EAY 2019 by IQ Magazine

THE DEFINITIVE GUIDE TO THE EUROPEAN ARENA MARKET Exclusive data & analysis of every European market Special feature: 30 years of Stockholm’s Globe 2019 Arena Directory

AN ILMC PUBLICATION £130 | €149

IN ASSOCIATION WITH

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CONTENTS

Dear Reader It’s 12 years since the IQ team published its ﬁrst European Arena Report and looking back, the evolution in the business has been astounding, with each new year seemingly generating more venue construction projects than the year before. Underlining this trend, our third European Arena Yearbook (EAY) hints at even more arenas to add to the choice for international touring productions in the years to come, with mooted complexes set to break ground in the likes of Valencia, Frankfurt, Moscow, Helsinki, Manchester, London, Newcastle and Milan. As usual, our scribe, James Drury, has pored through survey data with the help of economist and analyst, Chris Carey, to gauge the health of Europe’s arena business, and we sincerely hope that some of the quantitative and qualitative information they have derived from our participating venues proves useful to you. As with previous editions, we have split the report into six geographical regions: Central & Eastern, France & Benelux, GSA, the Nordics, Southern, and the UK & Ireland, so that building management and associated partners can best gauge individual performance and, perhaps, identify areas for potential business growth. We also hope this regional approach will be helpful to those tasked with planning tours when it comes to examining routing options around key cities. A total of 61 arenas participated in this year’s EAY and in addition to thanking each and every one of them for trusting us with their data, we would also like to say a huge thank-you to the management of both the UK’s National Arenas Association and the European Arenas Association, without whose co-operation we would not be able to provide such detailed analysis of this ever-growing sector. As the dawn of a new decade fast approaches, it won’t be long before we start collecting data for next year’s report, so should your venue wish to participate in the 2020 edition, then please contact me via gordon@iq-mag.net. Gordon Masson Editor

CONTENTS Welcome

Features Stockholm Globe’s 30th Anniversary Tech spotlight: LiveStyled

6 14

Statistical Analysis Europe: The Big Picture Central & Eastern France & Benelux Germany, Switzerland & Austria Nordics Southern UK & Ireland

16 22 28 34 42 48 54

Venue directory

Unit 31 Tileyard Road King’s Cross London N7 9AH Publisher ILMC and Suspicious Marketing Editor Gordon Masson (gordon@iq-mag.net) Analysis Media Insight Consulting (chris@mediainsightconsulting.com) www.mediainsightconsulting.com Design Philip Millard (rathernicedesign.com) Sub-editor Michael Muldoon (michael@ilmc.com) Marketing & advertising Archie Carmichael (archie@iq-mag.net) Contributors James Drury, Anne-Marie Harwood, Eamonn Forde, John Langford, Lucy Noble, Nancy Skipper

ÂŠ Blake Ezra Photography Ltd.

WELCOME

Once again, the European Arenas Association (EAA), through our thirtysix indoor arenas spanning twenty-two European countries, is pleased to support and contribute towards this yearâ&#x20AC;&#x2122;s European Arena Yearbook. The arena business is healthy, as traditional touring and sports content continues to drive the number of event days and attendances. Audiences have once again increased since last year, with particularly strong growth in music touring. The anchor of sport and music provides a solid foundation to support the growth and development in new genres of arena content. From family shows to e-sports, and K-pop to comedy, the demands on arenas to adapt and be flexible are greater than ever before.

The EAA provides a platform for our members to share experience; develop and test new technologies; drive European content agenda, and thus further contribute towards the health of our industry. Our approach is built on relationships between our members and a united offering to stakeholders and policymakers. Of particular focus for us in the year ahead is reducing our footprint and positively impacting our environment. The ability to promote awareness of sustainability themes to an audience of nearly 20 million people and the opportunity to make a difference in our individual arenas is a convincing proposition.

John Langford EAA President

WELCOME

The National Arenas Association (NAA) is delighted to support the European Arena Yearbook. The association currently represents 23 of the UK’s arenas with a capacity of 5,000 and above. Last year, our arenas welcomed 12.6million attendees over 2,373 performances, which is a testament not only to the quality of the artists and their shows on tour, but also the venues themselves that are delivering continuous investment in facilities and service to make each customer’s experience the best it can be, and ensure those customers return again and again. Our arenas contribute to not only the music industry but to local economies. Shortly we will publish results for 2019, in which we predict that 2020 will be a strong year for us all, with a diverse programme of events. Our visitors are key to everything we do, and we all strive to create the best experiences and environments for this group, from artists through to audiences. The association is also currently focusing on sustainability, which is a hot topic of conversation and one that we all feel passionate about. The body shares ideas, knowledge and working practices on various initiatives. Learning from each

other across the membership is key to helping drive this particular area forward. The venue teams see this as a priority over the coming years, and the steps we are taking are moving the arenas towards more sustainable operating models that are both innovative and diverse. We, of course, continue to deliver our training courses – the NAA Professional Certificate & Diploma in Event & Safety Management – which provides a uniquely practical qualification, and consists of subject modules ranging from crowd science through to event leadership and management. Safety is at the heart of everything that is achieved through our arenas and we were pleased to participate in E3S again this year. Industry relationships are key to the success of the NAA and we continue to work closely with key associations such as the EAA, AEV, Attitude is Everything, CPA and, of course, Live Music UK, which is instrumental in looking at the strategic issues the music industry faces – and we thank all those groups for their continuing support!

Lucy Noble

NAA Chairperson

All the worldâ&#x20AC;&#x2122;s a stage

ÂŠ stock.adobe.com

When the ribbons were cut to open the Globen 30 years ago, not only did the Stockholm skyline change dramatically, but the clamour of A-list stars and touring productions looking to visit one of the world's most iconic venues helped cement the Swedish capital's place on the international touring map. Eamonn Forde reportsâ&#x20AC;Ś

GLOBE @ 30 | FEATURE

hat began life 30 years ago as one of the most controversial buildings in Stockholm has now become woven into the fabric of the Swedish capital and a celebrated part of the

city’s skyline. The Ericsson Globe – known locally simply as “Globen” – took over two years to build. It opened its doors on 19 February 1989 and remains the largest hemispherical building in the world. Over the past three decades it has changed the live entertainment and sports environment not just in Stockholm but across Scandinavia. In that time, the venue has hosted over 3,300 events and seen 35 million customers through its doors.

Its construction at the time was desperately needed as there was no purpose-built multifunctional arena in the region until its arrival, with concerts and other family entertainment events having to make do in ice hockey arenas that dated back to the 1960s. “There was an architectural competition to build the new arena and to make it a landmark of the city,” says Marie Lindqvist, the venue’s VP and general manager. “It is a spherical building, and it was very controversial at the beginning but it has become a well-known and well-loved landmark in the city of Stockholm. The building was completely new and very modern. It was very different to what had been in the market before.”

FEATURE | GLOBE @ 30

the perfect seating plan for each show,” she says. Alongside the customer-facing benefits of this rich data there are also business-facing upsides. “Promoters expect fast feedback on booking availabilities, so the organisation needs to quickly process information in order to find out what can be accommodated, both from a calendar and an operational perspective,” explains Blomqvist. “I would say that the organisation has sharpened its working processes and our know-how to better face up to the ever-increasing demand for arena availability.” Given that Ericsson has been the venue’s naming partner for the past decade, mobile technologies have long been front and centre here. “Today, consumers expect great connectivity in any arena; it is one of the basic components of the live experience,” says Gil Murphy, the Globe’s head of event technology. “Most of the new ways of operating a venue depend on the connectivity in the arena with the POS systems, ticket scanning, wayfinding, and so on. Also, from an operating perspective, great connectivity is essential.” Staying on top of the rapidly evolving digital world is a priority for the venue. “When Ericsson Globe hosted the Eurovision Song Contest in 2016, the Wi-Fi in the arena was upgraded to a newer standard, delivered by Ericsson, and is today a network that can handle most challenges,” adds Murphy. The next technological leap will be 5G mobile connectivity, and venues will have to move in lockstep with these telco developments. “One thing I believe is, for sure, connectivity will continue to increase, as well as new ways to interact digitally with arena visitors,” says Murphy. Tied into this is the development of the venue’s own smartphone app, which will launch later this year for the Globe and the company’s other four arenas in the city (Friends Arena, Tele2 Arena, Annexet and Hovet). “The goal with the new app is to smooth the consumer journey and simplify your own interaction with the event you are going to,” explains Daniel Stålbo, director of comms at the Globe. “[The app] is where you will receive your ticket to your event [and it] is also where you will get all the information about your upcoming event; tips about how to best get to the arena; where to stay; how to order and pay for your food and drinks; how to get upgrades, and so on. It also provides a new foundation for interaction with live events in ways that promoters and partners define – such as voting, quizzes, seeing playlists, and more.” New technologies are also shaping the creative potential of the venue, allowing the touring acts and

Thomas Johansson, Live Nation We did the opening ceremony for the Globe and have promoted around 95% of the concerts in the building. Over the years, there have been some 600 shows from acts like Metallica, Bruce Springsteen, Paul McCartney, Elton John, Pink Floyd, Eric Clapton, Tina Turner, Pink, Beyoncé, The Police, Eminem, The Rolling Stones, Bon Jovi, Rod Stewart, U2, Paul Simon, RHCP, and more. Nelson Mandela came from South Africa two days after he was released from Robben Island via Switzerland and we organised his welcome at the Globe. This was amazing. I love the Globe! Its impact was instant, putting Stockholm on the international touring plans for major acts and events, as it meant they could now play to audiences of up to 16,000 in a purpose-built arena. “The Globe has been a major contributor to Stockholm growing on the international music and entertainment market,” says Lindqvist. “It has been an enabler for Stockholm to get big shows but also to host international championships in ice hockey, handball, figure skating, and many more sports. It has definitely been a driver in positioning Stockholm as an events city.” What was state-of-the-art in 1989, however, can start to look and feel archaic in 2019. As such, the venue has been keenly aware of the need to constantly evolve, to ensure it doesn’t become as anachronistic as the hockey arenas it superseded. Scandinavia has long been a leader in the adoption of online and mobile technologies, and it is only to be expected that this has impacted on live entertainment in the region before most other places in the world. The Globe has adapted to keep itself at the forefront of these developments. Jenny Blomqvist, head of event sales at the venue, says that while laptop/PC sales of tickets are still 50% of the market there, mobile is where the focus is now. “We do see a big shift towards mobile payments,” she says, “[and] all development within ticketing is now focused on mobile.” With this rise of online and mobile comes a concurrent growth in the importance of data, and this feeds into how the venue runs and helps it anticipate customer behaviour. “Data lets us know more about the fans and, thereby, creates a better customer journey [in terms of] what they want and how to communicate with them,” says Blomqvist. “It’s also more important with today’s technology and data to explain more about your exact position in the venue, the view from your seat, and also about possible upgrades or add-ons.” Data, ultimately, should be used to enhance the customer experience. “With more information about visitors and sales, together with the promoter we can create a better event when it comes to getting

SECURITY | FEATURE

productions to do things that were inconceivable products like our Suite Lounge and Premium even a decade ago. Lounges. We are going from larger suites located in “Technological developments have equated to a corridor, to Suite Lounges and smaller suites with greater demand from artists to incorporate [new] connected lounges. [This means] more networking show techniques as well as [raise] expectations environments.” from visitors for a multimedia experience that In terms of standing out in a highly competitive can be shared online,” is how Blomqvist puts it. market, he says, “I think our wide range of products “The arena has had to gradually evolve to meet is meeting the market’s expectations and demands. expectations. For instance, we are constantly We deliver high services with a personal touch, and working on how to improve rig capacity, as well our environments set the standard for European as creating solutions for data capacity in line with venue premium [offerings].” visitors’ expectations.” Outside of VIP and upgrade options, evaluating Improving customer experiences at the Globe and improving the eating and drinking options for is not just confined to deft deployment of new customers is an ongoing project. technologies, and it covers all areas of the venue. “We are trying to move away from hot dogs "We work with partners and sponsors in a totally and burgers to more sustainable options,” says different way, where we have much more activation Sammy Broqvist, head of ancillaries and concepts from our sponsors that are engaged in contributing at the Globe, on the overall trends there. “[We to a better consumer experience,” says Lindqvist of have to] match the demand for variety – street the rolling changes. “With our brewing partners, we food versus international cuisine – and more have worked on different concepts for bars to make healthy alternatives. Nowadays, we have a more it a better consumer experience. We have added new diverse beverage programme, with craft beer, craft screens and perimeter boards. We are making the cocktails, and a premium selection of wines. We venue more flexible and adding to the consumer are shifting our focus to more vegetarian and vegan experience.” Part of this is the move into VIP Jesper Björck, Swedish Hockey League offerings. Stefan Gustavson, director of I have great memories from all of the hockey games played sales at the Globe, says this started back there. The gold in the World Championship in 2013 or the in 2008 when AEG took over the running playoff games in the Swedish Hockey League are great of the venue. “We have an ongoing strategic plan happenings that Globen played a big part in, and are events to sell our products on an annual basis that stand out. The Ericsson Globe has become a landmark and to build long-lasting relationships when it comes to big hockey games in Sweden. When a game with our customers,” says Gustavson. “We have successfully developed is played in Globen, you’ll know that it is something extra!

FEATURE | GLOBE @ 30

available with reasonable pricing.” Venue security has always been a priority, but in recent years things have taken a darker turn, notably the terrorist attacks at the Bataclan in Paris in November 2015 and the Manchester Arena in May 2017. The Globe itself was also subject to a high-level security breach and evacuation in September 2015 ahead of a U2 concert, after an offduty police officer had been allowed into the venue with a gun. The nature of venue security dramatically changed in the wake of these incidents. “We are constantly developing the safety and security in our venues, and are learning from incidents and attacks on arenas and events around the world,” says Per Ekstrand, the Globe’s head of security. “We are part of various security networks, thereby discussing security issues, changing experiences and learning from each other in order to keep our work up to date. The goal is to make our venues as safe as possible.” In this regard, technology can be both blessing and curse for those overseeing venue security and customer safety. “It is easier today to find statistics as well as real-time information on how and when visitors come to the events and when the crowd is entering the venue – which makes it easier to plan how you want to manage the crowds and easier to follow up on what measures are giving the right effect,” says Ekstrand. “It also makes it easier to make plans on

Bozo Rasic, FKP Scorpio Over the last three decades, the Ericsson Globe has played a vital part in Swedish music history. The first show FKP Scorpio Sweden did at Globen was Justin Bieber back in 2012. We originally announced one date but quickly had to add another two. Since then we have developed a great partnership with the venue. We always enjoy having our artists play there, and want to send a big thank you and congratulations to the entire team.

options, and these selections are getting the prime position on our menus.” Broqvist adds that sourcing products and ingredients that are fair trade and more environmentally friendly is a must for all operators in this space. “The modern guest doesn’t differentiate between inside and outside the arena walls,” is how he puts it. “The old arena values with poor coffee, hot dogs, overpriced candy, and long lines will not make it into the future arenas.” This is a constantly moving part of the business and it is imperative to stay on top of trends and market changes. “Over the years to come, we think it is absolutely necessary that we adapt to the rest of the entertainment and food & beverage world,” he says. “We will rethink the guest flow into our arenas and what the offerings will be. One thing for sure is that arenas have to live a life of their own – even when there are no events. [This will mean] having top-of-the-line restaurant and bar concepts

Thanks to all promotors and sport & music lovers for 30 great years!

FEATURE | GLOBE @ 30

in May last year as important, as it now holds the Globe’s attendance record (with over 17,000 fans there to see the band). “It is quite unusual to have a concert in the round but this made it possible to break attendance records because we could use the whole arena with the stage in the centre.” She adds, “Every big international artist has been to the Globe. We asked Thomas Johansson [Live Nation’s chairman of international music and the Nordics] if there were any artists he wished could have played or should play the Globe. His answer was, ‘Everyone has been to the Globe! Every single big artist has played the Globe over the years.’ We have been fortunate to have had lots of great shows there.” She says the venue will not rest on its laurels. “It is an ongoing process to modernise and make the necessary changes to meet market demand,” she says. “We work very closely with the City of Stockholm, which owns the arena, and with AEG, who have been the operators for over ten years. This is a very good collaboration where we make sure that, even though the arena is over 30 years old, it is under constant development.” What was once viewed with suspicion or even derision when it opened 30 years ago is now part of Stockholm’s DNA. It has been a long journey to get there but Lindqvist knows it has been worth it. “I am most proud of the fact that this is such a unique arena,” she says. “There is nothing like it in the world. It is a landmark in Stockholm and it is very much loved by Stockholmers.”

