SOLD-OUT - The Real Cost of a Concert Ticket

So I'm out to dinner with a concert promoter.  He can't understand the adversarial relationship between promoters and acts.  According to him, the promoter is the band's BEST FRIEND!

Think about it.  Who else is going to invest so much money in the band's career?


That's what we've come to.  The labels are bankrupt, if not financially, artistically.  The acts they build can't sell tickets and they don't want to invest much.  Let's make it simple.  If you make Top Forty music, the label will put money into you, but fans won't come see you live, because they don't believe you're real, they know your record was made by committee, the same people who make all the other Top Forty hits.

No, fans want to see credible acts.

And the only people paying these acts is the promoter.

Classic acts can't sell a record.  So the promoter is their only source of revenue.

Most new acts can't sell tracks because they're not exposed on radio or TV, they depend on the promoter's bucks.

So why is there such an adversarial relationship between acts and promoters?  Why is the person paying treated with so little respect?

The act is paid a guarantee, oftentimes exorbitant, and dictates ticket price.  The promoter knows you can't charge $49.50 plus surcharges for a lawn ticket, but in order to meet the act's demands, that's what you end up with.  And the customer says no and the act won't help the promoter sell tickets by dropping the price.  This is a business?

Actually, it's fascinating looking at the landscape.

There's the occasional instant superstar, like Lady GaGa.  But most of the instant arena acts don't last.  If you think Justin Bieber will continue to sell tickets, then you've never heard of the Jonas Brothers or Miley Cyrus.

And it's so hard for acts to develop.

Maybe, just maybe, the concert promoter is about to become king.

Last year was instructional, sure, Live Nation's income took a hit, but so did Sarah McLachlan's credibility.  Play to empty seats and suddenly no one wants to see you again.  Like my buddy Don Fox says, let the acts play to empty seats, that'll revolutionize this business.  You'd be surprised who doesn't sell out, despite the ads trumpeting the unavailability of tickets.

He with the money ultimately wins.  When are concert promoters going to realize this?  When are they going to learn to say no instead of yes?  Robert Sillerman rolled up the old promoters into SFX fifteen years ago.  Isn't it time to stop overpaying to keep the ball rolling?

Sure, Live Nation's stock would nosedive if they started saying no, but that's the best way to realign this business.  This promoter talking to me tonight used the NHL as an example.  The league shut the doors, they just couldn't make money with the financial system in place.  The players said they could construct their own circuit.  But they couldn't.  They could play in Europe for less and they ultimately came back to the bargaining table with a realistic concept of what they were worth.

We need to do the same in the concert industry.  Promoters need to stop paying so much to make so little money.

And promoters must be able to promote.

This promoter tonight talked about making a guarantee.  TO THE CUSTOMER!  If you don't like the show, you can leave before the third song and get all your money back.  At these prices, we've got to give people insurance.

And we've got to lower the prices.  Because who can afford them?  You can go to one show a year.  And that's not healthy for our business.  Suddenly, concert attendance is like going on vacation, a once a year event.

We don't want concert promotion to go the way of recorded music.  Somehow the labels didn't realize that it was best to get everybody paying a little for a lot, especially when they participate in 360 degrees of revenue.  Allow people to check out new bands and they might go to a show, and buy a t-shirt.

Actually, that's what's truly happening now.  Word on the new acts is spread online.  You can hear their music for free on YouTube.  Tickets are cheap.  You go because you want to be part of the collective, you want to be first.  This is the way the business used to be, before grosses were trumpeted in newspapers and greed killed the paradigm.

You've got to set the promoter free.  He's got to be your friend.

Why should an act trust Doug Morris or Jimmy Iovine or Lyor Cohen yet abhor Michael Rapino and Randy Phillips?  Michael and Randy are paying the acts more money, and will continue to do so long after their record contracts have expired.  And good luck getting those record royalties you're due.

Bill Graham promoted shows.  And people came to his concerts because he was promoting them.  That's the power of a great promoter.

It just can't be a banking deal.  Because acts are relying on the promoter to sell tickets.  Without radio or TV, who else can do the job?

