The festival market - Italy (2024)

1.2 The global market

The global music festival market is valued at US$*,***.* million in **** and is expected to grow at a compound annual growth rate (***) of **.**% from **** to ****. The music festival market constitutes a vibrant and dynamic part of the global entertainment industry. A collection of organizations that present live musical or artistic performances in a wide range of styles define music festivals. These events attract a multitude of audiences who wish to immerse themselves in cultural experiences and encounters, along with music from various places and in all languages; posters are a significant element. This approach is becoming increasingly profitable not only for concerts, but also for local and regional economies. At their best, all these gatherings are living art spaces, multiple expressions of design. They serve as centers of creativity, community and entertainment, helping artists and audiences connect, while contributing positively to the vigor of local economies.

Global festival market value World, ****-****, in US$ billion CognitiveMarketResearch

The growth of the music festival market is driven by several factors. Growing consumer demand for live entertainment experiences is increasing attendance at all types of festivals. The globalization of music and the explosion of digital media platforms have enabled festivals to capture new and ...

1.3 The European market

The value of the European festival market shows sustained growth between **** and ****, rising from $***.* million in **** to $*,***.* million in ****, an increase of *** percent at a compound annual growth rate (***) of **.** percent.

Value of the European festival market Europe, ****-****, in US$ million CognitiveMarketResearch

In addition to its rich cultural heritage, Europe also has a wide variety of musical styles, making it a major world center for music festivals. Each year, with major events such as Glastonbury in the United Kingdom and Tomorrowland in Belgium, Europe attracts millions of fans who contribute significantly not only to the region's tourism and entertainment sectors, but also financially. Music festivals in Europe rely primarily on ticket sales as a source of income, which provides them with economic stability and the ability to continue operations. With a vibrant tradition of live music appreciation and a large number of fans, ticket sales are critical to sustaining this diverse festival landscape across the continent. Europe continues to dominate the music festival market, thanks to its rich cultural heritage, diverse music scene and strong tradition of live music appreciation, which continues to attract millions of attendees and generate substantial ticket revenues.

European market quotations for **** show a strong concentration ...

1.4 The Italian market

Forecasts for the Italian market for arts performance support activities between **** and **** show steady and significant growth. Revenues are expected to grow from *.** billion euros in **** to **.* billion in ****, an increase of *** percent at a CAGR of **.* percent. Companies belonging to the Italian festival market are identified by Ateco code [***] - Other support activities for artistic performances. Forecast of the Italian market for activities supporting artistic performances Italy, ****-****, in billions of € RegistroAziende, CognitiveMarketResearch

The turnover of companies operating in arts performance support activities in Italy showed an uneven trend between **** and ****. In ****, the value was ***.* million, with steady growth to **** million in ****, representing a ** percent increase. However, in ****, due to the pandemic, sales plummeted **.* percent to ***.* million. A recovery began in ****, culminating in a value of ****.* million in ****, marking an increase of ***% over **** and ***% over ****.

Turnover of companies operating in support activities for artistic performances [***] Italy, ****-****, in millions of € Istat, RegistroAziende

1.5 The impact suffered by the sector post Covid-19

Covid-** and related restrictions have severely affected the sector, causing losses of millions of euros. According to a survey conducted by Intesa San Paolo - Effettofestival- the drop in audiences at Italian festivals has been quite significant : **% experienced a drop between **% and **% while **% experienced a drop of more than **%. A positive sign is that the festivals that did not experience a major reduction (***) are twice as many as those for which the drop was **%.

Audience Decline Italy, ****, in percent Source: ****

About **% of the festivals were cancelled in ****, **% were postponed, and *% were held in a double edition : a first one exclusively online on the scheduled days and a second one held in a hybrid / in-presence mode at a later time.

Covid has indeed triggered a major revolution in the industry, which has had to adapt and develop new formats. It turned out that the hybrid format was adopted by **% of the festivals analyzed by Intesa compared to **% held exclusively in-presence. Only **% of festivals were held online, including **% in the March-May **** periods. There was a general reduction in the number of events offered, however, and the **** editions provided many festivals with the opportunity to introduce new non-presence production and distribution formats.

Prominent among ...

