Boom time for organisers as concerts roar back to life

CONCERTS have experienced a booming revival in Singapore, with demand surging past pre-pandemic levels since Covid-19 restrictions were lifted for large-scale live events and exhibitions, industry players said.

K-pop megastars Blackpink last weekend held a two-day sold out concert for some 100,000 fans in Singapore.

Earlier this month, Cantopop superstar Jacky Cheung also sold out all nine shows of his July concert in Singapore. This will be his first live performance here since the pandemic.

“People have been locked in for too long, just watching screens,” said Leslie Ong, chief executive of event producer Unusual. “They are craving live shows because the experience is different.”

He said that amid the pent-up demand, ticket sales for concerts organised by the company have more than doubled. Tickets are also been selling out faster than before, he added.

The surge in demand comes as both die-hard fans and casual listeners alike flock to concerts after three years of missing out on live performances, he noted.

Unusual, which is organising Cheung’s concerts in Singapore, had originally planned for the singer to perform six shows. But, after tickets sold out almost instantly, the organiser added three more shows to meet the high demand.

The company noted that it managed to sell out three shows in Singapore for Taiwanese pop singer Eric Chou in 2022. Pre-Covid, it filled the seats for only a single show.

The revival is proving to be a bright spot for concert organisers, who had struggled with being unable to put up live shows over the past three years.

Unusual’s parent company, mm2 Asia, recorded revenue of S$23.2 million for its concert and events segment for its third quarter ended Dec 31, 2022.

Net profit for the segment was S$1.1 million, reversing from a loss of S$2.9 million in the same period last year.

Shares in Unusual have also risen steadily since April 2023, with a jump of over 10 per cent in May. The company cited the overwhelming response for Cheung’s concerts as a reason for the rise.

Meanwhile, GHY Culture and Media, which does film distribution, concert production and musicals, recorded a loss of S$8.7 million for its six months ended Dec 31, 2022, from a profit of S$42,000 a year earlier. GHY said the decline was driven largely by foreign-exchange losses.

But the company noted that the resumption of concerts for pop star Jay Chou in December 2022 had “provided a glimmer of hope” for the segment, and signalled a potential economic recovery.

Live entertainment remains popular because it offers a unique and immersive experience that cannot be replicated by other forms of entertainment, a GHY spokesperson said.

Besides an increase in demand from local concert goers, the spokesperson noted an uptick in international acts, which have also attracted regional fans to Singapore.

According to Unusual’s Ong, Singapore is one of the top picks for foreign fans: “After the show, fans can stay for a few days to shop and dine. Singapore is also a safe country.”

This is despite rising costs in tickets. Ong said ticket prices have risen across the board by roughly 10 per cent.

He attributes the increase to rising costs, the goods and services tax hike, and more stringent checks at concert venues.

The GHY spokesperson also said it is “with reasonable expectations” that there is a marginal increase in ticket prices, considering the pent-up demand and higher operating costs.

Paul Chew, head of Phillip Securities Research, expects concert organisers to record a huge recovery in revenue amid pent-up demand from consumers, as well as artistes’ willingness to perform more shows after a three-year hiatus.

Concert organisers are expected to enjoy pricing power and huge growth, Chew said. And those with scale and larger events will enjoy operating leverage, he added.

GHY is cautiously optimistic that its concert business arm will be a key growth engine that will power its financial performance in 2023, its spokesperson said.

The company has an intellectual-property franchise business strategy, under which it creates content while retaining continuity, to make each production a recognisable part of a coherent franchise.

The spokesperson expects China’s reopening to bring new opportunities, amid a repeat in the trend of pent-up demand for live entertainment.

Unusual’s Ong said that, given the lack of available performance venues, there are only a limited number of shows that it can bring to Singapore.

The company is thus ramping up its shows in other markets in Australia, Hong Kong, Taiwan and Malaysia, with New Zealand and China also in the pipeline for the next 12 to 24 months.

Ong is optimistic that the company can make good profits, as demand for live entertainment will remain strong for the year: “It’s growing fast, and it looks like the appetite is good. The fans are not getting enough.”