According to recent studies, Gen Z is eager to buy concert tickets, but less likely to buy alcoholic beverages while there. Thus, venues that usually rely on their bars for profitability must find new ways to generate revenue.
According to a recently published global study by Live Nation, when compared to the general population, 94% of those attracted to live music are more likely to be Gen Z. In addition to their interest, they’re also engaged at live events, with 68% saying that sharing the experience on social media is important to them and 83% being very interested in the brands that sponsor the event. However, that might be less true if the brand is an alcoholic beverage.
Around the world, Gen Z’s love for live music continues to intensify.– Russel Wallach, President at Live Nation
While Live Nation’s post regarding the study didn’t touch on the subject of alcohol, numerous other articles released in the past week have focused on Gen Z’s relationship (or lack of) with alcohol at live music events. This is important because live music events often are funded by sponsorships from alcoholic beverage companies, which bet on product sales at the events as well.
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According to an article written by Alan Cross for Global News, two recent U.S. surveys suggest that younger generations drink up to 20% less than older generations and up to 28% might not drink at all.
While it should be celebrated that younger generations are prioritizing their health and questioning their relationship with alcohol, this has become a financial problem for small and medium-sized music venues, which have traditionally relied on bar and concession sales for profitability. Now, while they might not be struggling to sell tickets, they’re still struggling to stay in business.
Like other industries, music venues are also dealing with the impacts of inflation and are experiencing higher labor costs, energy bills, and rent prices. Thus, if they lose their prime revenue stream and then lose their most reliable sponsors, they will have no choice but to adapt and find a new source of income.
Image Credits: © Michael Discenza @mdisc | Unsplash