ASERIBE E L P SC ION SUB S VERET TO L L U .N E F MAG H T QFOR TO I GO
BLOCKCHAIN AND NFTs 2021 IN REVIEW
107 AN ILMC PUBLICATION | JANUARY 2022 | £25 | €25
INDUSTRY PROS ON 2022 AND THE ROAD AHEAD
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IQ107 CONTENTS
INDUSTRY PROS ON 2022 AND THE ROAD AHEAD
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8 NEWS
FEATURES
COMMENT AND COLUMNS
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Index In Brief The main headlines over the last month Analysis Key stories and news analysis from around the live music world
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2021: The Year in Review IQ looks back at the trends, deals, events and, of course, the Covid restrictions that made the headlines during 2021 Leading the Way Industry leaders from around the world share their thoughts on the state of the business as we move into a new year Working on the Chain Gang As decision makers examine ways in which to maximise profit margins, blockchain technology is finding more and more users across the music business
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Stage to Screen Wayne Forte details the process behind producing his critically acclaimed Mad Dogs & Englishmen documentary Losing Control Richard Davies urges the industry to adopt a more strategic approach in its efforts to beat ticket touts Your Shout What was your best live moment of 2021?
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NEW BEGINNINGS (HOPEFULLY)
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When I first thought about writing this issue’s column, I took a look back at what I’d penned for the first issue last year. It had the headline, ‘New Year, New Variants’ and stated, “the [start] of the year has seen negative news story after demoralising statistic [and] a more infectious corona variant being dumped on us, and the general mood cowering under even darker clouds.” It really does feel like Groundhog Day. However, in saying that, anecdotal evidence seems to suggest that the Omicron variant of Covid-19 is not as destructive to the human body as the Alpha, Beta, Gamma, Delta, Epsilon, Zeta, Theta, Mu, or R.1. variants. Yeah, I didn’t know there were that many either, but it’s heartening to see that they’re no longer being labelled geographically (remember when Delta was known as the Indian variant?), which always seemed unnecessarily divisive to me. Scientific evidence has been slow to back up the hopes that Omicron is a milder version of the virus, meaning that many governments around the world have reintroduced draconian measures that have effectively shut down live music once again. But I’m wearing my rose-tinted glasses and supping from a glass that is very much half full, so I believe that not only is there light at the end of the tunnel, but the tour bus we’re travelling on is accelerating toward the light, and the great recovery is set to begin in earnest. Unfortunately, that hasn’t happened in time to allow Eurosonic Noorderslag to take place in-person, and, as you will learn on page 11, we’ve taken the decision to reschedule ILMC from early March to late April, in the belief that international travel will be easier by then. And with the UK government already relaxing pre-departure test rules and quarantine regimes for visitors, fingers crossed it will just be a matter of time before others follow suit. There will, of course, be challenging times ahead, but confidence is definitely returning, as the executives who participate in our Leading the Way interviews attest on page 24. One silver lining in the Covid cloud has been the extra thinking space that we’ve all had throughout the pandemic to evaluate our lives, both personally and professionally – the benefits of which are being felt by the pioneers who are developing products and services based on blockchain technology (page 34). And for anyone who had to furlough or who simply took some time off during 2021, our news team has compiled a helpful review of the past 12 months (page 18) to remind you of the various deals and events that made the headlines, as well as paying tribute to some of the characters we lost during the year.
ISSUE 107 LIVE MUSIC INTELLIGENCE IQ Magazine Unit 31 Tileyard Road London, N7 9AH info@iq-mag.net www.iq-mag.net Tel: +44 (0)20 3743 0300 Twitter: @iq_mag Publisher ILMC and Suspicious Marketing Editor Gordon Masson News Editor James Hanley Staff Writer Lisa Henderson Advertising Manager Steve Woollett Design Rather Nice Design Sub Editor Michael Muldoon Head of Digital Ben Delger Contributors Richard Davies, Wayne Forte Editorial Contact Gordon Masson gordon@iq-mag.net Tel: +44 (0)20 3743 0303 Advertising Contact Steve Woollett steve@iq-mag.net Tel: +44 (0)20 3743 0304 ISSN 2633-0636
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IN BRIEF INDEX The concert business digest
Tomorrowland is granted a permit for a third festival weekend in 2022, which will help to recoup lost revenue from two fallow years. Police investigate the fatal stabbing of Drakeo the Ruler at the Once Upon a Time in LA music festival. Coachella is granted a temporary restraining order against Live Nation in its trademark infringement lawsuit over a rival music event called Coachella Day One 22. Germany’s Event Management Forum presents a series of demands to government amid concerns no major tours will be able to take place in the first half of next year. UK government announces new financial support for businesses in response to the spread of the Omicron variant, which has been criticised as inadequate by live music trade bodies. Saudi Arabia’s Soundstorm festival pulls in huge crowds from around the world, according to promoter MDLBeast.
