Comparing Costs Between Canceling an Event vs. Hosting an Unattended One
In the scorching summer of 2022, a dazzling array of concerts and music festivals continued to light up stages almost daily. Postponed concerts from the tumultuous Corona years were hastily rescheduled, and fresh tours were announced. However, the event industry was still grappling with the fallout from the pandemic and the energy crisis.
Blockbuster Concerts Sell Out in a Snap
Not even the specter of the Corona pandemic or the energy crisis could halt the juggernaut of big names like Rammstein and Depeche Mode. Their shows often sell out in a matter of hours, demonstrating an unwavering die-hard fan base. On the other end of the spectrum, smaller yet equally recognizable bands, such as Revolverheld, struggle to fill venues, with unsold tickets still available even at the box office.
A Cancelled Tour Means Big Financial Losses
The unpredictability of the pandemic has left organizers in a bind. The constant uncertainty over whether events must be canceled due to ongoing health concerns or attendees' inability to attend due to illness adds to the pressure. This uncertainty poses the risk of entire tours being scrapped, leading to financial losses of up to 30 million euros. Faced with these risks, some artists choose to soldier on, playing to half-empty venues and taking financial hits. Others adjust to lower capacities and see the extra costs as the lesser evil.
Volbeat concert in Leipzig on October 26, 2022 (private photo)
The challenges faced by live concerts are not unique. Attendance figures for movies and sports events are also on the decline. Even concerts initially slated for 2019 but rescheduled for 2022 are experiencing financial losses due to increased costs.
Inflation's Bite on Entertainment Budgets
Rising inflation is another hurdle that threatens to pinch the wallets of entertainment enthusiasts. With costs climbing, the question remains whether audiences can continue to afford tickets in the future.
A Helping Hand from the Government?
With the live event industry struggling, a plea has been sent to the federal government. The appeal asks for several things, including extending the electricity price brake for companies from January 2023, releasing the remaining 1.8 billion euros from the special fund for cultural events, and continuing the support program for the sector beyond June 2023.
The 9-Euro Ticket: A Cinephile's Delight
Much like the nine-euro ticket for public transportation, visitors to the Hagen Theatre can now enjoy all performances for just 9 euros a month until the end of the year. The aim is to boost attendance and potentially draw in new viewers, filling seats that would otherwise remain empty.
Looser Restrictions Abroad
In neighbouring countries, the reins have been loosened, and major shows are already back on stage. In contrast, Germany caters mostly to a youthful, carefree audience, with older attendees exhibiting more reluctance. The possibility of compulsory mask-wearing also discourages some visitors from attending live events.
In times of crisis, creativity and resilience are key. As the live event industry treads the delicate path of recovery, innovative solutions, and government support could be the lifeline it needs to weather the storm.
Potential Aids: A Cry for Help
- Energy Cost Subsidies: Subsidizing energy costs could help event organizers and venues manage their expenses and remain financially viable during the energy crisis.
- Venue Modernization: Investing in energy-efficient upgrades for venues could reduce operational costs and promote sustainability.
- Government-Funded Marketing: Supporting national marketing campaigns to promote events could attract more attendees and boost the sector's overall health.
- Infrastructure Improvements: Enhancing event venues' overall infrastructure could provide a better experience for attendees and attract more events, ultimately benefiting the industry.
The Financial Impact of the Crisis on Entertainment Events
The financial implications of the energy crisis and the ongoing consequences of the pandemic in the entertainment industry are significant. With the specter of inflation looming over entertainment budgets, event organizers are struggling to keep up, as the constant uncertainty of whether events must be cancelled poses the risk of entire tours being scrapped, leading to financial losses of up to 30 million euros.
Seeking Government Assistance
In this critical juncture, the industry has turned to the federal government for help, requesting extensions of support programs, the release of remaining cultural event funds, and the continuation of incentives such as the electricity price brake for companies beyond January 2023. Aiding in energy cost subsidies, modernizing event venues, funding national marketing campaigns, and improving infrastructure could all provide a lifeline to the struggling live event industry.
