AEG Live - Entertainment Giant For Sale

On Tuesday, Anschutz Company announced that it would be selling off the Anschutz Entertainment Group, more commonly known as AEG Live.

Philip Anschutz

Run by multibillionaire Philip Anschutz, Anschutz Company is a holding company based out of Denver, Colorado. The company has a stake in a variety of different industries including telecom, energy, and entertainment.  The entertainment segment of the company, which is operated under the Anschutz Entertainment Group, includes the promoting of concerts and other events, a number of sports teams in the US and Europe, and over 100 live-event venues such as the Staples Center located in Los Angeles.

But the big question in the industry is who could take over the sports and live-entertainment giant? It’s not that AEG Live is unattractive to investors. It has held on as the world’s second largest promoter for all twelve years of its existence and has produced some of the highest grossing tours in the last ten years.

What becomes a problem is that Anschutz wants to find a buyer to purchase AEG Live in its entirety. The company announced they would reach a sale agreement with “the qualified party best able to reflect the full value of AEG and fully committed to working with AEG’s management team as it pursues its long-term business objectives” (as quoted in an article from ESPN Los Angeles).

Staples Center. Los Angeles, California

 There are a number of industry speculations as to who could take over the company, which is expected to sell for $7 or $8 billion. One company whose name is sure not to be on the list is Live Nation Entertainment. After their battle with regulators for a merger between Ticketmaster and Front Line Management, it’s easy to see that Live Nation would have a hard time convincing regulators that their request to purchase AEG would not bring them excess market power.

However, with Live Nation out of the running that still leaves private-equity firms, other large entertainment companies, and private investors. So as the future of AEG Live hangs in the balance it will be interesting to see over the next few months whether the Anschutz Company is able to find a single buyer or if they will settle for a split. 

- Lisa - 

Artist Apps: Yes there's an app for that!

No matter what you’re trying to do or find, “there’s an app for that.”  The phrase has become commonplace in today’s world. Four years ago apple began accepting third party applications for the iPhone and today there is literally an app for whatever you want to do.

Along with many other industries, the music industry was eager to find a way to use apps to generate revenues. There have been numerous musician-specific applications to hit the app store, but not many of them have gotten any attention.

One of the most talked about artist applications was from the Presidents of the United States of America (PUSA), who created an app for $2.99 that allows fans to stream four albums. However, artist applications are more often being created for promotional purposes. Promotional applications are used to encourage fans to purchase their upcoming album and include other content such as lyrics, band history, and multimedia material.

Applications like the one from PUSA are not common since it is not a huge revenue generator. Promotional applications may create a buzz around an upcoming album release and increase their followers on Facebook or twitter, but it is difficult to determine how many fans were influenced to purchase the album based on the app.

What the industry is overlooking with the application craze is how they can use applications to enhance the fan experience. Yes it is important to sell albums and sell out arenas; however, an application that just promotes the artist with advertisements doesn’t give fans much incentive to purchase.

What artists need to understand is that fans want to be able to feel like they are involved and connected to the artist, not just simply being marketed to. A great example of how this can work is a recently released application from electronic musician Dan Deacon. His application, which is offered on both Android and iOS devices, is a great example of the types of applications artists should be creating for their fans.

(Screen shot of Dan Deacon App from itunes)

The new app, like many promotional applications, provides links to his website and social media sites, as well as tour dates. In addition to all of the basic functions of a promotional app, Deacon’s new app also transforms your phone into an integral part of his performance. In an article on Billboard.biz, Keith Lea, the head programmer of the application, talked about the making of the application. He shared that they didn’t want to just create an app with interactive features that people could use to participate, but they wanted to design something that allowed fans to use their phones without being self-absorbed.

The Dan Deacon application is a great example of what an artist application should be. While it is available for free, it gives his fans a chance to connect to him and be a part of the performance. In the end, as an artist it’s important to remember that your fans are what helped you get to where you are. So why not give them a reason to attend your concert and participate in the experience?