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An exclusive live-stream performance by Westlife, broadcast by Tencent’s Weixin across China, pulls in almost 28 million viewers. US Congress writes to Live Nation to demand answers over the Astroworld tragedy. Olivier Darbois is re-elected as president of French live music industry association Prodiss. Coachella Music Festival and producer Goldenvoice sue Live Nation for trademark infringement over Coachella Day One 22, which is advertised on Ticketmaster. Harry Styles is named as 2021’s top worldwide ticket seller, while the Rolling Stones had the highest-grossing tour, according to Pollstar’s year-end rankings. Veteran agent Adam Brill joins Wasserman Music as VP, fairs & festivals. Live audio tech service Mixhalo raises $24million (€21m) in a series-B funding round.
The Music Venue Trust warns that the UK’s grassroots circuit is on the brink of collapse in the wake of fresh government restrictions. The Dutch government announces €84.5m in emergency funding after extending Covid restrictions until mid-January. The number of concerts held in Saudi Arabia each year is set to rise by up to 600% on pre-pandemic levels, according to the kingdom’s assistant minister for tourism. Ticketmaster expands its presence in Latin America with new operations in Mexico and Chile. AEG-owned ticketer AXS announces the appointment of Jay Sietsema as general manager for its Swedish operation. UK-based music company ATC plans to float on London’s Aquis Stock Exchange after raising £4.2m (€5m) in its initial public offer. Ticketmaster Australia unveils a new integration enabling fans to check-in and verify vaccination status upon entry to a venue.
The UK live industry is contending with up to 50% audience no shows and widespread cancellations due to Omicron, a snap industry survey shows. Angus Baskerville, the longstanding 13 Artists director and booking agent, moves to new independent agency Pure from 1 January 2022. Korea’s first-ever metaverse gig, the K-Vibe Concert, is staged by the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization. Travis Scott is reportedly involved in an initiative to put new festival safety protocols in place following the Astroworld disaster. Primavera Sound announces its first Chilean edition, a coproduction with Rock Stgo, from 7-13 November 2022. Vaccine passports and facemasks are required in order to attend concerts in England as part of tougher restrictions unveiled by the government in response to the Omicron variant.
In Brief
Europe’s biggest ever K-Pop festival is announced for Frankfurt, Germany, in 2022. UTA confirms the appointment of Matthew Morgan as co-head of the agency’s Nashville office as part of a series of hires. Vision:2025 launches a consultation for a music industry Green Code of Conduct to provide clear minimum environmental standards for all UK outdoor events. National Arenas Association chair Lucy Noble outlines the implications of the UK government’s “Plan B” measures for live music. Live Nation launches a joint venture with Duke Concept to copromote African artists in the US. The Netherlands’ Woo Hah! hiphop festival joins forces with US festival organiser Rolling Loud. AEG Presents reveals Justin Bieber’s 2022/23 Justice world tour is on track to sell more than one million tickets. Support schemes are extended for the live event sectors in Sweden and Denmark in response to the latest coronavirus restrictions. TikTok unveils a hub of new and existing tools that will enable creators to monetise their shortform videos. ASM Global names 30-year veteran Chris Bray as its new EVP of European operations.
Creative Artists Agency promotes veteran music agents Bruno del Granado and Jeff Krones to leadership positions.
In Germany, CTS Eventim acquires regional ticketing providers in the Rhineland region, Kölnticket and Bonnticket.
A new traffic-light system comes into effect in New Zealand, determining the fate of the country’s festival season.
Ticket touts Peter Hunter and David Smith are sentenced to a combined six-and-a-half years in prison following a landmark court case.
Germany’s national and regional leaders move to ban unvaccinated people from much of public life, including live music venues.
ASM Global-managed Arena Oberhausen in Germany is to be renamed after 20 years as the König-Pilsener-Arena.
Goldenvoice brings back one of its earliest festivals, US-based event This Ain’t No Picnic.
Live Nation New Zealand links up with Dunedin Venues and local promoter Common People to launch Fortune Festival.
Oak View Group announces Bristol Street Motors as a founding partner of the Co-op Live Arena, opening in Manchester in 2023. A total of 275 Astroworld lawsuits, representing more than 1,250 people, are set to be consolidated into a single case. Vince Power Music Group announces AXS as its official ticketing partner for all its London venues after inking a new five-year deal. Eurosonic Noorderslag in Groningen, Netherlands, moves entirely online in response to the government’s latest Covid-19 measures. Foo Fighters axe a 2022 tour date due to the venue’s “refusal to agree to the band’s Covid safety measures.”
FKP Scorpio wins an injunction preventing Viagogo from offering ‘worthless’ tickets for Ed Sheeran concerts. Primavera Sound announces headliners Arctic Monkeys, Nine Inch Nails and Lorde for the firstever US edition. Live Nation announces the completion of its previously announced acquisition of Mexico’s Ocesa Entretenimiento. Australia’s Mushroom Group splits from booking firm The Harbour Agency. Travis Scott requests to be dismissed from multiple lawsuits he is named in relating to the Astroworld disaster. Primavera Sound announces Brazil and Argentina legs for 2022, after confirming Los Angeles and Chile spin-offs.
