Chapter 9: Types of Talent Buyers
Name three things that an emerging act can garner from playing a club:
(1) Regional fan base, (2) Buzz to attract record labels, and (3) Mainstream press.
Why do acts expect a larger guarantee--flat fee to perform--for a private show than they would for a public performance?
Because other revenue streams, including merchandising and percentages of ticket sales, are not available.
Who was the most famous concert promoter in history?
Bill Graham.
Give an example of a soft ticket talent buyer:
Casino Buyers.
SFX evolved into two successive companies. Name these two companies:
Clear Channel Entertainment (CCE) and Live Nation.
Give three examples of hard ticket talent buyers:
Concert Promoters, National/International Tour Buyers, and College Buyers.
The nineties saw consolidation in many industries. How did consolidation of radio stations affect the concert industry?
Consolidation indirectly created Live Nation, the world's biggest promoter.
Describe ancillary income:
Income from areas besides ticket sales, such as rental fees, concessions sales, and parking fees.
Why did concert promoters build and buy amphitheaters in the '90s instead of arenas?
Promoters felt that they needed to get into the real estate game themselves, and amphitheaters or sheds could be built for a fraction of the cost of arenas.
Should a club promoter offer primarily 21-and-over shows or all-ages shows?
All-ages.
When did the modern day concert industry begin?
1960s.
Why might a concert promoter partner with a university to co-promote a show?
An act generally does not want to risk working with non-professionals, and schools cannot afford to lose thousands on a misguided talent buy. With co-promoting, profits & losses are shared by promoters and universities.
The textbook states that concerts became "lifestyle events" in the 1960s. What does it mean and how did this phenomenon change the concert industry?
Attending concerts became one of the primary entertainment choices for the youth culture.
How did Robert F. X. Sillerman change the concert industry?
He spent $2.5 billion buying up promoters and live entertainment producers, which he assembled under the banner of SFX Entertainment.
Why can an act typically earn more from a club show than a theater show?
If a promoter owns the club or has an exclusive booking agreement, he can often pay more than a theater because he has access to certain revenue sources.
Explain how SFX evolved into Clear Channel Concerts and Clear Channel Concerts into Live Nation:
Robert F. X. Sillerman sold SFX to Clear Channel Communications, which spun off Clear Channel Entertainment, the live entertainment division, in 2005, giving birth to freestanding live entertainment giant Live Nation.
Describe the concert scene in the mid-1960s:
Rock bands from the US and UK brought success to promoters and set the development of the concert industry in motion.
What is meant by the statement, "Most large fairs offer both hard and soft ticket (free) shows?"
The hard ticket shows are almost guaranteed to make money for the fair, which is why tickets are sold. The soft ticket shows will likely not make as much money, but can still add great value to the fair's admission price.
How did promoters change the concert industry during the decades of the '70s and '80s?
They began to build and buy amphitheaters, which were opened in most of the country's top markets in the '90s.
Why did some concert promoters buy venues in the 1990s?
To capture ancillary income that they could not access without owning venues.
Explain what a hard ticket talent buyer is:
Typically referred to as "concert promoters;" Expect ticket sales to cover the cost of buying talent in a venue, with ticket revenue being the primary revenue source in the business model.
Explain the concept of cross-collateralization:
Using big successes in major cities to make up for shows elsewhere that do not meet projections.