Gunnar Schöldberg, Scandinavian Concessions Management (SCM) SCM has been with Ericsson Globe from day one. The first time I ever sold a merchandise product was at a Roxette show at Ericsson Globe. I did my military service and was offered an extra job, so I accepted. This was the start of my career in the merchandise business. After two years, I was hired full-time and now I am the MD of the company! It has always been a fantastic bunch of people working at Ericsson Globe and some of them have also become great friends. Ericsson Globe is Stockholm’s number-one landmark when it comes to entertainment, I think. how to reach and communicate with the visitors.” However, he adds, “A negative side effect of today's technology and social media is that information spreads very quickly and, if the wrong information is spread uncontrollably, it can risk creating serious incidents.” This will remain a critical issue for all venues, but the focus must remain on the future, as well as the many positives, given that live entertainment can bring so much light and joy to our lives. When asked about some of the standout events at the Globe, Lindqvist says she has to pick from an embarrassment of riches. She claims it is almost impossible to pick standout events at the venue but when pushed, cites the 2016 Eurovision Song Contest as a personal highlight. “It was huge,” she says. “It was a spectacular show, and the arena was shown at its very best during that event.” She also names Metallica’s show in the round

PROUDLY PRESENTS

It has been a great 30 years. 1989

1998

2005

2012

GLOBENS INAUGURATION • GARY MOORE ELTON JOHN • DIANA ROSS • BOB DYLAN PINK FLOYD • PAUL SIMON • JULIO IGLESIAS EURYTHMICS • JOE COCKER STEVIE NICKS • MAGNUS UGGLA • BON JOVI

CLASSIC ROCK • BACKSTREET BOYS LORD OF THE DANCE • JANET JACKSON SPICE GIRLS • AQUA • BOB DYLAN RIVERDANCE • THE ROLLING STONES JOHN FOGERTY • DEPECHE MODE JULIO IGLESIAS • ROD STEWART EROS RAMAZZOTTI • ERIC CLAPTON ELTON JOHN

R.E.M. • JUDAS PRIEST • JOHN FOGERTY MELODIFESTIVALEN • WESTLIFE • QUEEN MARK KNOPFLER • DESTINY´S CHILD ROD STEWART • CROSBY, STILLS & NASH SOUNDWAVE • BLACK SABBATH LUCIANO PAVAROTTI • BACKSTREET BOYS BOB DYLAN • COLDPLAY • ELTON JOHN CAROLA • ANDREA BOCELLI

RAMMSTEIN • AVICII • MELODIFESTIVALEN IL DIVO • DRAKE • MICHAEL BUBLÉ JAY-Z / KANYE WEST • TOM PETTY PEARL JAM • PAUL SIMON • LADY GAGA NICKELBACK • LIONEL RICHIE • PETER JÖBACK MICHAEL JACKSON THE IMMORTAL TOUR BY CIRQUE DU SOLEIL CHRIS BROWN • RICKY GERVAIS

1990 ERIC CLAPTON • NELSON MANDELA CHRIS REA • COUNT BASIE ORCHESTRA TEARS FOR FEARS • MIDNIGHT OIL PHIL COLLINS • TINA TURNER PLACIDO DOMINGO • MONSTERS OF ROCK FLEETWOOD MAC • EARTH, WIND AND FIRE TOTO • DEPECHE MODE • JANET JACKSON INXS • BILLY IDOL

1991 SCORPIONS • DEEP PURPLE DAVID LEE ROTH • ROD STEWART NEW KIDS ON THE BLOCK • MC HAMMER GLORIA ESTEFAN • PET SHOP BOYS PAUL SIMON • STING • GUNS N’ ROSES ROXETTE • SIMPLE MINDS MICHAEL BOLTON • ALICE COOPER BRYAN ADAMS

1999

DEPECHE MODE • MELODIFESTIVALEN IL DIVO • SANTANA MARK KNOPFLER & EMMYLOU HARRIS GUNS N´ROSES • JOHN FOGERTY ERIC CLAPTON • GEORGE MICHAEL BRUCE SPRINGSTEEN & THE E STREET BAND IRON MAIDEN • RED HOT CHILI PEPPERS

2000

2007

PET SHOP BOYS • RIVERDANCE ELVIS – THE CONCERT • STING FIVE • TOM JONES • BOB DYLAN BON JOVI • ENRIQUE IGLESIAS NHL CHALLENGE DEEP PURPLE & ORCHESTRA AC/DC • BRITNEY SPEARS MTV VIDEO MUSIC AWARD • THE CORRS SAVAGE GARDEN • SARAH BRIGHTMAN

MELODIFESTIVALEN • SNOOP DOGG / P DIDDY SHAKIRA • DOLLY PARTON • BOB DYLAN LIONEL RICHIE • ROGER WATERS • BEYONCÉ LINKIN PARK • MÖTLEY CRÜE • IL DIVO JUSTIN TIMBERLAKE • GEORGE MICHAEL THE WHO •THE POLICE • DELIRIUM BY CIRQUE DU SOLEIL • GWEN STEFANI RUSH • STARLIGHT EXPRESS • QUEEN BRUCE SPRINGSTEEN & THE E STREET BAND

1992

2001

STATUS QUO • JOE COCKER • EUROPE SIMPLY RED • TOM PETTY • THE HIGHWAYMEN JOHN MELLENCAMP • CHER • U2 BRUCE SPRINGSTEEN & THE E STREET BAND IRON MAIDEN • THE CURE TOTO •JULIO IGLESIAS •METALLICA

ARTISTER MOT NAZISTER • EMINEM ERIC CLAPTON • WESTLIFE • THE EAGLES WYCLEF JEAN • NEIL YOUNG • U2 ELTON JOHN • MARK KNOPFLER RADIOHEAD • NHL CHALLENGE • DEPECHE MODE EROS RAMAZZOTTI • ROXETTE TOMAS LEDIN

2002

1993 CHRIS REA • VAN HALEN • PETER GABRIEL BON JOVI • DEF LEPPARD • MICHAEL BOLTON DEPECHE MODE • PRINCE • STING ROD STEWART • PAUL MCCARTNEY WHITNEY HOUSTON • AEROSMITH JAMES BROWN • ULF LUNDELL

1994 PHIL COLLINS • RAY CHARLES • ROXETTE JOSÉ CARRERAS • JOE COCKER STATUS QUO • ZZ TOP

1995 JANET JACKSON • ERIC CLAPTON WET WET WET • ELTON JOHN SOUNDGARDEN • RED HOT CHILI PEPPERS CÉLINE DION

1996 DAVID BOWIE • MICHAEL BOLTON AC/DC • TINA TURNER • MARK KNOPFLER BRYAN ADAMS • CÉLINE DION METALLICA • KISS

1997 BACKSTREET BOYS • TOM JONES • THE WHO JEAN-MICHEL JARRE • TONI BRAXTON OASIS • PHIL COLLINS • JOHN FOGERTY

MELODIFESTIVALEN • MARY J. BLIGE BOB DYLAN • WESTLIFE • LENNY KRAVITZ ROGER WATERS • DESTINY´S CHILD ENRIQUE IGLESIAS • ROD STEWART ELTON JOHN • KORN • RIVERDANCE BRUCE SPRINGSTEEN & THE E STREET BAND TOTO

2003 MELODIFESTIVALEN • RED HOT CHILI PEPPERS SHAKIRA • PETER GABRIEL PAUL MCCARTNEY • WESTLIFE • TOM JONES DALAI LAMA • THE ROLLING STONES NHL CHALLENGE • SANTANA CHRISTINA AGUILERA • MARIAH CAREY DAVID BOWIE • BOB DYLAN ANDREA BOCELLI CATS • IRON MAIDEN • CAROLA

2013 THE KILLERS • ALEGRIA BY CIRQUE DU SOLEIL JOSH GROBAN • P!NK • BEYONCÉ ROD STEWART • DEPECHE MODE • RIHANNA MACKLEMORE & RYAN LEWIS • PETER JÖBACK FLEETWOOD MAC • LIL WAYNE • JAY-Z BRUNO MARS

2014 DRAKE • ROBBIE WILLIAMS • PETER GABRIEL MILEY CYRUS • JOHN MAYER DOLLY PARTON • IL DIVO PHARRELL WILLIAMS LADY GAGA JOHN LEGEND

30!

HERE’S THE

2006

RIVERDANCE • ELVIS - THE CONCERT THE CORRS • KISS • TOTO BEASTIE BOYS • SARAH BRIGHTMAN LAURYN HILL • METALLICA ALANIS MORISSETTE • AEROSMITH BACKSTREET BOYS • IRON MAIDEN EURYTHMICS • WHITNEY HOUSTON BARRY WHITE • BURN THE FLOOR CHER • BLACK SABBATH

2015

2008

CIRQUE DU SOLEIL • THE EAGLES MELODIFESTIVALEN • CÉLINE DION KYLIE MINOGUE • JAY-Z • MAMMA MIA R.E.M. • COLDPLAY • STEVIE WONDER NHL PREMIERE • LEONARD COHEN ELTON JOHN • PETER JÖBACK

2009 OASIS • AC/DC • JUDAS PRIEST • METALLICA MELODIFESTIVALEN • IL DIVO • ULF LUNDELL BOB DYLAN • TINA TURNER • METALLICA BEYONCÉ • BRITNEY SPEARS SALTIMBANCO BY CIRQUE DU SOLEIL TOM JONES • FLEETWOOD MAC GREEN DAY • P!NK • EROS RAMAZZOTTI PETER JÖBACK • NHL PREMIERE

2010 DEPECHE MODE • RAMMSTEIN • TOKIO HOTEL MELODIFESTIVALEN • ANDREA BOCELLI LADY GAGA • WHITNEY HOUSTON ROD STEWART • LEONARD COHEN OZZY OSBOURNE • STING NHL PREMIERE • MAMMA MIA • SANTANA

2004

2011

SHANIA TWAIN • MELODIFESTIVALEN BRITNEY SPEARS • WESTLIFE • YES USHER • PHIL COLLINS • CHER SIMON & GARFUNKEL • RIVERDANCE SARAH BRIGHTMAN • RUSH ANASTACIA • STING •RAMMSTEIN PETER JÖBACK • CAROLA

MELODIFESTIVALEN • ROGER WATERS • RUSH SADE • ERIC CLAPTON • LINKIN PARK DOLLY PARTON • JOSH GROBAN RED HOT CHILI PEPPERS • NHL PREMIERE BRITNEY SPEARS • RIHANNA • ROXETTE BOB DYLAN / MARK KNOPFLER PAUL MCCARTNEY • TIËSTO

FROM YOUR FRIENDS AT LIVE NATION.

CHAMPIONS OF ROCK • LIONEL RICHIE NICKI MINAJ • PAUL SIMON & STING KATY PERRY • 5 SECONDS OF SUMMER ARIANA GRANDE • QUIDAM BY CIRQUE DU SOLEIL THE FOOO • U2 • JOE BONAMASSA I LOVE MUSICALS • MÖTLEY CRÜE JUDAS PRIEST

2016 ELLIE GOULDING • MARIAH CAREY EUROVISION SONG CONTEST • ROD STEWART 5 SECONDS OF SUMMER • CHRIS BROWN MUSE • DON HENLEY • NICKELBACK THE CURE •VOLBEAT • LALEH HÅKAN HELLSTRÖM

2017 THE WEEKND • DRAKE AVENGED SEVENFOLD • JOHN MAYER BRUNO MARS • GABRIEL IGLESIAS JOHN LEGEND • CHRIS ROCK VAREKAI BY CIRQUE DU SOLEIL NICK CAVE & THE BAD SEEDS CHAMPIONS OF ROCK • NHL PREMIERE IN FLAMES / FIVE FINGER DEATH PUNCH SCORPIONS

2018 MARCUS & MARTINUS • THE KILLERS KENDRICK LAMAR • HARRY STYLES IMAGINE DRAGONS • BRYAN ADAMS METALLICA • GAME OF THRONES KATY PERRY • PAUL SIMON JEFF LYNNE´S ELO • SEINABO SEY DAVE CHAPPELLE & JON STEWART SHANIA TWAIN • BON IVER

2019 FIRST AID KIT • TWENTY ONE PILOTS • GHOST POST MALONE • NICKI MINAJ FLORENCE + THE MACHINE • MICHELLE OBAMA ROD STEWART • MUMFORD & SONS ALICE & BIANCA SHOWCAST • MARK KNOPFLER •BACKSTREET BOYS • BOB DYLAN...

SPOTLIGHT | LIVESTYLED

LiveStyled founder & CEO Adam Goodyer is on a mission to help venues and events improve the experience for customers, while generating additional revenues

LIVESTYLED LiveStyled’s apps are changing the ways that businesses communicate with their patrons

iveStyled powers the digital customer experience for some of the world’s biggest venues. The company’s expertise enables clients to enhance experiences, learn behavioural patterns, and personalise content for their customers and visitors. Working with the likes of AEG Europe, the company is known for its venue apps. “We see the app as the tip of the iceberg,” explains founder and CEO, Adam Goodyer. “The app is just one thing that customers interact with, but we take the data that is generated from all digital systems in a venue to create one source of profile for the customer. That data can be used to promote products or actions that give customers a better experience, as well as

help to generate more revenue for our clients.” LiveStyled’s apps can be used for access control, allowing entry via mobile devices, for instance, while the platform can also enable ticket purchases. “For arenas, we believe that they should have ownership of the customer when they are in the building – someone attending an event should be the arena’s customer.” Goodyer notes that many visitors will be unfamiliar with a venue operator when they are attending an event, but using LiveStyled’s apps, arena management can communicate travel information, mapping and even help point people towards less busy food and beverage or merchandise concessions. “We also use the app to target customers who the data tells us are the most likely to want to upgrade their experience,” Goodyer says, adding that one of the company’s latest successes is in using data to predict when people are most likely to make their final purchase at an event. “We’ve called it ‘last orders’ and it’s a machine-learning algorithm that can incentivise people to buy one more beer or one more snack. So a discount can be offered to those people the algorithm predicts have made their last order. At the moment, it is proving 74% accurate with those predictions.”

ÂŠ stock.adobe.com

EUROPEAN OVERVIEW

he boom time for Europe’s arena business shows no sign of slowing down, with even the record-breaking results in 2017 exceeded by many venues. Increasingly diverse forms of entertainment are reaching this level and venues are agile enough to accommodate them. Consumer confidence is high in all markets and new demographics are being targeted by promoters, bringing in new audiences. However, increasing production costs and the rapid pace of technological change putting pressure on capital budgets means some venues are beginning to sound notes of caution. Another significant move is the increasing trend towards consolidation. The merger of AEG Facilities and SMG to form ASM Global is the most significant example of this in the industry since Live Nation predecessor SFX Entertainment started rolling up promoters and venues in the late 90s. And competition is hotting up as new venues are being built across Europe to take advantage of demand. State-of-the-art facilities are planned in places such as Milan, London, Valencia and Geneva, while Scotland’s P&J Live is one of the most recent examples to come on-stream. A total of 75 arenas from across the continent responded to our survey, answering questions covering areas such as attendance, VIP business, concerns, staffing levels, and trends in the industry. There is a detailed breakdown of the results and what they mean by region later in the publication, but here we’ll take a look at the trends and statistics across Europe.

Attendance

More than 37million tickets were sold to almost 6,000 events hosted by the venues in our survey. Live music continues to dominate, making up 44% of all events – up from 37% the year before. It also attracted the largest audiences, seeing on average 8,116 per show, compared with a Europewide average of 6,395. This translated into attracting 56% of the total attendance figure.

Comedy shows were the second most wellattended events, pulling average audiences of 6,649. However, they made up just 5% of the number of events – and there are significant regional differences. The highest attended comedy shows are in Southern Europe, where average sales were 7,815 per night, while the lowest were in France and Benelux, attracting average audiences of 2,891. However, as one arena boss put it, this sector is highly susceptible to the cyclical nature of touring because there are fewer comedians that can fill arenas. When the major names aren’t touring, there’s a marked fall in the number of shows and size of audiences. Sports events were the second most numerous, drawing 8.4m people to 1,273 events. Average attendance was 6,559. Family shows constituted 21% of all programming – up from 15.5% in 2017. However, average attendance is the second lowest of all genres – 3,666. In some cases, this is due to larger productions leaving less capacity for seating. Southern Europe continues its reign as the market attracting the highest average audiences, drawing 10,869 people per event – up massively on last year’s 8,555. A significant factor in this will be the fact that the Spanish Promoters Association, APM, reported the country had its best year ever for live music in 2018. And this buoyancy is reported across these markets (see Southern Europe Market Profile for further details). The region with the second highest average audiences is Central & Eastern Europe, at 7,903 – above the Europe-wide mean of 6,395. There’s a strong sense of optimism across the continent for 2019. Although with Brexit, greater competition and the expansion of multinational corporations means no one is resting on their laurels.

Ticket prices

Perhaps surprisingly, the average ticket prices across all events fell slightly compared to the previous year, at €43.49, compared to €44.34 in 2016. Music events continue to be the most expensive, averaging €53.23, although this is a slight drop compared with 2017, when they cost €54.88.