-Lisa-

Slash On Tour: Local Bands Have Opportunity to Open the Show

Slash, Veterans Memorial Arena

Jacksonville, FL - February 22, 2011

(John Davisson)

My last post focused on promoting your band by aligning them with other major artists and even getting some type of referral or shout out from them. With the announcement of fall tours for major artists come more opportunities for local artists to be featured as an opening act. Wednesday Slash announced his fall headline tour and with that the opportunity for 20 local bands along the tour route the opportunity to open the show.

In an article on Pollstar.com Slash stated, “I’m a strong believer that the best way to get your music heard is to get out there and play shows.” He went on to state that many of these bands don’t have the resources to go on tour and he is happy to host them as well as introduce these undiscovered artist to his fans.

Slash is working with Guitar Center to discover local bands, 20 of which will be hand selected by the former Guns’N’Roses lead guitarist himself. Additionally, at the end of the tour, Slash will choose one of the acts to win a grand prize package. The grand prize package consists of $10,000 in guitars from Gibson as well as an additional $5,000 towards a shopping spree at Guitar Center. All other acts will receive a tour support pack including gear from Ernie Ball, Zoom, Dunlop, Monster Cable, Pro-Mark and Converse.

The fall tour is in support of Slash’s second solo studio album, Apocalyptic Love, released May 22. The following are the dates and locations of the tour.

Sept. 4 – San Diego, Calif., House Of Blues
Sept. 5 – Phoenix, Ariz., Celebrity Theatre
Sept. 7 – Austin, Texas, Stubb’s Bar-B-Q / Waller Creek Amph.
Sept. 8 – Dallas, Texas, House Of Blues
Sept. 9 – Houston, Texas, House Of Blues
Sept. 11 – New Orleans, La., House Of Blues
Sept. 12 – Atlanta, Ga., The Tabernacle
Sept. 16 – Hampton Beach, N.H., Hampton Beach Casino Ballroom
Sept. 18 – New York, N.Y., Hammerstein Ballroom
Sept. 19 – Cleveland, Ohio, House Of Blues
Sept. 21 – Cincinnati, Ohio, Bogart’s
Sept. 22 – Detroit, Mich., The Fillmore Detroit
Sept. 23 – Toronto, Ontario, Sound Academy
Sept. 25 – Indianapolis, Ind., Egyptian Room
Sept. 28 – Chicago, Ill., Riviera Theatre
Sept. 29 – Springfield, Mo., O’Reilly Family Event Center
Oct. 2 – Oakland, Calif., Fox Theater
Oct. 3 – Los Angeles, Calif., The Wiltern

This is yet another great opportunity for local undiscovered artists to promote their talents. Citi card members will be offered an exclusive presale on tickets and VIP experiences. Fan presale begins July 10. Tickets will be released to the general public for sale on July 13.  

- Lisa -



Related Article: The Difference a Referral Can Make

The Difference a Referral Can Make

There are millions of artists all over the world trying to make it in the music industry. It’s perceived that becoming a household name is as easy as uploading a YouTube video of yourself singing. However, many of those struggling artists can probably attest to the fact that this is not the case.

There are many contributing factors that play a role in increasing the popularity of an artist. While look, style, and sound are the major pieces that make up an artist, an often overlooked piece of the puzzle is the live performance. I hate to be a buzz kill, but you don’t have fame and fortune handed to you because you can post a video of yourself singing online.

With competition increasing, it is important to focus on live performances and promotion now more than ever. Whether playing in coffee shops, bars, or stadiums, spreading the word about a gig is one important key to promotions. But as with any industry it’s not what you know, it’s who you know.

Building up a following of fans is important and an easy way to do that is by getting the artist booked with other similar bands. Of course this is really no new information in promoting. Many bands and artists have skyrocketed their career by opening for well-known artists, but new bands too often overlook it. Another equally important opportunity to look for as a promoter are plugs from more well known artists. This is one of the best ways for future fans to find out about an artist and there have been multiple examples of this recently in the industry.

Most people probably wouldn’t have the catchy “Call Me Maybe” song stuck in their head all day if it wasn’t for Justin Bieber. Not only did he support her through twitter, but he and his friends also made a YouTube video that has had over 43 million views. Additionally, without Taylor Swift and Adele it’s hard to say when The Civil Wars’ career would have taken off. While they may have surfaced to stardom on their own accord, without the support of Taylor and Adele it’s likely they would still be somewhat unknown rather than a grammy winner.

