Live Thrives in a Digital World
Perhaps because consumers desire shared experiences or simply have a fear of missing out, live broadcasts and events remain compelling and lucrative despite the increased availability of on-demand content.
The largest component of live performance is concerts, which garner just over half of the subsector’s revenue, Deloitte Global notes. The next-largest component is theatre, with major hubs such as Broadway in the United States and the West End in London continuing to generate significant revenue.
Deloitte Global predicts that live broadcasts and events will generate $545 billion in direct revenue in 2018, a 1 percent increase over the previous year. Live TV and radio broadcasting are expected to generate 72 percent of all live revenues in 2018, with the largest component, broadcast TV, driving $358 billion from advertising and subscriptions, Deloitte Global notes. Almost all live revenues – $537 billion, or 98.5 percent – are being generated by traditional formats, but new genres, primarily live streaming and eSports, are seeing surging revenue.
Breakdown by segment
Trends in the popularity of live events and broadcasts vary by type:
Live TV. While consumption of daily minutes of live TV has dropped steadily among younger age groups in some markets, live viewing remains significant overall. This is despite the steady growth in subscription video on demand (SVOD), the availability of DVRs, and the rising reach of smart TVs, which include video-on-demand support.
Radio. Live radio has remained popular despite the increasing availability of ondemand alternatives such as personal and portable music collections, streaming music services, and podcasts. In the United Kingdom, time spent listening to the radio – about 20 hours per week – has varied little in recent years, with 90 percent of the population listening to the radio at least weekly.
Live events. Deloitte Global forecasts that revenues from attendance at live events— including live performances such as concerts and shows ($36 billion), exhibitions and conferences ($38 billion), sports ($33 billion), and cinema ($39 billion)—will grow collectively by $5 billion, to $146 billion in 2018.
The largest component of live performance is concerts, which garner just over half of the subsector’s revenue, Deloitte Global notes. The next-largest component is theatre, with major hubs such as Broadway in the United States and the West End in Lon- don continuing to generate significant revenue. Meanwhile, B2B exhibitions and conferences continue to attract crowds, with large events such as electronics show CES drawing more than 180,000 attendees. Watching sports live also remains a significant market, despite the widespread availability of televised sporting events and the posting of results online. Live streaming and eSports. Almost all revenues from live events are being generated by traditional sectors, but new genres, primarily live streaming and eSports, are enjoying surging revenues, albeit from a low base. Deloitte Global forecasts new formats will reach $8.4 billion in 2018, equivalent to 1.5 percent of all live revenue—a 46 percent increase.