Mumbai: Live events are poised to emerge as the fastest-growing entertainment category over the next three years, with revenues projected to grow at 18.2% compounded annually to Rs. 16,700 crore, outpacing filmed entertainment, which is estimated to grow at a modest 4.3% to Rs. 21,300 crore, according to the latest FICCI-EY Media and Entertainment report.

Filmed entertainment includes box office, satellite and digital rights, international theatricals, and in-cinema advertising.

A key factor fuelling demand for live events is the emergence of ticket booking platforms, making the economics of live events favourable for organizers in recent years.

"Availability of ticket-booking websites has brought about a big change. Today, a live event derives 60-70% of its total revenues from tickets and food & beverages (select locations). Sponsorship contributes, on average, 30-40% to total revenues of events," said Lalitt Gattani, cofounder, Showcraft Productions, which organises musical concerts and political events.

An estimated 30,687 live events took place across 319 cities in 2024, marking an 18% growth over the previous year. Revenues from ticket sales surged 40-50% last year, while sponsorship revenues jumped 30% in the same period.

Live event is an umbrella term used for defining business-to-consumer (B2C) and business-to-business (B2B) events. These include sports, musical concerts, political and religious events, comedy shows, weddings, musical plays, and managed corporate events. Sports and musical concerts attract larger audiences in B2C events, according to event organizers.

"Today, audiences seek premium entertainment experiences which are at par with global standards. This reflects a shift in their expectations. They are ready to invest in unique, high-quality events," said Anil Makhija, chief operating officer for live entertainment and venues at BookMyShow.

Digital or social media penetration also contributed significantly to creating demand for live events. Various social media platforms are giving the much-needed information required for exploring and discovering artists and their works.

"Today, we live in a global digital world. Audiences are exposed to artists across geographies. Audiences aged between 12 to 25 are tastemakers as they explore and identify artists. These artists discovered by tastemakers are followed by audiences who are taste followers," explained Tarsame Mittal, a musical entrepreneur who has managed more than 60 artists, including Arijit Singh, Badshah and Vishal-Shekhar.

Live events require Rs. 5-30 crore in investments on average, generating returns of about 30%, according to event organizers. Of late, the emergence of a favourable demographic for live events with 40-50 million affluent homes and easier access to purchasing tickets through digital platforms has helped grow this market.

"Live events such as musical concerts offer premium, aspirational and assured-quality experiences, which enable higher monetary commitment. This is a great attraction about them," said Ashish Pherwani, leader, media & entertainment sector, EY India.

Screen fatigue such as mobiles, laptops, and televisions has also become another key contributor to growing attendance at live shows. Event organizers say audiences are looking for more 'real' experiences instead of the mind-numbing virtual world experience.