Live eventsBy Abhishek Gautam

Overview

Despite a significant change in economic mood, the Live events industry continued to grapple with the same set of challenges and issues in 2014 as they did in 2013

Companies- both Indian and MNC- and the government started to engage in live events activity more prominently after the elections.

The largest event of 2014 was the general election in India. There are primarily three types of events:

1. Private2. Public3. Corporate Events

Increased Focus On Tier II & Tier III

Tier II & Tier III cities are increasingly realising their potential as key micro markets for sponsors, activation of brands and event companies.

Goa and Pune have traditionally been destinations for large format events, brand launches.

Goa, Due to its high domestic and international tourist population is a unique venue for cutting edge music and film events as well as beverage and alcohol launches.

Pune’s proximity to Mumbai and its high student population offers a fertile test market for food, beverage, music, electronics, telecommunications, fashion and youth segment brands and IP’s.

Other emerging cities include Jaipur (Jaipur Lit Fest) Surat (Smaash outlet and launch city for the new BMW) Kochi (Wonderla amusement park and the Biennale Art Festival) Shillong (Multiple music festivals)

Private Events

The events that are hosted privately and are not intended to make money. A wedding, a party, a get-together. But the scale of things have changed and there is demand for professional help Wedding organisers for wedding.

Public Events

These include any event where a general audience, against a focused or specifically targeted audience, is involved.

These are Exhibitions, Award Ceremonies, Fund Raisers, Sport Events, Marathons and Concerts.

One of the most profitable events, according to industry estimates is the Filmfare award ceremony.

Wizcraft’s IIFA is estimated to have a top line of roughly INR120-130 Million. Cineyug specialises in film shows, either for other companies or its own.

Corporate Events

These form the bulwark of the growth that the organised event industry is seeing. The usual Corporate event could range between INR 0.5 to 5 million in ticket size. They are the steadiest revenue stream with a steady level of profit. Corporate events could be sub-classified into the following three types:

Brand Activation – This refers to any event which involves getting in touch with the consumers through a contest, a promotion at a mall or multiplex.

Internal Events – Any event organised to meet the needs of an internal audience- employees, dealer, retailers & vendors.

Strategy workshops, sales meets, dealer meets, motivational workshops, doctor conferences are all part of Internal Events.

External Events – Any event organised to meet the need of an audience that is external to an organisation.

Summits, Conferences, Seminars, Exhibitions, Expositions are all part of External Events.

Top Event management companies

Percept D Mark Business – Entertainment, Media, Communications Services – Advertising, Brand and Marketing Consultancy, Design and Packaging

Wizcraft Business – Entertainment, Communications Services – Corporate Events, Television Production, Exhibitions, Retail Design

DNA Entertainment Network Pvt Ltd Business – Entertainment Events Services – Music, Sports and Corporate Event Management

Fountainhead Transmedia Business – Event Management Services – Advertising, Entertainment and Communications

The Value Chain

The Client: The client defines everything; the kind of event, Its scale, costs, nature of fees, everything. Client could be an individual, a family, an industry association, government ministries, a company.

The Event Management Firm – The event company puts together the whole event. It may or may not own the event. Wizcraft owns IIFA . In this case the company is the client. A bulk of the events organised in India are commissioned and the execution is done by the event

company. The Advertisers & Sponsors – Sponsors usually finance various elements of the event like air

tickets, hotel stay, clothes & so on. When you read on a podium that the airline partner is Jet Airways, it means that Jet has paid for the

tickets of the speakers, performers and organisers of an event. Advertisers usually take up space at the venue to advertise or buy airtime on the televised version

of an event. Some event may not have any advertisers- for instance private events, brand activation or internal

corporate events.

Revenue

Advertising- Advertising make up about 60-70% or more for most events.- More relevant for public events like film and music shows

Ticket Sales- These account for only 20-30% of the revenue of events.- In overseas market, ticket sales form a bulk of the revenues especially for film-oriented shows or concerts.

Retainer or Fee- This works for organising corporate events.- The fee could be a percentage of the ticket size, a flat fee or a retainer.- Another way is charging by the hour.- But most clients a re reluctant to pay on a time basis.

Television- The fourth one is revenue streams emerging from producing television content.- For example – Zee Cine Awards.- Wizcraft Encompass have found that it makes sense to get into the television production of reality shows- Wizcraft put together Season 3 & 4 of Nach Baliye for Star.

Sources

FICCI KPMG 2015 PWC India Entertainment and Media Outlook 2014 The Indian Media Business by Vanita Kohli-Khandekar Wikipedia Google

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