Live Nation, Maestro, Magic Leap, Marshmello, Marvel, Marvel Avengers, Melody VR, Minecraft, Next VR, Oculus Venues, Patreon, Periscope, Slowthai, StageIt, Star Wars, Steve Akoki, StreamYard, Super Mario, Taylor Swift, Tencent, Tencent Music Entertainment, Travis Scott, Twitch, Twitter, YouTube Live