The World Is Alive with Live Music
With stadiums and arenas sold out in a heartbeat, the world witnesses a spectacular revival of concerts, lighting up the summer with a symphony of soaring emotions and infectious melodies that transcends borders.
Live music performances continue to surpass pre-Covid levels as blockbuster acts, like Taylor Swift, Harry Styles, Beyonce, and Coldplay, among many others, sell out stadiums and arenas and light up a hot summer concern season across the globe. Live Nations’ second quarter earnings confirm the continued growth potential of the live music industry.
MUSQ may provide individuals with an attractive vehicle to gain exposure to this segment of the global music industry.
Live Nations’ Earnings Are Music to Our Ears
Live Nations reported impressive Q2:2023 earnings. Revenues of $5.6 billion soared 27% versus the second quarter of 2022.[1] What was driving this demand?
Concerts Driving Growth
Concerts and live performances are driving growth at Live Nation. The company sold over 117 million tickets this year, an increase of 20% over the same period last year, noting Q2:23 was their strongest second quarter ever.
The company’s Ticketmaster unit sold over 151 million tickets year-to-date. This was a 22% increase over last year. The company reports that it is on track to manage 600 million tickets this year.
Revenues for the company’s concert division increased 29% during the second quarter this year, with growth across stadiums (+28%), arenas (+19%), and festivals (+14%)
Growth Is Global
Growth in live music has been global, with Live Nation reporting more than double the number of international acts in the top 50 tours this year. The company has also noted that they are seeing strong growth in Canada, Asia Pacific, Latin America, and Europe.
Strong Growth Expected to Continue
Live Nation’s expectations for continued growth are corroborated by others following the music industry.
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Goldman Sachs estimates that the global live music market will grow at a compound annual growth rate (CAGR) of 5% in the 2023-2030 period. [2]
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Allied Market Research expects the music event market to grow to $481 billion globally by 2031, experiencing a CAGR of 9.7%. [3]
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Additional live event companies such as Vivid Seats, Sphere Entertainment, Cts Eventim, and Endeavor have reported 2023 results that have exceeded expectations and have raised their guidance and expectations for the remainder of the year. [4]
Creating a Potential Investment Opportunity
Growth in the global live music market has surged following the Covid shutdowns of 2020 & 2021. The market is expected to grow strongly through the decade.
Companies involved in the global live music industry may be poised to benefit from this continued expected growth.
How May Individuals Gain Exposure to Companies in the Global Live Music Industry?
The MUSQ Global Music Industry ETF (MUSQ)
The MUSQ Global Music Industry ETF (MUSQ) seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the MUSQ Global Music Industry Index (MUSQIX). The MUSQIX Index is designed to provide exposure to global, publicly traded companies and royalty funds with a core business interest in the global music industry.
One of the segments that MUSQ invests in is global live music.
MUSQ may provide individuals with an attractive vehicle to gain exposure to the global music industry.
For a complete list of MUSQ holdings, please click here.
[1] Unless otherwise noted, all data sourced from: Live Nation Entertainment Reports Second Quarter 2023 Results, Live Nation Earnings Release, 7/23/23
[2] Yang, Lisa, et al, Music In the Air, Goldman Sachs Equity Research, 6/28/23
[3] Music Event Market Research 2031, Allied Market Research, Oct 2022
[4] Source: Vivid Seats Strengthens Position With Excellent Start to 2023, Vivid Seats, 5/9/23; Sphere Entertainment Co. Reports Fiscal Third Quarter Results, Sphere Inc., 5/10/23; CTS Eventim Group Quarter Statement 3/31/23, 5/24/23; Endeavor Releases First Quarter 2023 Results, Endeavor, 5/9/23
MUSQ Global Music Industry ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
Risk Disclosures
There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
The Fund is non-diversified.
The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.