-Bob Lefsetz

THS Footnote: When Ticketmaster and Live Nation merged last year, there was much hope that seeing a concert by your favorite act wouldn’t cost you a few days work anymore. But as Emily Dickenson wrote, "Hope is the thing with feathers" ...although I don't think the metaphor was meant "to fly away"!

2010 Most Expensive Concert Tickets

U2 $250 

Roger Waters $250 

Eagles $250 

Neil Young $250 

Jimmy Buffet $128 

Tom Petty $105 

Crosby, Stills, Nash $99 

Rush $97 

Robert Plant $95 

Dave Matthews $75 

Heart $75 

ZZ Top $69 

Steve Miller $69 

Lynyrd Skynyrd $64

GaGa's Got It!

Lady Gaga. Now that's a rock star.

A rock star is not someone with money who flies in a private jet. That's a banker.
A rock star is someone who speaks from the heart and puts her fans first.  Who won't do anything for a buck.  Who uses her bully pulpit to highlight injustices and lobby for change.

Come on, in an era where everybody is greedy and handlers tell you that you can't make it without tying up with corporations GaGa leaves money on the table?

In order to succeed in this business, for more than a few moments, you've got to stand for something more than money.  Or else you're seen as a chump in the endless parade we laugh at.

Oh, we're laughing.  Don't you read TMZ?  That's the Internet era.  We make fun of the famous, they need attention, they were the drama queens in high school who didn't get the acclaim they deserved.  And too often are of limited talent.  Meanwhile, the faceless fat cats behind them laugh all the way to the bank.  The execs keep their jobs, curating the endless parade of wannabes.

Wanna know why classic rock is classic?  Because in that era rock stars were leaders.  You listened to them if you wanted to know what time it was.  And they were beholden to no one but themselves, not even the label.  They had contracts wherein they could record the music themselves at a location picked by them with a producer of their choice and deliver an album that the label was required to release.  Those were the good old days.  Before the execs started believing they were the talent.

Sure, GaGa is on Jimmy Iovine's label, but when was the last time Jimmy took a stand for anything but money?  Good business breaking Beats headphones but is that what the world really needed now?  No, the world needs leaders, and Jimmy is championing wannabes on "American Idol".  That's heading in the wrong direction.

Who is going to hold Wall Street and the corporations responsible?

THE ARTISTS!

They're the ones with the power.  Which they've abdicated in this decade where you can do it all yourself and all they can do is complain that they're not making enough money.

This is not the first time GaGa has taken a stand.  She also voiced her opinion against the "Don't ask, don't tell." policy.  And lo and behold, it was eviscerated.

It's not about results today, it's about results eventually.

But everybody wants their money today.

It's not about that Target exclusive today, it's about your CAREER!

That's how you truly make money in this business.  When you're no longer signed to a label, when radio isn't interested and you're supported by fans.  Who keep you alive on the road, who buy your new music.

GaGa knows who her fans is.  She's been playing to her Little Monsters since Day One.

Maybe because she's so much like them.  Not classically beautiful, struggling.  She didn't forget where she came from.  And they love her for it.

You want to make it?  Stop complaining you can't get paid.  Stop complaining how hard it is to make it.  GaGa got dropped from a previous label.  She struggled.  It all wasn't peaches and cream.

Meanwhile, now that GaGa's paved the way, can't some of the other artists out there take a stand?  You think you're alienating people but what you're really doing is bonding your core to you, and we all know it's about the core.  Stand for something or you don't stand for anything.  Pick your issues.  And know that you've got power.  And it's your turn to lead.

Bob Lefsetz

Notes

By Bob Lefsetz

I want you to watch this, you'll learn more about the music industry than you will in four years of college. You'll see why Jimmy Iovine wins.

JIMMY'S VIDEO


He's smart.

And he's a motherfucker.
What did John Hummer so famously say? "Before they close Napster they'll have to pry it from my cold, dead fingers." Well even though he played in the NBA, Hummer couldn't win in this street game. You don't fuck with the music industry. They're not gonna give up with a fight. It's not about the music, it's about the MONEY!

Jimmy rewrites a bit of history here, but what he exudes more than anything is confidence. And if you're an artist, if you want someone to fight for you, you want the most confident guy on the block. Jimmy's confidence and track record ensure that he continues to win. Will he continue to win in the recorded music realm?

