The surge in livestreaming over the last 18 months has largely inevitably occurred, and the boom is now behind the growing integration of sectors, which was the very definition of a “niche” until early 2020.
Mobile ticketing company Dice quickly set up a livestreaming solution for small acts and venues early last summer when the grassroots of live music was closed for real venues and festivals. Helped me find a way to make at least some money. The company recently raised $ 122 million in Series C funding and has extended at least a portion of that funding to hip-hop, with a particular focus on electronic music, for over a decade of live music sessions. I quickly spent the acquisition of the streaming Boiler Room. , Jazz and classical.
“”[T]The two platforms will work together to enhance boiler room services, generate additional revenue for artists, rights owners, groups, festivals and clubs, and help partners and creators succeed in a challenging and ever-changing music ecosystem. We provide tools and solutions to help you with this, “said Dice. In the contract statement, we focused on the number of artists who have been hit hard by the cancellation of the tour since the pandemic began.
The Dice / Boiler Room deal was in line with news that music streaming service Deezer had purchased a minority stake in Drift, a high-definition livestreaming platform launched in August 2020, founded by artist management firm ATC Management. .. It’s clear that Deezer has the same opportunity to invest in Dreamstage, a livestreaming startup that happened to be launched in August 2020, as it did in May this year.
This was after concert giant Live Nation acquired a majority stake in Veeps, a livestreaming platform founded by Good Charlotte’s Joel and Benji Madden in early 2021.
This year, there has been a surge in small transactions in and around live music streaming. In particular, Vnue acquired Stageit in July, music licensing company Songtradr acquired Pretzel (providing music for live streams on Twitch and YouTube) in April, and the Universal Music Group has partnered. In February, in collaboration with K-pop’s YG Entertainment, we co-invested in KBYK Live, the company behind Venew Live.
Research firm MIDiA estimated that livestream events with tickets generated $ 600 million in 2020, and there was a fair amount of sloshing around the music livestreaming business. The livestreaming market, like the general music streaming market, is a major act of hosting blockbuster events that have attracted a small number of millions of paying customers, especially BTS and Dua Lipa.
The music business hates the void and is keen to ambush as well when there is some growth in exciting new areas or parallel businesses. With regard to Warner Music Group’s recent numbers, especially revenues from companies like Facebook, TikTok, and Peloton, you can see how well-established music companies are looking to diversify their revenue streams. Of course, this is to make a profit, but if you’ve been looking at the abyss of record sales decline for years, it’s also about spreading your bets as widely as possible in a way that only companies are compelled to do.
What we see in the livestreaming market is growing investor confidence that it will not disappear even after the “normal” tour resumes. Just as Spotify has invested heavily in the podcast sector to maintain its growth curve and protect its relevance as audio listening evolves, there is of course a similar integration in the livestreaming sector.
Livestreaming will inevitably grow exponentially and will obviously not be implemented at the 2020 level simply because people can choose again as festivals and venues return slowly. But what it achieved was also opening up the possibilities of livestreaming to viewers who wouldn’t have thought before.
There is no excess of live streams, defining the last 18 months as simply unsustainable. There will be fewer events, but it will be even more spectacular. This requires more up-front investment in production. Therefore, accelerated integration in markets stimulated by fierce competition to dominate naturally squeezed markets.
Livestreaming companies like Driift say they have seen mass ticket sales from markets that are barely or not included in major international law tour plans. They believe that this accumulated demand is being provided by livestreaming in the long run and uses streaming technology to reach paid fans in countries that are considered economically infeasible on tour. Therefore, it suggests that it can function as a supplementary income for activities on the road.
It’s worth remembering that for many in the last 18 months, livestreaming was previously considered a “necessary” alternative to well-accessed real-world programming. But it’s also worth remembering that livestreaming has been a very welcome acknowledgment to many others over the last 18 months. finally – Even that they existed.
Behind the current heavier bets and heavier investments in livestreaming-slash-integration is this audience (an audience that traditional tours have never reached, primarily to deplete rather than increase profits). ..