How the Pandemic Revealed the Power of Live Video
(Bloomberg Opinion) -- As recovery from the coronavirus pandemic continues, Bloomberg Opinion is running a series of columns looking at crisis-inspired innovations that promise better living over the long run — from more resilient economies, cleaner cities and healthier offices to five-star meal kits, better telemedicine and no more airline change fees.
For years, video consumption was rising — from television to streaming apps to social media platforms. But one of the most thrilling parts of entertainment was mostly missing from the video world until the pandemic hit: the power of truly “live” streaming content.
But with large gatherings off-limits during the pandemic, musicians and arts organizations started putting together live performances over streaming platforms. These events have turned out to be well worth the price of virtual admission. Yo-Yo Ma performed a spectacular series of concerts (there’s another one coming up in May); the Met and Carnegie Hall streamed their annual galas; and even the guys from #SeaShantyTok joined in the action.
It turns out to be a surprisingly intimate experience, with cameras tightly focused on the stars. Every viewer has a front row seat to witness a unique moment in time — along with hundreds, thousands, or even millions of others. (Pop star Dua Lipa’s virtual concert over the Thanksgiving weekend drew more than 5 million viewers.)
The economics of paid virtual events are promising, too. A streaming concert might command just a tenth of the typical ticket price for a seat in a theater — but having access to a worldwide audience can easily make up for that by bringing in more than 10 times the viewers. Artists can also charge more for VIP access or urge appreciative fans to leave tips.
On the production side, costs for most live performances have quickly declined to the price of a good microphone and a smartphone with a decent camera. All kinds of entertainers — known and unknown before the pandemic — have been able to start building followings over TikTok, Instagram, YouTube, Patreon, and other platforms.
Meanwhile, performers and creators stuck at home have been looking for new ways to reach audiences, driving innovation in streaming models. This week, a veteran of Spotify and Beats Music made a huge bet on the permanence of premium livestreaming, announcing a platform called Doors, which will enable musicians “to curate and perform online concerts, communicate with fans and manage ticket sales and royalties in one place,” according to Bloomberg News.
And thanks to the rise of creator-focused social media platforms like TikTok and Instagram, livestreaming has unlocked creativity and collaboration of a type and scale never realized before. This past winter, for example, a musical TikTok meme about Remy the rat — star of the Disney/Pixar movie “Ratatouille” — eventually led to a worldwide collaboration to write and produce a complete musical based on the film. The “Ratatousical” (full name: “Ratatouille: The TikTok Musical”) ended up being blessed by the powers that be at Disney, and then being staged virtually in a livestreamed benefit performance, featuring Broadway stars. The production raised over $2 million for The Actors Fund, a performing arts charity. That represents a significant market — before that, has a crowdsourced musical ever raised seven figures in a weekend?
While many are itching to attend in-person live events, it’s likely that a large fraction of them will be “hybrid” going forward, with streaming options available to people who aren’t able to attend in person. “It’s a new creative form for live,” as one of the planners of Dua Lipa’s event told Rolling Stone. “We’ll do more.” The media universe is expanding before our eyes. The only limit is our appetite, which is vast indeed.
It even has a real playbill! This columnist may have framed his copy.
To give you a sense of scale, Hamilton was grossing roughly $1.5 million per week in 2016 (although it was spending about 40% of that on space rental, salaries, and overhead), according to Hollywood Reporter.
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Scott Duke Kominers is the MBA Class of 1960 Associate Professor of Business Administration at Harvard Business School, and a faculty affiliate of the Harvard Department of Economics. Previously, he was a junior fellow at the Harvard Society of Fellows and the inaugural research scholar at the Becker Friedman Institute for Research in Economics at the University of Chicago.
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