PERFORMANCE GENRE

2018 KEY STATISTICS PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

MUSIC

2,574

8,116

20,890,750

€53.23

€1,112,118,195.85

FAMILY

1,236

3,666

4,531,273

€45.48

€206,097,662.92

COMEDY

314

6,649

2,087,836

€41.65

€86,965,911.08

SPORT

1,273

6,559

8,349,149

€26.06

€217,545,795.91

DANCE

2,294

195,016

€47.75

€9,311,085.51

AWARDS

5,110

127,757

€48.04

€6,137,294.88

RELIGIOUS

6,963

174,080

€2.39

€2,157,231.48

310

3,236

1,003,180

€29.47

€29,566,291.75

5,842

6,395

37,359,041

€44.70

€1,669,899,469.38

MISCELLANEOUS TOTAL

NUMBER OF PARTICIPATING ARENAS: 75 TOTAL ATTENDANCE

TOTAL SPEND

TOTAL EVENTS

AVERAGE TICKET PRICE

AVERAGE ATTENDANCE

2,430,273

€87,467,598.56

413

€35.99

5,884

CENTRAL & EASTERN

7,026,109

€220,471,473.92

889

€31.38

7,903

GSA

5,485,519

€335,481,972.87

1,076

€61.16

5,098

FRANCE & BENELUX

3,265,378

€160,697,596.34

492

€49.21

6,637

SOUTHERN

REGIONS

NORDICS

6,466,966

€216,734,868.40

595

€33.51

10,869

UK & IRELAND

12,684,796

€649,045,959.29

2,377

€51.17

5,336

TOTAL

37,359,041

€1,669,899,469.38

5,842

€43.74

6,954.5

2018 INDUSTRY CONCERNS 25%

13% 9% 13%

Production costs

12%

State of economy 5%

Political interference Lack of suitable content

100%

Industry consolidation

Licensing regulation

75%

Competition Shortage of skills / Trained personnel

50%

22%

Artist fees / Ticket prices Lack of suitable headliners

FACTORS IDENTIFIED BY RESPONDENTS AS WORRYING OR EXTREMELY WORRYING

8% 4%

GROWTH PREDICTIONS

n Nordics n Central & Eastern n GAS

n France & Benelux n Southern n UK & Ireland

7% 6% 5% 4% 3% 2% 1% 0% Average growth prediction 2018

Average growth prediction 2019

Average growth prediction 2020

Average growth prediction 2021

EUROPEAN OVERVIEW

Family shows showed a slight increase in cost, averaging €45.48, compared to €43.81 the year before. Comedy ticket prices are also rising, coming in at an average €41.65, (2017: €38.54), while sports tickets remain low at €26.06 (2017: €25.61). Despite having the most expensive tickets in Europe at €61.16, consumers in Germany, Austria & Switzerland show no sign of slowing demand, as many arenas told us. However, there is a feeling of caution about how much further they can rise. Central & Eastern Europe continues to have the lowest average ticket prices at €31.38, although this is up on 2017’s average price of €30.17. As their economies continue to perform well and people become more affluent, these prices are sure to continue the upward trend. What will be important is to ensure there is sufficient breadth in the range of tickets, so everyone can enjoy their favourite shows. By ensuring young people who have less money can come to events, you’re building an audience for the future.

Challenges

With such a broad range of markets, challenges vary depending on the territory. But what all arenas face in common are issues of security, rising costs and the demands of increasingly technical productions. All venues are investing in measures to ensure their patrons are safe, without spoiling the main reason they are there: to enjoy themselves. A variety of tools are being deployed from CCTV to detector arches. Some of the longer-standing venues are tackling the challenges that come with the age of a building and the pace of technological change. Many have carried out or are planning significant renovations and improvements to make them fit for the coming decades. The important question now is whether those that have splashed the cash on new facilities will be able to maximise the return on their investment. For some markets, increasing production costs such as staffing, insurance, taxes and repairs are putting pressures on margins. Naturally, the best way to overcome this is to increase the amount of content coming through – as many are doing by offering more flexible set-ups. Other solutions are finding new ways to retain staff through perks and working conditions, or by bringing catering inhouse. VIP and hospitality business is an important revenue stream in this issue. As mentioned, flexibility is vital, and the ability to offer a very broad range of capacities is a common refrain across Europe, meaning they can host events of all sizes to ensure the calendar is as full as possible. Keeping up with audience demands for increasingly sophisticated services is another challenge that arenas in Europe share. From better quality or more choices in food and beverage, to

high-speed Wi-Fi, exceptional customer service, and instant communication, all these things cost money. While the artist is the star and the reason people buy tickets, venues know the experience they offer is a crucial part of fans’ enjoyment. By listening to audience feedback, arenas are able to respond appropriately and ensure live entertainment competes strongly with people’s other leisure choices. As much as digital distractions jostle for attention, there’s simply no better experience than a live show.

Concerns

Our survey asked respondents to name their greatest concerns about the future of the business. With a general mood of optimism, most did not express significant worries about the challenges they face. However, some issues were considered ‘very’ concerning, such as market consolidation. For those venues not part of one of the major global players there is a worry that we will end up with a two-tier system, where the biggest tours organised by the likes of Live Nation and AEG will go to their own venues. Increasing production costs and a shortage of staff was another issue that some remarked on. As ever more complex tours go out on the road, accommodating them – along with all the tech that’s needed – is getting expensive, and arenas don’t feel they can increase hire charges in line with their costs. High artist fees was naturally a common issue considered ‘very’ or ‘extremely’ concerning, while competition among venues was also cited as a concern by a few. Naturally, British venues cite Brexit as one of their chief concerns, with worries about what effect it will have on the economy or consumer confidence, or any potential red tape artists may encounter when touring.

Opportunities

K-pop arrived in a big way across most of Europe in 2018, with fans of artists such as BTS queuing for hours – sometimes days – before the concert. Frequently discussed at ILMC as a potential major new genre, e-sports is having mixed success – and this can vary even within a country. In some places, such as Hamburg’s Barclaycard Arena, it’s been popular for years. Other venues, including Hartwall Arena in Helsinki and London’s The O2, are hosting their first tournaments and see great potential. And in some territories, it just hasn’t gained much traction. Other new forms of content proving popular are talk shows. Naturally Michelle Obama’s tour was a major draw, but hosts of popular radio shows and podcasts are also drawing significant audiences.

EUROPEAN OVERVIEW

AVERAGE TICKET PRICES & VENUE USAGE €60

n Music n Non-Music

€54.88

€54.01

€52.89

€54.15

€50.86

€50 €47.82

€40

€39.05

€38.38

€36.82

€36.81 €34.80 €32.31

€30

2013

2014

2015

2016

2017

2018

5 44 14

Venue usage key (percentages): n Music

n Sport

Across the board, the issue of sustainability is an important one. There’s been a marked shift in public awareness and demands around how environmentally friendly venues are. Many are fitting more energy-efficient measures such as lighting, and insulation; the SSE Arena Wembley sources all its energy from renewable sources. Elsewhere, there’s a drive to reduce plastic waste through reusable food and drink receptacles, and to ensure waste is recycled or composted as much as possible. Management at many venues see their place as not simply responding to consumer demands on this issue, but to actively drive change through public education and leading by example. Corporate hires are noticeably on the increase, as companies use the impressive production capabilities of arenas to create memorable gatherings for clients or staff. What this all adds up to is a trend of diversification of entertainment. Promoters are successfully spotting new niches, and arenas are responding with the flexibility to host them. This symbiotic relationship is enhanced as arenas become more influential in the whole customer journey, from discovery of events and ticket-buying, to when people leave and share their fantastic memories.

n Family

n Comedy

n Other

VIP market

People’s desire for experiences over material possessions coupled with corporations less likely to hire suites for year-long contracts are two factors that really took hold in 2018. Many venues combined some of their suites into much larger rooms. Audiences can buy tickets on a show-by-show basis to get the full hospitality treatment – and demand is high. All venues remarked that their VIP business is diversifying considerably. From added extras such as priority parking, to early entry, high-quality food and drinks, and meet-and-greets with artists, the breadth of opportunity to upsell is astonishing. On the whole, those venues offering VIP packages say between 1-10% of their ticket sales fit into this category, while a handful say it’s between 10-20%. Early indications for 2019 show something of a mixed bag. Some venues are forecasting they will exceed 2018’s record results, while others have noticed a downturn. However, with an acute awareness of and focus on what customers want, greater flexibility for promoters, good relationships with content providers and the professionalism of the industry, whatever happens, arenas in Europe are ready.

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REGIONAL PROFILES

CENTRAL & EASTERN EUROPE POPULATION: 4.3m (HR); 1.94m (LV); 2.8m (LT); 1.2 (EE); 10.6m (CZ); 9.9m (HU); 38.5m (PL); 7.1m (RS) INTERNET USERS: 3.1m (HR); 1.6m (LV); 2.1m (LT); 1.1m (EE); 8.6m (CZ); 7.8m (HU); 26.2m (PL); 4.7m (RS) GDP/CAPITA: $24,400 (HR); $27,800 (LV); $32,100 (LT); $31,700 (EE); $35,600 (CZ); $29,700 (HU); $29,500 (PL); $15,400 (RS) ACTIVE SMARTPHONES: 4.4m (HR); 2.6m (LV); 4.2m (LT); 1.9m (EE); 13.9m (CZ); 11.8m (HU); 56.8m (PL); 9.1m (RS)

ast year’s buoyant mood continues apace and although there are regional variations, the overall trend is positive. While some of the smaller markets don’t attract the largest international tours, local talent is more than making up for it as domestic artists are booming. Challenges are varied and localised, ranging from economic matters to transport connections. However, audience sizes are large and there is clearly an appetite for events. We surveyed arenas in Croatia, Latvia, Lithuania, Estonia, Czech Republic, Hungary, and Poland.

Attendance

Arenas in this part of the world attracted the second highest attendances in Europe, drawing on average 7,903 people per event (European average: 6,395). This was driven by highly popular music events that sold on average 11,620 tickets per show (European average: 8,116) and made up 35% of all programming. Family events (9% of content) saw on average 5,981 people, whilst comedy (3%) audiences averaged 4,946 tickets. Sports made up 41% of events and drew on average 6,030 people. In the Czech Republic capital, Prague, the O2

REGIONAL MAP n = Croatia, Latvia, Lithuania, Estonia, Czech Republic, Hungary, Poland & Serbia

With a capacity of 10,300, Arēnā Rīga in Latvia was built as one of the venues for the 2006 ice hockey world championship

CENTRAL & EASTERN EUROPE | REGIONAL PROFILES

PERFORMANCE GENRE

2018 KEY STATISTICS PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

MUSIC

315

11,620

3,660,145

€39.62

€145,020,928

FAMILY

5,981

496,421

€29.30

€14,543,954

COMEDY

4,946

138,477

€30.00

€4,154,310

SPORT

364

6,030

2,194,827

€20.53

€45,062,353

DANCE

3,845

49,988

€50.10

€2,504,562

AWARDS

27,004

N/A

RELIGIOUS

44,144

€3.27

€144,351

MISCELLANEOUS TOTAL

5,847

415,103

€22.00

€9,071,353

889

7,903

7,026,109

€31.38

€220,471,474

NUMBER OF PARTICIPATING ARENAS: 9

arena (18,500-cap) saw its second most successful year ever in 2018, says CEO Robert Schaffer. “We had more than 950,000 visitors. Just short of 2015, when the IIHF Ice Hockey World Championship was held in the Czech Republic and more than 1million visitors came to the arena.” Schaffer says the high average attendances our survey highlighted are certainly reflected in his market: “The Czech Republic is as attractive as western European countries. The attendance of our events just mirrors the situation. Overall, the region of Central Europe is growing very quickly because of the improved economic situation.” In the Polish city of Kraków, the 15,030-capacity

Tauron Arena has also seen a very strong year, says Sara Lamik. “Audience sizes and the number of events have been growing year-on-year. And 2019 looks set to beat 2018. As the largest and most modern arena in Poland we are the main place big bands come to.” Fellow Kraków venue, Spodek Arena (11,000) is seeing an increase in the variety of events taking place, reports CEO Marcin Stolarz. At the 15,000-capacity Ergo Arena between the Polish cities of Gdańsk and Sopot, Aleksandra Golec says 2018 saw 275 events attracting 483,797 people. “The cities of Gdańsk and Sopot are becoming popular tourist destinations. Our location just 750m

REGIONAL PROFILES

Ideally located to attract fans, the boundary between two Polish cities – Sopot and Gdańsk – runs through the very middle of Ergo Arena

from the beach, the historical importance of our cities, and our easy transport connections make us a convenient place to combine a vacation with something extra such as an arena show.” Estonia’s Saku Suurhall (10,000) is fully booked for the second year running, says event manager Siim Ammon: “We have events varying from sports to concerts and corporate bookings. However, we have noticed a decline in live concert events. This seems to be a general issue across the local market, not solely in our venue. We don’t see this being a longterm issue and we’re expecting to have more live events this season, especially in the spring. “The fact that the market over here is really small means that the audience here values each show much more than they would in large metropolitan areas. The quality of production our promoters have is impressive, considering this size of market does not have much competition. They are definitely able to compete with the experience of the rest of Europe.” In neighbouring Latvia, the capital’s Arēna Rīga had a record-breaking year in terms of turnover and profit, says chairman Ģirts Krastiņš. “Besides that, we reached the third highest attendance at events in the 13 years since the arena opened. The reason for such a good year was a really good mix of events, as well as an increase in expenditure by visitors. What we also saw was a solid attendance at shows by local artists – almost all of them were either sold out or close to it.” He says rock and pop are still the strongest genres in Latvia. R & B, hip-hop and country are not particularly popular when it comes to live shows. The growth of domestic talent is also a success story in Lithuania, where Žalgirio Arena’s events director Justinas Budnikas says the strength of local artists had a positive impact on their attendance figures. In the capital, Vilnius, the Siemens Arena reported a strong year. “The number of public and private events grew,” says marketing projects manager Guoda Šereikaitė.

Some 45% of the events taking place at Arena Zagreb (18,600-cap) in Croatia were live music, says Miroslav Stanec. “We have the infrastructure, technical equipment, staff, and everything else that a promoter needs for a successful event. Plus, because we’re within a four-hour drive of Belgrade in Serbia, and an hour’s drive from Ljubljana in Slovenia, the potential market is 15million people.”

Ticket prices

At an average of €31.38, ticket prices in the region are the lowest in Europe (average ticket price Europe: €44.70) but they are catching up. Dance events top the list as the most expensive average cost, at €50.10 – above the European average of €47.75. Music events cost on average €39.62 (€53.23) while family shows reach €29.30 (€45.48), comedy tickets reach €30 (€41.65) and sporting events €20.53 (€26.06).

Challenges

Security is foremost in everyone’s mind, as Schaffer says: “We’ve invested significantly in new technologies so the standard operational functions of the arena are of the highest professional level.” “The increasing number of venues in Poland might seem challenging but we still are an exception in the north of the country and this is our advantage,” says Golec at Ergo Arena. “Financial stability is the key to our credibility.” At the Žalgirio Arena in Lithuania, one of the biggest challenges is attracting the top international artists. “We work hard to sell the venue for the best price in the market and, of course, we make sure that it’s the best possible experience for both the event organisers and artists, as well as creating unforgettable emotions and the highest level of service for all our guests,” says Budnikas. Šereikaitė at the Siemens Arena also remarks on this issue, saying the venue has responded by offering more flexible configurations, and is attracting conferences, seminars, congresses, and smaller concerts. “We’ve installed curtains in the

CENTRAL & EASTERN EUROPE | REGIONAL PROFILES

REGIONAL PROFILES | CENTRAL & EASTERN EUROPE

2018 INDUSTRY CONCERNS 25%

Lack of suitable headliners

100%

23%

Industry consolidation

Production costs

5% 14%

State of economy Licensing regulation

Political interference

0% 9%

Shortage of skills / Trained personnel

14%

hallways to make the space cosier, and added LED lighting,” she adds. Krastiņš says one important challenge is staff levels. “There is a lack of workforce not only in arenas but in live entertainment all round. We are trying to automate certain processes or come up with solutions that remove humans from daily operations. “Sometimes there is a lack of major acts touring our region but as we are balancing it out with local artists and sports, we don’t feel that it affects our business.”

