The mega-concert residency, the future of major live music events? – National
When Billy Joel returned to the stage in 2013, he decided to stay close to home, which is how a monthly residency at Madison Square Garden in New York was born.
His first show under this arrangement was on January 27, 2014, with the condition that he continue his residency until demand for tickets waned. Few thought he would continue playing at the Garden for more than 10 years. It finally ended on July 25, 2024, after 150 performances, most of them sold out. Only the pandemic kept that number from being higher.
The amount of money generated by these shows was staggering, with revenues well in excess of $220 million. Each show grossed about $4 million, not including merchandise sales. The promoter and venue loved the concept. And the positive economic impact on New York was profound.
It would be reasonable to assume that MSG CEO James Dolan came up with the idea for The Sphere in Las Vegas after seeing Joel’s success in New York. There were plenty of skeptics when the project was announced in February 2018, just after Joel’s four-year residency. He must have also observed the growing number of artists accepting lucrative residency gigs at various Vegas venues (Britney Spears, Celine Dion, Lady Gaga, David Lee Roth, Mötley Crüe, Aerosmith, and, of course, the king of them all, Elvis).
After construction costs of approximately $2.3 billion, the state-of-the-art facility opened on September 29, 2023, with a series of 40 U2 shows on the weekend.
What was initially considered a risky and extremely expensive proof of concept turned out to be a wild success. More than 663,000 people attended the concerts and grossed $244.5 million. To put that in perspective, U2 made 33 percent of the amount they made on their record-breaking (and horribly expensive) 360 Tour, which took in 111 shows on seven stops on five continents and lasted 25 months, in 40 nights. With their Las Vegas residency, U2 had five days between shows, which gave everyone the chance to go home if they wanted. Or they could stay in Vegas and relax.
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Many bands have come to visit the place. When I was there on December 1, 2023, Depeche Mode and his colleagues were in the crowd to take a look. Metallica came to take a look a week later.
Phish was immediately sold out, playing four shows in April, followed by a 30-show run with Dead & Company. Next up, the Eagles, with 20 shows scheduled (so far) starting in September and running through 2025. Can you imagine who might be in talks with The Sphere? The Rolling Stones? Absolutely. Coldplay? That would be a great choice. And if I were Taylor Swift, I’d be asking myself, “Why am I flying all over the planet for months with an extremely expensive production?”
The latest mega-residency is currently taking place in Munich. Live Nation and the city have built a temporary An 80,000 capacity stadium for just 10 Adele concerts over 30 days. If you thought her Las Vegas residency was crazy, the Munich concerts will go down in history as one of the largest concert events in history. Not only does the stadium have a 721 x 90 foot video wall (longer than two football fields), but the venue also features the largest LED screens ever built.
The festival is also part of an “Adele World,” an outdoor amusement park with a Ferris wheel, a farmers market, a large Bavarian beer garden, a rather cool English pub, several wine bars and a second entertainment stage. And, of course, lots and lots of merch stands. While it took U2 40 shows to gross $244.5 million, Adele’s shows are estimated to gross $228 million. For 10 shows. And when it’s all over, it will all be dismantled and the site will be restored to its original state.
Adele World at the Adele Arena in Munich, Germany, which is a temporary venue built for a series of concerts by the superstar.
IMAGO/The Canadian Press
In the meantime, ABBA Travel continues in London after its debut on May 27, 2022. People come from all over the world to see a virtual residency in the form of holographic performances by Agnetha, Björn, Benny and Anni-Frid. The production is scheduled to close on May 11, 2025, but don’t count on it, it’s bringing in around $2 million a week. London loves it too, estimating that ABBA Travel worth around £322.6 million (C$562 million) a year to the city’s economy. ABBA doesn’t even need to get out of bed.
It’s no wonder that artists and concert promoters are seriously considering the residency model. The band doesn’t have to travel, which saves a lot of money and makes insane margins. Older bands find residencies easier to stomach. If the venue is properly equipped, the audience gets a better experience (I can tell you that The Sphere is second to none). And the local economy benefits.
A lovely idea. Can’t you see other world capitals getting in on the action? (London has refused MSG permission to build a sphere there; I wonder if they’re reconsidering the idea?)
The financial losers in all this will, of course, be the fans. If the mega-residency concept continues to grow, going to see a superstar show won’t just be about tickets, a babysitter and parking. You’ll have to factor in flights, hotels and, in the case of Canadians, a punishing exchange rate with the Canadian dollar for everything else.
This doesn’t mean the end of traditional touring, though, as not every artist is cut out for a mega-residency. But don’t be surprised if you find yourself calling your travel agent a little more often when it comes to gigs.
© 2024 Global News, a division of Corus Entertainment Inc.