Madison Square Garden Entertainment announces that it will be taking its custom camera technology – being developed for its MSG Sphere venue – to space. Jim King warns the industry to be careful with thinking that the pent-up demand seen in early summer 2021 will remain. UK government doubles the emergency funding for arts, culture and heritage organisations made available through the Culture Recovery Fund to £60m (€72m). ASM Global appoints Nate Whitman as chief strategy officer. TEG appoints impresario Randy Phillips to the board of directors. Semmel Concerts sets up its own booking department under the name SCE Artists & Events. The Global Crowd Management Alliance, a not-for-profit group bringing together crowd managers, organisations, businesses and academics, is launched. Freight Minds, a new freight forwarding company for live events, is established. SSE Arena, Wembley boss John Drury predicts it could be at least 2024 before the arena business gets back to a “normal” calendar. Agent Steve Strange is remembered at London’s O2 Academy Brixton.
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Analysis
OMICRON RESTRICTIONS SWEEP EUROPE
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ey European markets have tightened restrictions on live music in the battle to combat the Omicron variant of coronavirus, leading concerts to effectively grind to a halt in many territories. After Germany’s so-called 2G rule (genesen for recovered in the past six months and geimpft for vaccinated) was extended to cover the whole country, measures were strengthened further on 28 December, with the closure of clubs and discos and sporting events held behind closed doors. The predicament led Germany’s Event Management Forum (EMF) to raise concerns that no major tours will be able to take place in the first half of 2022, as LiveKomm chair Axel Ballreich warned it would be a long road back for the industry to return to its former glory. “A time like the one we experienced in 2018 and 2019 has moved very, very far away,” said
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Ballreich, speaking at a press conference. “It will take a few years of development work.” The EMF alliance, which consists of five major organisations, including live music associations BDKV and LiveKomm, is calling for a tailored support scheme for the sector to run until the end of 2022 as a precursor to a five-year recovery plan for 2023 to 2028. It is also requesting a special representative for the industry in politics.
“If an economic sector is so badly affected by an economic crisis, a comprehensive special programme tailored to specific needs is required in order to save its economic survival,” said BDKV president Jens Michow. “Such a programme must then run until the end of 2022.” In Belgium, music venues have shuttered and all indoor mass events are prohibited until at least 28 January. For outdoor events, social
“People’s safety and access to our concerts is of the utmost importance to us and we feel that is something we can’t ensure at these large indoor shows.” Wolf Alice
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Analysis
ILMC 2022 The Arthur Awards Nominees Melvin
BENN
Festival Organiser’s Organiser
Caroline & John
GIDDINGS
Kim
Phil
The Promoters’ Promoter
The Unsung Hero
Sophie
Katie
BLOEM BOWDERY LOBL
Festival Organiser’s Organiser
The Promoters’ Promoter
Most Professional Professional
Cat
Dan
Sarah
The People’s Assistant
Tomorrow’s New Boss
MUNRO ROBERTS VEEPS The Winner Techs It All
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MOORE SLATER The Golden Ticketer
Analysis
CONGRATULATIONS to all nominees
THANK YOU
to all teams for the incredible work carried out this year Here’s to a successful 2022 for everyone!
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Comment
Stage to Screen Entourage Talent founder and owner Wayne Forte is one of the producers of new documentary/concert film Learning To Live Together: The Return of Mad Dogs and Englishmen, which charts the 2015 reunion of the legendary band. Here, the ILMC stalwart reveals how the electrifying project came to pass…
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he original plan was to perform a special event show at the Lockn’ Festival in Arrington, Virginia. The idea was to have the band perform a Tedeschi Trucks Band set one day, and a special collaborative show with another well-known artist the other day. We reached out to Joe Cocker to front the band, performing a Mad Dogs & Englishmen set. Getting Joe to sit in with the band for a few songs is something we had tried to do on a number of occasions, with no prior success. We were then told that we would have an answer from the Cocker camp in a short while. A few months later, it was announced that he had passed away. The band, manager, festival promoter and I decided to move ahead with the plan as a tribute to Joe Cocker, with the idea of finding someone to take his place. After months of searching high and low, there was no one that could do that so we then decided to use various ‘guests’ and have Susan Tedeschi sing some of the songs as well. We began enlisting various guests – Chris Robinson of the Black Crowes, Dave Mason to sing Feelin’ Alright, Warren Haynes, Jon Bell from Widespread Panic, etc. However, when the promoter asked if it would be alright to reach out to Leon Russell, who had supported Tedeschi Trucks Band on occasion that’s when the floodgates began to open. I was and am a big fan of Mad Dogs & Englishmen and Leon Russell – it seemed we could create something big. I suggested he see if Rita Coolidge was still working, if he could find Claudia Lennear, who I had heard was retired, and contact Chris Stainton, who Derek [Trucks] had played with when he toured with Eric Clapton. Before we knew it, we had 12 of the original Mad Dogs, along with the 12-piece Tedeschi Trucks Band! I originally suggested to the band’s manager that we film the show just in case something magical happens. Unfortunately, the cost of doing so on that scale and on short notice was prohibitive. We scrambled to try and get it organised and
