Music Festivals are in a Pinch.
They ran in 2019, closed for the pandemic in 2020 and 2021, and haven't had a few steady seasons back to be able to rebuild. Some temporary support from the UK Govt - lowering VAT down from 20% to 5% on ticket sales for the next three years - would give them the space they need to recover and rebuild.
One in six festivals did not make it through the pandemic.
Those that did, either did so by using up all their reserves or savings; by taking on loans to help carry them through; or through financial support from the Government's Cultural Recovery Fund. That support was very welcome and saved many events from disappearing.
The 2022 Return.
When festivals returned in 2022, they did so with tickets they had sold in 2019 and then rolled over through the pandemic. Those had been set at 2019 prices on 2019 budgets. Yet by the time they actually delivered the events in 2022, the pandemic - and all of its impact on the events sector had happened - as had some of the big impacts of the UK leaving Europe.
Productions costs had rapidly escalated, artists touring costs had risen; many freelancers - either because of the pandemic, or because of new restrictions on moving from UK to Europe because of Brexit - had left the events industry, and the skills shortage played havoc on costs.
Festival costs went up, up, up, on average, by over 30%.
You'll maybe not have noticed that no single Festival asked its' audience to pay more on the tickets they'd already bought. Festivals thought the right thing to do was deliver the events on the ticket that had been sold. So many festivals - even though they were completely sold out - took place and made a loss.
Continuous Turmoil: 2022 to 2023.
In 2023, 36 festivals were cancelled before they were due to take place
With that season done, setting budgets in 2022 for 2023, knowing supply chain costs were still increasing, Festivals increased their ticket prices to help mitigate the impact. The average festival ticket went up 15-20%.
Events went on sale.
Then inflation hit... And a war in Ukraine...And an energy crisis.
Audience demand for festivals was strong, but as 2023 dawned it became clear ticket prices were not going to cover the escalating supply chain costs. So some festivals began to fall. Obviously in any year there's events that don't make it to the line for different reasons, we expect that.
But in 2023 we tracked 36 festivals that cancelled before they were due to take place. The number one reason was the economic pressures between sales and costs.
From an audience perspective, 2023 was a wonderful year for music festivals. An outstanding Glastonbury (the best yet?); many sellouts - Kendal Calling, Shambala, End Of The Road Festival all spring to mind; (mostly) wonderful weather and several million people back in the fields for long weekends of wonder.
But behind the scenes, some festivals were counting losses. Having spent reserves or used the Culture Recovery Fund to get through Covid, the back to back impact of the 2022 and 2023 season meant many events were running on fumes.
Recent Festivals Lost.
The first major casualty was NASS Festival. A 30,000 gateway festival for young people in the South West. It announced it would not return for 2024.
Leopollooza was bought to an end.
Long Division's 2023 edition became its last.
Nozstock The Hidden Valley - a brilliant 7,500 capacity event that has run for 25 years announced 2024 will be its last edition.
Bluedot, pummelled by bad weather on one terrible weekend, is taking 2024 off to consider its future.
Barn On The Farm - a 5,000 capacity event responsible for developing so many artists - was left with a crippling loss for the first time in its 12 year history. As I type this, the festival still does not know if it will go ahead this year.
Help us to Help Festivals
Without doubt, many more festivals will be forced to make 2024 their last stop if there isn't intervention now from the UK Govt.
Some temporary support - lowering VAT down from 20% to 5% on ticket sales for the next three years - is all that's needed to give them the space they need to recover and rebuild.