“The leisure business had a really constructive yr in 2022 and a welcome restoration is unquestionably underway, however we aren’t out of the woods but,” mentioned Michael Furtschegger, world head of leisure at AGCS. “Within the three years because the coronavirus first hit the headlines, the world has modified. The sector should proceed to evolve in step with new applied sciences, proliferating platforms, and seismic shifts in patterns of consumption, in addition to modifications within the public temper, significantly amongst youthful generations.”
Regardless of the challenges confronted by the business, shoppers are returning to their most well-liked leisure venues or platforms, AGCS mentioned. International field workplace receipts reached $25.9 billion final yr, a 27% rise from 2021, based on Gower Road Analytics. Nevertheless, that quantity remains to be 35% under the common for the three years earlier than the pandemic.
Reside music income is anticipated to surpass pre-pandemic ranges subsequent yr, with digital music streaming subscriptions driving development in recorded music, the place revenues are predicted to achieve $45.6 billion in 2026, up from $36.1 billion in 2021.
Reside theater can also be seeing a comeback, with rising receipts and attendance. The worldwide sports activities business can also be proving resilient, supported by media rights, sponsorship offers, and a calendar of worldwide occasions and tournaments, AGCS mentioned.
Challenges stay
Nevertheless, the leisure business is just not proof against financial tendencies akin to workers shortages and rising prices, AGCS mentioned.
“Our leisure shoppers are feeling the results of inflation, with elevated manufacturing and live-event prices,” Furtschegger mentioned. “Staffing prices have risen following the talents scarcity that occurred within the wake of the pandemic, when many left the business. Venues are scarcer than they have been as a result of there are nonetheless many reveals postponed from the pandemic that have to happen along with new occasions and festivals. Greater occasions could also be thriving, however smaller occasions are extra challenged by elements akin to venue, transportation, and vitality prices. We anticipate to see extra consolidation within the business, with smaller, struggling manufacturing corporations and venues being purchased by bigger operators.”
High quality not amount
Expertise has lowered entry obstacles for content material creators, with virtually anybody capable of add content material to TikTok or YouTube. In the meantime, the key studios and tech companies are launching their very own platforms. The quantity of content material now being distributed makes high quality a key differentiator in a crowded market, AGCS mentioned.
“We see a transfer in direction of high quality in movie manufacturing, however this doesn’t come low-cost,” mentioned Wanda Phillips, head of North American leisure insurance coverage at AGCS. “Companies have to know they’ve adequate insurance coverage cowl for classy productions. The place prices improve, so, too, do exposures as a result of the prices are larger with every day of taking pictures, and this could possibly be mirrored in any insurance coverage loss.
Sustainability issues
Environmental, social and governance points are having a rising affect on the leisure sector, AGCS mentioned.
This yr’s Oscars ceremony will characteristic inexperienced attire on the Pink Carpet because the Academy encourages a extra sustainable method to awards trend. In reside occasions, the British band Coldplay has promised to halve the carbon emissions related to its present world tour, in comparison with 2016-2017, and has made an array of sustainable commitments, together with paying a surcharge for aviation gasoline, sourcing moral and sustainable merchandise, and planting a tree for each ticket bought.
Learn subsequent: AGCS taps product lead for live events
“Youthful generations are significantly involved about sustainability, and competition organizers are responding to this,” Furtschegger mentioned. “Increasingly leisure organizations are committing themselves to sustainability targets to cut back the emissions related to reside excursions.”
Digital future
With streaming now a basic a part of the leisure and media sector, digital conferences are a selected development space, AGCS mentioned. The worldwide digital occasions market was valued at greater than $114 billion in 2021 and is anticipated to develop at a compound annual development charge of 21.4% between 2022 and 2030.
Even with out a reside viewers, digital occasions nonetheless face dangers, together with transmission failure as a consequence of climate or pure disaster, fireplace affecting the printed unit, or community points impacting broadcasting infrastructure. Rented gear and studio house will also be susceptible to property and casualty liabilities.