2.1 Overview of demand

The average expenditure per music entertainment event in Italy showed a seesaw trend from **** to ****. In ****, it was €**.**, while in **** it increased to €**.**, probably due to the reduction in the number of events during the pandemic. In ****, the average expenditure dropped to **.** €, and then rose slightly to **.** € in ****. In ****, there was a significant increase, reaching €**.**, a ** percent increase from ****. Average music entertainment event spending Italy, ****-****, in € SIAE

In ****, the number of musical entertainment shows in Italy showed significant growth between January and July, rising from **,*** to **,*** events, an increase of *** percent. After the July peak, a significant decline is observed in the following months, hitting a low in November with **,*** events, **% less than the July high. In December, there is a recovery with **,*** shows. The trend reflects a pronounced seasonality, with an increase in the summer months and a decrease in the fall.

Number of musical entertainment shows Italy, ****, in number SIAE

In ****, the number of spectators at musical entertainment shows in Italy grew significantly, from ***,*** in January to a peak of *,***,*** in July, an increase of *** percent. Thereafter, there was a decline, with the number of viewers falling to ***,*** in November, ** percent below the July high. December saw a ...

2.2 Geographical distribution of demand

Data on the geographical distribution of venues for musical entertainment in Italy show a strong concentration in Veneto (***) have significantly fewer dedicated venues. Differences between regions are attributed to demographic, economic and cultural factors, with a higher density of facilities in northern and central regions than in the south, except for Puglia and Campania.

The data show a strong concentration of musical entertainment shows in Lombardy, with **,*** events, followed by Emilia-Romagna (***) have a much smaller number of shows. This reflects a significant geographic disparity, with more events offered in northern and central regions.

The data show a clear predominance of spectators in music shows in Lombardy, with more than *.* million in attendance, followed by Veneto (***). The gap between North and South is clear, with the North registering significantly higher attendance than the South, with the exception of Campania and Sicily, which show fairly good attendance. Lazio, with ***,*** spectators, stands out among the central regions, but remains distant from the northern regions in terms of attendance.

Data on the geographical distribution of spending in musical entertainment shows a clear predominance of Lombardy, with more than ** million euros, followed by Veneto (***) stand out among southern areas.

2.3 Demand drivers

Data on the percentage incidence of indicators on weekdays in Italy in **** show a clear increase in activity toward the end of the week. Friday and Saturday record the highest values, with **.** percent and **.** percent respectively, followed by Sunday with **.** percent. Weekdays (***).

Percentage incidence of indicators on weekdays Italy, ****, in % SIAE

Data on the percentage incidence of spectators on weekdays in Italy in **** show a clear trend toward higher attendance during the weekend. Saturday records the highest value with **.**%, followed by Sunday with **.**% and Friday with **.**%. On weekdays, turnout is significantly lower, with Monday showing the lowest value (***). Percentage incidence of indicators on days of the week Italy, ****, in % SIAE

Data on the percentage incidence of spending on musical entertainment shows in Italy in **** reflect a distribution similar to that of spectators, with the peak on weekends. Saturday records the highest value, with **.** percent of total spending, followed by Sunday (***). Here, too, there is a tendency to spend more on weekends. Percentage incidence of indicators on weekdays Italy, ****, in % SIAE

2.4 Trends in festival demand

The trend of online searches on festivals in Italy from **** to **** shows significant seasonal peaks. Starting with a value of **.* in September ****, interest declines during the winter months, bottoming out in November and December **** with **.*. In ****, there is a notable peak in February (***). The trend shows a strong seasonality, with higher interest in the spring and summer months, and a steady decline in the winter periods.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other hand, indicates that not enough data were found for the term.

Trend of online searches for festivals Italy, ****-****, index Google Trends, Businesscoot processing

Data on the geographic distribution of online searches for festivals in Italy show a greater concentration of interest in northern regions. Liguria records the highest index (***) at the lowest values.

2.5 New trends in demand

New trends in festival demand reflect changes in audience preferences, technology, and societal evolution. The future of festivals seems to be leaning toward immersiveness, sustainability, and a personalized approach to entertainment. Here is a detailed description of the main trends:

*. Experiential and immersive festivals

Multi-sensory experiences: Audiences are looking for experiences beyond the music or the main event. Festivals that offer immersive experiences, such as interactive art installations, augmented reality (***), are becoming increasingly popular. Connecting with nature: Festivals held in natural locations, such as forests, mountains or beaches, are attracting audiences who want to get away from urban life and connect with nature. This connects with a growing awareness of physical and mental well-being.

