The Monetary Value of a Music Festival Concept.

A music festival concept can be a fresh idea or the basis for a long running successful event with assets and historical data. The founders and owners of a festival may think there is value in their concept but in reality, this can depend on multiple factors. What is and what isn't a valuable music festival concept.

Any music festival concept can have a monetary value even before the first event takes place, however, the value usually lies in the commercial assets behind the concept as opposed to the idea alone.

What is a Music Festival Concept.
The concept for a music festival is often considered the blueprint for an event before any detailed planning actually takes place. It is the creative and commercial idea that defines who the event is for, how it will operate as an event business, and what festival-goer experiences are expected. The concept often defines the music genres and associated culture along with the intended audience's demographics and event content (music, arts, and crafts), for example. Other key aspects can include how the event differentiates itself from other festivals along with how the event will generate revenue with estimated margins. A strong concept can make actual planning and implementation easier, giving it a greater chance of success. A concept can also exist for long running festivals where the basis for its existence includes an initial strong proposition that has been successfully implemented.

Where the Real Value Lies.
When valuing a music festival concept, the idea alone may not carry significant value unless it is backed up with tangible assets. The festival brand identity (name and logo) may already be a recognised brand in addition to any trademark protection; all have value to either be sold or licenced for use. Long running festivals have the benefit of historical data which often includes audience demographics and ticketing sales information which should closely align with the initial concept. Clearly identifiable revenue streams like ticket sales, merchandise sales, sponsorship, vendor pitches and premium experiences can show where the highest margins are made. A festival entity that has already built solid relationships with sponsors, artists, suppliers and promoters adds value too. A financial value is much easier to assign to tangible assets like festival-goer data, social media followers, venue contracts and ongoing sponsor deals whereas a standalone concept is still potentially an idea with no actual tangible asset value.

Fresh Idea vs. Historical Data.
A new music festival concept can become more valuable once business planning has commenced and the event is progressing to a real date. An idea alone may have no value unless it has come from a recognised industry leader with a great track record of creating successful festivals in the past. A well-developed concept can still have value if a distinctive brand has been created with robust audience research and a viable commercial model that has a solid event launch strategy. An existing festival with proven audience and financial history has more value in its asset base but the initial concept could still be licenced to another entity operating in a different market overseas, for example.

Realistic Valuations.
There is no simple answer to estimating the value of a music festival concept because it depends on so many factors. Any investor or event business considering a concept will always look at the probability of the event scaling and future cash flow in addition to the risks. An idea alone can only provide an estimated projection of revenue because there is no evidence to support it. However, an idea may have a more credible valuation where the concept is supported by a solid commercial model with evidence of demand, a credible execution team and scalable economics, for example. The value in a concept alone will only come from potential licencing opportunities because the value is in the Intellectual Property that can be replicated elsewhere. This typically occurs where the concept creator wants to expand to new regions but doesn't want to commit the investment or resources in replicating their event in another country. An investor from another country may be interested in launching a licenced version of a festival where they purchase the concept under licence which usually includes the rights use names, logos and formats, for example.

For festival organisers planning their next event using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, site planning, cashless payments and contactless ordering.

Image by Zak Bentley via Pexels

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