It’s no surprise that in addition to music festivals continuing to bring attention to changing genres within the industry, these annual events have consistently been revenue hubs throughout the past year.
One example of a U.S. based music festival that perfectly epitomizes this concept is the Coachella Valley Music and Arts Festival, which took place over two weekends in April 2016 in Indio, CA. This 2 week festival alone generated $704 million in overall spending activity by consumers and businesses, while also contributing $106 million to the local economy (restaurants, vendors, rental space, etc).
Also, The U.K.’s Glastonbury Festival has increased physical sales for Adele, Mercury Rev and other indie/mainstream performers by as much as 1,009% to 6,600%.
A Stubhub-sponsored report of the top global festivals of 2015 conceived by the B2B music publication Festival Insights states that both Coachella and Glastonbury reign in collaboration.
The report, which was released in September, integrated factors such as duration, ticket revenue, and sponsorship estimates in order to paint a compelling picture of how both these festivals continue to market themselves as leaders of live music events that bring thousands of listeners together every year.
Many of Africa’s most popular music festivals, such as Malawi’s Lake of Stars and Swaziland’s Bushfire, generally focus on fostering and bringing attention to local artists. Unfortunately, this in turn makes these artists less easily penetrable by American franchises because of the lack of demand in the U.S. market for local African artistry.
In terms of how these festivals will generate revenue moving forward, there is no doubt that with increased competition, it will become more difficult for the top festivals to distinguish themselves and their brand voice solely through their lineups that often overlap with other festivals. In the past year, artist lineups have actually been converging, with artists and groups “festival-hopping” across the world to serve different audiences with basically the same musical tastes.
With 2017 swiftly approaching, it will be definitely interesting to see how the relationship between music festivals and its attendees will evolve come next summer.