then settled for two remote handhelds and the footage from the festival live-stream, which the festival producer agreed to allow us to have, with certain provisos, in the hope that we could do something special with it. It started out as a live concert film/DVD but blossomed into the actual feature length result through the vision of the director, who put together the outline to tell the story. The biggest challenge was raising the funds – all of which was done independently by me and the band’s manager, my co-producer – with some assistance from the director. We initially tried making a deal with various streaming and video-on-demand services but none quite understood the vision. Meanwhile, we have already had some fantastic reviews and a number of accolades from independent film festivals. The actual project took six years from the end of the festival show until we were able to screen the finished product. The second tallest mountain to climb was getting all the clearances/licence for the archival footage and music involved. There are 64-plus songs and loads of archival footage throughout. There are too many scenes to single out as my favourite. Having said that, I think the end is very powerful. We have been booking it into independent cinemas here in the US and quite a few have already booked return screenings. Our ultimate goal is to have it seen by as many people as possible. In the words of Susan Tedeschi, we need to tell the story so people know... We are currently looking to make an individual or a worldwide streaming/VOD deal to make it available to the masses. I have been very pleased with the reaction to the film so far. However, I set high bars for myself and everything I do. Therefore, enough is never enough! And again, it is about having as many people as possible see it. There was a lot of love that went into its creation! I have been having conversations regarding other potential film projects, though it is way too soon to discuss.
“The biggest challenge was raising the funds – all of which was done independently”
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2021Comment In Review
Losing Control The secondary ticketing debate has understandably taken a backseat during the pandemic, but it isn’t going away any time soon. Here, Richard Davies, founder of face value or less ticket marketplace, Twickets, brings us up to speed on the state of play…
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re-pandemic, the campaign against online ticket touting had become headline news. Unrelenting industry pressure and political scrutiny had undoubtedly paid dividends, with secondary platforms shamed into overhauling the worst of their exploitative practices. And, perhaps most encouragingly of all, the primary industry has taken big steps towards embracing the concept of capped ticket resale. The UK demonstrated a viable way forward: regulate the market, improve transparency, and then fulfil consumer demand through fair resale. I’m not claiming things are perfect, but we’re in an infinitely better place than we were six years ago when Twickets first launched. It’s certainly been gratifying to see the industry adopt the same capped model. Meanwhile, artists performing in the UK now have the power to take preventative actions to stop fans being ripped off, while offering the benefits of safe and secure resale. The move to mobile-only tickets should accelerate these changes. I’m really excited about it. Goodbye secondary ticketing. Hello ticket resale. The size and scope of this market should not be underestimated. At some point, all gig-goers will buy tickets for an event only for life to get in the way, forcing a change in plans. In the current climate, a well-executed resale policy is arguably more essential than ever. In 2019, Twickets attracted over 3 million unique users and ticketed more than 25,000 events. Whereas the likes of Viagogo and StubHub provide a shop front for large-scale ticket touts, Twickets has attracted a fan community of deep-seated music lovers. Over 60% of our transactions are made within the last week before a show takes place. Twickets’ users are typically looking for a last-minute opportunity to attend a sold-out show or for a nearby event at an attractive price, helping fill venues, and keep the customer happy. The downtime from Covid-19 has also provided an important opportunity for Twickets to innovate. For example, through our service we now actively promote last-minute tickets available in a user’s immediate vicinity. In addition we allow buyers to make an offer on that inventory rather than
seeing tickets go to waste. Both features help our users, and it’s already having a major impact. During Q4, the number of transactions on Twickets was 30% up on the same period in 2019, and we’re only at the start of a full return to live events. This unique focus as a dedicated capped resale marketplace explains why we continue to be the most effective resale option out there for genuine fans. Unfortunately, we still see capped resale in some quarters being treated as something of an afterthought. Either it’s communicated poorly, the terms are overly restrictive (it’s pretty essential to give fans an option to sell for less than they paid), or, in some cases, the function is turned off until a show is sold out. Locking consumers into a closed proprietary mobile platform with unreasonable terms is not a “resale solution.” Despite it only impacting 3-4% of total inventory, in some quarters there still appears to be a fear of resale cannibalising primary sales or undermining primary prices. Frankly, we have to get over this obsession with control. The fundamental purpose of a marketplace like Twickets is to offer the customer an improved service – to proactively help them sell a ticket quickly and efficiently, and to get someone else into the show. As a byproduct of that process, by keeping the distribution of tickets between genuine fans, we also diminish exploitative “secondary ticketing” and lay the foundations for repeat business. It’s ethically sound, and it’s commercially sound too. I know there are many in the primary market who understand this, and have seen the benefits of partnering with us; and it was extremely heartening to see someone like Live Nation’s Michael Rapino advocate for more open systems of resale that put the wishes of artists and customers first. We need to see these philosophies put into practice. For the sake of all our future business, now is not the time to row back on resale. We need to function collaboratively, and provide a workable, flexible, scalable, fit-for-purpose solution – ensuring it’s a permanent component of the UK’s live music landscape, reinforcing our gigs and festivals as the best – and best-attended – in the world.
