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| UK festivals suffer in a costly and crowded field, study shows | UK festivals suffer in a costly and crowded field, study shows |
| (about 13 hours later) | |
| As festivalgoers get home from enjoying The Who, Adam Ant and Queen on the Isle of Wight over the weekend, a warning has gone out that other events are surviving on such precarious finances that as many as one in 10 could close down by next year. | As festivalgoers get home from enjoying The Who, Adam Ant and Queen on the Isle of Wight over the weekend, a warning has gone out that other events are surviving on such precarious finances that as many as one in 10 could close down by next year. |
| The rising price of security and the huge demands on infrastructure could mean as many as 100 of this year’s festivals will not reappear in 2017, according to research by delivery group ParcelHero. | The rising price of security and the huge demands on infrastructure could mean as many as 100 of this year’s festivals will not reappear in 2017, according to research by delivery group ParcelHero. |
| The warning comes as UK Music, the umbrella organisation for the industry, highlighted the huge contribution of live bands and music tourism to the economy. | The warning comes as UK Music, the umbrella organisation for the industry, highlighted the huge contribution of live bands and music tourism to the economy. |
| Live music events attracted more than 27m people last year, the group said – 3.7m of those at festivals and the remainder at standalone concerts. It said 760,000 of the audience were overseas visitors spending an average of £852 a visit. | Live music events attracted more than 27m people last year, the group said – 3.7m of those at festivals and the remainder at standalone concerts. It said 760,000 of the audience were overseas visitors spending an average of £852 a visit. |
| The industry accounts for more than 39,000 full-time jobs, according to the research by Oxford Economics for Music UK. | The industry accounts for more than 39,000 full-time jobs, according to the research by Oxford Economics for Music UK. |
| There is no doubt that festivals have become big business – an estimated 1,000 festivals (from music, to literary, to beer and food) will take place through 2016, six times as many as 12 years ago, ParcelHero said. | There is no doubt that festivals have become big business – an estimated 1,000 festivals (from music, to literary, to beer and food) will take place through 2016, six times as many as 12 years ago, ParcelHero said. |
| But despite visitors paying an average of £200 for a ticket, and big events attracting thousands of revellers, the amount of money they make can be tiny in comparison with the overall budget, said David Jinks, ParcelHero’s head of consumer research. | But despite visitors paying an average of £200 for a ticket, and big events attracting thousands of revellers, the amount of money they make can be tiny in comparison with the overall budget, said David Jinks, ParcelHero’s head of consumer research. |
| Pretax profits at Glastonbury, for instance, fell from £764,000 in 2013 to £86,000 in 2014, he said. “It just needs something like a wet summer and it could put some of the larger ones over the edge,” he added. | Pretax profits at Glastonbury, for instance, fell from £764,000 in 2013 to £86,000 in 2014, he said. “It just needs something like a wet summer and it could put some of the larger ones over the edge,” he added. |
| At particular risk, Jinks said, are some of the large numbers of recently launched festivals run by eager fans. | At particular risk, Jinks said, are some of the large numbers of recently launched festivals run by eager fans. |
| Some of the smaller festivals at risk are run by enthusiasts [in which] everyone clubs together to pay for the event, he said. “It is music fans as opposed to business people. Some of those, if there is a poor summer, and if there are policing costs, they would definitely be endangered.” | Some of the smaller festivals at risk are run by enthusiasts [in which] everyone clubs together to pay for the event, he said. “It is music fans as opposed to business people. Some of those, if there is a poor summer, and if there are policing costs, they would definitely be endangered.” |
| A festival can run on a financial knife-edge, with one quarter of ticket prices typically taken up by VAT and royalty fees to songwriters. The logistical costs are big too: water, electricity, waste management, while security must police the event. Then comes the costs of the actual live acts. | A festival can run on a financial knife-edge, with one quarter of ticket prices typically taken up by VAT and royalty fees to songwriters. The logistical costs are big too: water, electricity, waste management, while security must police the event. Then comes the costs of the actual live acts. |
| Related: The cost of staging a music festival: 'We spent £30,000 on the waste' | Related: The cost of staging a music festival: 'We spent £30,000 on the waste' |
| “The infrastructure costs of getting some of these big stages set up are incredible,” said Jinks. The cost of powering a 10,000-capacity festival can be £100,000, according to the report. Policing the Isle of Wight festival has been put at £1m. | “The infrastructure costs of getting some of these big stages set up are incredible,” said Jinks. The cost of powering a 10,000-capacity festival can be £100,000, according to the report. Policing the Isle of Wight festival has been put at £1m. |
| “It is when they start to expand that is when their bubbles burst, – the costs don’t add up,” said Jinks. | “It is when they start to expand that is when their bubbles burst, – the costs don’t add up,” said Jinks. |
