Month: November

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Smaller bands are likely to feel the crunch of the credit crisis just as the larger arena acts. As consumers try to spare as much cash as possible, the touring acts that typically play the middle-range venues could see smaller crowds. Fans could be hesitant to see these buzz bands more than once every several years. Smaller, regional bands may be in the clear. These groups that sell $5-$15 tickets will likely have the same attendance at the small clubs that they play, especially since gas prices have dropped significantly. But the developing acts that sell $20-plus tickets will suffer. One issue is that a $20 ticket is not really $20, but more like $28 after service charges. Presales suffer because people want to save a few bucks by going to the venue to get walk-up tickets at the window. Ticket agents have reported a severe slow in ticket sales following Labor Day. One said a check bounced for a club, the first time he had ever seen such a thing. Cutting ticket prices is the only option for many acts. Unlike major touring bands, indie bands typically take a cut of the door, so the price directly relates to how much they make. The problem with cutting ticket prices is how it will affect the quality of the show. But at the same time, if the fan does not buy a ticket then none of the rest matters.

Month: September

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After the summer concert season, high gas prices and a weak economy have not stopped the touring business from being very successful. Live Nation reported one of their best summers in recent memory, thanks in large part to tours like Tom Petty and The Police. Petty's tour grossed over $32 million, almost $9 million higher than his 2005 tour due to higher ticket prices and increased popularity among younger fans. Dave Matthews Band, Coldplay, The Police, and Rush all had their typical success, while the Jonas Brothers sold out amphitheaters and grossed over $11 million. Still, less popular artists such as Nine Inch Nails and Maroon 5 did suffer somewhat this summer. Such tours experienced fewer sellouts due to higher gas prices, people losing their jobs, and cutting back on spending because prices are higher. Festivals have been very successful over the past 5 years, but may have peaked this summer with Bonnaroo and Coachella failing to sell out due to saturation of the market. There were 15 major festivals this summer, compared to 7 in 2003. Many of the tickets for tours and festivals this summer went on sale before gas prices went up, which may have helped somewhat. The true test will be this fall when AC/DC, Metallica, and Madonna go on tour and are expected to be the top acts.

Month: September

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Arenas and theaters in most small to midsize touring markets are in need of keeping their buildings filled with content. Venue Coalition is a consortium of arenas and theaters that work to keep its member's buildings under the radar of agents, promoters, and other content providers. It was created in 2006 by Neil Diamond tour producer, Jeff Apregan. Capacities of VC's buildings range from 23,500 to 4,684 seats. They help bring opportunities to these secondary markets that would not usually be considered for such tours, shows, and events. Information sharing is key in what VC provides to agents and promoters. VC provides a routing grid as well as historical and technical data for each venue. They are about identifying who's working, when, where, how much, who the decision-maker is and what the odds are of them coming to their facilities.

Month: September

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The touring industry had a great first half to 2008, and in order to close out the year on a high note the managers of arenas are focusing on seven major points. 1.) The Economy. Venues have to be sensitive to consumers with high gas prices, unemployment, mortgages, etc. Price for fuel for the buses and trucks will hurt profitability, especially for midlevel acts that might be forced to pull back and not work as much. 2.) Ticket Prices. Venues are walking a fine line between maximizing ticket prices and alienating ticket buyers. Major shows that charge aggressive prices are causing fans to choose between one or two major shows and passing on the midlevel artist. Secondary markets are also suffering from high prices and scalping. 3.) Ticketing and Technology. With technology changing at such a fast rate, it is tough for venues to keep up with what to invest in and what different artists, agencies, fans, promoters, etc. want. 4.) The Fan Experience. Venues are trying to do anything they can to make the consumer feel as if they're getting their money's worth, or else they will do something else. The fan experience is about value. 5.) Artist Development. As the core group of artists that have sustained the live music industry for the past 30 years or so leaves the road, many feel that few current artists are stepping in to fill the coming void. Since less artists can fill 20,000 seat venues, people are turning more to theaters. Since record companies are having less of a role of breaking artists, the touring business is having to pick up the slack so promoters, agents, and venues need to rethink their roles to be more proactive about solving this issue. 6.) Competition. Overdeveloped markets are having trouble with more competition in other forms of entertainment than ever before. The challenge is balancing the budget of higher costs when higher competition causes smaller increases in revenue. 7.) The Big Picture. Buildings are at the mercy of the overall touring business. The marketplace is filled with blurred lines and undefined roles for the players, with no one knowing who is truly in control of the big decisions. The industry needs to be more flexible in moving towards a common goal based on a foundation of successful, long-lasting relationships.