The success of these artists and others like them just goes to show the difference a referral can make. 

- Lisa - 

Lights Out at The Apollo!

No, the famous theater where renowned artists such as James Brown, Stevie Wonder, and Michael Jackson have performed is not closing its doors. But last night, during Justin Bieber’s private show there was a power outage. Initially Bieber and his crew were told it would only last a few minutes, but when it stretched more than 40 minutes he started to get a little frustrated. Probably most irritating was that the show was being taped for an NBC special that was supposed to air later this week as a promotional push for his new album “Believe.”

Perhaps the most amazing thing about this moment was Justin’s reaction to the situation. While most artists may have refused to go back out on stage and blame The Apollo for everything, he chose to go back out on stage. He chose to create a memorable moment for all of his fans in attendance that night. According to his manager Scooter Braun, Justin walked back out on stage and quieted the crowd and said, “I’m sorry the power is out, but you guys have always had my back. I’m going to sing ‘Boyfriend’ and you’re going to sing it back to me."

(Tweets from Justing Bieber and Scooter Braun after the show.)

As you can see from the video, his fans were anything but upset about the situation. The entire crowd was singing along while Justin and his dancers performed for them. While Justin could have just left the stage and refused to go back on, he decided to support his fans like they have supported him. I give credit to Justin because he truly understands the relationship between him and his fans. As an artist it’s important to remember who helped you get to where you are. Without loyal fans, like Justin’s, an artist cannot hope to make it in the industry. It just goes to show that as Braun stated in an interview after the show, that although he has been doubted in the past, “He is a great artist and entertainer and tonight he showed that.” 

  

- Lisa - 

Are Hologram Concerts the Future?

Snoop Dogg performing with Tupac (2pac) at Coachella 2012

If you have been living under a rock and have not yet heard about the Tupac hologram, then the first thing you need to do is check out the video of what has created such a buzz in the concert industry.

On April 15, 2012 Dr. Dre and Snoop Dogg took to the stage to perform at the Coachella music festival in California, but little did their fans know that legendary rapper Tupac (2pac) Shakur would be joining them on stage. No, Tupac is not alive and in hiding as some rumors say, but he was brought to the stage as a hologram. This performance was the most talked about event of Coachella, sparking many debates and even deliberations of future performances.

While some were confused and even uneasy about the Tupac (2pac) hologram, most people were excited about what this meant for the concert industry. If Tupac could be resurrected as a hologram, why couldn’t other artists be brought back to life?  Such questions have sparked interest from the estates of other deceased artists including Jimi Hendrix, Marilyn Monroe, Jim Morrison, and Elvis Presley. According to an article published on Billboard.biz, Digital Domain Media Group, the visual effects company that created the Tupac hologram, has signed an exclusive deal with Core Media Group to create a hologram of Elvis for various entertainment projects. While the showing at Coachella inspired the “Presley Project”, the creators plan on taking a different approach. Rather than using old footage and repurposing it for the hologram, Digital Domain plans on giving Elvis fans a completely new experience.

So are full-length hologram concerts the future of the touring industry? What does this mean for concert promoters? And what does it mean for current artists? At this point it’s hard to tell. Some promoters believe that these virtual appearances will become a bigger concert industry trend in the near future, but as guest appearances rather than a full-length concert. While some fans may be excited to see a full-length hologram concert of artists like Elvis, Jimi Hendrix, Marilyn Monroe, and Jim Morrison, I feel these virtual performances will eventually loose their thunder. As a promoter and a concertgoer, I believe there is nothing that can compare to experiencing your favorite artist live and in the flesh. But for now we will just have to wait to see what the future holds for hologram performances.

- Lisa -

Legal Responsibility

The concert industry is no different than any other when it comes to legal liabilities. As a concert promoter it is important to be prepared for and aware of liabilities in which you would be held accountable. Awareness of these issues will lessen your accountability and help to ensure that the artist, the venue, and especially the concertgoers are safe while enjoying the event. 


