Study reveals factors of a profitable festival
November 15, 2017 10:32 AM
AMR International has joined forces with US organiser XLIVE for its first research into the festival market. The cooperation resulted in the white paper titled North American Festivals: Routes to Success in an Evolving Market. The document provides in-depth analysis into this highly fragmented and complex market.
The study revealed that in North America the festivals market is estimated at $7bn, and that event organisers are blurring event genres and turning to technology innovation to forge success.
Denzil Rankine, executive chairman, AMR International, explained: More organisers are blending segments and using technology to appeal to broader demographics, therefore generating new revenue streams and improving visitor stickiness. For example, organizers are adding live music to a food festival or film screenings to a music festival.
Rankine said technology is being used to streamline payments, reduce waiting times and provide organisers with crucial insights needed to curate content in line with evolving customer trends. This allows organisers to create a far more compelling experience for visitors while increasing the festival’s attractiveness to sponsors, he explained.
Outlook for the North American festivals market:
- The market is expected to further polarize as the gap between large and small festival organisers widens, driven by economies of scale
- Larger organisers are spearheading technology adoption, contributing to forecast growth of the $6bn global event management software market of 9 per cent CAGR to 2020
- If faced with revenue or cost shocks, small festivals that fail to differentiate or diversify will exit the market. This will likely be balanced by new entrants looking to capture market growth
- Future growth will vary by segment and genre maturity, along with evolving visitor taste. The booming growth of eSports festivals is noticeable, having registered 46 per cent CAGR between 2015-17, with growth projected to continue at 29 per cent CAGR up to 2020.
North American Festivals: Routes to Success in an Evolving Market is available as a free download from the AMR website.