Developments

A trend towards increasing environmentally conscious efforts is prevalent at Žalgirio Arena, which has recently made a number of improvements to help the arena lower its environmental footprint by lowering energy consumption. Poland’s Ergo Arena is also undertaking environmentally friendly redevelopments, says Golec. “This is something that will not only help to reduce costs but will also be well received by audiences. “We also have projects that will help our disabled guests enjoy the entertainment we host.” The O2 arena recently opened a new multifunctional cultural and congress centre, O2 universum. “The arena has proved its ability to host the world’s greatest musical or sporting events, however, we were aware for a long time that there is an extensive space in the building that was not being used efficiently,” says Schaffer. “In addition, we realised promoters and organisers wanted to host attractive events and concerts at the arena but there was a question about appropriate space. “The new complex is directly linked to the O2 arena from the south and has four floors, with a total area of almost 50,000 square metres. O2 universum has 21 halls of different sizes and can host 10,000 visitors. The largest hall, with a capacity of almost 5,000 people, will be used as a space for mediumsized concerts and sporting events. Hall B (1,700) can also be used for concerts.” Having notched up 18 years since it was built, Estonia’s Saku Suurhall is slowly starting to feel its age, so a programme of modernisation is being carried out. “We have built new restrooms,

75%

Competition

Lack of suitable content

50%

23%

Artist fees / Ticket prices

improved inventory of skyboxes and done a bit of refurbishment,” says Ammon. “For the first time ever we tested a ‘black-box arena’ concept for an Alice in Chains show, where we built the arena into a small-capacity space, able to host around 2,500 people. Estonia is missing a venue for mid-sized acts and this kind of configuration will help promoters to bring acts to Estonia they previously were not able to.” As well as creating spaces for lower capacity, the venue is also considering growing, so it can accommodate larger international sporting events and large-scale modern music productions. “If everything goes according to our predictions, expansion building work should start in 2022.” The Spodek Arena is almost 50 years old and has undergone significant modernisation recently. CEO Marcin Stolarz says: “We’ve installed a new sound system in the ice rink and the artist dressing rooms have been renovated. We’ve also transformed our catering offer with brand new decorations and completely new food and drink options. The toilets have also been refurbished. The whole place looks much better and we’ve had a great response from audiences.” The 14,000-capacity Papp László Budapest Sportaréna in Budapest, Hungary, has a new parking system linked to the arena’s mobile app, says Tibor Lak. “You can buy a parking ticket in advance, give your number plate, and gain access with it.”

Trends

At the O2 arena in Prague, Schaffer says they’ve noticed an increase in demands for upgrades from both visitors and business partners. “People want the complex experience – to get early entry, VIP hospitality, a high level of catering, and a private space they can meet their business partners. The more complex offer they get, the more frequently they visit events. “In terms of content, giant visual productions, and concerts or film screenings accompanied by a live symphony orchestra are new trends we’re seeing.” The growth of the experience economy is also prevalent in Lithuania, says Budnikas. “For several

CENTRAL & EASTERN EUROPE | REGIONAL PROFILES

The emergence of the Baltics as a viable touring destination was boosted in 2011 when the 20,000-capacity Žalgiris Arena opened on an island in Kaunas, Lithuania.

years now, we’ve seen a trend of the most expensive tickets being sold out first, while the cheaper seats farther away from the action are more difficult to sell. As a response, we are installing additional VIP clubs that come with privileges and increased value.” It’s the same story in Estonia. “We see a demand for more activities around the venue and event that add value to the whole experience,” says Ammon at Saku Suurhall. “The popularity of premium packages is a great example. What’s happening on the stage alone is not enough anymore, entertainment has to grab visitors in every aspect.” He adds: “Almost half of our events are corporate, which is a trend that keeps growing year by year. The black box hall capability means we have attracted big corporations who are struggling to find large enough venues for their company’s Christmas or anniversary events. We offer a full solution, from the idea to technical implementation.” Tauron Arena’s Lamik says: “We’re the first venue to implement fully recycling packaging. And our bars have reusable cups, plus we have LED lights. The energy-saving measures not only are good for the environment but also help reduce our costs.” In Rīga, Krastiņš says the importance of sports such as basketball, ice hockey, boxing, MMA, K1, and so on is key. “It helps to develop and invest in the arena’s infrastructure and maintain a steady income flow. Sport is also the main driving force behind sponsorship and naming rights deals, as well as VIP sales and F&B.” While arenas in Lithuania have traditionally been associated only with the country’s national sport, basketball, that is changing now, says Šereikaitė. “Different types of events are taking place and people are responding well. We are also noticing an increasing number of companies choosing promotional integrations in the arena because they see the benefits. People are happy at events and when they are happy, they remember more and they buy more.”

VIP market

The strong performances by VIP and hospitality sales in Prague show no sign of slowing, as Schaffer says. “As a result of the strong economic situation and a high demand for VIP services, we are regularly improving our offer. We have reconstructed the skyboxes, improved the services including the catering quality, and in the future we will work on plans of how to extend the VIP space in the arena.” Siemens Arena’s Šereikaitė points to an important trend seen across Europe: “Companies are increasingly opting for one-time suite rental for a particular event or celebration rather than a longterm one.” This is also noticed by Krastiņš from Arēna Rīga: “Owners or CEOs of companies are carefully deciding before renting skyboxes as they want to understand what they are paying for, what they are getting, and who will be coming to the arena to see the games or shows. So it provides a greater challenge to sales teams.” Saku Suurhall’s Ammon says: “This is a fast growing part of our business. More than ever people are looking for solutions that offer greater experience and comfort. We are putting a lot of effort into improving our premium services, such as opening new sectors of better seats with a private entrance.” In Kaunas, Žalgirio’s Budnikas says: “We’ve added an additional VIP zone, the Ramirent Premium Club, and other luxury seats, as we have seen a high demand for VIP/premium seats.” Ergo Arena’s Golec says: “For now, we are the only venue with 47 VIP lounges with over 30 permanent lessees. We see that local companies are very precise with their needs and we are trying to answer all of them, yet still learning from what has already been introduced in cities abroad with more experience.” Budapest Arena added a new premium lounge in response to growing VIP demand.

REGIONAL PROFILES

FRANCE & BENELUX POPULATION: 62.8m (FR); 17m (NL); 11.5m (BE); 594k (LU) INTERNET USERS: 57.2m (FR); 15.4m (NL); 9.8m (BE); 567k (LU) GDP/CAPITA: $44,100 (FR); $53,900 (NL); $46,600 (BE); $105,100 (LU) ACTIVE SMARTPHONES: 67.5m (FR); 20.8m (NL); 12.9m (BE); 813k (LU)

talwart territories for international touring, the nations of France, Belgium, the Netherlands and Luxembourg are well connected to the rest of Europe and have affluent populations with an appetite for live entertainment. This means solid growth has continued for some years now.

Attendance

According to the data, at average ticket sales of 6,637 people per event, venues in these countries saw slightly above-average attendance (European average: 6,395). Breaking the figures down by genre, music made up 61% of the events that took place and drew an average of 7,641 people (Europe-wide music average: 8,116). Family events (14%) sold on average 3,678 tickets,

REGIONAL MAP n = France, Belgium, Netherlands & Luxembourg

while comedy (2%) averaged just 2,891. However, sport, making up 14% of programming, saw audiences of 8,813 – above the European average of 6,559. Antwerps Sportpaleis, which manages venues including Sportpaleis (23,000-cap), Forest National (8,400), Lotto Arena (8,000) and Ethias Arena (17,000), was acquired by Live Nation Belgium in April (see detail in next section). CEO Jan Van Esbroeck remains with the organisation and says: “In terms of business, when we closed our 17-18 season, we knew that this was an absolutely outstanding year that we would not easily surpass. Our four arenas drew 1,879,015 people. It was that kind of season where everything that could go our way, did. “On the back of that, the 18-19 season still showed good figures with a total attendance of 1,630,426 – a drop of 13%. In terms of the number of shows, we dropped 14%, meaning that average attendance was a bit higher. Compared to the previous season, it looks a bit poor but these figures are above average for the last five years. So, we are not complaining and are happy to have experienced an average year.” He says the drop was mainly (70%) in the largecapacity shows in the Sportpaleis and Ethias Arena. “Our midsize venues, Lotto Arena and Forest National, did well. And although it’s too soon to tell, I think this is a trend we will also see for the current season – the music industry is growing well in this midsize segment. There are many new, young acts knocking on Live Nation’s door, making their way to hopefully reach the absolute top level.” Back in the Netherlands, Rotterdam’s The Ahoy (15,000) is celebrating winning the bid to host the 2020 Eurovision Song Contest. But looking to the 2018 season, the arena’s Jurgen Hoekstra says: “That was a great year for us. It started with 14 sold-out shows of the national De Vrienden van Amstel LIVE (Friends of Amstel LIVE). Moreover, we had a nice mixture of music and comedy; Dutch and international acts; and sports.” In Paris, the AccorHotels Arena (19,000) hosted shows including Elton John, Ariana Grande, and Maroon 5. “We were also very proud [that] Michelle

FRANCE & BENELUX | REGIONAL PROFILES

2018 KEY STATISTICS

PERFORMANCE GENRE

MUSIC

PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

300

7,641

2,292,412

€53.37

€122,337,113

FAMILY

3,678

246,441

€40.61

€10,007,602

COMEDY

2,891

34,686

€37.38

€1,296,563

SPORT

8,813

616,902

€40.62

€25,058,559

DANCE

2,478

39,651

€34.37

€1,362,612

AWARDS

N/A

RELIGIOUS

N/A

MISCELLANEOUS TOTAL

1,307

35,286

€18.00

€635,148

492

6,637

3,265,378

€49.21

€160,697,596

NUMBER OF PARTICIPATING ARENAS: 5

In addition to staging concerts by some of the world's biggest stars, Rockhal in Luxembourg hosts numerous family shows, such as Die Schöne und das Biest

REGIONAL PROFILES

Obama chose the arena for her only date in France,” says managing director Nicolas Dupeux. “Each year keeps getting better and better,” he adds. In Amsterdam, the Live Nation-owned Ziggo Dome is also recording growing visitor numbers and events. In 2018, it hosted 105 shows, says marketing & communications officer Leonie Posthumus. The tiny nation of Luxembourg punches above its weight when it comes to international touring. The main focus of activity is the Rockhal (6,500), from where Thomas Roscheck says: “2018 was one of the best years ever. Obviously, being called Rockhal, rock is one of the key genres for us, but we also see strong showings for pop, hip-hop and metal, while urban is gaining ground, as is family entertainment.” About half the venue’s audience comes from within Luxembourg, while the other 50% divides near equally between neighbouring France, Germany and Belgium.

Ticket prices

At an average of €49.21, ticket prices in the region are just above the mean (average ticket price in

Europe: €44.70). Music commands the highest price at €53.37 (€53.23), while family shows reach €40.61 (€45.48), comedy €37.38 (€41.65), and sporting events are well above average at €40.62 (€26.06). The Ahoy’s Hoekstra says: “We’ve noticed that people are willing to pay a premium if they really want to see a show. In the Netherlands, we are also seeing a lot of tickets for some shows sold via auction sites, which is affecting the ticket market.”

Developments

One of the most significant developments in this region was Live Nation Belgium’s acquisition of Antwerps Sportpaleis. Van Esbroeck says: “We are proud that the largest live music company in the world showed an interest in us, and are happy now to be a member of this powerful entertainment group. No doubt the acquisition will mean a lot for our dynamic group: we will learn from the other venues in the group and vice versa. “Our venues are the most important in Belgium, so we do not necessarily expect more business but

FRANCE & BENELUX | REGIONAL PROFILES

Elton John is just one of many stars to visit the AccorHotels Arena in Paris © Pierre Hennequin

called ‘Ruggedised,’ where we can share excess power, cold or heat, with other buildings in our area, such as the hospital.” In Amsterdam, the Ziggo Dome has transformed its lounge on the second floor into a food court and a place where people can sit in a quieter space outside of the tier inside the venue. “We are constantly looking for ways to improve and extend our beverage selection,” says Posthumus. “This year, we opened three brand-new bars in collaboration with three of our catering partners: a Heineken speciality beer bar, a Disaronno cocktail bar, and a Bombay Gin bar. “Backstage we made some changes, too. We opened our brand-new ‘Est. 1973’ backstage café. The idea was to create a cosy place where artists and crew can hang out before and after the concert. It has been a great success.” Luxembourg’s Rockhal celebrates its 15th anniversary in 2020, so management are focussed on making sure the building is fit for the next 15 years, says Roscheck. “We’ve just launched a new bar system including a central beer tank that can hold 12,000 litres and is connected to all points of sale. Plus, we’ve adapted the layout of the bars, and are close to being fully cashless. These measures will speed-up service and reduce queues, which makes for a good experience for customers. “We’re also introducing new digital signage with a central control system, and are looking into an app and a new-look website. Our aim is to ensure that people’s interaction with Rockhal – from the point they book a ticket to the moment they leave – is a good experience all round.”

Challenges

believe we will be in a position to learn from Live Nation and be able to work even more efficiently.” In Paris, the AccorHotels Arena is investing in improving the digital experience for customers. “We also think it is important to make sure the venue is memorable: this is something that can be achieved through redecorating and rethinking our spaces to create new and engaging experiences for the fans,” says Dupeux. Rotterdam Ahoy is building a new midsized venue, which would be unique in the Netherlands. Hoekstra says: “We will be able to easily transform it from a standing show with 7,000-capacity to theatre-style 2,750-capacity. We can even extend the seated capacity to 4,000 seats. We are halfway through construction now and expect to open September 2020. We officially open in January 2021, the month Ahoy celebrates its 50th anniversary. “We want to run our business in an as environmentally friendly way as possible. Therefore, we are installing solar panels on the roof of Hall 1 (10,000 square metres). This is part of a wider project

The pace of technological progress and audiences’ changing needs present challenges of different types across the region. But here are also the usual matters connected with the age of buildings, and company growth. Security – and making sure people are safe without overly oppressive measures – are key. With an increasingly young and connected audience at the AccorHotels Arena in Paris, Dupeux says: “Our audience is always on the lookout for more engaging experiences. Our digital assets need to respond to those new challenges, which is why we are currently in the process of updating and modernising our tools. “Audience members want to have a full digital experience, both inside and outside of the arena. Our goal is to make sure we have touchpoints at every step of their path, from their booking experience to them leaving the arena after a show and sharing their memories with their loved ones.” Posthumus at Ziggo Dome in Amsterdam says: “The challenge we are facing is trying to incorporate more of the artist content in collaborations with our business partners, for instance on social media. These are currently two separate worlds.” xx The Ahoy building is not only a midsize arena but

REGIONAL PROFILES | FRANCE & BENELUX

Average Number of Staff (Excl. No Answer): FULL TIME STAFF

PART TIME STAFF

2017 VS 2018 Popularity of VIP Activities / Offers

VOLUNTEERS

29%

71%

n More popular than 2017 n About the same as 2017

also an international convention centre. “We are growing 50% in square metres so we have a major focus on the awareness and sales of the new building among existing and new customers,’ says Hoekstra. “We strongly believe there is a gap in the market and we are teaming up with the city of Rotterdam to attract more business to come to Rotterdam and to Ahoy.” Van Esbroeck says: “I keep on saying that high ticket prices are a danger to our industry. Luckily, it seems that the message is slowly but surely finding its way to managers and agents. We’ve seen that from time to time the most expensive tickets don’t always sell out, and are not always first choice for ticketbuyers. “I’ve also noticed that the gap between the most expensive and the cheapest tickets at shows is getting wider, which is a good trend. Because the same goes for audiences as well as for artists: they start their career on the first step of the ladder. We need to give youngsters the opportunity to experience what it is about, to make sure that they get infected by this beautiful virus called the live industry.”

Trends

Hoekstra says The Ahoy is particularly strong in family entertainment and sports events but he has noticed “more and more speaker events in the Netherlands. For example, Michelle Obama or Business Boost Live, which has great stories and inspiration for entrepreneurs.” AccorHotels Arena’s Dupeux says: “We’ve identified three major trends when it comes to programming. E-sport has been an emerging trend for years now and its popularity keeps growing. We will be hosting the finals of the 2019 League of Legends World Championship this November, and we will have another competition next June, with TrackMania Cup 2020. “K-pop has also become a key genre these days: international phenomenon BTS played two sold-out shows last year, and GOT7 will be playing a show at the arena in October. “Urban music is a growing trend in France, with 20% of our audience members attending an urban concert in 2018. Between last year and this year, we’ve had an increase of 25% in the number of urban concerts we are hosting, and this trend is true for both international and French artists.” K-pop is also showing significant growth at the Ziggo Dome. “As well as this, ‘viewing parties’ for sport

What % are VIP tickets? PERCENT NUMBER OF VENUES 1–10%

11–20%

events are gaining popularity,” says Posthumus. “This year, we housed a Formula 1 race and a football match live on a big screen. During these viewing parties, over 10,000 sports fans cheered the players on together. We will have two other similar events coming up soon because of the success of the first two events.” Rockhal’s Roscheck says diversification of content is a key trend. “It’s about having a more and more diverse offering on the programme. We’re also seeing international acts showing significant diversification when it comes to how they handle their fans, so there’s presale, more sophisticated upsells, and a variety of VIP offers. Previously, this was only for the largest artists but now it’s even [for] smaller acts.”

