How to Conduct a Market Study for a New Concert Venue or Music Festival (Part 1)
Los Angeles, California, May 18, 2016 (Newswire.com) - Welcome back to the Concert Experts How to Series. In Part 1 of this edition, we touch upon the key market issues that need to be addressed when considering whether to develop or acquire a new concert venue, music festival, or existing live entertainment property. In Part 2, we will put some meat on the bones.
Similar to real estate developments in both the commercial and retail segments, you will want to conduct a market study of the area to determine the viability of the venue you contemplate. Certainly, the study should include many of the basic elements that would be included in a general market study or feasibility report such as the population and demographics, the area of the municipality/county, the location of the site itself, transportation options and access to the proposed facility, statistics on discretionary income and expenditures on luxury and entertainment services, and a broad assessment of potential competition over that discretionary income. Plenty of additional categories can be included and you can find those on-line in any article regarding general market research or in actual sample marketing studies. All of these are necessary in assessing your project. At the same time, there are also some nuances that arise in connection with marketing studies for live entertainment venues and events.
We thought that the best place to start is to simply list some of the key questions that need to be answered before you move forward in your pursuit. Although we have tried to work through these chronologically, arguably they are equally important regardless of where they reside on the list:
· Is the market generally robust in its live music offerings?
It is relatively easy to procure empirical data on this point by simply looking at local print and on-line ads and listening to the radio, surfing ticket sites and simply driving around town, etc.
· Are there any venues or events similar to the proposed project?
Typically, there are two reasons to consider building a new venue or site in a market: the market is currently not served by this type of offering or current offerings are inadequate and you believe that you can do it better.
· Are there other types or sizes of music venues or events which are successful resulting in a clear gap within which your proposed venue would fit?
Typically artists work their way up (and down) different types and sizes of venues based upon demand and their ability to sell tickets. Is there a missing rung on the ladder that your proposed venue would fill?
· What about if there is a dearth of venues or events in the market or none at all? Why do you believe that you can build your location into a music destination that artists will play and fans will patronize?
· And, finally, what does your consumer base think about a new venue or music event? How about the artist representatives and local promoters who you may seek to help book the venue?
These are just some of the key considerations that must be taken into account when researching the market potential with respect to a new concert venue or event. Please join us for How to Conduct a Market Study for a New Concert Venue or Music Festival (Part 2) for a deeper look.
Friedman Entertainment Advisors are live entertainment consultants based in L.A. We collaborate with our clients to design and implement innovative, competitive strategies with respect to a wide range of matters related to the presentation of live entertainment across various platforms from music festival consulting to concert venue development. Please visit us at www.friedmanentertainment.com.
Source: Friedman Entertainment Advisors