PRS For Music said fans spent 12% less on face value tickets than in 2009.
Claims have been made that because bands like Take that didn't tour last year, figures dropped, however, with their record tour planned this year, alongside Rhianna and Justin Bieber, figures should be on the rise again.
Some major artists, such as Kings of Leon and Rod Stewart, opted to play in arenas instead of stadia as a result of the economic downturn, PRS said.
The report said: "It would be very tempting to look at these numbers and jump towards a knee jerk reaction that the live music bubble has burst. We should not".
Festivals "performed strongly" in 2010, while arenas and mid-sized venues "held up", it said. But there was a "striking decline" in the number of stadium gigs compared with the previous year.
