Are Drive-In Concerts In?

Market Trends:

Drive-In Concerts: The New Live Concert Alternative?

Starting next month, American artist Marc Rebillet will start a short tour across five US cities held at drive-in theaters, providing fans with a live concert experience while complying with social distancing regulations in effect across the country . Although Marc will be the first to hold concerts of this type in the states, artists from abroad have already started to use this method to connect with their fans. Though it might seem unusual now, the uncertainty of the ongoing Coronavirus situation may allow drive-in concerts to thrive as a new form of entertainment. Additionally, while drive-in concerts could allow some artists to tour earlier than expected, it is interesting to see what genres benefit the most from this and how profitable a model it can be.

COVID-19 Impact Aside, Streaming Market Optimistic

Regardless of COVID-19, the size of the streaming market is increasing as a whole. Consumer spending on streaming services is increasing year-on-year, with purchases of music streaming subscriptions in 2020 increasing by just over 20%. Although this statistic is less than the previous year-on-year of 27.5%, the point is its positive whereas many industries are struggling. Additionally on a company level, Spotify’s earnings call reported that its 6 million increase in subscribers was an optimistic number in Spotify’s pre-COVID-19 forecast (as discussed in Bumper Bites 5/04), suggesting that the market’s year-on-year subscription growth is to be expected.

Disney Considering No Theater Releases 

During Disney’s earning’s call on Tuesday, Disney CEO Bob Chapek commented that changing consumer behavior and the COVID-19 situation has caused Disney to consider skipping a theatrical release for some movies like “Artemis Fowl” and go straight to streaming service. This decision is a continuing trend as other studios like Universal Studios have made similar decisions. It will be interesting to see if studios will return back to traditional theatrical release strategies once social distancing effects return to normal or if release strategies have changed permanently.

Big Losers:

Monetization Of Short Films And Series

Quibi, the mobile only streaming platform launched in early April, has come under fire from Eko and its investor, Elliott Management. Eko claims that Quibi stole the Turnstyle technology, allowing viewers to get different angles by turning their phones, even though Quibi has a patent for the technology and claims that the tech was internally created. With Quibi getting some harsh reviews, and their initial 90-day trial period coming to a close at the end of June, this could be the last straw. Quibi failing could be devastating as this could disincentivize future companies from entering the market, meaning fewer opportunities for creators to monetize short films and series. 

Notable Deaths:

Little Richard Died At 87 From Bone Cancer

Little Richard died at the age of 87 from bone cancer. Little Richard was one of the early pioneers of rock’n’roll, inspiring some of the greats like The Beatles and Elvis Presley and was inducted into the hall of fame in 1988. His music starting with his first hit, “Tutti Frutti,” brought races together during the heavily racially segregated society of the 1950s and 1960s. Perhaps his two defining career decisions were his decision to continue his music career despite being forced out of his first record label deal due to monetary disputes and his bold decision to walk away from rock’n’roll at the top to pursue gospel music after experiencing a near death experience. Carry on his legacy by inspiring others and pursuing your dreams.

Success, You're in!

Bumper Bites newsletters reflect the opinions of only the authors who are associated persons of Stampede Securities, Inc. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Stampede Securities Inc. Stampede Securities, Inc. is a funding portal (“Bumper Collective”) registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority.

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