The Business of Concert Stages

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It’s ​​1975 in a small Belgian town called Werchter. A young Hedwig De Meyer is organizing his first music event - a humble Saturday night disco. 

He has no idea that his frustration with rickety stages will one day revolutionize the industry.

As the 1980s dawned, the concert stage industry was ripe for disruption. 

De Meyer, now experienced from organizing the Rock Werchter festival, saw an opportunity to revolutionize the industry. 

So in 1985, he founded Stageco. 

Stageco designs and builds custom concert stages and temporary structures for events like concerts and festivals.

It wasn’t long before De Meyer's big break came. Just a year later, Genesis, a renowned English rock band approached him for their "Invisible Touch" tour. 

De Meyer made a bold decision to abandon traditional scaffolding and develop a tower system based on crane technology. 

This innovative approach required less labor, offered more rigging capacity, and provided safer working conditions.

The gamble paid off. The Genesis tour was very successful and that caught the attention of the entire music industry. 

Word spread like wildfire, and soon, Stageco's phone was ringing nonstop. 

In 1987, Pink Floyd came calling for their "Momentary Lapse of Reason" tour, taking Stageco's stages across Australia, New Zealand, and Europe.

But the real game-changer came in 1992. 

Genesis returned to Stageco for their "We Can't Dance" tour, marking the company's entry into the lucrative U.S. market. 

For the first time, Stageco worked directly with an architect to create a custom-built stage without a roof, integrating the stage design into the show itself.

As Stageco's reputation grew, so did the complexity of their projects. 

They began providing stages for different events, from rock concerts to corporate launches, fashion shows to sporting events. 

The company expanded globally, opening offices in the Netherlands, France, Germany, and the United States.

The story of Stageco is one of several success stories in the event staging industry.

Today, the global event stage rental market has ballooned to a staggering $127.1 billion, with projections to reach $166.1 billion by 2031. 

Stageco, now a titan of the industry, is at the forefront of this boom, building mind-bending concert stages for bands like U2, The Rolling Stones, and AC/DC.

But how exactly does this multi-billion dollar industry work? 

At its core, the concert stage business is about creating unforgettable experiences. 

Companies like Stageco generate revenue through a combination of equipment rentals, design services, and installation fees. 

They work with a diverse client base—from music festivals and touring artists to corporate events and theater productions.

The value chain in this industry is complex: starting with design and engineering; moving through manufacturing and transportation; and culminating in the intricate dance of installation and dismantling. 

You need to build key partnerships — especially with sound and lighting companies — to deliver a complete package to clients.

Pricing in the event staging industry is as much an art as it is a science

Consider factors such as the size and complexity of the stage, duration of events, transportation costs, and labor requirements. 

Concert staging companies often use a combination of day rates for equipment rental and fixed fees for design and installation services.

The concert stage business is an ecosystem involving several key players

1. Stage Design and Construction Companies: Firms like Stageco invest heavily in R&D to create innovative designs.

2. Technology Providers: Companies specializing in lighting and sound work closely with staging firms.

3. Logistics and Transportation: Moving massive structures requires specialized equipment.

4. Safety and Compliance Consultants: Ensuring safety standards has become crucial.

5. Eco-Friendly Solutions Providers: With sustainability becoming a priority.

If you’re eyeing this industry, you’ll need to consider the capital costs for equipment, build valuable client and vendor relationships, and develop specialized expertise to stand out. 

Operating in a niche market and using innovative technology can give you an edge in the industry.

The industry is also highly cyclical; peak seasons typically coincide with summer music festivals. 

So what smart companies do is to diversify into corporate events or theater productions to manage off-peak periods.

The Role of Technology

Technology plays an important role in this industry. 

From LED displays to automated rigging systems, you must continue to innovate if you want to succeed in this market. 

For example, concert stage companies now collaborate closely with the creative directors of artists from early planning stages using 3D modeling and VR technologies.

The industry is seeing increasing use of LED displays, augmented reality integrations, more sustainable designs, and adaptable modular structures for diverse venues.

A few business ideas you can explore

1. Virtual Reality Integration: Create immersive experiences blending physical stages with VR technology.

2. Modular Stage Rental: Offer portable stages for smaller venues.

3. Innovative Lighting & Visual Effects: Develop new technologies to enhance concert experiences.

4. Stage Safety Consulting: Help ensure setups meet safety standards.

5. Eco-Friendly Stage Design: Develop sustainable materials for construction.

Wrapping up

The concert stage industry is ripe with opportunities for entrepreneurs ready to innovate. 

While there are established big players, there is plenty of room for smaller companies to thrive in the industry by thinking outside the box, carving a niche, and building valuable partnerships. 

So next time you’re at a concert, keep in mind that you’re experiencing a multi-billion dollar industry at work. 

The real question is: will you just watch from the sidelines, or will you step up and become the next star in this spectacular show that is the concert stage industry?

And that's a wrap!

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