Month: August

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A ban on foreign rock acts is putting a damper on the live music market in China. Ever since Wham! played in 1985, China's market for live music has been emerging for more foreign rock acts. But in March, Bjork played a set where she closed with a chant of "Tibet! Tibet!" onstage. This prompted authorities to not allow foreign rock acts to play until after the Beijing Olympics this summer. Tours by Avril Lavigne and Good Charlotte have had their dates postponed and this year's Beijing Pop Festival is canceled. Bjork's performance convinced the government that rock stars can easily damage the country's image during the run-up to the Olympic games. This comes at a time when the country's appetite for Western pop culture is growing, Live Nation and AEG Live have set up offices there in the past few years, Ticketmaster acquired an entertainment company, and more rock acts are looking to tour China. Putting on shows in China has always been a challenge. The months-long process begins with a promoter gathering information on an artist including song lyrics, biography, and probable set list. The information is sent to the Ministry of Culture, the agency that licenses events. The government wants to maintain control over the talent that is promoted in its country, but does not want to seem as prohibiting it. It is also expensive to set up shows, as stages typically need to be built, sound checks run for hours, and bands typically need to ship in their own equipment. Ticket prices also must remain low as citizens of China live on extremely low wages. Artists are told to not be political and not swear onstage.

Month: June

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Tom Windish formed the Windish Agency in 2004 because he wanted the freedom to pursue and sign acts that he was interested in. His company now books acts like Aphex Twin, Chromeo, Hot Chip, Justice, Jose Gonzalez, and Low. The reputation he has built involves his ability to find artists that are under the radar. Windish does not view challenges such as playing to commercial radio or MTV as a problem. As a matter of fact, he does not see them as a necessity to underground indie acts. He believes booking his acts at interesting venues is a great way to get them noticed. Ballrooms and art museums may be tough to book for sound and technical reasons, but it gives fans a chance to see art and a new musician at the same time in a new, exciting setting.

Month: June

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Two of the biggest names in hip-hop, as well as music, went on high-concept tours early this summer and each have turned hip-hop into a blockbuster touring business. Jay-Z's tour with Mary J. Blige ended in early May and grossed over $23 million. Kanye's tour finished up in mid-June and is expected to make over $21 million. These tours are seen as hip-hop "maturing" and giving growth to the business of this genre of music. The only hip-hop tour to make close to this amount of money before was Eminem and 50-Cent in 2005 that made $21.6 million. Between then, many hip-hop artists, like T.I. and the Game, have sold millions of records, but failed to hit it big on the road. West and Jay-Z have helped change that by moving away from small productions to large bands, big productions with pyrotechnics and video, an teaming up with R&B artists for a broader fan inclusion.

Month: June

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MySpace Music Secret Shows are a huge hit from the social network giant, which just held their 150th show with Gnarls Barkley in New York. MySpace's large network of users allows them to pull a crowd to shows in virtually any city just 48 hours before show will take place. This is the site's longest running and most successful music program, where they put on free shows with big bands at small, intimate venues. The way one finds out about the shows is that users will sign up as a "friend" of the Secret Shows profile page and will receive a bulletin message saying tomorrow night a band will be playing in a particular city and venue, first come, first served. The idea is that a fan will be willing to go down to the venue and wait in line for however long possible in order to see their band play in an intimate setting. Corporate sponsors for the event include Chilis and Samsung Mobile, but MySpace is continuing to look for more partners. The bands play the show for free in exchange for promotion on MySpace Music, and any costs are paid for by their label as a part of marketing and promotion expenses. MySpace enjoys being able to translate from a online, computer-based experience to something in the real world for users and fans to be involved with.

Month: May

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There are more festivals and more superstar acts playing this summer than ever before, but the US economic situation along with high gas prices are driving up ticket costs, keeping many music fans at home for many shows this summer. These costs are affecting the ticket prices of practically all tours this summer when compared to ticket prices of years past of the same acts, such as Jimmy Buffet, Eric Clapton, and the Eagles. Some claim the decline in CD sales are another reason for the increased price of concert tickets, but many managers dispute that idea. Some artists and tours have refused to increase the price of their tickets, like Dave Matthews Band, Pearl Jam, Tom Petty, and Warped Tour. Many wonder if festivals have become so popular during the summer in the US that they will overtake the conventional model of playing amphitheaters, but that sector of the live music business is still thriving.

Month: May

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Ticketmaster is making deals with artists to promote its TicketExchange service this summer. This ticketing system is for fan-to-fan reselling as well as the sale of premium seats to concerts where consumers can choose specific seats. The 8% of tickets that artists are usually given to sell to their fans through their own website or fan club are being sold on TicketExchange instead. This isn't a case of Ticketmaster buying and reselling tickets for an extra profit for itself and the artist, but rather a way to help the artists gain "market price" for the original sale of some of their tickets. It is somewhat of a sponsorship built around the tours.