When is comes to planning and promoting a concert it is important to think of everything that may go wrong. First off, take a look at where the event will be held. Will it be in a venue or outdoors? The liabilities are going to be very different between the two. When promoting a performance at a venue it is essential to think of things such as security personnel and an evacuation plan incase there is an incident. With an outdoor event not only do you have to worry about security and an evacuation plan, but you also have to be concerned about weather and the durability of the stage. This is a big issue that came up in the 2011 concert season. There were numerous outdoor stage collapses last year, but most notable was the collapse of the stage on which Sugarland was to perform at the Indiana State Fair. There were many contributing factors in the collapse of the stage, which killed 5 people and injured dozens that could have been prevented or at the least minimized. 

Now, almost a year later, the stage builder, concert promoter, tour manager, fair officials and even Sugarland are facing legal liabilities. An article from ABC News Online reported last month that the construction of the stage was inadequate and the emergency plans were lacking. As a concert promoter, especially when dealing with outdoor events, the construction of the stage and an evacuation plan are extremely important to protect the safety of the fans as well as the artists. Had the organizers of the performance created a plan incase of adverse conditions they could have avoided the massive lawsuit that was filed against them on November 22 of last year.


As I stated previously, no matter if the event is indoors or outdoors it is important to have sufficient security on the premises. This will not only protect the artists performing, but also ensure the fans are safe. There have been numerous incidents in the past where unruly crowds have taken over concerts. One in particular that comes to mind is a teen from Boston who was injured during a Tim McGraw concert last July. There are not many details on the event, but according to witnesses the teen was attacked by at least 2 men at the concert. I’m unsure if there was a criminal case or a civil lawsuit filed, but as a promoter it is important to understand that if an incident like this happens at your event you could be held liable. When dealing with crowds, having enough security to isolate an incident and prevent any injuries or damage is a necessity.


In addition to the fans becoming unruly, you also have to be ready incase your artists become unruly. Many artists and bands like to participate in crowd surfing, which could end up as a lawsuit to the artist, the venue, and the promoter. If you do not take the proper precautions when it comes to security and safety, you very well could end up like the promoters who were served a lawsuit after Akon dove into a crowd during the B96 Summer Bash in Chicago. Akon was not listed in this particular suit, however, the radio station sponsoring the event, the village where it was hosted, the security company, the venue and the promoter were all accused of being neglectful for not responding to the situation and not setting up proper safety measures. 


The most important thing to remember is that as a promoter, you’re responsible for the safety of the people at the event. Promoters need to work hand in hand with the venue and artists to make sure that the site is secure and that everyone involved is focused on a safe and successful event. You can never plan too much. Work with your team to brainstorm and create a risk management plan. Share the risk management plan with the venue and artists so that everyone is on the same page in case of an emergency. In the long run this could save you time and money, and help you avoid a lawsuit.

- Lisa -

Live Nation Entertainment - Not Only a Concert Promoter

Live Nation Entertainment

Now you may know Live Nation Entertainment is the largest ticketer, largest concert promoter, and even a venue operator.  What you may not know is that in addition to all of that, they also have a division of artist managers. Although Live Nation has been managing artists for some time with Front Line Management, they have only recently taken over control of the leading artist management company by purchasing the remaining 25% of stock that they did not already own. In February of 2011, when Live Nation acquired Front Line Management, they also acquired over 250 clients including artists such as the Eagles, Jimmy Buffett, Neil Diamond, Christina Aguilera, Kenny Chesney, Fleetwood Mac, and Journey.

Irving Azoff (twitter: @irvingazoff)

With their primary business in concert promotions, Live Nation also has an edge up on the artist management competition because of their venue operations and ticketing ability. Not only will Live Nation manage the artist, but they will also book them for performances at one of their many venues and then sell their tickets exclusively through Ticketmaster (which was acquired through a merger in 2010). For an artist working with Front Line Management this may have seemed like a great deal, except for the fact that because of the declining economy Live Nation, at the time, was trying to maximize their profits by cutting costs and the pay of touring artists. However, at the time Live Nation purchased the remaining stock of Front Line, they also named Irving Azoff (the chief executive of Front Line Management) chairman of Live Nation in hopes that he would help the company stay on top of the declining economy.