I believe he's been in it so long that he doesn't know what he doesn't know. All these guys who grew up in the pre-Napster era think big, too big. It's about marshaling money to open lanes and drive music into the heart of America. But so many Americans are no longer listening. The days of the country being glued to MTV are done. Now everybody is living in their own niche.

Not everybody...

Jimmy's got experience and rights on his side. Rights ensured that he beat Hummer. But so busy teaching everybody a lesson, the music industry lost touch with its audience. It's now about trust and honesty. And if you ask me, Beats headphones don't sound that good. I'd go for Sennheisers any day.

But Sennheiser thinks quality is enough. Give Jimmy credit, he created a whole new genre, upscale headphones when the market for such was moribund.

That's the power of music, that's the power of Dr. Dre.

Listen to Jimmy tell the tale of breaking Lady GaGa. When he talks about beats you realize he knows a thing or two about music.

But he's old school. Old school is about using leverage to convince. Bending rules.

New school is about leading with quality and building behind that, however slow it might go.

Whereas Jimmy wants it fast.

Now it sounds like I'm decrying Jimmy, giving him shit.

But that's not my intention. I just want to paint the other side. Because watching this video Jimmy Iovine scared me. He did not tone down his personality for public consumption, this is the real guy, mess with him at your peril.

(Meanwhile, the video may be a year old, but in the new era everything lives on online, just waiting to be discovered. Watch to the end where Jimmy talks about the industry giving advantages. New services are not going to succeed on their merits, the music industry, the old rights holders, are going to decide who to enable. And they're gonna go too slow and they're gonna get it wrong more than right and they're gonna charge too much money but to say that Jimmy's got no idea what's going on in the modern tech world would be wrong.)

P.S. The volume on this video is low, don't let that deter you from cranking it up and listening.

THE TIRE IRON AND THE TAMALE

This is SO good, I want you to stop what you're doing right now and read it.

It's all about people, not money. Would Jimmy Iovine stop and help the disadvantaged if there was nothing in it for him? I doubt it. But I don't want to single Jimmy out, too many of today's winners are so busy winning, they can't stop and help those who are losing.

And sometimes it's just not your fault. You get sick. You have an accident. Then you learn who your friends really are.

I've got no statistics. But I will tell you I've always found those with less are the ones you can count on most. Sure, rich people can throw down their money, and that's great, but society is based on humanity. Can you really reach down and help your brother?

This is an amazing piece of writing. Irrelevant of where you stand on immigration, read it.

More Banter from Bob...

The Oscars

By Bob Lefsetz


Where's Steve Stoute when you need him?

So they hire Anne Hathaway and James Franco to appeal to the younger demo but end up with a traditional show that youngsters don't care about. No wonder the Oscar telecast is in trouble.

To a youngster a movie is "Iron Man 2". A roller coaster ride outside the home where you can make nerdy jokes with your buddies or feel up your girlfriend. The concept of film as art is completely unknown to this demo, because producers have pandered to them for so many years. Where are the flicks detailing teen angst? Abortion... Oh right, that's a no-no. Or unrequited love? Instead we get lowest common denominator tripe and that which is so broad it can play around the world, with subtitles in not only Hebrew and Arabic, but Swahili and Tongan. And even the most casual fan of art knows that if you try to appeal to everybody, you end up appealing to almost nobody.

In other words, the best moving pictures are on television, where it's all about the story and special effects take a back seat. There are fewer prima donnas and with lower costs and more production there are more risks. This bodes poorly for theatrically distributed movies. Even Harvey Weinstein realizes the jig is up, he's now producing for television.

And would "Social Network" have won if Harvey had produced it? Or even the aforementioned "Iron Man 2"? Insiders don't believe the best film wins, but the best promoted. And outsiders just don't care.

In other words, the Oscars are no longer mainstream.

They retooled the Grammy show. They got rid of the classical and made it all about pop performances, what the people want to see. But the awards themselves are still confusing. If Justin Bieber and Eminem are such stars, how come they don't win?

I'm not saying they deserve to win. But the interesting point is the public's perception.

