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-