Post-pandemic recovery of live entertainment led by international acts

After two years of disruption and COVID-19-induced cancellations, Australia’s live arts and entertainment industry experienced a post-lockdown peak in attendance and revenue last year.

According to Live Performance Australia’s just released 2022 Ticket Attendance and Revenue Report, the industry’s total revenues reached $2 billion in 2022 - up almost 200% on the previous year - with ticketed attendances of 24.2 million.

Contemporary music and festivals accounted for about 50% of show revenues, led by international acts with 42% of all attendees enjoying performances by acts including Guns N’ Roses and Bruno Mars.

The report also shows that musical theatre had its biggest year since the survey began, with shows such as Hamilton, Frozen and Phantom of the Opera driving the stage business.

Contributing to the revenue rise, average theatre ticket prices rose from $69 to $90, an increase of 30% in one year while average concert ticket prices leapt 53% - with the rises being below pre-pandemic peaks.

Festivalgoers paid an average of $169.53 for their tickets compared to $128 for a night of musical theatre, where Hamilton, Phantom of the Opera, Frozen and Rodgers and Hammerstein’s Cinderella were the biggest draws.

Classical music, too, recorded its highest-ever ticket sales of $88.9 million, off the back of tours by Andrea Bocelli, Croatian duo 2CELLOS, and Iraqi singer and composer Kadim Al Sahir.

However, Live Performance Australia (LPA) says the growth belies rising production and touring costs, as well as cost-of-living pressures that are increasingly seeing audiences buy late and more selectively.

LPA said the sector was aware of the limited ability of consumers to absorb soaring costs of production and touring, one of many lingering impacts of COVID. The cost of transporting shows between Melbourne and Sydney rose 40% in the last year alone.

Commenting on the challenges, LPA Chief Executive, Evelyn Richardson stated “you can’t keep putting ticket prices up especially in a cost-of-living crisis.

“People might be still seeing shows, but they are being more discerning, especially families.

“We are sensitive to the ability of audiences to pay … (while) parts of our industry, particularly small-to-mediums and not-for-profits, are still being impacted by COVID, and that plays out in crippling skill shortages, huge production costs and changing audience behaviours.

“People are buying later and now are grappling cost-of-living pressures. Companies don’t have reserves and no longer are eligible for COVID support. We are still in pain.”

This sentiment was echoed by smaller festival organisers, particularly in regional NSW and Victoria, who highlighted their struggle with rising costs amid belt-tightening measures resulting in a number of cancelled, postponed or financially precarious music festivals and events. Smaller organisers, such as Jamie Lea, the mind behind GROUNDed Live at the Dookie Quarry, revealed the precarious position of festivals that traditionally bring communities together.

The LPA's report, serving as a barometer for the industry's health, illustrated that after spending over 200 days under lockdowns in 2021, Victoria and NSW led the resurgence in attendance and ticket revenue in 2022.

Victoria, in particular, powered back after being eclipsed by NSW during the pandemic with 7.8 million attendees against 7.2 million, becoming the home to the most enthusiastic and big-spending fans.

While contemporary music dominated both these markets, Queensland saw 3.7 million people paying to see a live performance, representing less than half the year-on-year audience growth of NSW and one third of Victoria.

Ticket Revenues
On the back of pent-up demand and rescheduled global tours, ticket revenue for contemporary music tripled, although it fell short of the peak seen in 2018. Musical theatre recorded its most successful year in history, with a record seven shows playing on Sydney stages in September, buoyed by the surging popularity among a new generation of young ‘superfans’.

2023 and Beyond
Looking ahead, the report anticipates a positive outlook for 2023, driven by pent-up demand and rescheduled global tours. Summer concert tours by global icons like Paul McCartney, Foo Fighters, Kiss and, in 2024, Taylor Swift are expected to drive a bumper outdoor stadium concert season.

In addition, rumours that Beyonce will bring her Renaissance tour to Australia next year are adding further anticipation within the industry.

Despite the strong figures masking struggles within the sector, Richardson remains cautiously optimistic about the industry's future.

She added “Australians love live performance, and more people attended a contemporary music performance than the AFL, more saw a musical theatre show than the NRL, and theatre attracted bigger audiences than the A-League.

“We saw many audiences come back to their favourite shows, venues and festivals in 2022 as COVID19 restrictions were lifted and borders reopened, especially in Victoria and NSW.

“There was also a lot of pent-up demand in 2022 for shows, tours and festivals that had been delayed or rescheduled from the previous couple of years due to COVID-19 restrictions and border closures.

“Despite the strong improvement in attendance and revenue in 2022, many parts of the industry are being impacted by ‘long COVID’ and grappling with critical workforce shortages, soaring production and touring costs, and shifts in audience behaviour alongside deepening cost of living pressures.

“We know these problems are particularly acute for some sectors of live performance, especially our small to medium and not for profit companies.

“It’s pleasing to see governments recognising the economic, social and cultural importance of live arts and entertainment through arts and cultural policy frameworks at the federal and state levels. ‘It will be absolutely critical moving forward that governments match their policy ambition with the level of strategic investment in our industry to achieve these goals over the longer term.”

Click here to view highlights of Live Performance Industry in Australia: 2022 Ticket Attendance and Revenue Report.

Image: Guns N’ Roses at Accor Stadium (top) and Phantom of the Opera (middle, credit: Daniel Boud) were significant draws in 2022) while LPA Chief Executive, Evelyn Richardson is cautiously optimistic about the industry's future (below, credit: LPA).

Part of this article was generated using artificial intelligence (ChatGPT).