Digital actuality is the fastest-growing leisure and media section, with world development between 2021 and 2026 predicted to carry the section to $7.6 billion. Gaming is forecast to account for 85% of complete VR income by 2026.
“Because the worlds of gaming, music and leisure proceed to converge, gaming platforms akin to Fortnite and Roblox are more and more serving as leisure and social hubs, whereas gaming content material is crossing over to social media and streaming platforms,” Furtschegger mentioned.
Rising dangers
Well being and security protocols, growing climate hazards and crowd security are among the prime danger issues the leisure sector ought to monitor, AGCS mentioned.
“The COVID disaster and the latest tragic taking pictures incident on a movie set have proven that the business wants to stay vigilant about well being and security protocols,” Furtschegger mentioned.
Local weather change is one other trigger for concern.
“We’re seeing extra irregular weather-related occasions – heavy storms and flooding in Europe and brushfires in California, for instance,” Furtscchegger mentioned. “These inevitably trigger havoc for reside occasions, each when it comes to cancellation publicity but additionally damages and human security.”
“Crowds have at all times carried inherent dangers,” mentioned Kurt Miner, managing director of leisure at Allianz Threat Consulting, North America. “Occasion organizers are actually higher capable of monitor massive teams of individuals and maintain them secure, in addition to artists, with the usage of real-time video monitoring. Security specialists can remotely monitor two or three occasions, which might every be happening over 15 acres or extra, recognizing danger issues akin to blocked exits or broken obstacles. They’ll additionally monitor social media to pre-empt gate-rushing and stop stampedes, sending a safety contingent to the placement earlier than the state of affairs will get out of hand.”
Slips and falls are the most typical explanation for claims from live-event insurance policies, so organizers ought to be certain medical workers and transport to native medical services are on-site, AGCS mentioned.
Have one thing to say about this story? Tell us within the feedback under.
“The leisure business had a really constructive yr in 2022 and a welcome restoration is unquestionably underway, however we aren’t out of the woods but,” mentioned Michael Furtschegger, world head of leisure at AGCS. “Within the three years because the coronavirus first hit the headlines, the world has modified. The sector should proceed to evolve in step with new applied sciences, proliferating platforms, and seismic shifts in patterns of consumption, in addition to modifications within the public temper, significantly amongst youthful generations.”
Regardless of the challenges confronted by the business, shoppers are returning to their most well-liked leisure venues or platforms, AGCS mentioned. International field workplace receipts reached $25.9 billion final yr, a 27% rise from 2021, based on Gower Road Analytics. Nevertheless, that quantity remains to be 35% under the common for the three years earlier than the pandemic.
Reside music income is anticipated to surpass pre-pandemic ranges subsequent yr, with digital music streaming subscriptions driving development in recorded music, the place revenues are predicted to achieve $45.6 billion in 2026, up from $36.1 billion in 2021.
Reside theater can also be seeing a comeback, with rising receipts and attendance. The worldwide sports activities business can also be proving resilient, supported by media rights, sponsorship offers, and a calendar of worldwide occasions and tournaments, AGCS mentioned.
Challenges stay
Nevertheless, the leisure business is just not proof against financial tendencies akin to workers shortages and rising prices, AGCS mentioned.
“Our leisure shoppers are feeling the results of inflation, with elevated manufacturing and live-event prices,” Furtschegger mentioned. “Staffing prices have risen following the talents scarcity that occurred within the wake of the pandemic, when many left the business. Venues are scarcer than they have been as a result of there are nonetheless many reveals postponed from the pandemic that have to happen along with new occasions and festivals. Greater occasions could also be thriving, however smaller occasions are extra challenged by elements akin to venue, transportation, and vitality prices. We anticipate to see extra consolidation within the business, with smaller, struggling manufacturing corporations and venues being purchased by bigger operators.”