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2021 In Review
IN REVIEW ’s news team takes a look at some of the trends, deals and events that shaped the business during the past 12 months, as well as remembering some of the individuals that we lost...
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COVID
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fter the lost year that was 2020, live music made its tentative return from the Covid crisis in 2021. But the cautious optimism of the spring and summer was replaced with further uncertainty by the winter, as the emergence of the more contagious Omicron variant presented further obstacles on the industry’s road to recovery. January began in depressingly familiar fashion, with the cancellation of the in-person edition of the Baloise Session Swiss concert series, followed by the UK’s Glastonbury festival. Several of Germany’s biggest festivals including Rock am Ring, Rock im Park, Hurricane, and Southside were called off for the second year running, while other high-profile events such as Austria’s Rock Werchter, Spain’s Sónar, and Switzerland’s OpenAir St. Gallen and Paléo also fell by the wayside. Nevertheless, the UK biz witnessed a shortterm boom in consumer confidence in February, triggered by prime minister Boris Johnson’s
2021 In Review announcement that all lockdown measures should be lifted in England from 21 June (later delayed by four weeks) – theoretically allowing large outdoor events such as festivals to take place with no restrictions. Further encouraging news came from results of the first pilot events held as part of the UK’s Events Research Programme (ERP), which included the Sefton Park Pilot music festival, the BRIT Awards, and a 10,000-capacity Download camping festival organised by Festival Republic. Results of a test concert at the Accor Arena in France in May, organised by live music association Prodiss and Paris hospital AP-HP under the banner Ambition Live Again, also showed that attending a concert is not associated with an increased risk of transmission when certain hygiene and testing protocols are followed. Other test concerts were held across the continent, from Germany and Spain to the Netherlands and Luxembourg. French festivals were limited to 5,000 capacity, but major UK festivals such as Reading & Leeds, TRNSMT, and Isle of Wight were permitted to go ahead as planned and concerts of all sizes resumed but not without their complications.
MERGERS & ACQUISITIONS
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021 saw a number of blockbuster acquisitions and mergers take place across the industry, changing the landscape of the ticketing, agency, and promotions sectors. Ending nearly a year of speculation, Paradigm Talent Agency in March confirmed it had reached an agreement to sell its music business in North America to Casey Wasserman’s Wasserman group. The deal saw Wasserman take over Paradigm’s profitable music assets. With thousands of acts on its roster, the Beverly Hillsbased agency represents the likes of Coldplay, Shawn Mendes, Billie Eilish, and Ed Sheeran for North America. Terms of the deal were not disclosed by Paradigm. In a further consolidation of the agency landscape, Creative Artists Agency (CAA) and ICM Partners joined forces in a landmark merger – financial terms of which were not disclosed. ICM brought to CAA a global roster of artists in film, television, music, comedy, theatre, games, politics, and podcasting. Music clients include Chaka Khan, Buddy Guy, and Chris Rock. The agreement between CAA and ICM took place in September, which proved to be a bumper month for acquisitions and mergers. A week prior to the CAA-ICM deal, Dutch promoter ID&T signed a partnership agreement with leading live organisation Providence Equity-backed Superstruct. According to the announcement, the deal helped steer ID&T into “a safe haven” after a tough year and a half. Financial terms of the partnership have not been disclosed, but it has been revealed that the founders and senior management of the ID&T Group have become shareholders in Superstruct. ID&T’s portfolio includes Mysteryland, Defqon.1, Awakenings,
Industry representatives in the UK, as well as the Netherlands, France, New Zealand, and the United States sounded the alarm over staffing shortages across large parts of the economy. Promoters also reported the number of no-shows at concerts to be far higher than usual, with the rate hitting up to 50% in the first few weeks back. Vaccine passports or proof of a negative test or immunity from a previous Covid infection became standard for gaining admission to gigs in many territories, while countries such as the Netherlands, Norway, France, Austria, Germany, Australia, and New Zealand introduced insurance schemes for live music. However, the British government’s £750million (€897m) insurance scheme for live events – launched in August following months of campaigning by live music industry bodies – was widely criticised for its limited cover and 5% premium. However, as a new Covid wave swept Europe in November, followed by the detection and spread of the Omicron variant, restrictions were reintroduced across the board, leaving the touring business, once again, with as many questions as answers going into 2022.