*. Sustainable and eco-friendly festivals

Environmental sustainability: There is a growing demand for festivals that adopt sustainable practices. This includes using renewable energy, reducing plastics, recycling and limiting CO* emissions. Organizers who demonstrate a real commitment to sustainability can attract a more environmentally conscious audience. Local and organic food and beverages: Attendees are increasingly mindful of what they consume. Demand for organic, local, vegan and vegetarian food and beverages is increasing.

*. Integration of physical and digital

Streaming and remote access: Festivals are no longer limited ...

3.1 Structure and dynamics of the Italian market

From **** to ****, the number of enterprises active in arts performance support activities in Italy increased by **.* percent, from *,*** to *,***. The increase was steady until ****, when a peak of *,*** enterprises was reached. In ****, however, there is a slight decrease of *.* percent from the previous year.

Number of enterprises active in support activities for artistic performances [***] Italy, ****-****, in number Istat, Business Register

In ****, the majority of enterprises active in activities supporting artistic performances in Italy are sole proprietors, freelancers and self-employed, accounting for **.* percent of the total. Limited liability companies cover **.** percent, constituting the second most common legal form. The other types of enterprises, such as general partnerships (***), carry less weight, while residual forms cover just *.**%. Legal form of enterprises active in support activities for artistic performances Italy, ****, in % Istat

Between **** and ****, the number of employees in arts performance support activities in Italy grew by **.* percent, from *,*** to **,***. After a steady increase until ****, there is a decline of *.*% in ****, probably due to the pandemic. However, in the following two years, a significant recovery is observed, with **.*% growth in **** compared to the previous year. Number of employees working in support activities for artistic performances Italy, ****-****, in number Istat

3.2 The ways of organizing a festival

Organizing a festival is a long and complicated process. It is in fact organized months and months in advance, and special permissions are needed from the municipality and region, as well as substantial funding. There are usually two main ways of funding a festival, either through state funds or, which happens much more often, through investments from banks and private entities.

In order to best understand the organizational process of an event, it is necessary to analyze the typical house flows of a festival, i.e., costs and revenues, including also the forms of financing.The most recurrent costs in designing a festival budget can be divided into:

costs inherent in the project idea: artistic costs, conception and content costs, purchase or rental of rights. Technical and set-up costs: technical design, technical staff, facilities and equipment.Logistical costs: travel, transportation, hospitality, etc. . organizational/administrative costs: insurance, venue rental, salaries, SIAE , royalties, notary fees, utilities, documentation costs Communication costs: graphics, advertising materials, costs for radio, TV, print and online advertising, website and press office.

As for typical revenues, these can be divided into :

Public funding: municipalities, provinces, regions and the state, e.g. FUS. Private funding: sponsors, donations, etc. International funding: European ...

3.3 Distribution channels

Distribution channels for festivals are critical to ensuring the dissemination, accessibility, and success of these events. These channels can be divided into several categories, each of which plays a crucial role in promotion, ticket sales, content distribution, and logistics management.

*. Promotion and Communication Channels:

Traditional Media: Television and Radio: These channels reach a wide audience with commercials, interviews, and festival specials. Print: Articles in newspapers and magazines, advertisements, listings in tourist or cultural guides, and brochures contribute to the visibility of the event. Digital Media: Official Website: The website is the nerve center for all information regarding the festival, including details on programming, tickets, and updates. Social Media: Platforms such as Facebook, Instagram, Twitter and LinkedIn allow for sharing real-time updates, interacting with audiences and creating viral content. Email Marketing: Newsletters and email campaigns are direct tools for keeping audiences informed and promoting special offers. Online Advertising: Sponsored ads, PPC campaigns and banner ads on related websites can expand the reach of promotion. Outdoor Advertising: Billboards and Billboards: Posters and billboards placed in strategic areas increase local festival visibility. Distribution of Flyers and Brochures: Informational materials distributed at attendance points such as shopping malls, universities or public transportation stations. PR ...

3.4 Major festivals

The top ** festivals held in Italy in **** were: the Kappa FuturFestival (***).

The main ones in Europe are as follows:

Tomorrowland: Held annually in Belgium, in the city of Boom. The festival is known for its spectacular production and fairy-tale setting that turns the event into a truly immersive experience. It attracts the best DJs and producers of electronic music, including internationally renowned artists such as Armin van Buuren, Martin Garrix, Tiësto and David Guetta, with genres ranging from EDM, techno, house, hardstyle and other subgenres. it takes place on two consecutive weekends and the demand for tickets is extremely high, with sell-outs occurring within minutes.

