Module 3 Ch. 2 Making Money on the Road
recoupable income
Earnings that are given back to the investor, such as album advances.
Which sponsors have the right to deny another product or service sponsorship rights? (pg. 38)
Endorsement deal sponsorships
Explain the different types of corporate sponsorships that a touring act might secure. (pg. 37)
Endorsement deals from gear manufactures, cash sponsorship, media sponsorship, marketing, etc
Reserved Seating (pg. 35)
Gives fans their OWN piece of ''real estate'' for the entire show, are worth more than general admission.
scaling (pg. 32)
Offering multi-tiered pricing for tickets.
Describe how ticket prices have changed over the past thirty years.
Between 1975 and 1996, concert ticket prices increased less than 2% when adjusted for inflation. There was a rapid increase in ticket costs between 1996 and 2007.
How have prices for films changed in comparison to concert tickets?
Between 1975 and 1996, film ticket prices increased 37%.
Give an example of a cash sponsorship that a touring ACT might secure. (pg. 60)
Black Eyed Peas' $1 Million sponsorship from Honda Civic (2006).
What is the major drawback of tour sponsorship? (pg. 37)
Labels are becoming increasingly involved in touring revenue with arrangements such as 360 deals.
Give an example of a media sponsorship that a CONCERT PROMOTER might secure for a show.
Marcie Allen Cardwell created John Mayer's Blackberry sponsorship deal.
Sheds (pg. 51)
Musical styles and a party theme into becoming "lifestyle"events that play well in outdoor amphitheaters, commonly referred to as this in the industry (stadiums and festivals)
What is tour support? (pg. 38-39)
Record labels historically invested significant financial resources toward new acts' touring efforts.
List the different types of venues and their respective capacities. (A description of the different sizes and types of venues is treated in more detail in Chapter 3.) (pg. 31
Small to large clubs (less than 100 to 2,000 capacity) ballrooms (800-1,500 capacity) theaters and performing art centers-PACS (2,000-8,000 capacity) auditoriums (5,000-10,000 capacity) mid-sized arenas (10,000-15,000) large arenas (15,000-20,000) amphitheater (10,000-20,000 capacity) stadiums and grandstands (15,000-100,000) motor speedways and other alternative venues (100,000-plus)
What are some of the products sold as merch? (pg. 36)
T-Shirts, key chains, leather jackets, concert cd etc.
Who has most control over the cost of a concert ticket. (pg. 31)
The headlining act's manager, business manager, and promoter.
Why is label tours support for an act not considered income from touring? (pg. 39)
Tour support from a label is more of a loan and must be repaid.
Gold Circle Seats (pg. 32)
Usually less than 10% of the house, which are the closest and the highest-priced tickets available.
General Admission (pg. 35)
When patrons are NOT ASSIGNED a specific seat in part or whole.
merch rate (also referred to as hall rate or house rate) (pg, 35)
Where bands must pay the venue a percentage of gross sales for the right to sell merchandise on site. Ranges from less than 10% to 25% or more.
Give an example of an in-kind tour sponsorship that an ACT might secure. (pg. 37)
Zakk Wylde's endorsement deals with such products as tuners, microphones, amps, guitar strings, wah-wah pedals, and speakers.
Merchandising (pg. 34)
aka merch the MOST IMPORTANT revenue stream for artists. For superstar acts, these sales can be worth millions of dollars on a tour.
Name the three major sources of income that a touring act might earn (pg. 29)
1. Ticket Sales 2. Merchandise Sales 3. Sponsorships
per caps (pg. 34)
aka per capita per head spending
What is the general range of house rates? (pg. 35)
less than 10% or 25% or more