BDO Mergers and Acquisitions has published its latest sector insight report into live music festivals. The report seeks to explore the impact of the mergers and acquisitions of festivals and other live music events.
Key deals the report notes is the continued expansion of live event groups, Live Nation and Global, as well as promoter, Kilimanjaro, selling its controlling stake in Sonisphere to Deutsche Entertainment AG.
Some of BDO’s recent festival deals include the same of Broadwick Live to This is Global, the sale of Cuffe and Taylor to Live Nation and the sale of Count of Ten to This is Global.
James Fieldhouse, M and A director at BDO, said: “There is currently significant M and A activity and a consolidation drive in the industry most notably within the live music festival market driven by several key factors that have changed the dynamic of the industry in recent years.”
“Firstly there is the power shift in the music industry from recorded music to live gigs and festivals following the impact of the music streaming industry meaning artists are relying more on live touring to make their money.
“Secondly it is the popularity of the independent music festival itself, coupled with the increased disposable income of the attendees they look to attract, which has given rise to faster margin growth through add-on premium services such as glamping and VIP areas.
“The rise of this industry has positive implications for many business owners including booking agents, catering companies and event management groups along with the festivals themselves.”