| This weekend, as well as the Isle of Wight, saw festivalgoers flock to Parklife in Manchester, Field Day in Victoria Park, London, Download at Donington Park in Leicestershire and Wildlife in Brighton. But there have been high-profile cancellations already this year. Last month, the Temples heavy metal festival in Bristol was cancelled four days before it was due to take place. | This weekend, as well as the Isle of Wight, saw festivalgoers flock to Parklife in Manchester, Field Day in Victoria Park, London, Download at Donington Park in Leicestershire and Wildlife in Brighton. But there have been high-profile cancellations already this year. Last month, the Temples heavy metal festival in Bristol was cancelled four days before it was due to take place. |
| Promoter Francis Mace said the financial backers had pulled their funding. | Promoter Francis Mace said the financial backers had pulled their funding. |
| “I am deeply deeply sorry to all of those who will lose out as a result of this decision, having put three years of my life and having already lost so much of it to the festival I’m afraid there is no option to continue with Temples Festival 2016 and I take full responsibility for events cancellation. I am truly sorry,” he said in a Facebook post to ticketholders. | “I am deeply deeply sorry to all of those who will lose out as a result of this decision, having put three years of my life and having already lost so much of it to the festival I’m afraid there is no option to continue with Temples Festival 2016 and I take full responsibility for events cancellation. I am truly sorry,” he said in a Facebook post to ticketholders. |
| Forgotten Fields, due to take place in Tunbridge Wells, was also cancelled, with the organisers blaming rising costs. | Forgotten Fields, due to take place in Tunbridge Wells, was also cancelled, with the organisers blaming rising costs. |
| “Due to the rising costs of producing a quality event of this size, we are unable to produce a show that is of the standard both our team and customers would be proud of,” a statement said. | “Due to the rising costs of producing a quality event of this size, we are unable to produce a show that is of the standard both our team and customers would be proud of,” a statement said. |
| Music festivals and concerts have been the fastest growing area of leisure spending over the five years to 2015, according to market researchers Mintel. It estimated 40% of Britons went to at least one event, spending a collective £2.1bn. | Music festivals and concerts have been the fastest growing area of leisure spending over the five years to 2015, according to market researchers Mintel. It estimated 40% of Britons went to at least one event, spending a collective £2.1bn. |
| Analyst Michael Oliver said he expected revenues to continue growing in the future, with ticket sales typically rising faster than average inflation, although the actual number of people attending could level off as more festivals fell by the wayside. | Analyst Michael Oliver said he expected revenues to continue growing in the future, with ticket sales typically rising faster than average inflation, although the actual number of people attending could level off as more festivals fell by the wayside. |
| Related: Student festival startups: 'too much fun to feel like work' | |
| “It is certainly not unknown for people trying to break into the market or even established operators to get into difficulty because it is so dependent on the quality of the acts you get,” he said. | “It is certainly not unknown for people trying to break into the market or even established operators to get into difficulty because it is so dependent on the quality of the acts you get,” he said. |
| “So you could have a fantastic event one year but if you can’t get a really good line up for the following year you are going to be in trouble. | “So you could have a fantastic event one year but if you can’t get a really good line up for the following year you are going to be in trouble. |
| “Whether the number of people going to festivals continues to grow, I think you are going to see a plateauing in the number in the next two or three years … there are an awful lot of festivals and I think there is only really room for a set number of events.” | “Whether the number of people going to festivals continues to grow, I think you are going to see a plateauing in the number in the next two or three years … there are an awful lot of festivals and I think there is only really room for a set number of events.” |
| Festival facts in figures | Festival facts in figures |
| 50p The profit made a ticket sold at Glastonbury in 2014, with turnover at £37m and total profits at £86,000. | 50p The profit made a ticket sold at Glastonbury in 2014, with turnover at £37m and total profits at £86,000. |
| 57 The number of festivals cancelled over the wet summer of 2012. In recent years famous events such as The Big Chill, Oxegen and Cloud 9 have all closed down. | 57 The number of festivals cancelled over the wet summer of 2012. In recent years famous events such as The Big Chill, Oxegen and Cloud 9 have all closed down. |
| 438 The weight in tonnes of stage, lighting and sound equipment required for the five stages at Download festival in Donington Park – requiring 57 articulated lorries to transport. | 438 The weight in tonnes of stage, lighting and sound equipment required for the five stages at Download festival in Donington Park – requiring 57 articulated lorries to transport. |
| £100,000 The cost of hiring Bob Dylan, according to ParcelHero. Ed Sheeran costs just shy of £90,000. Bigger names such as Justin Bieber or Madonna, however, cost $1m (£700,000). | £100,000 The cost of hiring Bob Dylan, according to ParcelHero. Ed Sheeran costs just shy of £90,000. Bigger names such as Justin Bieber or Madonna, however, cost $1m (£700,000). |
| 1.2m The estimated number of pints of beer served at Download. | 1.2m The estimated number of pints of beer served at Download. |