Touring

List the factors that determine the price of concert tickets

artist tour history, airplay, sales/streaming, social, artist fees, cost of production, size, type of venue (seated vs. standing)

promoter recoups expenses through revenues earned _______________

at event

Fee of booking agent

10% of the artists gross for live performances

Sof goods (t-shirt) % of merch fee? Hard good percentage of merch fee?

10-30, 0-20

average merch sales per head? above average? superstar?

3-5, 6-9, 8-10

National tour?

30 date US tour (6 weeks), 5 shows per week

secondary tickets market worth ________ billion

4.5

average markup of tickets on the secondary market is _________% over face value

40

__________ percent of touring revenue comes from the Top 100 US touring acts, this is ______ percent of the shows

45, 8.5

________ percent of top touring acts are over 55 years old. Appeal to ______________ demographics.

50, baby boomer

What percentage of ticket sales should promoter establish in their budget for the show?

60%

performance fees are typically _________% of gross

60-70

What is a straight split of door deal?

60-70% of gross (no guarantee), minimal risk by promoter

Live Nation and AEG Live combine for over __________% of annual US concert revenue

80

What percentage of shows encompass top 100 tours annually?

80%

Growth of US Festivals -________+ music festival/events produced in US -______ million people attend music festival each year in the US -About ______rd attend 2 or more festivals annually -Travel ________ + miles on average

800, 32, 1/3, 900

US average concert ticket prices from 2015 to 2016 rose _________%

82

_________________ is the second largest concert promoter in the world.

AEG Live

Economist __________________ "Rockonomics" (2205 -studies rising _______ of concert tickets -Between 1975 and 1995 concert ticket pricing only increased ____% over the rate of inflation -Between 1996 and 2005 concert tickets _________ -Findings (2005)-concert ticket prices rose _______% higher than the annual consumer price index

Alan Krueger, cost, 2, doubled, 45

Different types of live appearances?

Individual dates (one off), regional tour, national tour

Proposed solutions for the Primary Marketplace: (4)

Legislation, paperless ticketing, verified fan, dynamic pricing

_________________ formed in 2005 as spin-off from Clear Channel Communications. Merged with ticketing giant Ticketmaster in 2010

Live Nation

Who are the two largest concert promoters in the US?

Live Nation, AEG Live

List 3 reasons for the US Concert industry growth

More acts touring, growth of festivals, rising cost of tickets

_____________________ technology tool to ensure individual attending is same person who purchased the ticket -personal seat reservation secured electronically -ticket purchaser required to show ID -Combats: ____________, _________________, __________________

Paperless Ticketing, scalping, counterfeiting, lost/stolen

List some examples of touring conventions

Pollstar Live, Billboard Touring Conference, South by Southwest (SXSW)

What are the three income streams of the music industry?

Recorded music, publishing, live performances

Role of booking agent?

Scheduling of personal live appearances, contracts with venue via talent buyer and/or promoter, most difficult member to secure on the artist's professional team, contracts not usually in tact

Why are there more artists touring? (5 reasons)

Technology: no barrier to entry -digital recording platforms -more releases -self-marketing -self-booking

Name booking agents?

WME, creative artist agency, paradigm

Does touring follow the feast or famine principal? Why or why not?

Yes, it resembles the recorded music model the top selling acts determine health of the touring industry

Are tickets generally underpriced in the US? Why?

Yes, promoter sells under so people show up (they make money on complementary items like parking, concessions etc.), artists underprice to not gauge their fans and keep them

Why are concert tickets set below the EQ price?

accommodate sale of complementary goods, maintain popularity/protect future income, demand uncertainty

What are some of the promoter's considerations?

advance tickets, deposits, ticket buy, guest list, free tickets, billing, recording restrictions, march splits

list some reasons for demand uncertainty

aggregate demand (weather for outdoor event), individual demand (not able to commit in advance)

dynamic pricing is also present in the _______________ industry

airline

Concert tickets are set __________ EQ price (demand is greater than supply)

below

Difference between booking agent and concert promoter?

booking agent represents the artist, concert promoter represents the venue

Growth of Secondary Marketplace Ticket supply is limited -________ obtain tickets -consumers willing to pay high price for access to __________ -consumers willing purchase high price tickets from a __________________

bots, best seats, reliable source

What does a tour manager do?

responsible for coordinating travel, lodging advancing shows, production and budgeting

what does a guitar tech do?

carries gear, counts in or sets up merch, tunes guitars, drums, etc.

what does a roadie do?

carries gear, sets up stage for production

What is routing?

city to city mapping/direction of tour, 350 mile max between cities/shows

List the different types of venues

club, small theater, large theater, arena, amphitheater, stadium

The principal source of live concert income for an artist is the fee paid by the __________________ in consideration of the artist's performance

concert promoter

What are complementary goods for a concert promoter?

concessions, parking, merchandise

what does production manager do?

coordinates all production for tour, usually Brough on for larger tours, may travel ahead to next tour date to facilitate set up

Items in a performance contract?

date and time, definition of performance, location, compensation, recording/reproduction, photography rights, right to sell merchandise, rider, permit, license and taxes, cancellation, insurance and security

The key in dynamic ticket pricing is __________________ -variables: genre, venue, event, section, row, consumer segment -make optimal inventory allocation decisions

demand forecasting

Lower ticket price= increased _____________ and maximize _________________ revenues

demand/sellout, complementary/ancillary

_______________ Pricing -time-based pricing -form of price _______________ -"price discovery"-buyer and seller identify _______________ amount consumer will pay -increase profit by capturing consumer surplus -secondary market thrived under this premise

dynamic, discrimination, highest

Income from publishing?

exploitation of copyright

roles of accounting/finance in touring?

financial reports, taxes, etc.