VIP market

With laws governing business entertaining, and people increasingly seeking experiences over material possessions, the face of VIP business for arenas has been changing for some years now. There is a shift away from companies paying for a suite all year round, towards people buying VIP tickets on a show-by-show basis. But this still remains an important revenue stream for most venues. As AccorHotels Arena’s Dupeux remarks: “Hospitality has become more dynamic, and there are more actors playing a part in the business. Customers have higher standards now, meaning we constantly have to raise the bar and offer more flexible and one-of-a-kind experiences to our audience. For example, we hosted a cocktail party and gala dinner with top French speakers to celebrate Michelle Obama’s Becoming conference last April.” At the Antwerps Sportpaleis, Van Esbroeck says: “The challenge for venue managers will be more than ever to contribute to the customer experience. A couple of years ago, we all believed it was the artists’ responsibility to make sure that their clients had a good experience. But that is not enough anymore – all members of the chain (ticketing, transport, welcome, venue, food & beverage, and so on) will have to ensure a concert experience is top class. For the last few years, this has been a common goal we’ve been sharing with the artist.” For Ziggo Dome, hospitality and VIP is a growing business. “The demand for VIP packages is high, especially with a younger audience,” says Posthumus. “On social media we have noticed that the availability of VIP packages has become the rule rather than the exception.”

LUXEMBOURG PREMIUM CONCERT VENUE AND PROMOTER

Main Hall cap. 6 500 Rockhal Box cap. 2 500 Club cap. 1 100 The Floor cap. 250 booking@rockhal.lu Venue information: info@rockhal.lu Phone: +352 24 555 - 1 â&#x20AC;¢ www.rockhal.lu

On the road again? BERLIN

PARIS

Booking contact:

BRUSSELS

AMSTERDAM

LONDON

COLOGNE

DUBLIN

REGIONAL PROFILES

GERMANY, SWITZERLAND & AUSTRIA POPULATION: 8.8m (AT); 80.5m (D); 8.3m (CH) INTERNET USERS: 7.3m (AT); 72.3m (D); 7.3 m (CH) GDP/CAPITA: $50,000 (AT); $50,800 (D); $62,100 (CH) ACTIVE SMARTPHONES: 14.9m (AT); 106m (D); 11.3m (CH)

or some years now, Germany, Austria and Switzerland have been enjoying excellent growth in live entertainment. With affluent citizens and a strong demand for entertainment, the sector is booming. Ticket prices are now the highest in Europe, yet there doesn’t seem to be a noticeable effect on sales. The key will be to ensure sufficient diversification of entertainment, so different demographics are reached across the year.

Attendance

Arenas in the region saw slightly below

REGIONAL MAP n = Germany, Switzerland & Austria

Europe-wide average attendance, at 5,098 per event compared with 6,395 across the continent. Music events were the most popular, selling on average 7,583 tickets and making up 36% of programming. Family shows (at 29% of all events) drew on average 3,363 people, while comedy (5%) audiences averaged 5,514 tickets. Sports made up 18% of events and drew on average 4,484 people. Cologne’s Lanxess Arena had a good year in 2018, reports CEO Stefan Löcher. “We welcomed 1,776,335 spectators to 182 events. In the first half of the year we even reached first place in the international Pollstar rankings. This underlined our status as one of the top arenas worldwide.” In Berlin, the ASM Global-owned 17,000-capacity Mercedes-Benz Arena marked its tenth anniversary in 2018, and opened the brand new Verti Music Hall (4,500-cap) and entertainment district, MercedesBenz Plaza. Managing director Michael Hapka says it was a record year in terms of the number of events. “We are forecasting the Verti Music Hall will host 100 events in a year, and it’s been a strong year for the arena, too. We’re very happy with the way the new venue has been received.” Also in the city, Velomax manages the MaxSchmeling-Halle (11,900) and Veldrom (15,000). Managing director Sybil Franke says, “It’s been a solid year so far. However, huge sport events such as international championships and multi-day events have not taken place. There were more of these large events in the previous year.” Hamburg’s 16,000-capacity Barclaycard Arena followed the record-breaking 2017 by beating that record, notching up the most successful year since it opened in 2002. “Exciting areas like e-sports have opened new opportunities for us,” says managing director Steve Schwenkglenks. Düsseldorf-based D.Live runs five venues in the

GERMANY, SWITZERLAND & AUSTRIA | REGIONAL PROFILES

PERFORMANCE GENRE

2018 KEY STATISTICS PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

MUSIC

393

7,583

2,980,048

€72.41

€215,772,115

FAMILY

295

3,363

992,129

€60.15

€59,675,607

COMEDY

5,514

330,836

€40.34

€13,347,211

SPORT

190

4,484

852,016

€37.55

€ 31,994,004

DANCE

1,275

34,437

€57.86

€1,992,681

AWARDS

3,527

€46.31

€163,335

RELIGIOUS

49,077

€13.25

€650,270

MISCELLANEOUS TOTAL

105

2,319

243,449

€48.83

€11,886,750

1,076

5,098

5,485,519

€61.16

€335,481,973

NUMBER OF PARTICIPATING ARENAS: 9

city, including the ISS Dome (12,779), Mitsubishi Electric Halle (7,500), Castello Düsseldorf (3,300) and the Merkur Spiel-Arena (55,000). CEO Michael Brill says the company launched in August 2018 with the aim of providing a full service offer to promoters in all venues. “We’ve increased revenues by 45% from €18million to €26m in 2018 and attracted 1.2m visitors – a 20% increase. 2018 was among the best years ever for the live entertainment venues in Düsseldorf.” At press time, it emerged thatD.Live has joined Oak View Group's Intennational Venue Alliance, along with NEC Group in the UK. That pact shgould give the allies leverage to take on the likes of ASM Global, Live Nation and Germanic powerhouse, CTS Eventim. Home to the headquarters of Mercedez-Benz and Porsche, Stuttgart is a key manufacturing hub in Germany. The city’s Hanns-Martin-Schleyer-Halle (15,500-cap) and Porsche Arena (7,500) hosted more than 1million visitors to over 220 events in 2018, says René Otterbein. “Stuttgart is a strong market and we’re looking forward to 2020 when we expect to have more than 1m visitors again. “Because we have two venues of different capacities on one site, we have the ability to move very popular shows from the Porsche Arena to the Schleyer-Halle, provided we have availability.” Oberhausen’s König-Pilsener-Arena (12,650) had “one of the best years ever in the history of Oberhausen,” says deputy general manager Stephan Ulm. “Helene Fischer had five sold-out shows, and we had a lot of long-run shows, such as Cirque du Soleil, Disney on Ice, and The Rocky Horror Show.” In south Germany, Munich’s Olympiahalle was built for the Olympic Games in 1972. It now hosts concerts such as five nights with Helene Fischer. “We had 134 event days, which drew 731,332 visitors,” says Tobias Kohler. “The Olympic Park in total had 714 event days and 2.7m event attendances, and we’ve certainly noticed an increase in the number of outdoor events.”

Dortmund’s 15,380-capacity Westfalenhalle’s managing director, Jochen Meschke, says: “Our business is very strong in all areas, especially concerts, shows, electronic dance music and comedy. The live entertainment climate in Germany is very positive because of the strong economic situation here but also because live concerts and shows are a welcome change in our growing digital world.” Wiener Stadthalle (16,000-cap) is Austria’s largest event centre and one of Europe’s top ten arenas. 2018 was a special year for the venue as it celebrated its 60th anniversary, says CEO Wolfgang Fischer. At the 15,000-capacity Hallenstadion in Zürich, MD Felix Frei says 2018 was a “very good” year in terms of the number of events. However, this does not necessarily translate into equally strong profits, as a trend for pressure on margins continues.

Ticket prices

At an average of €61.16, ticket prices in the region are the highest in Europe (average ticket price Europe: €44.70). Music commands the highest mean price at €72.41 (€53.23), while family shows reach €60.15 (€45.48), comedy €40.34 (€41.65) and dance events €57.86 (€47.75). Frei says: “I still think ticket prices are too high in Switzerland. But we have noticed that for some shows there has been a slight drop in demand. We don’t really have an explanation for it but maybe it’s because the market is saturated. We’ve noticed that even the big traditional festivals this summer found it hard to sell tickets, and some didn’t even sell out.” While the venues don’t set ticket prices, Wiener Stadthalle’s Fischer points out: “For many concertgoers, it is a dream come true when they attend the show of their favourite star. In many cases, they have been looking forward to that one concert night for many months.” Barclaycard Arena’s Schwenkglenks says: “It seems that people are still willing to pay a certain price to visit a concert of their idols. We haven’t

REGIONAL PROFILES

With a capacity of 7,500, the Mitsubishi Electric Halle has been delivering entertainment to the people of Düsseldorf since 1971 © Jörg Eicker

noticed any regressive development yet.” And Stephan Ulm at König-Pilsener-Arena says he also has seen no negative pressure on numbers as a result of the high prices. “Some shows have very high production costs so need higher ticket prices. But I’m not sure there is that much room left for prices to go up.”

Developments

Handling customers’ demands for high-speed Wi-Fi and digitalisation are still high on priority lists when it comes to making improvements. But there’s also a broad range of upgrades taking place, meaning venues can be more flexible, sustainable and secure. Stuttgart’s Schleyer-Halle and Porsche Arena both installed high-speed Wi-Fi to cover not only the venues but the foyer connecting them and the areas in front. “We have also upgraded the CCTV system. Upcoming work will include improvements to the crew facilities and crew catering,” says Otterbein. Wiener Stadthalle is focussing on developing new opportunities for special events, says Fischer. “For example, we just adapted an area that will become a new location for exhibitions, club events and

concerts in a cosy atmosphere.” In Berlin, Franke says the 7,491 seats at the Max-Schmeling-Halle have been replaced and renewed. “We are intensively engaged in the digitalisation of our arenas, such as digital access gates and cashless payment options.” D.Live’s Brill says: “We have invested in digital advertisement and signage boards including 90 meters of digital signage at the Merkur Spiel-Arena. The ISS Dome has been relaunched as a state-of-theart arena in the north of Düsseldorf. As part of the building upgrade we changed the light atmosphere within the arena, built food & beverage kiosks on the foyer level, made improvements to the entrance, and are currently rebuilding the backstage facilities. There will be an extensive programme to make the Dome even more functional, to increase capacity and continuously enrich the atmosphere for visitors, and undertake technical improvements for productions. “Over the next three years, D.Live has a multimillion euro investment plan to improve the venues, particularly to cater for technical improvement but also serve the demands of visitors and guests,” he adds.

GERMANY, SWITZERLAND & AUSTRIA | REGIONAL PROFILES

2018 INDUSTRY CONCERNS 25%

75%

100%

0 33%

Competition Shortage of skills / trained personnel

50%

33%

Artist fees / Ticket prices Lack of suitable headliners

FACTORS IDENTIFIED BY RESPONDENTS AS WORRYING OR VERY WORRYING

0 17%

Industry consolidation Production costs

Political interference

Lack of suitable content

Licensing regulation

State of economy

Hallenstadion is also installing digital signage in the foyers and main entrances, and plans to digitise the rest of its signage next summer. “This provides many more B2C advertising opportunities. We have partnered with outdoor media specialists APG and already have year-long sponsorship agreements with some big name brands. These are popular offers for the advertising market and will bring in extra revenue for us,” says Frei. Mercedes-Benz Arena’s digital focus is on its app, and driving more customers to use it for things such as F&B and wayfinding. Walk-through metal detectors have been installed at the König-Pilsener-Arena, and it plans to install a fence on one side of the arena as well as CCTV. Stadthalle Graz (14,520-cap) launched an open-air venue in 2015. “While the open-air venue was well booked in summer, our brand new grandstand system was under construction indoors,” says Christof Strimitzer. “This is a modern, automatic system that offers more than 4,500 grandstand seats for our visitors. With this system in our portfolio, Messe Congress Graz can offer much shorter timings for set-up changes. We’ve also fully renewed the lighting system.” Lanxess Arena installed new LED light system, a new high-quality sound system and a new ice hockey rink in 2017. In the summer of 2019, it also installed four new LED walls, replacing the old video cube and a 360-degree LED ring all the way through the arena. As north Germany’s largest arena, Hamburg’s Barclaycard Arena has completed a three-year project to bring the venue into the digital age. “The investment includes the addition of more than 220 Wi-Fi hotspots, hundreds of new digital signage screens, digital menu boards, a wayfinding solution, and a specially developed app for visitors. This has made the venue one of the most modern arenas in Europe,” says Schwenkglenks. “We believe it’s important for a venue of our size to be a positive example of how to manage waste, save energy and other natural resources. We have great projects in the pipeline, and try our very best to become as sustainable as an arena with more than 1m visitors per year, can be.”

17%

“We believe it's important for a venue of our size to be a positive example of how to manage waste, save energy and other natural resources.” STEVE SCHWENKGLENKS – MD, BARCLAYCARD ARENA

Trends

E-sports is a topic that’s been on ILMC agendas for some years now, and it has mixed success across this region. However, the growth of the market for domestic talent is a good news story, and K-Pop is impressing many. The Mercedes-Benz Arena recently hosted the qualifying rounds of an e-sports competition in the Verti Music Hall, and the finals in the arena. “This is something we’re focussing on now: offering promoters the option of working across both venues, as well as using the space between them,” says Hapka. “So far we’ve had 20 events on the Mercedes Platz, including Country To Country festival. “We’ve noticed a significant growth in domestic music market, especially Schlager music and German hip-hop. Capital Bra, for example, performed at Verti Music Hall, and his next show will be in the arena. “K-Pop is also very big,” he adds. Shows are becoming increasingly technical and are involving larger and larger production, says Lanxess Arena’s Löcher. “We always have to maintain the highest level of technology to give the promoters perfect conditions for their shows and to offer every spectator a perfect event experience.” Because consumers have a wide variety of entertainment options, venues have to be mindful of the whole consumer journey from ticket purchase to leaving the building, says Brill in Düsseldorf. He also says venue management need to be more reactive to changes in the market, as artists reach arena level faster than ever but then can disappear quickly, too.

REGIONAL PROFILES

Schwenkglenks says: “E-sports events are certainly popular, as are sports like darts. As a trend we also see multi-show events where artists play three to five concerts in a row.” Otterbein thinks Drone Racing has potential. And he is keen to attract an indoor festival to the Stuttgart venues. “With two connected venues and one common foyer space, this would be an ideal location.” “We’ve been offered [the opportunity] to host [the] finals of various e-sports and other new forms of entertainment such as darts, but I just don’t think the audience in Switzerland is big enough to make them financially viable,” says Hallenstadion’s Frei. At the Max-Schmeling-Halle and Veldrom in the German capital, Franke says: “There is still a growth in e-sports. Also we have increasing numbers of bookings for special events such as CrossFit or ‘motivational’ events.” Strimitzer at Stadthalle Graz says: “We have

U2 were one of the many A-list acts to grace the stage at Mercedes-Benz Arena in Berlin © Matthias Muehlbradt

noticed a trend for touring exhibitions at smaller concert halls. Plus, everyone seems to be looking for new spots to host open-air events, and we’re seeing some new festivals or ideas for multiday live concerts taking shape, which breathes new life into the scene.” One of Wiener Stadthalle's success factors is its multi-functionality and the high level of flexibility it offers its clients, says Fischer. Noting the growth of the domestic market, Westfalenhalle’s Meschke says: “Among the local heroes, the ‘older generation’ such as Herbert Grönemeyer, Peter Maffay and Udo Lindenberg are always sold out. There are many younger German musicians who now have no problem filling large arenas. This makes us optimistic when we look to the future.”