and Milkshake. It is also the parent company of organisations such as Q-dance, ID&T Events, and Monumental (Awakenings). September also saw Viagogo sell its StubHub business outside of North America (including the UK) to investment firm Digital Fuel Capital LLC for an undisclosed sum. The sale was approved by the UK’s Competition and Markets Authority (CMA) and completed on 3 September, after secondary ticketing giant Viagogo was forced to sell its international business due to competition concerns. Viagogo acquired eBay’s ticketing division StubHub for $4.05billion (€3.57bn) in cash in February 2020. According to the CMA, a merger between the two companies would have resulted in a substantial lessening of competition in the secondary ticketing market, leading to higher prices and limited options for fans. Viagogo assuaged competition concerns by proposing the “divestment to an upfront buyer of StubHub’s European and certain other international legal entities.” The sale of StubHub International to Digital Fuel Capital now brings the merger investigation to a close, says the CMA. Live Nation closed a historic year for landmark deals with the completion of its previously announced acquisition of Ocesa Entretenimiento – the third-largest promoter in the world and the parent company of Ticketmaster Mexico. The $444million (€391m) deal gives Live Nation a 51% stake in one of its largest competitors, which dominates the Latin American market. The entertainment giant originally agreed to buy 51% of Ocesa for over $400m (€352m) in summer 2019 but pulled out of the deal Thousands of in May last year, before resuming the acquisition in September. professionals read
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INDUSTRY PROS ON 2022 AND THE ROAD AHEAD
As we begin a new year, quizzed a number of live entertainment business leaders about the state of the industry and the recovery of the sector, over the coming weeks and months. On the following pages you’ll discover the opinions of our expert panel of agents, promoters, production gurus, ticketers, artist managers, venue operators, festival organisers, sustainability campaigners and livestreaming broadcasters. We hope you find their words of wisdom helpful to you and your particular sector of the business... 24
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Leading The Way_Feature
EMMA BANKS CO-HEAD, CREATIVE ARTISTS AGENCY
What are the expectations of your artist clients as the touring circuits reopen? They are hoping to be able to get back on the road and play their music/read their poems/perform their stories to crowds who feel safe and excited to be out of their homes. They understand it might be a bumpy road, not only with Covid still being very much with us but also finally being able to see in real time how Brexit has impacted on touring and what problems we all may encounter. Everyone wants to get back to ‘normal,’ where a singer can crowd surf, where artists can hang out with their fans at the merch table or the backstage door, and where they feel confident that the tour they set out on will continue to the end with no issue. Whether we can achieve this is going to be questionable but touring prior to the Omicron variant arriving was running pretty smoothly in the countries that it was allowed, and we are lucky to have touring teams and promoter teams who have put a huge amount of work into making sure everyone both front of house and backstage are as safe as they can be. There has been an unprecedented spirit of cooperation across the industry during the pandemic. How can we ensure such collaborative efforts continue to improve lobbying for live music around the world? I think everyone has seen the benefit (see my earlier answer), and so as long as we can all agree a way to continue to fund the trade body (which
RON BENSION PRESIDENT & CEO, ASM GLOBAL
Are there any protocols developed because of Covid that you think will be here to stay even if the virus disappears? The need to ensure safety, security, and consumer confidence in venues. We’re particularly proud of our Venue Shield proprietary programme, industry-leading reopening protocol that ensures the facilities are clean and certified at the highest standards for the safety and health of our co-workers, clients, and guests. Additionally, some of the service changes on the F&B around pre-ordering, cashless, quick serve, etc., have been accelerated and will surely be here to stay. Are there any ways in which you have seen audience expectation changing since 2019? Much is still in transition, but what never changes is the need to provide the best experience possible. That’s what ASM Global is committed to. Do you imagine that industry consolidation will increase or decrease as markets around the world reopen for business? This is no different than any other industry
benefits absolutely everyone in the live space), I think it will continue with no issue. Some years we may not need to do so much together, but clearly having a voice in the places of power is important for our business to thrive. What are your predictions for business as we roll into 2022? As I sit here today [pre-Christmas], the UK has recorded its highest daily number of Covid cases since the pandemic began, and it looks like that is a record that will be broken daily for a while. This has inevitably got to mean that we are going to have a rocky end to 2021 and probably a rockier start to 2022 while we find out if this is a dangerous variant or something that takes people off work but not into hospital. Clearly, the continuing lockdowns in various European markets are bad for business, and even when venues are allowed to remain open, we are seeing a high level of absence at shows, where people are no longer feeling confident to go out. So business is going to be tough because we are going to lose more shows, and that is bad for everyone. I assume that as the population gets vaccinated with a third shot, we will then see case numbers reduce and can get back to the place we have been in the last few months, with shows happening and everyone out and about again. We will get through this, but it will be tricky for a while longer, and the 2022 bounce back looks like it is going to take longer than we hoped.
where there is consolidation and then break up. That said, what we have learned at ASM is that our scale has great value to our clients from a business intelligence and content-leverage perspective; but we know that our real strength is the laser-focused local operators that are best-inclass and totally dedicated to delivering revenues and results to their venues, clients, and employees at the facility-level where the rubber meets the road. What are your predictions for business as we roll into 2022? We’re optimistic; we put ourselves in a position to hit the ground running in ‘22 with new revenue teams, technology, a focus on actionable marketing programmes, and a new team of skilled professionals in these areas, as well as content acquisition and sponsorships. Through inventive thought and hard work, Thousands the power ofof ASM is to continue to redefine and elevate read the professionals live entertainment experience, which is one of IQ every day. Make the great joys of millions and millions throughsure you get the out the globe.