Today Front Line Management continues to be the world’s top artist management company, managing more than 250 artists including Jennifer Hudson, John Mayer, Avril Lavigne, Van Halen, and Aerosmith. They are able to give artists a full package when it comes to management. Front Line will manage their careers and concerts will be booked at one of their many venues, which Live Nation will promote. Their tickets will be sold through Ticketmaster, and at those concerts they will sell artist-related merchandise.


- Lisa -

Interview with Event Manager Eddie Padua on Negotiation

Negotiations are an important part of any business or industry. In the live entertainment industry negotiations can make or break you. For that reason it is imperative that you know how to handle yourself in a negotiation. When you have an upcoming negotiation, one of the most important things is your preparation. Recently I spoke with Eddie Padua, an event manager in Orlando, Florida. He stated, in our interview, that it is important to be knowledgeable about the topic of the negotiation. However, at the same time you must be mindful not to over think anything. When you meet with the other negotiator you don’t want to be completely caught off guard when a question comes up that you may have over looked. Padua said in the interview that, “staying stress free also helps” when preparing for a negotiation. Everyone is going to have a different way of alleviating stress before or during a negotiation, but my personal preference is running or exercising. Finding a way to relieve stress before the negotiation will help you keep your cool in the negotiation.

Another important part of negotiating is knowing the outcome desired by you and the outcome desired by the other party. When you know what you both want out of the negotiation it is easier for you to know what leverage and power you hold and how to use them. Padua suggests that in addition to being knowledgeable about the topic of the negotiation, you need to know what you’re good at in order to use those skills to your advantage. Knowing what talents you possess will also aid in the negotiation if you are faced with a negotiator who is playing hardball. Padua stated in the interview that “playing hardball with someone is always annoying, but it’s not always a bad thing.” What you really have to work on is keeping your composure and not allowing them to get under your skin. When dealing with a negotiator who is playing hardball, letting your emotions get to you will never help you earn their respect or most importantly come to a mutual decision. Padua advises going into the negotiation prepared with a positive mindset. This will help you handle any negative emotions that come from playing hardball or using dirty tricks and tricky tactics in the negotiation.

The moral of the story here is that no matter what the industry, negotiations play a major role when it comes to business. You need to prepare as much as possible, find a way to alleviate stress, and take time to practice your negotiation skills.

- Lisa -

*I would like to thank Eddie Padua for agreeing to the interview as well as supplying some excellent advice!

Who's Really to Blame for High Ticket Prices?

A majority of individuals and households have chosen to drastically cut their entertainment spending due to the economy. And with the rising cost of tickets, concertgoers have no choice but to limit the number of performances they attend. Although many blame promoters, ticket sellers and artists for the rising cost of prices, ticket brokers and resellers are often the causes of drastically rising ticket prices. While some artists are concerned about making money and raising their prices, Eric Church is looking out for his fans by offering cheaper ticket prices and special discounts for his “Church Choir” fan club members. But this strategy of offering cheaper tickets has backfired due to ticket scalpers.

In a recent article on Billboard Church said that for his latest tour they were trying to keep ticket prices for the GA pit and front row reasonable and accessible to fans. Members of the “Church Choir” were allowed to purchase 8 low priced tickets at a time. However, as ticket brokers joined the fan club and purchased large amounts of tickets under multiple accounts some fans ended up paying between $200 and $400 for those very same tickets. In addition to penalizing the fans with higher prices there are around 500 to 600 tickets (according to Billboard) outstanding in the hands of these high priced ticket brokers that very well could cause Church’s performances not to sell out.

After realizing that scalpers were purchasing a majority of the tickets, Church’s team began looking at all of the purchases and trying to pin point the resellers. They have also updated their fan club membership policy to state, “If you’re reselling tickets, it’s grounds to cancel your membership.” While this policy change might slow down the scalpers as they search for a way around the system, it won’t stop them. As Church says, “They are just some slimy sons of bitches.” 

www.ericchurch.com/tour

So for now all that Church’s team can continue to do in the fight against scalpers is review the ticket sales and fan club members. Additionally, in the future they plan to use the tools Ticketmaster offers to help stop scalpers from purchasing the tickets to help keep the prices reasonable for the true fans.

- Lisa -