From Coldplay to Guns N’ Roses, India’s concert economy has hit a high note; can it sustain the rhythm?

FOOD? CHECK. Washroom visit? Check. Blue wristband? Check. On a balmy Saturday evening in Gurugram, Abhijeet is all set to groove to Shape of You. His desire to listen to Ed Sheeran live began when he memorised the song in Class 12. On February 15, Abhijeet was in the crowd of 25,000 who swayed in rhythm at Leisure Valley Park. He is among the millions for whom the concert economy is taking shape in India where the live entertainment economy has surpassed ₹12,000 crore and is set to hit a CAGR of 19% in the next three years. Concerts currently comprise only 1% of this market, but their growth rate outpaces the industry. India hosted nearly 14,500 concert shows in 2024, estimates an EY report. This includes 70-80 shows that drew more than 10,000 people. There’s a massive runway for growth, but they also raise key questions. The whys Why is there a demand now? Industry insiders offer a layered answer. Part of the momentum lies in a generational shift. A younger generation that began its journey higher up on Maslow’s Hierarchy of Needs is now earning to spend, not to save, in pursuit of something more valuable — social currency. Adding to this mix are the millennials — professionals who have crossed the threshold of financial stability and are now channelling their disposable income to maximise their lived experiences. “Anything that is highly experience-driven has tremendous value. A lot of it is a behavioural change after Covid,” says Devraj Sanyal, MD & CEO, Universal Music. Then there’s FOMO, or the fear of missing out. They are turning up not just for the sound, but for the scene. Often overlooked is the role of local gigs and campus concerts in shaping the concert audience. No flights, no costly tickets — only a recommendation and a night out. One show becomes three, and the dopamine kicks in. Before long, they start queuing up for larger concerts. “This then forces Indian organisers to [level up] and deliver better production, diverse line-ups, and immersive experiences,” says Akshat Rathee, co-founder and MD, NODWIN Gaming, that hosts music festival NH7 Weekender. The college fest bandstand and club gigs — once fringe events — are now the critical on-ramps. India doesn’t have hundreds of these gigs a year; it has thousands, says an industry insider. This sheer volume creates a cultural and commercial momentum. But it still begs the question: why is there an international interest? In 2024, India saw the highest influx of global acts, with BookMyShow alone bringing in 40 international performers. Clearly, India is more than a market — it’s a stage. “What [foreign artistes] care about is fandom. India is a place for that. Everyone believes that growth is now coming from here within five years,” Sanyal says. The surging Indian appetite is an anomaly to the plateauing music consumption in the West. With the world’s largest youth population, ever widening smartphone access, and the cheapest mobile data rates, India is primed for live music. With better equipment and organisation in the music industry, India is buzzing with potential. It’s a destination for both large and small bands; not an afterthought because a sponsor wants them here, but as a serious stop on their tour. “The bands are always looking for new revenue streams. And India isn’t a poor country — Mumbai has more billionaires than most cities in the world,” says Jake Berry Productions and Consultant CEO, Jake Berry. The company organised the Coldplay concert in January. The how Organising a large-scale concert is a multi-stage process spanning months. It begins with data-led artiste selection using streaming platforms to locate the most active fan bases, whether in metros or in emerging cities such as Shillong. Next, artistes’ technical requirements — from sound and lighting to staging and preferred brands — as outlined in detailed riders are reviewed and addressed. Production involving venue selection, infrastructure setup, technical execution, and logistics typically begins about five months before the concert. This is where India once lagged, says Berry. In 2016, when Coldplay performed at Global Citizen Festival alongside other international acts, the backstage was chaotic. Outdated video systems, inconsistent lighting and staging, and grossly inadequate local infrastructure proved to be major challenges. Infrastructure is much better now. “This (upgrade) has been going on [for] 10 years but the real leap came in the past two years. There’s a greater understanding from within the technical production teams to what standards the western acts expect,” adds Berry. As production gears up, the commercial engine starts rolling. Marketing and sponsorship efforts commence three to four months before the event. Simultaneously, internal teams begin work on ticketing, media approvals, and customer experience design. Technology platforms such as BookMyShow, Zomato’s District, and others help promoters manage ticketing, event discovery, and access control, becoming central to consumer engagement and revenue tracking. Venue operators are brought in early to provide the venue and to manage local permissions, crowd control, electricity, parking, and sanitation. Finally, venue construction begins around 20 days before the ‘C-Day’. The revenue generation is multi-pronged. The concert market has upgraded to a ticket-led economy from the previous brand-led events. Ticket sales these days account for up to 70% of the revenue from the earlier 10-30%. Sponsorships still comprise 20-40%. This shift has enabled nearly 70% of promoters to cross the 10% profit margin line. “On average, 10-15% of revenues come from food and beverage (F&B),” says Tamanna Mordani, co-founder & partner at Envision.in, which managed the Shillong leg of Bryan Adams’ India tour in 2024. Other revenue streams include merchandising, VIP experiences, intellectual property (IP) licensing, brand activations, and content syndication. “Earlier, people were fine with pirated products. But that’s shifting. The merchandise market is poised for gradual growth,” says former India head of Emerald Media Vivek Raicha. In terms of expenditure, nearly 20-30% — the biggest share — typically goes into talent fees. “The artiste is the highest cost as they bring their own equipment. They’re responsible for getting all their gear in and out of the country,” explains Berry. Artiste-related costs, including their riders, can go up to 60%. “Over 60-70% is artiste cost, 20% is production and technical,” says Mordani. Profitability hinges on sponsorships — if around 