High quality not amount
Expertise has lowered entry obstacles for content material creators, with virtually anybody capable of add content material to TikTok or YouTube. In the meantime, the key studios and tech companies are launching their very own platforms. The quantity of content material now being distributed makes high quality a key differentiator in a crowded market, AGCS mentioned.
“We see a transfer in direction of high quality in movie manufacturing, however this doesn’t come low-cost,” mentioned Wanda Phillips, head of North American leisure insurance coverage at AGCS. “Companies have to know they’ve adequate insurance coverage cowl for classy productions. The place prices improve, so, too, do exposures as a result of the prices are larger with every day of taking pictures, and this could possibly be mirrored in any insurance coverage loss.
Sustainability issues
Environmental, social and governance points are having a rising affect on the leisure sector, AGCS mentioned.
This yr’s Oscars ceremony will characteristic inexperienced attire on the Pink Carpet because the Academy encourages a extra sustainable method to awards trend. In reside occasions, the British band Coldplay has promised to halve the carbon emissions related to its present world tour, in comparison with 2016-2017, and has made an array of sustainable commitments, together with paying a surcharge for aviation gasoline, sourcing moral and sustainable merchandise, and planting a tree for each ticket bought.
Learn subsequent: AGCS taps product lead for live events
“Youthful generations are significantly involved about sustainability, and competition organizers are responding to this,” Furtschegger mentioned. “Increasingly leisure organizations are committing themselves to sustainability targets to cut back the emissions related to reside excursions.”
Digital future
With streaming now a basic a part of the leisure and media sector, digital conferences are a selected development space, AGCS mentioned. The worldwide digital occasions market was valued at greater than $114 billion in 2021 and is anticipated to develop at a compound annual development charge of 21.4% between 2022 and 2030.
Even with out a reside viewers, digital occasions nonetheless face dangers, together with transmission failure as a consequence of climate or pure disaster, fireplace affecting the printed unit, or community points impacting broadcasting infrastructure. Rented gear and studio house will also be susceptible to property and casualty liabilities.
Digital actuality is the fastest-growing leisure and media section, with world development between 2021 and 2026 predicted to carry the section to $7.6 billion. Gaming is forecast to account for 85% of complete VR income by 2026.
“Because the worlds of gaming, music and leisure proceed to converge, gaming platforms akin to Fortnite and Roblox are more and more serving as leisure and social hubs, whereas gaming content material is crossing over to social media and streaming platforms,” Furtschegger mentioned.
Rising dangers
Well being and security protocols, growing climate hazards and crowd security are among the prime danger issues the leisure sector ought to monitor, AGCS mentioned.
“The COVID disaster and the latest tragic taking pictures incident on a movie set have proven that the business wants to stay vigilant about well being and security protocols,” Furtschegger mentioned.
Local weather change is one other trigger for concern.
“We’re seeing extra irregular weather-related occasions – heavy storms and flooding in Europe and brushfires in California, for instance,” Furtscchegger mentioned. “These inevitably trigger havoc for reside occasions, each when it comes to cancellation publicity but additionally damages and human security.”
“Crowds have at all times carried inherent dangers,” mentioned Kurt Miner, managing director of leisure at Allianz Threat Consulting, North America. “Occasion organizers are actually higher capable of monitor massive teams of individuals and maintain them secure, in addition to artists, with the usage of real-time video monitoring. Security specialists can remotely monitor two or three occasions, which might every be happening over 15 acres or extra, recognizing danger issues akin to blocked exits or broken obstacles. They’ll additionally monitor social media to pre-empt gate-rushing and stop stampedes, sending a safety contingent to the placement earlier than the state of affairs will get out of hand.”
Slips and falls are the most typical explanation for claims from live-event insurance policies, so organizers ought to be certain medical workers and transport to native medical services are on-site, AGCS mentioned.
Have one thing to say about this story? Tell us within the feedback under.
