Least music festivals generate a profit, according to a recent survey
A nationwide study titled "Music Festivals in Germany" was recently presented in Berlin, offering a comprehensive empirical basis for the German festival landscape for the first time. Funded by the Commissioner for Culture and Media of the Federal Government, along with Initiative Musik, Bundesstiftung LiveKultur, and the German Music Information Centre, the study surveyed 638 music festivals from all genres.
The study reveals that the economic situation of many music festivals is tense, with approximately 30 percent ending their last edition with a loss. Interestingly, almost half of the festivals neither made a loss nor a profit, while only about one in six made a profit with their last edition.
The biggest cost factor for music festivals is artist fees, averaging 38% of expenses. The average revenue of the festivals is around 313,000 euros, while their expenses average about 296,000 euros. The revenue distribution for popular music festivals includes ticket sales (nearly 40%), catering revenues (21%), and public subsidies (20%).
When it comes to the concert promoter that organises some of the most well-known music festivals in Germany, FKP Scorpio reports significantly smaller profit margins in the industry since the COVID-19 pandemic, along with increased economic risk. The company, which organises the Hurricane and Rock am Ring music festivals, also reported an increase in ticket prices over the past five years, with more than half of the music festivals (57%) following suit.
The study also delved into other topics, such as sustainability, the role of volunteering, and the importance of diversity in programming. Classical music festivals, in particular, are mainly financed through public subsidies (40%) and ticket sales (30%).
The study provides valuable insights into the German festival landscape, offering a clear picture of the economic challenges faced by the industry. If extrapolated to the entire festival landscape in Germany, estimated revenues would be around 551 million euros and expenses around 522 million euros. As the music festival industry continues to evolve, these findings will undoubtedly serve as a foundation for future discussions and strategies aimed at ensuring the sustainability and growth of the sector.