40% of the P&L is secured through sponsors, the event can realistically break even. Other costs include sound and lighting (15-20%), venue management (10-15%), security and safety (3-5%), and front-of-house, logistics and insurance (10%). The ‘profit’ question Profits come down to one factor — the artiste’s popularity. Consider Coldplay versus a lesser-known international band: improved revenue-sharing helps, but success hinges on mass appeal. That’s why most international acts entering India are pop singers. These events not only drive local commerce but also support ancillary industries, creating a multiplier effect through music tourism. The twin Coldplay shows in Ahmedabad earlier this year are a case in point. They generated an economic impact worth ₹641 crore, including a ₹392-crore direct boost to the local economy and ₹72 crore in GST. With 222,000 attendees over two days, 86% of whom came from outside Ahmedabad, transport and hotel bookings rocketed. Accommodation and interstate travel made up nearly 40% of the impact, followed by spending on tickets, merchandise, and on-ground F&B. “These odd Coldplay moments will come and go,” says Universal’s Sanyal. “What is heartening to see is the Indian artiste growing and getting more money — many follow the Bollywood formula and get a percentage of the show’s revenue. They’re happy now.” As the trend takes off, venue partners, sponsors, and brands are also beginning to gain. “For us, concerts account for 10-15% of our live events portfolio, but they have given us a 10x rise in visibility. The remaining 85% of our live events was made possible because of the concerts,” says Manuj Ralhan, general manager of Jaipur Exhibition & Convention Centre (JECC). For brands and sponsors, especially alcobev players, concerts are powerful activation channels in a market where liquor advertising is restricted. The BFSI sector is stepping up, too, with major banks like Kotak Mahindra and HSBC backing nearly every major international act in the country. “It’s helped us attract a new wave of premium customers who now see banking not just as a utility, but as a lifestyle enabler,” says Kedar Ravangave, EVP-marketing, Kotak Mahindra Bank. “Sponsorships aren’t mere logo placements; they’re emotion amplifiers. Such associations have driven 30-40% higher customer engagement.” As brands hit profitability, how they measure success has evolved. Conversions are no longer the sole metric. Instead, brands now focus on lifetime value, impressions, and lasting relationships with attendees. Indian artistes and Tier II and III markets lead the way in returns on investment. Home-grown stars such as Arijit Singh, Yo Yo Honey Singh, and Diljit Dosanjh deliver better margins compared to many mid-level international acts, courtesy of lower artiste fees and their ability to attract non-English-speaking audiences. In metro cities, pulling a crowd for international artistes is relatively easier. But in Tier II and III towns, the focus remains firmly on Indian talent, where the demand and profitability align better. Hosting Diljit’s Dil-Luminati in November 2024 helped JECC secure the IIFA deal, says Ralhan. “Tier II and III cities are where the next wave of money is coming from. Small towns suddenly have a lot of spending power and aren’t hit by recession the way you might think. They spend less, but their aspirations — and therefore their willingness to spend — are much higher,” says Sanyal. The recent EY-BookMyShow report backs his point: 35% of Coldplay’s concert attendees came from non-metro areas. This reflects a growing maturity and opportunity in the Tier II and III markets. That said, smaller cities will take time to develop large venues. What is the future? So, is India ready for a full-size concert economy? “Yes,” say artistes, organisers, and policymakers in unison. “This is not a moment, but a movement. Artistes’ interests, audience acceptance, and authorities’ proactiveness to improve infrastructure point in that direction,” says Naman Pugalia, Chief Business Officer, BookMyShow. But sustaining this momentum will take time, investment, and systemic changes. A cumbersome licensing policy, limited venue availability, high operational costs, and the need for coordinated stakeholder strategy remain pain points. “The approval process is a major hassle, along with licensing. We have to consider parking, audience capacity, performer management, and both pre- and post-concert operations,” says Ralhan. “It is a highly regulated industry. Our industry was in the highest GST slab, which was 28%. We worked very closely with industry bodies to bring it down to 18%. We believe it can go lower,” adds Pugalia. Mordani recalls how during a series of Diljit shows, another company faced last-minute delays in securing excise licences. “Bars had to go dark hours before the event, hitting F&B revenue by 15-20%.” The industry demands single-window clearance to help streamline approvals. Underutilisation of existing venues is another concern. Sanyal and Pugalia say discussions are underway with the Central government to access major sports stadiums during their off seasons. “Pricing and supply will stabilise; experiences will need to be elevated. And if you don’t fix the infrastructure, this will taper off. I don’t expect more than 15 global acts to perform in India but if you fix the infrastructure, that can go to 30,” feels Rathee. BookMyShow is betting big on venue development, while Zomato’s District is investing in infrastructure that powers concert production. Meanwhile, sponsors and brands, BFSI and alcobev players, are eyeing their own event IP, seeking greater control over concert curation. Varun Koorichh, vice president-marketing, Diageo, notes that about 25-30% of their event strategy focusses on building proprietary IPs to drive brand meaning and distinction. “IPs allow you to give your consumers the entire experience without fighting with 16 other brands,” he says. Ravangave agrees. “We are looking to launch IPs as early as in the next two quarters.” Ultimately, consistent innovation and ecosystem-wide upgrades will decide the future. “We all need to aim for a concert economy that’s regular — like in the U.S.,” says Koorichh. Everyone will be a winner when the infrastructure matches the demand. “But in this business, it takes a little bit of time. So, you go through two-three years of losing money before you can make a lot of money,” says Sanyal. Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

From Coldplay to Guns N’ Roses, India’s concert economy has hit a high note; can it sustain the rhythm?

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