In music, youngsters believe most music is overproduced commercial crap. But with distribution barriers so low, there's a burgeoning indie scene. Mumford & Sons not only gets on the Grammy telecast, they have one of the best-selling albums in the country. Whereas most people haven't seen "The King's Speech" and still won't. That's a circle jerk for elitists, it's got nothing to do with me.

Then there are the Golden Globes... At least they know how to throw a party. That's why people tune in. The awards are a joke, with only a handful of hangers-on voting. But you get to see the real performers, as opposed the gussied/trussed up automatons walking the red carpet. If people want to see clothes, they'll tune in to Kim Kardashian. Hell, her clan outgrossed so many of tonight's winners.

And then there are the MTV Movie Awards. They realize it's a joke. That film is all about hype and cross-promotion and prestige is for pussies. They give the people what they want, not by pandering to them, but acknowledging that they're in on the game. What exactly is the Hollywood game again?

Oh, it'll be on the front page tomorrow. Assuming the ancient newspapers have not gone to bed before the winners have been announced. Once upon a time, baseball was the national pastime. Now it's football. Why? Because baseball got ever slower and forgot about the children, playing the World Series at night. The movie business is now baseball, there's still a lot of money to be made, but it's a sideshow as opposed to the main event.

Anne Hathaway made the most with thin material. James Franco was two-dimensional. Billy Crystal's brief turn showed us that a real host realizes it's about entertainment, being warm and connecting with the audience. Is there anybody out there who doesn't think if Billy came to dinner they could ease right into conversation? What would you say to Mr. Franco?

And Sandra Bullock. Everybody in creation knows about her marital mistake yet the writers have Anne Hathaway say she's a beacon pointing the way? Huh? Talk about laughable moments.

And Francis Ford Coppola makes the biggest and bestest movie of the modern era, sorry James Cameron and Steven Spielberg, but he doesn't even get a chance to talk on camera? We could learn something from a guy who made "The Godfather", which still plays seemingly every day and is part of the national fabric, which "King's Speech" will never be.

And "The Social Network" couldn't be more now. But kids didn't go to see it. Because they haven't been trained to see this kind of picture, one that challenges them, one that makes them think. And the problem is not the kids, but the industry. Just like a music industry that purveys beat-infused crap and wonders where the audience went.

The music business has been decimated by technology and is now being rebuilt by passionate people who don't put the bottom line first. Next came the news business. Now comes the movie industry.

It's out of touch. It wants to be lowest common denominator and high brow at the same time. It talks out of both sides of its mouth. And as a result, no one takes it seriously anymore.

Oh, senior citizens still go, like lemmings to the mall in "Dawn Of The Dead". But fewer baby boomers are addicted, because they remember 1969, with "Easy Rider", "Midnight Cowboy" and "Alice's Restaurant", and just won't go to see crap.

Yes, the kids will see crap. But if there was a way to have the same experience at home, without prying parents, they'd give up the overpriced cinema in a minute.

You think the public is not smart? Then why are they abandoning 3-D at such a speedy rate?

You can never lose betting on quality. Especially today, when people know something is good instantly via modern communication techniques. And this year's winners were all good, it's just they were not in pictures that appealed to the younger generation.

Just like hit music is no longer something you live or die for, but something you bump asses to in a club, movies are disposable. And we suffer for it. Because when something is truly great, it's transcendent.

And never believe you can't be mainstream and great. Look at those Michael Jackson albums, "Off The Wall" and "Thriller".

But Michael could sing and Quincy could produce and they used the best players available after sifting through a ton of numbers to get the right material.

You can do it. You can create great mainstream art. But it's hard. And failures are usually complete. You either make history or are forgotten.

The Oscars have lost touch.

And if Harvey Weinstein is proud and laughing right now I'm crying and disgusted. I remember being addicted to the movies. Not only going every weekend, but every night! That was the thrill of living in L.A., the sheer plethora of films to see!

And the artists shooting for the stars. Speaking to me.

Now they shoot for the gutter and they don't care about me.

Oh, sometimes they do.

But infrequently.

I'm looking for that amazing visceral experience. And now more than ever it comes online from a younger generation putting excellence in front of remuneration, unlike their parents.

Yes, tonight's telecast was your father's Oscar show. Why would you want to watch that?