Challenges

With security a top priority, the balance of

GERMANY, SWITZERLAND & AUSTRIA | REGIONAL PROFILES

Average Number of Staff (Excl. No Answer): FULL TIME STAFF

PART TIME STAFF

158

VOLUNTEERS

2017 VS 2018 Popularity of VIP Activities / Offers

2 57%

ensuring people are safe while still being able to enjoy the show, is a frequent challenge mentioned by arenas. There’s a broad range of other topics being tackled, often to do with keeping up with the rapid pace of technological change and changing consumer demands. D.Live’s Brill says: “With the growing expectations of our visitors, we need to react more quickly and need to fully integrate all processes of the customer journey. While in previous years, each part – from ticketing companies to promoters, agencies to venues – only dealt with their specific tasks, all of these now need to be synchronised and focused on the customer’s expectations.” Löcher says: “Nowadays, there is a lot more individual entertainment through smartphones, music streaming or video on demand. People are harder to excite. That’s one of the reasons all tour promoters feel the need to reinvent their show concepts and let them grow bigger every year. However, no personal technology can ever replace the emotion of a live experience.” The tendency of K-Pop audiences to arrive very early for concerts – up to two days before the show – presented a novel challenge for the Mercedes-Benz Arena, which had to come up with a plan to ensure everyone was safe as they waited. Hapka adds: “Service staff wages have been increasing year on year, which is driving up costs. This is being reflected in ticket prices, but as yet it doesn’t seem to have a negative effect on sales. Of course, increased ticket prices mean we must continue to offer good value for money and a good customer experience, so people feel their money is well spent.” The Hans-Martin-Schleyer-Halle is now 36 years old, so sometimes misses out on attracting the largest touring shows because the stages are too high for the building, explains Otterbein. “Our F&B offer is a bit out of date, and it doesn’t have air-conditioning. However, it has one of the biggest infield spaces, meaning we can accommodate 8,000 people standing – which artists love, and so do audiences.” Franke notes that increasing consolidation means the market is increasingly led by huge players offering a 360-degree value-added chain. “The market is increasingly being divided into giant players, and the rest.” In Switzerland, competition among venues is hot. The Samsung Hall (5,062) opened in 2017, Zürich

43%

n More popular than 2017 n About the same as 2017

What % are VIP tickets? PERCENT NUMBER OF VENUES 1–10%

11–20%

Convention Center is being completely renovated and will reopen in March 2021, and there are plans for another 8,000-9,000-capcaity venue in Zürich in the offing. Frei says: “Every year the market becomes more difficult. Average attendance at rock and pop shows is slowly decreasing every year, so margins are getting tighter. Even with a broad range of events covering all segments, the margins are squeezed. The pressure on promoters and venues is growing all the time – there are more and more promoters, and there’s increasing completion among venues as new ones come on stream. We’re all feeling it.” Last year, the Barclaycard Arena lost its tenant teams so was challenged to seek out new content types. “We successfully sourced and discovered events that we seem to be the host [of] for the first time” says Schwenkglenks. “We’ve invested in small house configurations to be able to offer the whole range. This division keeps growing and the new content, together with the already existing business, made 2018 the most successful year of the arena.” In Austria, Fischer says that with more tickets being sold online buyers need to be educated more about buying only from official sources. “There are some ticket platforms, especially secondary market platforms, which cause problems when they offer overpriced tickets.” And in such a booming market, Strimitzer sounds a wise word of caution: “We should be careful that supply doesn‘t outstrip demand. Audiences love a vast variety of live shows but can’t afford to visit each and every single one of them. There must be a good mix of themes and genres.”

VIP market

Velomax’s Sybil Franke echoes most of the people we spoke to when she describes VIP as a “source of significant extra revenue.” “We regularly look for new food and beverage trends and talk to many different companies about that,” says Lanxess Arena’s Löcher. “We also constantly try to keep our VIP areas up to date by rebuilding several skyboxes in individual designs and even theme worlds.” VIP business at Berlin’s Mercedes-Benz Arena is strong, says Hapka, adding that the Verti Music Hall has a 280-seat VIP area, which is unusual for a venue of its size. “There’s nothing like that in the current market. People can pay a bit extra for the best seats

REGIONAL PROFILES | GERMANY, SWITZERLAND & AUSTRIA

Wiener Stadthalle is one of a select number of arenas to have hosted the Eurovision Song Contest

in the house and better F&B options. There’s very good demand for these tickets.” A couple of years ago, Hallenstadion converted five VIP boxes into the 60-capacity Starlounge, access to which can be bought on a ticket-by-ticket basis. “I’m very pleased with how it’s gone in the last 12 months,” reports Frei. “There’s a lot of demand for it among both companies and individuals.” He says the remaining 15 individual VIP boxes are all fully booked but reports that they are increasingly difficult to re-rent if a company ends a contract. “Companies are feeling the pressure of governance laws, especially in the financial and insurance sectors, which are very important in Switzerland.” In Stuttgart, the Porsche Arena has 20 VIP boxes, which show “steady” business, says Otterbein. “The Schleyer-Halle doesn’t have specific facilities for VIP guests except for one 40-person exclusive suite but our offer includes, for top events, a premium package in our restaurant, which is popular.” “People are willing to pay some extra money for VIP packages including meet and greets, backstage insights, or fine catering in fancy VIP areas, but it’s

important not to overdo the pricing for such offers,” says Stadthalle Graz’s Strimitzer. “At some shows VIP+++ packages are offered for up to nearly €900, and often that’s far too much for the average wage earner.” In Düsseldorf, Michael Brill at D.Live notes: “Sponsoring in the early days was only about signage and some complimentary tickets, nowadays it’s much more complex. Companies also have endless options for involvement in any type of product and event, and so demands constantly increase. Sponsors expect a perfect match with their activities to their target audience, so venues, promoters, and artists need to more precisely customise their offer. Due to compliance regulations we’re seeing fewer large companies and more mid-sized and small companies becoming sponsors and hospitality partners.” Hamburg’s Barclaycard Arena designs tailormade offers for individuals and companies. Demand for VIP suites on a long-term basis for all events has decreased slightly, due to stricter compliance and tax regulations. “We’re adjusting to our customers’ requirements by offering more flexible and individual packages,” says Schwenkglenks.

Your expert for events in Vienna Hall E

Hall D

Hall F

Studio F

Event-Management Phone: +43 1 981 00 - 563 E-Mail: event@stadthalle.com

w w w. st ad th a l l e.co m Stage

Stage

Lounge

Stage

< 16.000 guests

< 2.000 guests

10.000 m²

Garderobe

Bar

Foyer

< 2.000 guests 5.000 m²

< 400 guests 1.680 m²

/StadthalleWien /WienerStadthalle /WienerStadthalle /wiener_stadthalle

exhibition area Bilder © Bildagentur Zolles KG

1.250 m²

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NORDICS POPULATION: 5.6m (DK); 5.5m (FI); 5.3m (NO); 9.9m (SE) INTERNET USERS: 5.4m (DK); 5m (FI); 5m (NO); 9m (SE) GDP/CAPITA: $50,100 (DK); $44,500 (FI); $72,100 (NO); $51,200 (SE) ACTIVE SMARTPHONES: 6.9m (DK); 7.4m (FI); 5.8m (NO); 12.6m (SE)

ffluent residents and a strong demand for live entertainment means it’s boom time in the Nordic countries. While Sweden has long been a powerhouse producer of international touring artists, the popularity of domestic talent across the region is a real success story – particularly in Finland, where its remote location means it’s not always a first choice when routing tours. Innovative promoters are bringing new types of content to arenas, which is broadening audiences, driving up attendance, and attracting new demographics to the venues.

Attendance

Average attendance of 5,884 was slightly below the European average of 6,395. Live music draws the highest average audiences, seeing 8,335 (European average: 8,116). Family events saw on average 4,089 people (3,666). Comedy events sold on average 7,426 tickets (6,649), and the mean sports event attendance was 5,873 (6,559).

REGIONAL MAP n = Denmark, Iceland, Finland, Norway & Sweden

Breaking down by genre, music made up 25% of events, sports dominated with 48% of event programming, 13% were family shows, and 4% were comedy. “Both music and comedy shows sell well and attract a lot of attention,” says Daniel Stålbo of ASM Global-owned Stockholm Live, which runs Ericsson Globe (cap. 16,000), Tele2 Arena (40,000), Hovet (9,000), Annexet (3,500) and Friends Arena (60,000). “It is great to see that comedy really has moved into the bigger arenas and that also local acts sell out the bigger venues. A great example of this is Mia Skäringer, the Swedish comedian who in 2018 sold out her shows in Ericsson Globe, came back this year and sold out several new shows in the same arena and is planning to come back this fall. There´s an increasing interest for local acts, which is great to see.” He says 2018 was “a great year” for the venues, reporting that the market for live experiences in Stockholm and Sweden remains very strong. The group’s venues hosted in excess of 330 events attracting more than 3million visitors. “We also saw some new attendance records – Eminem at Friends Arena with 57,520 in the audience, and Metallica with 17,303 in Ericsson Globe. We not only saw a great interest for the music and show categories in our arenas but also an increasing interest for our football and ice hockey home teams.” In the south of the country, the 15,500-capacity Malmö Arena saw a good mixture of live music, culture, family events, ice hockey and other sports, reports CEO Karin Mårtensson. The Hartwall Arena (15,500) in the Finnish capital Helsinki reports a very good 2018. CEO Kimmo Kivisilta says: “We had a lot of international touring, but one of the biggest things for us is the success of domestic talent. The number of local artists who are able to play arena-level concerts has increased significantly. Over the last few years we have been working to help the domestic market develop so more and more acts can reach arena level, and – importantly – Finnish audiences are coming.” Ice hockey is very popular, and Hartwall Arena hosted two regular season National Hockey League (NHL) games, which sold out “incredibly quickly” and were televised worldwide. “That’s taken our ice hockey events to another

NORDICS | REGIONAL PROFILES

PERFORMANCE GENRE

2018 KEY STATISTICS PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

MUSIC

104

8,335

866,794

€60.55

€52,481,827

FAMILY

4,089

228,993

€32.18

€7,369,228

COMEDY

7,426

126,245

€43.31

€5,467,058

SPORT

197

5,873

1,156,931

€18.42

€21,314,682

DANCE

N/A

AWARDS

850

€90.00

€76,500

RELIGIOUS

36,600

€9.84

€360,144

MISCELLANEOUS TOTAL

408

13,860

€29.00

€401,940

413

5,884

2,430,273

€35.99

€87,467,599

NUMBER OF PARTICIPATING ARENAS: 7

Næstved Arena in Denmark was built as a host venue for the 2015 World Women’s Handball Championship, but has since staged numerous concerts and cultural events. © Julie Spuhr

REGIONAL PROFILES

level,” Kivisilta says. “Audience numbers are high in Finland – it’s been a great few years for us. Promoters have been doing an excellent job of booking and marketing a wide variety of shows, which is important because they reach different demographics.” Often regarded as the heavy metal capital, its unsurprising that that genre continues to be highly popular. Hartwall Arena is hosting the likes of Ghost, Five Finger Death Punch, Ozzy Osbourne and Slipknot. Following a management change in August, the Gatorade Center (11,820-capacity) in Turku is now operated by ice hockey club TPS, which has its base at the arena. When the home team isn’t playing, the venue hosts live entertainment, including local act Lauri Tähkä, and a forthcoming run with Disney on Ice, promoted by Live Nation. “We work mainly with promoters such as Live Nation, Fullsteam, and others, but if there are gaps in the diary, we have an in-house team called Turku Live, which will fill them if necessary,” says business director Heidi Aho, former CEO at Fullsteam. “We hope to help promoters by offering a second stop in Finland for international touring instead of just Helsinki.” Opened in February 2017, Copenhagen’s 16,500-capacity Royal Arena is managed by Live Nation, and attracted a million visitors in its first 20 months. “The numbers speak for themselves,” says CEO Dan Hammer. “However, the credit should go to the extremely talented Danish organisers who work hard each day to attract musical megastars and major sporting events to Copenhagen and Royal Arena. Their efforts are world-class.

“One of the keys to our success is an extremely varied programme with many different music genres, traditional sports, e-sports, stand-up and amazing shows. I am particularly pleased that we have attracted highly coveted Danish names such as Nephew, Anden and Lukas Graham on the programme.” Also in Denmark, the 4,500-capacity Næstved Arena saw a significant increase in audience numbers and turnover, of approximately 50%, reports director Jakob Brixvold. “However, it is difficult to anchor the growth to the bottom line, as event production costs are also increasing sharply. All in all, the year's results were not totally satisfactory, but there is great potential in view.” He says attendance figures in Denmark are good. “The unique live experience is a sought-after product, and the target groups are getting larger. In the Nordic countries, people have a lot of money to spend, and while the older generations are consuming experiences, a new younger generation is participating in cultural events. There’s also more venues, which reduces the distance people have to travel and other barriers to attendance.” Lotta Nibell is CEO of Got Event, which runs a number of venues in Gothenburg including the 14,000-capacity Scandinavium. “Business is very good, both in numbers of events and visitors, as well as revenue. We have had a particularly strong music year due to a combination of artist availability and people’s desire to meet real people rather than online. The live experience is unbeatable.”

Ticket prices

In previous years this region commanded the highest ticket prices, but in 2018 it was overtaken by Germany, Switzerland & Austria.

NORDICS | REGIONAL PROFILES

2018 INDUSTRY CONCERNS 25%

Artist fees / Ticket prices

50%

75%

100%

13%

Lack of suitable headliners

19%

Competition

19% 19%

Production costs 13%

Lack of suitable content Industry consolidation

Political interference

State of economy

Licensing regulation

Shortage of skills / trained personnel

Live music events have the highest mean price, at €60.55 (average ticket price Europe: €53.23), while family shows are below the European average of €45.48, costing €32.18. Comedy events attract an average €43.31 (€41.65) and sporting events are a very reasonable €18.42 (€26.06).

Trends

FACTORS IDENTIFIED BY RESPONDENTS AS WORRYING OR VERY WORRYING

Got Event’s Nibell says that having more diverse types of entertainment is the key to success. “There is a wide range of shows that manage to reach different target groups. We have had everything from heavy metal to symphony orchestras, and they have all sold very well. We also have some local and national talk shows that do very well.” The Hartwall Arena is hosting its first e-sports event this year – the largest ever to take place in

Finland. “Sponsors are very active around this event,” says Kivisilta. “It will be interesting to see how this type of event develops in the future and what the audiences will be like. “YouTuber event Tubecon started in Finland and had its first event here at the arena. We introduced it to the European Arenas Association members, since then it has grown internationally. We are really proud of the way it’s developed.” There are also new sports coming to the arena, such as floorball – the world championship finals will take place at the venue. “We are fulfilling our role as a true multipurpose venue.” In Malmö, Mårtensson says there is a trend for more concerts but at smaller capacity: “We are doing lots of concerts with 3,000-5,000 spectators.” She also remarks on the growth of the domestic

REGIONAL PROFILES | NORDICS

Average Number of Staff (Excl. No Answer): FULL TIME STAFF

PART TIME STAFF

164

VOLUNTEERS

133

2017 VS 2018 Popularity of VIP Activities / Offers

33%

67%

n More popular than 2017 n About the same as 2017

market. “More domestic bands and artists are now playing indoor arenas with sold-out venues.”

Challenges

There’s a broad range of challenges facing arenas in this region, including keeping up with increasingly complicated production demands. Stockholm Live’s Stålbo says: “The only way to overcome the challenges that we face is to work closely with our promoters and home tenants to continuously develop the arena and the live experiences that they host. Right now we are focusing on investing in new premium offers as well as new technology that can eliminate some of the major pain points that visitors might face, and add extra value to the experience. We also need to work with promoters to see what is around the corner when it comes to new types of event – to discuss and evaluate how we need to develop our offers to attract events that we don´t have today but should have tomorrow.” The country’s northerly location remains an issue for Finnish arenas, says Hartwall Arena’s Kivisilta: “Because we’re not in the centre of Europe some of the biggest tours don’t pass through here on the first leg. However, as the situation in Russia seems to be improving, as more bands play St Petersburg and Moscow, we are seeing more acts routed through Finland, too. “In the last five years, our brand has improved and we have more and more sold-out shows. We do our best to support promoters because it’s important that – no matter who is promoting the concerts – the arena is sold out. That’s good for everyone.” In Denmark, Brixvold says: “We have been given major building challenges and a business model that is not geared to our goals. Of course, this increases our operation costs considerably, which is why solutions are included in Arena Næstved's turnaround.”

Developments

Jyske Bank Boxen in Herning, Denmark, saw a major upgrade in May 2018 when the new building (housing up to 3,000 people before the shows) came online in time for the IIHF Ice Hockey World Championship. “At present we are working on a major upgrade of the outdoor areas, improving the parking lot facilities, landscape upgrades and other facelifts,” says head of culture Nicki Quist. Malmö Arena recently invested SEK125million (€12.5m) on a major improvements programme,

What % are VIP tickets? PERCENT NUMBER OF VENUES 1–10%

11–20%

including 13 skyboxes that have been converted into one modern lounge, “This has increased occupancy by 400% compared to the skyboxes at hockey games,” says Mårtensson. “After ten years, we have also renovated our main kitchen and main restaurant, and the Malmö Arena Hotel opened an additional 100 rooms, bringing its capacity to 395.” She says the venue has also installed a new round mega-screen of 176 square metres. The Gatorade Center in Finland has recently installed Europe’s largest video cube, which, aside from ice hockey games, will be used for 360-degree shows, e-sports events, film concerts and more. “Finnish alcohol laws were relaxed a little in 2018, meaning we could build an 800-capacity restaurant in the arena, meaning people can have a drink while they watch the entertainment,” says Aho. “This is a significant move for venues and enables us to increase F&B sales.”

VIP market

In common with other European markets, there is marked growth in the number of people wanting premium packages, while companies pull back from renting suites on a long-term basis. “Right now we have focused on new premium offers and we are investing in new premium lounges – moving away from suites to bigger lounges,” says Stockholm Live’s Stålbo. “We have seen more interest in lounge seats and people want to be able to socialise during events. This year we opened new premium lounges both in Ericsson Globe and at Friends Arena.” Hartwall Arena is currently tendering for its restaurants catering contract. “This will result in a major change in both our VIP catering offer and the food outlets across the arena,” says Kivisilta. The growth in individuals wanting VIP experiences means people’s expectations are increasing for fast service and sufficient availability, says Brixvold. “That being said, there is definitely an increased business potential within F&B, but the business models must be smart and well thought-out. Proper pricing and wastage reduction are crucial factors.” In Gothenburg, Nibell says: “We see a need for greater individualisation and flexibility.” Aho says VIP and hospitality packages are in high demand for ice hockey games and the trend is picking up pace in live entertainment, too.