Glastonbury: Held annually in Pilton, UK. Founded in ****, it is famous for its wide range of music, spanning rock, pop, indie, electronic, folk and more, hosting world-renowned artists such as Paul McCartney, David Bowie, Beyoncé, Radiohead and Coldplay. In addition to music, it offers theater, dance, circus and film performances, making it a complete cultural event. Its grounds, spanning hundreds of acres, host dozens of stages and themed areas, each with its own identity, such as the famous "Pyramid Stage."

Roskilde: It is the best-known festival in Denmark, present since ****. it is famous for its ...

4.1 Supply analysis

Festivals are cultural, artistic, or recreational events that can vary widely in size, thematic focus, target audience, and types of offerings. They can focus on different disciplines, from art and music to cuisine, entertainment, or cultural tradition. Here is a detailed overview of the main types of festival offerings around the world:

4.2 The price analysis

Comparing monthly data between August **** and August ****, the consumer price index for cinemas, theaters and concerts in Italy increased by *.* percent, from ***.* to ***.*. Regular growth is observed in the early months of ****, with a significant peak in November and December ****, when the index reached ***.*. After this increase, the index showed a slight decline in the following months, standing at ***.* in August ****. The period of greatest growth was between September **** and April ****, with an overall increase of *.* percent. Consumer price index of [***] cinemas, theaters and concerts for the whole community (***) - monthly data Italy, ****-****, index Istat

From **** to ****, the consumer price index for cinemas, theaters and concerts in Italy increased by *.* percent, from ***.* to ***.*. The increase has been steady over the years, with a rather moderate average growth until ****, when the index reached ***.*. Starting in **** there is an acceleration, with an increase of *.* percent in **** and *.* percent in ****.

Consumer price index of [***] cinemas, theaters and concerts for the whole community (***) - annual averages Italy, ****-****, index Istat

Historically in Italy only a few large music festivals charged an entrance fee; most cultural festivals, being organized by nonprofit organizations and thanks to public funds, were free. As a result of the pandemic, ...

4.3 New supply trends

Festivals are becoming increasingly popular as a cultural and entertainment experience, and significant changes in offerings have occurred in recent years to meet new audience interests and expectations. Here are the main trends:

*. Thematic and niche festivals

In recent years, festival offerings have increasingly shifted toward niche and thematic events focused on specific areas of cultural or social interest. Festivals dedicated to environmental sustainability, vegan cuisine, technology, wellness, or niche music genres (***) are emerging to cater to specific communities. This trend responds to audiences' need for more personalized and meaningful experiences, as opposed to large, generalist festivals.

*. Sustainability and environmental impact

A growing focus is on sustainability. Festivals are adapting to reduce their environmental impact-from using renewable energy, to reducing single-use plastic, to encouraging environmentally friendly means of transportation and recycling. For example, some festivals offer "carbon offset" solutions to offset the carbon footprint of events, or partner with environmental organizations to promote sustainable practices.

*. Integration of technology and virtual reality

With the advent of new technologies, festivals are incorporating immersive digital experiences such as virtual reality (***). In some cases, festivals are experimenting with fully virtual events, as happened during Pandemic, creating new forms of remote participation.

*. ...

5.1 Regulation and Bureaucratic Iteration

Organizing festivals in Italy requires a long bureaucratic process. First, it is necessary to interface with the municipality where you want to organize the event.

The access to the municipality is the Sportello Unico Attività Produttive (***); therefore, all documentation must be submitted, telematically, to this office.

It is necessary to immediately make a distinction between events in which the participation of less than *** people is declared and which will end by midnight of the same day of commencement, and all other events: in the first case, the organizer will have to submit to the SUAP a simple Certified Signaling of Commencement of Activity (***), and, from a technical point of view, a technical report from a professional will suffice, certifying the safety conditions of the event, and that the assembly of all apparatus will be carried out in a workmanlike manner; in the other case, on the other hand, from an administrative point of view, it will be necessary to obtain from the municipality special authorization for public entertainment event, in accordance withArticle **, TULPS, and, from a technical point of view, it will be necessary, for the purpose of issuing the authorization, to request the convening of the Municipal Supervisory Commission for ...

6.1 Market segmentation

• Movement Entertainment SRL
• Polifonic
• Decibel Events & Logistics
• Bass Culture
• Frac Festival
• Glenn Gloud