Different type of deal between artist and promoter?

flat fee, door deal, straight split of door, versus deal, plus deal

What is a flat fee?

flat guarantee (no additional performance revenue), common in support act, festival act

______________ economic theory- price determined by open market

free market

Market price equilibrium: price where quantity of _______________ is equal to quantity of _____________.

goods supplied, goods demanded

What is a plus deal?

guarantee blue backend (also called overage), flat fee plus percentage of ticket sales after split point

What is a versus deal?

guarantee vs. percentage of the door (whichever is higher)

role of assistant talent buyer?

handle telephone calls, emails and assist TB Buyer performance offers, create and distribute reports and execute and distribute performance agreement

What does a road manager do?

handle the day to day activities of the tour, equipment, merchandise, production, transportation and personnel, on smaller tour: road manager is tour manager

what does a rider contain?

hospitality, meals, transportation, lodging, technical info, production (stage plots, input lists, rider)

Regional tour?

i.e. east cost run (Boston, NY, Philly, DC)

List four touring growth concerns

lack of artist development today, singles market, transient fan base, little brand loyalty

What is touring?

live performances in a music venue

roles of production manager at music venue?

manages production at venue, coordinates with artist production team

Other related sources of income for the artist and promoter during a tour include:

merchandise, sponsorship, parking, concessions and ticketing

roles of sound tech at music venue?

mixes live music

What are some of the touring/routing opportunities for an artist?

one off, regional tour, national tour, residency

List the different types of touring opportunities

one offs, residency, regional, national

What is a one-off?

one show and return home, local act

estimate __________ of all popular concert tickets are purchased on the secondary ticket market

one third

roles of venue manger at music venue?

oversees operations at music venue, hires staff and provides financial reports

What is a door deal?

percentage of door (poll at door), minimal risk by promoter

Income from live performance?

performance fees

roles of marketing in touring?

place ads via radio, online, newspaper and TV to promote show, issues press releases for event pre-coverage, coordinates street team promotions (flyers, social)

What is a residency

play same day of week for a month, local or developing act

role of talent buyer?

procures talent for venue (liaise with booking agent)

roles of sponsorship/sales in touring?

procures venue sponsorship, administers sponsor activation on site

artists/agents set prices below the ______________________. Artists make up for short term losses with future revenue

profit maximizing level

________________ assume full risk for concert, financially Expenses include: (5)

promoter, artist fees, venue rental/mortgage, advertising/promotion, security, production

________________ hires artist to perform at concert venue ___________________ represents artist to secure live performance

promoter, booking agent

federal law does not prohibit ______________ of concert tickets

resale

state law-benefit from ticket ___________ -altered ticket legislation to improve the economic wealth of the state

resale

what does the sound technician do?

responsible for mixing sound during live performance, load/unloading gear, set up equipment and instruments, larger venues: two mixers, front of house and monitors

Income from recorded music?

sale of albums/songs, streaming music

Disequilibrium pricing creates excess demand, leading to __________________

scalping

TOURING GOALS YESTERDAY: tour to __________________________ TODAY: Tours to _____________________

sell records and tickets, make money to offset lack of sales of recorded music

what does a merchandiser do?

sells and settles all march sales, carries gear

Benefits of Dynamic pricing?

significantly improve ticket sale volume for events where interest is low, reduce the number of tickets resold on the secondary market

anti-scalping laws vary _________ to _____________

state, state

What is the secondary ticket marketplace and why does it exist?

stub hub, Ticketmaster, exists because tickets are underprice and they know supply and demand

__________________ is the first major online secondary ticket agent; sell tickets exclusively on-line as a ticket reseller -owned by _________ -world's largest secondary ticket marketplace

stubhub, ebay

What is a contract riders

technical and personal requirements of artist by the agency, promoter has to fulfill

What are the promoters cost and pricing considerations when putting together an offer?

ticket price, capacity, artist fees, expenses

Promoter profit sources?

ticket sales (15% commissions after break even point), complementary revenues (parking, merchandise, concessions)

List the jobs for people on the road with artists

tour manager, road manager, sound technician, production manager, roadie, guitar tech, merchandiser

How is live music revenue trending in the US over the past 15 years? Reasons for growth?

trending up due to rise of festivals, increase in ticket prices, more touring artists

List music venue positions?

venue manager, production manager, sound tech, bartender, door person/security

Is the touring industry predicated feast or famine principle?

yes, top 100 tours is 40% of the industry