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REGIONAL PROFILES

SOUTHERN EUROPE POPULATION: 62m (IT); 10.8m (PT); 48.6m (ES) INTERNET USERS: 40.5m (IT); 7.4m (PT); 39m (ES) GDP/CAPITA: $38,200 (IT); $30,500 (PT); $38,400 (ES) ACTIVE SMARTPHONES: 92.5m (IT); 11.7m (PT); 51m (ES)

mood of buoyancy and optimism shines over southern Europe’s arenas. Spanish promoters reported a recordbreaking year for live music in 2018, and that’s the story playing out across Portugal and Italy, too. The strength of the sector is delivering higher than ever audience figures, and a booming VIP market. And while success brings its own challenges, arenas are taking them in their stride.

Attendance

With average audiences of 10,869, this region has the highest attendances in Europe. Sports events attract the highest numbers, bringing in on average 18,271 people (European average: 6,559). Music events

REGIONAL MAP n = Italy Portugal & Spain

are next, drawing 10,266 people (8,116). Family shows pull an above-average 6,296 people (3,666), while comedy shows sell an average of 7,815 tickets (6,649). At Madrid’s 17,453-capacity WiZink Center, Manuel Saucedo says: “2018 has been exceptional, a record year in Spain for live music. It was also a record year for the management of WiZink Center because we took advantage of the extraordinary musical activity in our country. Our venue is becoming more and more popular internationally and in many cases it’s chosen directly by bands and artists, which is an honour for us. “For the first time, Madrid was the Spanish city with the most musical activity and the largest number of tickets sold. Until 2018, this had never happened, and we like to think a large part of that is down to the WiZink Center because we improved our attendance rates and we have placed our venue in the podium of the world’s biggest venues. “We have noticed a movement in live music activity towards Southern Europe. There are probably many reasons for this. Without a doubt, major festivals in good-weather months is a factor, as is the improvement of arenas, the economic recovery after the crisis, and above all, the strength and great attitude of music promoters, to whom we really have to give all the credit and success.” Also in the city is the 12,000-capacity Palacio Vistalegre. Managing director Daniela Bosé says business was up 35% compared to 2017, which she puts down to the growing Spanish economy and a cut in VAT for live events from 21% to 10%. “Political unrest in Catalonia meant some international concerts moved to Madrid,” she adds. “We see particularly strong sales for reggaeton, trap, pop and rock shows.” The exceptional year also played out for Barcelona’s Palau Sant Jordi (17,960-cap). Director Carme Lanuza also reports record-breaking results: “2018 was an exceptional year for Palau Sant Jordi and for the music sector in general here. The number of concerts in our two halls, Palau Sant Jordi and

SOUTHERN EUROPE | REGIONAL PROFILES

PERFORMANCE GENRE

2018 KEY STATISTICS MUSIC

PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

369

10,226

3,773,260

€ 41.66

€ 157,179,599

FAMILY

6,296

390,378

€ 42.04

€ 16,409,662

COMEDY

7,815

78,152

€ 13.87

€ 1,083,932

SPORT

118

18,271

2,156,030

€ 17.53

€ 37,804,862

N/A

€ 65.00

€ 4,209,855

N/A

DANCE

AWARDS

RELIGIOUS

MISCELLANEOUS TOTAL

64,767

162

4,379

€ 10.72

€ 46,958

595

10,869

6,466,966

€ 33.51

€ 216,734,868

NUMBER OF PARTICIPATING ARENAS: 9

WiZink Center in Madrid is one of Spain's most successful venues when it comes to attracting international touring productions

REGIONAL PROFILES

2018 INDUSTRY CONCERNS

FACTORS IDENTIFIED BY RESPONDENTS AS WORRYING OR VERY WORRYING

25%

Artist fees / Ticket prices

Competition

Industry consolidation

State of economy 13%

Political interference

Lack of suitable headliners

17% 3% 7% 3%

Sant Jordi Club, allowed us to exceed expectations. She also says tourism plays an important role, adding that relationships between the music and tourism sectors are important for both to benefit. Portugal is also experiencing a boom in live entertainment, as Jorge Vinha da Silva from the Altice Arena says: “2018 was the best year we’ve ever had. Not only did we have major tours such as U2, Roger Waters, but also we hosted the European Song Contest. It was the largest production ever and it took over the arena for almost two months. “In addition, we kept the corporate business thriving with congresses and conferences from all over the world.” Forumnet runs Milan’s Mediolanum Forum and the Palazzo dello Sport in Rome. “Business in 2018 was up 22% compared to previous years, with a strong increase in the number of concerts and sporting events,” says Andrea Rao.

Ticket prices

While audience numbers are very high, ticket prices are lower than average at €33.51 (European average: €44.70). Tickets for music events cost on average €41.66, compared with a Europe-wide average of €53.23, the mean price for family show tickets is €42.04 (€45.48), comedy shows are a very reasonable €13.87 (€41.65), while sports events are €17.53 (€26.06). Unsurprisingly, music events made up 66% of events at arenas in this part of Europe, while sports events made up 20%. About 10% of events were family shows, and there was just a handful of comedy productions.

Developments

In common with all arenas, Saucedo says its investment is focussed on security and ensuring audiences have a great experience. “The most significant new development in security is that we are going to have a fire crew at every event. “We are creating new VIP areas, improving our hospitality offer, installing new signposts and more LED screens for information.” Bosé says Palacio Vistalegre is investing in upgrading the sound system and new backstage

100%

23%

Licensing regulation

Shortage of skills / trained personnel

75%

13%

Production costs

Lack of suitable content

50%

facilities. The venue recently signed deals with Ticketmaster and access control with D1N1. Portugal’s Altice Arena has carried out “significant changes,” including adding 400 more parking spaces. “We have also installed two new sound boxes and a business suite with 24 seats and a food stand,” says Da Silva. “The acoustics are always a concern to us, so we are continuing to invest in materials and systems that help get a better and clearer sound. “Also, because we all play a role in environmental issues, we are about to banish the use of disposable glasses inside the arena. They will be replaced by reusable glasses we designed for people to keep.” Milan’s Mediolanum Forum is carrying out a broad range of improvements including upgrading paving in the arena, the restrooms, increasing the number of displays in the arena and adding more parking spaces. Its VIP skyboxes are being revamped and the Wi-Fi network is being updated. Palazzo dello Sport in Rome is also undergoing cosmetic changes to restore and renew things such as the external paving and the skybox entrance. Palacio Vistalegre can now open 22 hours from 7.30am-5.30am, giving enough time for load-in, the show and load-out. “Plus we can have three different concerts on Friday, Saturday and Sunday,” says Bosé.

Challenges

Italian venues and promoters are protesting a law requiring all tickets to have the name of the holder on them. The measures were announced as part of a crack down on touting. However, says Rao, “this could slow down the entry process and that could have a negative effect on catering consumption.” In Madrid, the growth of the festivals industry is driving up artist fees and increasing competition between outdoor events and arena shows, says Saucedo. “This is one of the challenges we face that can affect our scheduling.” An issue facing all venues is raised by Altice Arena’s Da Silva: how to keep up with global trends while sticking to a budget. “Maintenance is key – albeit expensive. We are obsessed with the

SOUTHERN EUROPE | REGIONAL PROFILES

Robbie Williams is among a host of acts to perform at Pala Alpitour near Turin, a former Winter Olympics venue

experience we offer to visitors and how to enhance it.” He says the venue is also carrying out improvements to the building and its equipment, adding: “Maintaining a close relationship with promoters is crucial, and that dialogue enables us to be innovative when improving the building.” Palau Sant Jordi is focussed on sustainability, security and active listening, says Lanuza. “The public is increasingly demanding and our challenge is to keep a balance between their expectations and our priorities. “Venues are agents of culture and an active part of the development of and changes in society. That is why we have a responsibility to promote new initiatives in the field of sustainability and work to propose improvements that raise the awareness of the thousands of spectators who visit us.” The venue also has a regular programme of general improvements. “We are experiencing a very positive period, as the demand for our facilities is constantly growing, so we are implementing a project to further increase the capacity at the Mediolanum Forum,” says Rao.

Trends

Pop and rock are still top of the pops in Portugal, but there is growing demand for classical and indie, says Da Silva, adding family shows such as Cirque du Soleil are always popular. In addition, the meetings industry business is a fast-growing sector, hand-in-hand with tourism. “The hospitality offer is being looked at carefully, in order to ensure we give our visitors more value for money. We are creating more tailor-made experiences for clients’ needs. “Sponsorship is also important, as companies are looking at our industry as an excellent way to create experiences and bonds with their customers. Marketing budgets are rising and managers are looking at naming rights and sponsorship in a different – and better – way. I believe the maturity of

NEW ARENA WILL BE LARGEST IN SPAIN When it comes online in 2023, Valencia Arena will have a capacity of 18,600 for concerts, making it the largest of its kind in the country. With a budget of €220m the project is being led by entrepreneur Juan Roig and his holding company Licampa 1617. The aim, says Roig, is “to give Valencia a multi-use space that will position the city and the wider region as a world-class destination for national and international sporting, cultural and entertainment events.” He says that the building will be equipped “with the most advanced technology and the latest technical means for the transmission and production of all types of show.” The building is designed by sporting architects Hok and Valencia-based firm Erre. Work is due to start in summer 2020.

our market in terms of entertainment also helps long-term relationships with the brands.” At the WiZink Center in Madrid, Saucedo says: “Spain previously had a lack of high-level arenas. Now we are improving in every sense, and the country can consider itself at the same level as the best in the world. “One of the keys to success is to offer versatility because that’s what promoters need. We offer all the services required to make their load-in and -out as easy as possible. We have professionals in every area that take part in an event to ensure perfect coordination. In short, the venue is an active part of the event.” He notes that audiences are increasingly turning to the venue’s online box office to buy their tickets. “Because we offer them safety, they trust us, especially now when the market has a lot of online

REGIONAL PROFILES

Average Number of Staff (Excl. No Answer): FULL TIME STAFF

PART TIME STAFF

VOLUNTEERS

2017 VS 2018 Popularity of VIP Activities / Offers

60%

40%

n More popular than 2017 n About the same as 2017

ticket platforms. In 2019, our box office online would have sold almost 20% of the tickets taking place at WiZink Center, and promoters rely on us more and more to sell their tickets and to take advantage of the communication campaigns we also offer them.” Having hosted the League of Legends European summer championship, Palacio Vistalegre MD Bosé sees e-sports as a trend that will continue to grow. She says merchandise sales are increasing and there is also an uptick in the number of family events. And there’s a new trend for the country’s arenas – beer festivals. These events see multiple brewers under one roof to sell their wares to enthusiasts.

What % are VIP tickets? PERCENT NUMBER OF VENUES 1–10%

11–20%

As noted by Saucedo, festivals are a growing trend in Spain says Palau Sant Jordi’s Lanuza. “The figures demonstrate the consolidation of attendance and festivals strength is growing and show better numbers each year. “We are also seeing an increase in the variety of VIP products. Tours usually offer a broad range of VIP packages, which are very popular despite the economic conditions in the country. Because Palau Sant Jordi is a municipal venue, we work to fulfil the promoters’ requirements and try to improve the facilities so they can gain more opportunities to sell VIP tickets.”

SOUTHERN EUROPE | REGIONAL PROFILES

VIP market

With the economies no longer blighted by the economic crisis, demand for hospitality and VIP packages is increasing. The trend of more individuals wanting this experience rather than companies means many venues are reconfiguring their suites to accommodate this change. “We are reinventing the ‘box’ concept,” says Altice Arena’s Da Silva. “We’re moving from a one-size-fitsall approach to multiple choice. Our aim is to give the client the option between a larger or smaller, or even just a VIP seat. The aim is to not leave anyone out.” “Arenas have to contribute, along with promoters, to improving the experience of the people attending a concert,” says WiZink Center’s Saucedo. “In many cases, fans buy their tickets months before the show and they are excited for the big moment of the concert. Of course, the artist is the most important [thing] but the venue has to provide the best conditions to ensure that the day is special. “We are working to improve VIP areas, to offer new spots so people can enjoy a concert from different angles, such as sitting at a table, having a

drink or even having dinner.” The floor at Palacio Vistalegre used to be for cheaper tickets but it is now reserved for VIP seating, and Platinum and Gold tickets with early entrance, reports Bosé. “Our VIP boxes are so close to the stage that it gives a really exciting live experience to the customer,” says Mediolanum Forum’s Rao. “Sponsors can also customise their suites. “VIP entrance is a must these days, as is having rooms or spaces for meet-and-greets. “Companies are more and more demanding in our venues during events – they are looking for unique and exclusive services; so we’ve just renewed and upgraded the food and beverage offer in our hospitality area.” Palau Sant Jordi’s Lanuza says: “The fan phenomenon has fuelled the appearance of VIP packages. We don’t have VIP boxes but we can offer promoters options that are adaptable to their needs. “This is one of our main interests, because our aim is to help the promoters. It’s important to them that they can offer as many VIP areas as possible.”

The Malta Fairs and Conventions Centre (MFCC) is Malta’s largest indoor multi-purpose venue The largest inside area measures 170m x 50m (8500m²) It provides a blank canvas for all types and forms of events imaginable Our in-house team supports your event providing a turnkey service where needed

REGIONAL PROFILES

UK & IRELAND POPULATION: 65.1m (UK); 5m (IE) INTERNET USERS: 61m (UK); 4m (IE) GDP/CAPITA: $44,300 (UK); $73,200 (IE) ACTIVE SMARTPHONES: 78.5m (UK); 4.9m (IE)

fter reporting record figures for 2017, many arenas have even improved on that in 2018, with British and Irish audiences showing no sign of diminishing desire for live entertainment. Looking forward, the effect of Brexit is still unclear, so there’s an air of caution. Rising costs continue to present a challenge, particularly with resistance to increasing charges. However, with above-average ticket prices and strong demand, there’s a very positive picture painted across this region As one of the world’s foremost live entertainment markets, the venues sector is fiercely competitive and there are a slew of new construction projects at various stages across the country, including two mooted venues in east and west London, one in Manchester and one in Newcastle, with others supposedly in the wings, too. Additionally, in September 2019 NEC Group joined Oak View Group’s International Venue Alliance, strenghthening their arm against the likes of Live Nation and the newly former mega merger of AEG

REGIONAL MAP n = UK & Ireland

Facilities and SMG: ASM Global.

