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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
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