10 Numbers to Know: 2024 Edition
Hey!
Tomorrow, Wednesday, December 11 at 1 PM EST, I’m hosting a Q & A session.
If you can’t make it live, hit reply and send me your question. I will post a replay on the podcast feed.
I’m appearing on Scott Friedman’s video podcast ‘Ticket Talk’ tomorrow. We are talking Taylor Swift.
I found a super-sized Bills hat in Upstate NY.
The cousins wanted Uncle Dave to take a picture in the hat.
Each year, I put together a list of 10 numbers I’m paying attention to heading into the new year.
I’m sharing the numbers here today.
I’m also going to record a podcast with a bit more context.
Don’t miss it! Subscribe to ‘The Business of Fun’ on your favorite podcast platform.
To the numbers!
25: The percentage of potential revenue artists could lose to AI-created music in the next 4 years.
Why does this matter to you?
The move to AI created music is part of the nature of algorithmic curated music to create more passive music listening.
This matters because AI created music doesn’t have artists to sell tickets, merch, and F&B.
50,000,000: Fewer luxury brand customers in two years.
That’s quite a drop-off.
What matters to us?
A few trends to note:
The number represents 10% of the base for luxury buyers.
The volume of luxury sales is down about a third.
Jewelry has been the big winner, growing 2.6% in the US.
Handbags, the big loser, with sales dropping 13%.
On another note, resale in the space has grown 3x since 2019.
The underlying data points out that quality is winning with buyers.
Meaning, folks aren’t going for the mid-range brands.
They are investing in iconic brands because the perception of value matters.
Keep the idea of perception of value top of mind.
$36.6M: UCLA’s athletic department deficit in the year 2023.
This isn’t unique, Xavier had a $16M deficit earlier in the year that rumors say has grown to $20M or more.
Why should you care?
Simple.
Eventually, the bills come due.
My questions are:
Are these sustainable practices?
Are these sustainable businesses?
How can you make your business more sustainable?
2: Number of tours that have broken the $1B in sales mark:
Coldplay
With Adele taking a break, who will sell seats?
How are arenas and stadiums going to fill their calendars?
Will effort be put into artist development?
730,000: The number of people that saw Adele in Munich!
This purpose-built experience did some pretty incredible business.
A destination show
Purpose-built venue
Use of public transportation with the train ticket included with the purchase.
Adele World drew a half million people.
€540M in impact on the Munich economy.
Destination events could be a big opportunity.
I remember an academic study a few years ago that studied the economic impact of a Pearl Jam concert.
A Pearl Jam show brings people to town, a real economic impact.
People traveled to Munich to see Adele.
Taylor Swift had a bigger impact on a city than even events like the Olympics.
What I take from this is that destination events matter.
Not just for the huge artists, but think about Wilco’s Solid Sound Festival, The Phish residency at the Garden or The Sphere.
Could Beyonce do a pop up?
Could Snoop?
Could Iron Maiden or another metal band?
$25,000: This is the guarantee that David C. Lowry uses to teach us about the economics of a mid-sized touring band.
David’s band, Cracker, is a consistent touring act.
David is also a professor at the University of Georgia.
Finding his Twitter feed this year was a cool intersection of tickets, pricing, entertainment, and business.
Why is this here?
I like to remind people of the economics of putting on a show.
Especially in smaller places where I came up.
Never lose track of the numbers.
51%: Marc Lasrey says that PE is looking at buying 51% of college teams.
That’s pretty dire.
I’ve done a lot of reading on the impact of private equity on the economy this year.
Lord, have mercy.
I can’t think of a lot of positives here.
$472: The cheapest “get-in” at the canceled “One Sick World” festival.
Metallica had a $5M guarantee.
The festival wasn’t selling.
This matters because one of the BIG numbers in concerts is the number of tickets sold.
Tickets sold are going up.
Average fan spending is going up.
The price per ticket is going up.
Are we pricing people out?
This is a rhetorical question.
$12: Get in price for the Big Ten Championship game on StubHub.
With fees, probably $20.
I kept coming back to this number because it raises a few things for me:
Has the expansion of conferences undervalued the championship games?
Is the playoff going to be as big of a hit as people expect it to be? If it isn’t, what will that mean to this era of college sports?
Does indiscriminate listing on the secondary market hurt your brand?
How can you deal with that?
Lots of questions.
I’ll be curious to hear your take.
Hit reply or leave me a note in the Slack Channel.
34.25: That’s the CAGR percentage of growth expected in the secondary market from 2024-2028, according to a NEW report.
44% of this growth is projected to come from North America.
That brings up a few things:
How do you work with the secondary market?
How do you limit the negative impact of the secondary market on your business?
What does this growth mean for your marketing spend?
What does this mean to your customers?
How will you make sure you continue to connect with your customers?
You tell me.
Anyway, on the podcast, I will go deeper on these ideas.
But I want to hear from you.
Hit reply.
Share what is on your mind!
Also, I’m organizing my first new event of 2025 in Indianapolis.
I have about 15 committed people right now before I announce the date and topic!
How’s that for brand value!?
Let me know if you’d like me to come to your town!
Share the newsletter on your social media and with your colleagues!