Attendance

Average attendance is 5336, below the European average of 6,395. Music is the most popular format, seeing on average 6,695 people per event (European average: 8,116). Comedy shows were particularly popular, with an above-average 7,377 (6,649), sport drew 4,109 people (6,559) and family shows 3,235 (3,666). Music made up 46% of arena events in 2018, followed by family shows (28%), sport (14%) and comedy (8%). The world’s biggest-selling arena, The O2 in London, saw another record-breaking year in 2018, says general manager Steve Sayer. “We sold over 2million tickets and made a number of significant developments to The O2 as an entertainment destination, including opening a retail park called Icon Outlet, as well as adding new premium bars with our major partners Sky and O2. Content-wise we had 209 performances and 2019 is looking even stronger.” He says comedy had a particularly strong year, but “while music and entertainment can be cyclical, comedy feels it particularly strongly. There is a small number of really big artists that do long runs. However, there are some new artists that are now reaching arena level.” The world-famous phrase “Hello, Wembley!” is a powerful draw for artists. SSE Arena Wembley general manager John Drury says 2018 eclipsed even the record-breaking 2017. “The most popular genre for us is rock and pop – that generally accounts for around 45% of shows each year,” he says. “E-sports is an interesting area, too, which accounted for around 5% of our contribution in 2018, while comedy was around 8% of event contribution. We saw a major increase in overall ticket sales from 2017 to 2018, and look set to see another increase this year.” Birmingham’s NEC Group runs the Resorts World Arena (15,700) and Arena Birmingham (15,800). Director of arenas Guy Dunstan says: “2018 was a good year, although not quite as strong as 2017, which was one of our strongest.” After the terrible events of 2017, Manchester Arena is recovering strongly, with a record year in 2018 and even stronger 2019, says general manager

UK & IRELAND | REGIONAL PROFILES

PERFORMANCE GENRE

2018 KEY STATISTICS MUSIC

PERFORMANCES

AVERAGE ATTENDANCE

EVENT ATTENDANCE

AVERAGE TICKET PRICE

TOTAL SPEND BY GENRE

1,093

6,695

7,318,091

€ 57.30

€ 419,326,614

FAMILY

673

3,235

2,176,911

€ 45.06

€ 98,091,610

COMEDY

187

7,377

1,379,440

€ 44.69

€ 61,647,174

SPORT

334

4,109

70,940

€ 41.03

€ 2,910,668

DANCE

2,446

31,609

€ 48.65

€ 1,537,778

44,259

€ 53.39

€ 2,362,988

AWARDS

RELIGIOUS

MISCELLANEOUS TOTAL

N/A

6,328

291,103

€ 25.86

€ 7,527,924

2,377

5,336

12,684,796

€ 51.17

€ 649,045,959

NUMBER OF PARTICIPATING ARENAS: 22

Opened in July 2013, the First Direct Arena in Leeds is one of the most modern venues in the UK

James Allen, pointing to three nights with Hugh Jackman, plus shows by Drake, Post Malone and U2. Belfast’s SSE Arena is frequently a first stop on national and international tours. Event and business development manager Sharon McCrea says: “Business was good in 2018. We did not experience any great shift in show numbers or ticket sales compared to 2017; however, 2019 has, to date, been more challenging.” In Glasgow, the SSE Hydro (14,300) welcomed 1.1m

visitors in 2018, says director of live entertainment Debbie McWilliams, citing recent shows by Justin Timberlake, Katy Perry, Sir Paul McCartney, Roger Waters and Britney Spears. “An increase in arena performances also resulted in us experiencing a higher turnover in box office business.” Liverpool’s ACC Group runs the M&S Bank Arena (formerly the Echo Arena). The venue signed a major naming rights deal in January. “Our new name concluded a phenomenal year in 2018 marking ten

REGIONAL PROFILES | UK & IRELAND

2018 INDUSTRY CONCERNS 25%

Lack of suitable headliners

100%

12%

Shortage of skills / Trained personnel

6% 0

Production costs

12% 24%

State of economy Licensing regulation

Lack of suitable content

Political interference

12%

years since the arena first opened its doors,” says head of sales Kay Wilson. London’s Royal Albert Hall also had a recordbreaking 2018, with 401 shows including Arctic Monkeys, the EE BAFTAs and Muse, reports artistic and commercial director Lucy Noble. In Leeds, at the First Direct Arena, Kevan Williams says: “The number of shows we hosted was almost identical to 2017 but we did notice a slight difference in the mix of events with more theatrestyle events and slightly less music product. Looking at the 2019 calendar, the numbers for music events are stronger again.” Nottingham’s 10,000-capacity Motorpoint Arena saw a slightly quieter 2018 compared with the previous year, which CEO Martin Ingham puts down to the cyclical nature of live events. London’s famous Alexandra Palace is going “from strength to strength” and hosted 33 live music shows in 2018, says director of operations Simon Fell. “Alternative shows, rock and indie are particularly strong for us,” says Rebecca Esteves from the Brighton Centre. “Our city has a very alternative culture and this is mirrored in the audiences we attract.” Sheffield’s FlyDSA Arena (13,500) saw good growth in comedy but there was a marked increase in family shows in 2018, says commercial operations manager Joe Waldron.

Ticket prices

Ticket prices are above average, coming in at €51.17 (Europe average: €44.70). Music commands the highest fees at €57.30 (€52.23), followed by dance at €48.65 (€47.75), family €45.06 (€45.48) and comedy €44.69 (€41.65). Sports tickets cost on average €41.03 compared with a European average of €26.06. “High ticket prices remain a concern,” says NEC Group’s Dunstan. “It’s now becoming the norm to see ticket prices in excess of £75 (€87) for the major acts, and these prices aren’t always affordable for fans, particularly in a tough economic climate.” Intrinsically linked to that is the perpetual battle for customer attention in a crowded entertainment market, as Sayer points out. “We need to ensure the

75%

Competition Industry consolidation

50%

35%

Artist fees / Ticket prices

experience we deliver keeps pace with what fans expect both in our industry but also in different environments. As a venue we’re continuing to invest in the customer experience and all the things that revolve around the show to ensure that we’re top of the list when it comes to someone planning their free time.” M&S Bank Arena’s Wilson agrees. “Venues need to look at how to provide value for money for customers by giving them a more rounded experience that doesn’t just start and stop with the show.”

Developments

In such a competitive landscape and with the pace of technological change, venues are looking at a variety of ways to update their facilities. The SSE Arena Wembley has installed LED lighting in the auditorium, which offers very flexible lighting for walk-in/out on shows but also a high and consistent lux level for sporting events, says Drury. “Not only is it flexible but massively efficient. Through SSE we now source only 100% renewable energy. This, plus the move over to LED has hugely reduced our carbon footprint.” Manchester Arena marks its 25th anniversary next year, and Allen and his team are working on a plan to futureproof the venue for the next 25 years. While he couldn’t discuss specifics at the time of writing, he says the plan will be revealed over the next 12-18 months. “Over the summer we carried out a number of capital projects and signed a new five-year pouring rights deal with Heineken,” he adds. “We have created the Heineken Sky Lounge, which has views over the city centre and is available as an upgrade for ticketholders. The views will be very striking, especially at night.” The Royal Albert Hall is undertaking an investment programme in the build-up to its 150th anniversary in 2021, including cleaning the outside of the 19th century building, creating a double-height basement for tech teams to work in, and a £2.1m (€2.4m) overhaul of the sound system. Glasgow’s SSE Hydro has increased floor capacity by up to 30%, bringing total capacity to 14,300. “This

Northern Ireland’s home of live entertainment - 10,800 capacity - Flexible layouts from 1,500 - City centre location For information and bookings Sharon McCrea sharon.mccrea@ssearenabelfast.com ssearenabelfast.com

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REGIONAL PROFILES

Average Number of Staff (Excl. No Answer): FULL TIME STAFF

102

PART TIME STAFF

222

VOLUNTEERS

2017 VS 2018 Popularity of VIP Activities / Offers

60%

40%

n More popular than 2017 n About the same as 2017

increase is a result of the successful completion of a project to extend the venue grid,” explains McWilliams. “Also, our hospitality offering expanded this year when we opened our Clubhouse lounge in March. This new lounge offers a street-food-style concept for guests and complements our existing hospitality options.” First Direct Arena has also increased capacity, expanding the standing floor to 4,321, “which is a big positive for rock shows in particular,” says Williams. “We have also made some big investments in our corporate and food & beverage areas to improve the overall experience and enjoyment for our guests.” Alexandra Palace opened a 1,300-capacity theatre space in December 2018, meaning the venue can offer intimate shows as well as main room concerts and outdoor events – or combine all three in a festivalstyle set-up. The new space has hosted a fan-only event with Madonna, a concert by FKA Twigs, and the launch of Liam Gallagher’s film As It Was. M&S Bank Arena has a new tracking drape system to provide a wide range of easily configurable layout options including up-stage blacks, straight line drapes and the ability to mask all, or parts of, the upper-tiered seating providing a more intimate feel for smaller shows or standing floor events, says Wilson. In Brighton, the focus is on improving the accessible facilities for deaf and disabled customers. “We have introduced two new accessible platforms in our main balcony, doubling our capacity for wheelchair users,” says Rebecca Esteves. “The new platforms are multipurpose and therefore also used by deaf customers with a BSL interpreter. The NEC Group has invested in its preshow F&B offering by building three new bars – the Schweppes Explorer at Resorts World Arena, and hit TV show Peaky Blinders-themed premises The Garrison and the Premier Lounge at Arena Birmingham. “New security arches were a significant investment for us at both arenas,” adds Dunstan. “They have increased the level of security at our venues and offer our audiences the assurance they are in safe facilities.” Arena Birmingham saw a Wi-Fi upgrade while both venues have improved digital screens. “Finally, we’ve built a new Changing Places toilet at Arena Birmingham, which caters for customers with multiple and complex disabilities by providing

What % are VIP tickets? PERCENT NUMBER OF VENUES 1–10%

11–20%

more space, a ceiling hoist system and an adult-sized changing bench. We previously installed one at Resorts World Arena and I firmly believe that every large venue should have one of these – it’s really important that customers with disabilities have access to the facilities they need.” Belfast’s SSE Arena has recently completed works to its backstage area, meaning updated dressing rooms with new floors and lighting, and a dedicated artists’ entrance. And in Dublin, the 13,000-capacity 3Arena is upgrading its public Wi-Fi system to deal with people’s increasing hunger for bandwidth. It’s also making improvements to its website and app. “As well as this we are carrying out general maintenance and building upgrades,” says Andy Beasley.

Trends

“I think we’re lucky to be in the London market, which is the largest and most diverse in the UK,” says SSE Arena Wembley’s Drury. “That often means we can host shows that appeal to a wide variety of fans from all over the world. The newest of these for us right now is K-pop.” Sayer at The O2 says e-sports is really coming to the fore now, plus he’s noticed an increase in podcast and spoken-word events such as Michelle Obama and former England footballer Peter Crouch’s Crouchfest at Indigo in The O2 (2,350). “This year has also been the year of the residency – we’ve had Drake, Hugh Jackman, Ariana Grande all doing five or more dates, which is really positive for the whole sector,” says Sayer. “We’ve had a lot of first-time headliners, including Khalid, Travis Scott, Post Malone, plus older artists such as Liam Gallagher, Björk and Cher. There’s been talk for years at the ILMC about where the future headliners are, and this year feels like an important moment when a new wave reached that level.” Dunstan says improved customer facilities is driving strong commercial results. “We regularly survey our customers and we’re finding that as feedback gets better, we’re attracting customer loyalty and generating more spend within our venues. “Traditional event genres remain solid but we’re also seeing new genres coming through. We’ve held three e-sports events this year across NEC Group venues: Insomnia64, Insomnia65 and ESL Dota 2,

UK & IRELAND | REGIONAL PROFILES

THE UK’S GREENEST VENUE

which brought in combined audiences of over 70,000 people. I can only see this growing into more events in the near future.” Like all we spoke to, sustainability is high on the priorities list. The O2’s Sayer says: “There’s been a real shift in the mindset of the younger generation, particularly since Blue Planet 2. Through the AEG 1Earth programme we’re already doing a lot, but what’s shifted is fans and consumers coming to the venues and asking about it. They want to know what we’re doing and what we stand for, and our employees are doing the same. Promoters and artists are also asking us. There’s been a real collective shift in the last 12-18 months.” Noble says: “We rolled out phone e-tickets last year, one of the first major changes as part of our sustainability efforts.” And Alexandra Palace’s Fell says the big drive towards sustainability is from audiences, “but this isn’t about doing it just for customers, it’s our responsibility to act,” he adds. With so many entertainment choices on offer, venues have to work harder than ever to attract people, explains Wilson at Liverpool’s M&S Bank Arena. “Visitors are looking for an overall experiential outing whether that be through hospitality, catering, merchandise or VIP experiences, so venues now need to go the extra mile to ensure sales and retain customer loyalty.” The First Direct Arena has seen a marked growth in private and corporate events. “Bigger companies and organisations are becoming aware of the ability

When it opened in August, the £333million (€386m) P&J Live replaced the Aberdeen Exhibition and Conference Centre (AECC). The development includes a 15,000-capacity arena, seven conference suites, three exhibition halls, 11 meeting rooms, hospitality suites, a show deck, VIP lounge, a high-end 150-seat restaurant, and two onsite hotels. Operated and managed by ASM Global, the site has its own energy centre, which uses local renewable resources and advanced technologies to produce an energy ecosystem. It claims to be the most sustainable venue of its type in the UK. Forthcoming shows include Elton John, Michael Bublé, Rod Stewart, The Whitney Houston Hologram Tour, Lewis Capaldi and Cirque du Soleil’s Crystal.

to host large conferences, exhibitions and dinners in the arena environment, and by utilising the facilities, expertise and contacts that we have they can deliver a spectacular event that really gives guests a wow factor that sticks in their memories.” This is also remarked on by Alexandra Palace’s Fell, who says there’s been a significant increase in the number of major international companies hosting events at the venue. After a number of years with no EDM events, this genre is now taking off for the SSE Arena Belfast, says McCrea. “There is definitely a growing market for the genre in Northern Ireland.” Ingham in Nottingham says: “The arena market is getting more competitive than ever. Arenas have to be creative and more flexible in trying to fill the venue with content. We are all in the same boat of seeing costs continuing to spiral – security, utilities, insurance, rates, repairs, salaries and so on, but the rentals just don’t increase in proportion to be able to

The SSE Hydroâ&#x20AC;&#x2122;s floor capacity has increased by up to 30%, bringing the overall capacity to 14,300. Scotlandâ&#x20AC;&#x2122;s Award Winning Venue looks forward to welcoming even more fans.

UK & IRELAND | REGIONAL PROFILES

cover these. So arenas have to look to more content and other revenue streams to cover the shortfall. The simplest way to make more revenue is to have more content – but if that content just isn’t there then you have to be creative on the margins – hence the introduction of restoration levies, bringing catering in-house, creating new hospitality options or, in our case, the creation of a merchandise concession that operates in other venues and festivals.”

Challenges

Security is paramount for all venues. As First Direct Arena’s Williams notes, “It can be difficult, at times, to strike the correct balance between reassuring guests with visible security measures and providing a friendly and welcoming environment. We seem to be getting this right at the moment and guests appreciate that they may need to arrive slightly earlier but they understand the reasons for it and feedback is very positive on the whole.” Sayer says: “We’re in the business of creating amazing fan experiences and people want to step out of their day to day by watching their favourite band or an amazing show, but we also have to ensure they are safe as can be. We’ve been trialling some technology to improve our surveillance, which is one of a number of measures we’re putting in place to ensure people coming in are as safe as can be.” In Glasgow, McWilliams says: “We focus on ensuring the safety of the public and clients at events, whilst not impacting on their enjoyment. This involves ongoing liaison with the appropriate authorities for guidance and we enhance security measures accordingly. Ongoing team training ensures that safety on our campus is of paramount importance.” NEC Group’s Dunstan says their venues installed state-of-the-art security arches in September 2018. “This was an investment of over £350,000 [€405,100], but ultimately the focus on security deployment can’t detract from improvements in customer experience. We’re a service industry and customers come to us to have a great time.” The spectre of Brexit and the impact that might have on the economy is also on the minds of venues, as FlyDSA Arena’s Waldron says: “Brexit is a challenge, the number of touring shows seems a little reduced at the moment. However, we are luckier than most arenas as we have a key tenant in Sheffield Steelers Ice Hockey Club.” Dunstan says: “The current economic climate is making business more challenging this year and will always produce a slowdown in both activity and customer spend. Having said that, the entertainment business always bounces back very quickly and is generally resilient in tough economic times.” Like Ingham, rising costs is also on the mind of McCrea, who says it’s particularly challenging when it is not always possible to increase charges. “Continuing to invest in the building to ensure the

best experience possible for both the customers and the artists is very important, as well as using technology to ensure people have that great experience – and hopefully spend more money here.”

VIP market

In common with other European markets, the trend in VIP and hospitality is moving away from companies booking out a box for long periods, towards individuals buying upgrades. “Demand for GA Plus or premium upgrades from standard tickets is really popular,” says The O2’s Sayer. “There’s been a big shift away from corporate boxes or suites. Clients are asking for more informal ways to entertain their guests, more social experiences.” NEC Group’s hospitality arm, Amplify, is focussed on how to make the experience more dynamic, says Dunstan. “There’s a focus on a more casual experience but still with a premium feel, rather than the traditional preshow sit-down meal. Our premium offer needs to work for the variety of audiences we get in our venues and we need to make sure we can offer something a bit more contemporary. Our new Premier Lounge at Arena Birmingham, which opened in the spring, is exactly that – a bar lounge with a relaxed food and drink offering but with the premium feel our customers would expect.” While people are prepared to pay extra for enhanced experiences, it’s still important to offer value for money, says M&S Bank Arena’s Wilson, where the 22 VIP suites have recently undergone a major refurbishment. Customers can have hire of a VIP suite for one night or annual membership. Nottingham’s Motorpoint Arena spent £750,000 (€871,245) improving its hospitality areas to develop a restaurant and enhanced bar and kitchen facilities in order to increase capacity and the quality of the offer. “Customers that want hospitality onsite as part of the package remain high in number for certain genres, but we also want to develop casual dining options for those customers who have tickets for other genres of event but just turn up on spec and want a meal without venturing into town,” says Ingham. Beasley at Dublin’s 3Arena says its VIP business was steady in 2018, and in-line with the same results as the previous year. The Royal Albert Hall recently moved most VIP in-house, which has allowed it to deliver a more consistent, high-quality experience, says Noble. “It’s particularly helpful to be able to curate these experiences to specific shows, whether it’s cinema, dance or rock and pop – the audience is definitely out there, and they have very strong expectations to meet.” The SSE Arena Wembley upgraded its main restaurant and created a new VIP lounge. The 200-capacity Empire Bar & Grill and 50-capacity Empire Lounge are now totally new spaces, designed in a style that puts a modern twist on an art deco concept.

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