Why Live Music is the Growth Engine of the Music Business
The music industry is abuzz with talk about Pandora’s acquisition of Ticketfly. It’s a “game changer,” everyone is saying. It’s the biggest news story of the week and it’s great news for Gigmor.
Why? Because it validates what Gigmor has been asserting since Day 1: with recorded music revenues declining and live revenues growing exponentially, other music companies (think Spotify, Apple Music) will move into the live music space that was once the sole domain of Live Nation and AEG Live.
To give you a better idea, more than half (53%) of recorded music sales were generated from physical product in 2014. In the first half of 2015, vinyl sales alone generated more revenue than all of the free streaming services combined, including YouTube, which is arguably the largest music distribution platform on the planet.
Pandora’s acquisition of TicketFly is brilliant because TicketFly has been focusing on the market that, for everyone else (i.e. Live Nation and AEG Live), doesn’t make much economic sense: the small and mid-size venues. Clubs, bars, small theaters, etc.
So how does this tie into Gigmor? Simple. The music industry – every single facet – is a fragile ecosystem that relies upon a continuous supply of bands forming, musicians and songwriters creating and recording music and, most importantly, performing live. Talent is the lifeblood of the industry. Earning money by playing live is how musicians and bands keep the music ecosystem fresh, healthy and thriving. And according to a recent study by Vevo, Millennials don’t see music as a “desire;” it’s a “need.” Especially the shared experience of a live performance. Live music is a $30B business and it’s growing by 15% a year. It’s not the same old music biz any more.
Gigmor’s mission is to bring music booking into the 21st century by creating a live music marketplace. Today Gigmor announced an innovative partnership with Music Box San Diego, Southern California’s hottest new venue. This is the first step and it’s an important one. Because today’s Pandora announcement signaled what will become the music industry’s greatest land grab: live music.
Like TicketFly, Gigmor is strategically positioned to be the leader and we’re playing for keeps. Want to participate in our growth? Check out Gigmor’s Equity Crowdfunding Campaign and stake your claim today!
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