It’s all bad news for the global electronic music industry this year, according to the data-driven IMS Business Report 2020, which was released last week.
The most alarming statistic being the global value of the business is predicted to fall 56% to $3.3 billion in 2020, after it had grown 2% to $7.3 billion in 2019.
By mid-April, about 350 electronic festivals had been cancelled or rescheduled
The pandemic forced countries to take immediate measure regarding large gatherings, which resulted in cancellations and postponements of festivals around the globe.
The most hurt countries include Germany, France, the Netherlands, the UK and the USA. Almost 9 million fans were unable to attend scheduled festivals due to restrictions and cancellations.
Clubs and festivals lose 75% of income
Since many have missed their dates or restrictions have not been lifted, its expected that dance/electronic clubs and festivals could lose roughly 75% of their income in 2020, equivalent to roughly $3.3 billion.
Partying a huge role in Ibiza
In Ibiza last year, party-animals spent €260 million, which contributed about €0.5 billion to the economy. For perspective, a “musical tourist” spends double in comparison to a normal tourist.
Most superclubs wont open this year but there are some beach clubs, beach bars and poolside events scheduled. However, masks are still required – which makes things a bit awkward.
Live streams, limited capacity and drive-ins not sustainable
While live streams, limited capacity and drive-ins can generate an income, it’s not enough to be sustainable and replace regular revenue. So full capacity events need to return at some stage.
Most venues are often limited in capacity (by as much as 95%), thus impacting their revenue, which can’t be offset by a high ticket price. They also can’t sell nearly as much alcohol and food on-site.
On a positive note, some artists have managed to leverage their live streams and generate an income with sponsorships, which will help increase salaries once things return to normal.
Some large brands like Coca-Cola, Amazon and Heineken have sponsored electronic dance music streams.
Techno still the most popular electronic dance music
Techno proved to be the most popular Beatport genre – the fourth year in a row.
China, India, Mexico and South Korea are pin-pointed as key emerging markets for electronic dance music.
For the full report, please click here.