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WORKING ON THE CHAIN GANG
NFTs_Feature
The pandemic pause has allowed businesses around the world to take time to explore the benefits that new technology can offer, and as the live entertainment industry moves back into gear, the advantages that blockchain can deliver appear to be front and centre. Gordon Masson reports.
T
here have not been too many positive stories to come out of the last two years, but the non-fungible token (NFT) phenomena and the revenues it can deliver certainly piqued the interest of artists and corporations alike. As one of the range of products and services that are made possible by blockchain, NFTs have quickly become commonplace, while another application for the transparent digital ledger to quickly emerge has been in ticketing – which itself is embracing NFTs in the form of collectible tickets, as well as a way in which to offer interaction between events/artists and fans. Noting that the prolonged pause on activities caused by Covid has allowed decision makers to take a closer look at blockchain, Olivier Biggs, marketer for GET Protocol, says, “it definitely has given everyone a chance to re-evaluate their business and consider how future-proof their approach is. We’ve certainly seen a lot of inbound curiosity around NFT capabilities from both newcomers and veterans within the events industry. It’s clear to most that there are lasting benefits offered by NFT ticketing that transcend any short-term hype cycle. Ticketing is the per-
fect vessel for this innovation.” Beat Hive founder, Josh Pamplin, agrees, “It’s definitely been a pivotal moment for change, especially for people trying to future-proof creative and in-person industries,” he says. “However, the changes brought about by the pandemic also caused many content creators to realise that direct connections with fans is a great way to support themselves without the need to involve big corporations. In this way, I think that music creators are becoming key decision makers in the industry.” Straddling both the blockchain ticketing and NFT sectors, Biggs is well placed to explain the intricacies of the technology. “By registering a ticket on a public blockchain, you achieve transparent ownership for all to see,” he says. “When a ticket is minted as an NFT, it becomes an asset you can interact with and actually place in the hands of your attendees to unlock functionalities never before seen in the event industry.” Thousands of He adds, “When a ticket or ticket transaction professionals read is registered on the blockchain it is visible IQ every day. only Make through a hash (standard bit of code). When it is sure you get the minted as an NFT, depending on the file type,
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Feature_NFTs
“Throughout 2022 we will continue to see an uptake of digital wallets that can hold NFTs and cryptocurrency” Josh Pamplin | Beat Hive
of the challenges involved in supporting yourself as an artist,” says Pamplin. “Our team has lots of experience in many different areas of the music industry: performing live; producing records; graphic design; audio and visual engineering; managing music studios; publishing/licencing; and event management. We have an awesome team of blockchain developers and external partners we consult with too.” As a relatively new tool for ticketing companies to exploit, blockchain’s capabilities are generating exciting possibilities for the industry to tap into. On SecuTix’s R&D efforts, Ziche reveals that the company’s TIXNGO product has evolved in two distinct ways.
WWW.TIXNGO . IO
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“Firstly, we developed our fan engagement capabilities with dedicated push notifications and a questionnaire that allow the organiser to communicate with fans simply and quickly, plus get their feedback,” says Ziche. “During the pandemic, organisers have learnt that events can change quickly – new safety protocols, change of date, introduction of timeslot entries – so it’s imperative that they can communicate swiftly and directly to the ticketholder. Push notifications are an effective way to achieve this as they have a higher rate of cut through than the traditional email. “Secondly, we introduced TIXNGO Covid Pass Early Check-In, [which is] a fast-lane capability. It works in a similar way to boarding an aeroplane; a few days before the event, the
ticketholder will receive a notification on their smartphone with instructions on how to upload their Covid Pass. The system will then validate the document, checking it against the name on the ticket and allowing the user to gain priority access at the event. “For ticketholders, it means a better pre-event customer experience, and for the event organizer it means lower staff costs as the fast lane doesn’t increase operational costs, smoother operations to meet health protocols, and protection of customers’ health data.” Meanwhile, Mitskas says ComeTogether has used the pandemic period well by developing new products he believes the industry will benefit from in its drive to return to normality – including the seemingly inevitable development of NFT tickets and collectibles. “We used our blockchain development in place for digital ticketing as a foundation for new offers given the lack of live events,” explains Mitskas. “The first additional product we developed was the BackTogether app: a Covid-19 digital certificate that shows the current Covid-19 status – vaccine, recovered or test. Additionally, the person who actually attended an event can be verified in the case that Covid-19 tracing needs to be conducted. This effort was focused on the safe restart of events.” He continues, “The second product we devel-
The secured mobile blockchain ticketing solution from SECUTIX, which helps event organisers eliminate fraud, boost operations and improve audiences’ experience.
