Caroline Hughes, who goes by the stage name DJ Luminosity, has been unable to perform a live show for months because of strict regulations in the Netherlands.

“[When you’re] in an environment where you physically don’t have the option to go out and perform for people, [it] helps propel you to do more virtual events.”

Courtesy Caroline Hughes

The Houston native made the most out of a difficult situation. The budding DJ/producer created, promoted, and hosted her own virtual concert as an outlet to engage with fans and satisfy her itch to perform.

“I think the pandemic has really opened up this window of artists being allowed to be more personable with their fans, and performing virtually is a way to do that.”

A small handheld GoPro, an old Canon DSLR camera from her sister, and a bed of vibrant LED lights brought to life “Reignited,” an exciting DIY virtual concert that featured an hour-long set of electronic music. With a limited amount of preparation and access, Hughes transformed a tiny, unassuming room into a club-like atmosphere.

“We didn’t really have a whole lot to work with, and I would have loved to have some better-quality video stuff. But again, this is pandemic times, and you have to work with what you have.”

Hughes isn’t alone.

When the COVID-19 pandemic disrupted concert-going in 2020 and caused a subsequent $30 billion loss in revenue, artists were forced to find new ways to stay engaged with their audiences and perform their music. Nearly two years after the pandemic caused a global lockdown, the online concert is here to stay.

“Last year, the pandemic was raging, and nobody was doing shows,” said Jason DeMarco, Senior Vice President of Anime and Action for Warner Media. “I think most artists were just thrilled to be able to keep the lights on and get paid to sing.”

This led to a drastic increase in artists performing online,  and in turn, their social media engagement also saw a boost.

British pop star Dua Lipa’s Tiny Desk (Home) Concert has now racked up more than 56 million views on YouTube, Travis Scott’s virtual concert in tandem with Fortnite garnered more than 45 million in-game viewers, and The Weeknd’s interactive performance with TikTok reached over 2 million unique viewers

Several live streaming platforms were created to capitalize on this trend. Verzuz, now owned by Triller Network, flourished as one of the most notable new livestream ventures during the early months of the pandemic. It started as a fledgling virtual DJ Battle between its founders, Timbaland and Swizz Beatz, but it quickly morphed into a global powerhouse that hosted some of the world’s biggest hip hop and R&B stars. At its peak, the new platform brought in more than 9 million live viewers during the battle between Gucci Mane and Jeezy.

John Petrocelli, the founder, and CEO of Bulldog DM, witnessed this rapid increase in engagement with online events firsthand.

“It all happened in 18 months…it’s been a rollercoaster of intrigue,” he said. “There had to be an outlet for the music industry to have some semblance of live programming that they could deliver to this captive global audience.”

Since its establishment in 2012, Bulldog DM has become one of the most significant live streaming studios in the United States. They have hosted events for Universal Music Group, Sony Music, and Spotify.

The livestreaming veteran brought in more than 60 million views during the first year of the pandemic.

John Petrocelli

Petrocelli explained the popularity of live streamed events was bubbling for a long time, but he also acknowledged the pandemic’s impact on his business.

“This was an evolving and a growing market pre-pandemic…it was trending up and moving in the right direction,” he said. “The pandemic accelerated the business, technology, and the general awareness.”

Online concerts are not only a unique way for artists to connect with their fans, but they also serve as an additional income stream. 

In June 2021, K-pop sensation, BTS broke their own world record for livestream concert attendance with more than 1.33 million paid viewers, bringing in more than $71 million in ticket and merch sales.

Artists can monetize their performances through premium streams that feature pay-per-view ticketing, sponsored events, and merchandise that is directly embedded into the online stream.

“The tools are out there, and the market has changed … music is not easy, given the landscape and how many people are getting involved in it, but if you’re savvy, you can take advantage of a strategy that leans into live [performance],” Petrocelli said. “Live stream music can be a super compelling way where everybody wins.”

The shift to online performances has extended through the months of strict quarantine in the U.S., and the trend remains evident.

The Adult Swim Festival, an annual two-day event that features live music and comedy, remained virtual in 2021.

DeMarco worked amongst a small team at Adult Swim to coordinate, promote, and host the online festival.

“A lot of artists are engaging in a way that they don’t necessarily do in their live show because they want to present you with something different. I think that’s the key difference between this year and last year,” DeMarco said. “Most artists want to approach it in a way that feels like something special.”

The Warner Media executive explained that a free virtual setting is a beneficial business model for everyone involved with the event.

“They [the artist] won’t have to spend as much to make it happen so they don’t need to ask as much to be paid,” he said. “Less overhead and more sponsorship. It’s a pretty simple model.”

He also pointed out that artists are starting to understand how to make these moments more than just live video.

“I think that obviously what people learned from the last couple of years of having to do these events online is how to make them work in that space,” he said. “When you do an online festival, you can’t just be pointing the camera at a stage and have it be a live recording of whatever happened.”

As the world returns to normalcy and in-person concerts begin to sprout back up, both Petrocelli and DeMarco believe that virtual performances will play an important role moving forward.

“It’s going to be interesting to see how it all shapes out, but I think it’s all for the betterment of the industry,” Petrocelli said. “I think music fans are going to be the beneficiaries of some pretty amazing collaborations and creative ideas that are going to reach us in the coming months.”

“I do think that there will be more things like virtual festivals that are built this way, because it’s a different kind of experience that has almost as much value in its own way as a live concert,” DeMarco said.

The numbers agree: the global live streaming market is projected to reach $247 billion within the next six years.

In addition to these predictions, both Petrocelli and DeMarco think online concerts will begin to feature virtual reality and other interactive elements

“If they can ever make virtual reality more accessible and cheaper, I think they will probably find some ways to replicate concert experiences in a fun way where it is a virtual concert, but you feel almost more like you’re there,” DeMarco said.

Jason DeMarco

Petrocelli also says that the online space has a bright future and because of its versatility can exist alongside in-person concerts.

“I’m a big believer in the notion of a hybrid capability where people will be physically in attendance, but there’ll be the option for someone to stream the show and amplify the experience.”

Hughes agrees that the virtual setting has a significant role to play, but at the same time, she misses the live experience.

“As a DJ, I love to see how people are reacting to the music that I’m playing and what I can do to have them become more engaged … virtually, you don’t have that.”

While she prefers performing for an in-person crowd, Hughes now has a newfound appreciation for the digital space, and sees it as a useful tool for artists to connect with fans through even the craziest of times.

“Holding these virtual events allows fans to be there with the artist and keeps them engaged with their content,” she said. “It definitely is a way to connect with your fanbase better.”

Performing online has gone beyond a simple alternative for in-person events; now, it has carved out its own spot in the vast landscape of the music industry.