NFTs_Feature In Brief
Everton Football Club is just one of many sports operations that are using SecuTix services
SECURE MOBILE BLOCKCHAIN TICKETING
WWW. TI XNGO . I O
Your Shout Feature_NFTs
What was your best QR codes can be live simply scanned at venue moment ofaccess 2021? points
ComeTogether ticket
TOP SHOUT
oped was the NFT collectibles app, UniqTogeth- to everyone at every price point.” I promoted the Foo Fighters Fairbanks,Mitskas Alaska, on 21 August continues, “We envision a future er. Collecting tickets and other event in memora2021. only had they not had a major show in the city since where multiple ticketing vendors (or other stakebilia hasNot always been a part of going to events. havemarket the incentive We bringitthis to the the digital world. Itarena works rock in holders) Covid, was first major show will in the in to participate in a conjunction with digital ticketing or standalone ticketing public blockchain network. This would nine years. The town did not have t-shirt concert security, so we and includes a marketplace for future resale. The result in a collaborative ticketing economy built got help from the military base down the road, The town had ticket can be an NFT, with artwork and even on a public blockchain that allows for vendors to one rigger, so(eg wetheflew in but eight additional riggers the States. bordersfrom to increase their revenue and tickdynamic content setlist) we can also cross eting market share. How create NFTs linked thethe live event images, The police calltofor showwith was to be six, but Fairbanks as would a citythis work? Imagine a ticketing vendor in who wanted video highlights, fan-generated content, and exonly has 12 policeman total and could not make that work,England so to include events taking place in Greece in their clusive artist content for event attendees.” we called the towns around them and got our police from the portfolio of tickets available for sale.” (not joking at all). Looking toward the future, Pamplin says Anorth Brightpole Future hadoftoblockchain be driven in fromBeat days away as concert Hive is predicting huge growth. “We are inTheProduction growing adoption ticketing, credibly excited what’s in The store for the music NFTs, and the likes of blockchain-based royalsound and light of this scale just did not exist in theformarket. industry. Much of what we predicted back in Octies applications in the wider music industry are venue team had never put on a concert before, but we talked building the foundations for what could become tober 2020 has happened, and we are expecting them through it all and pulled together to make it happen. a multibillion dollar sector in the years to come. much of the same moving into 2022. One parThe show required proof a vaccineticular or astandout negative Theof public adoption is antest. increase Central to blockchain’s appeal is itsoftransparvaccine rate people in Fairbanks was very low, and the number of tests awareness for blockchain itself.” ency, allowing to track transactions at and predicts, 2022 we will every stage and to did see how genuinely in the market notmoney meetisthe demand, Pamplin so we set up a “Throughout free continue to see an uptake of digital wallets that shared between the various rights holders. testing site at the venue for 24 hours leading into the show. Sharing his belief that blockchain will contin- can hold NFTs and cryptocurrency. This will Seeing the band on stage for soundcheck was a major ue to become more prevalent in ticketing solu- enable the live events sector to use blockchain milestone my“The lifenews andiscareer, only tomore be topped bylife. theLive fans’ in everyday online performanctions, Mitskasin says, full of stories es canband become profitable for the creators about ruining the fan experience rock faces ticket whentouts finally seeing a world-class onmore stage in their using and NFTs,the and boys when the time is right, we have and revenue of events all black, around and our Dave town as themodel house went to brought industry. The more blockchain is deployed the some wonderful ideas on how we can team up the house down for well over three hours. The fans had been with venues and event organisers. more we can control this. touched by the rock andtothe band had too, notabout onlythe Metaverse! “We felt also it, have to talk “Blockchain enables thegods, industry create promising return butsuch also word tobut other sounds crazy, we dobands believe it will supplenew marketingtoprogrammes, as spreading NFT col- Itthe ment the live event lectibles, drive stronger and earned that thetogood peoplefan of engagement Alaska have more greatindustry rock &in years to come. We have some land in aImetaverse, and it would ongoing revenues. Duringto 2021, we saw incredroll, and they need come play for these amazing fans. was ible NFT success stories where NFT music was be silly of us to let you know all our plans for it, blessed to be in the room that night, as it was a reminder of how auctioned at very high prices; but these scenarios but we are keeping a close eye on the metaverse/ greatonly live music tois.a wealthy audience. Our event space and looking forward to sharing more were applicable vision is that NFTs becomePresents something available news with you throughout 2022.” Dan Steinberg | Emporium
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For his part, SecuTix executive Ziche contends that many people will turn to blockchain technology to fulfil tasks that traditional ticketing providers have been unable to deliver. “Many in the event industry have had bad experiences with the legacy ticketing players,” states Ziche. “The trust in their ability to solve the transparency and fair exchange equation has been eroded. We are now seeing some large sports rights holders and music artists pushing for action to protect their true fans and allowing them to buy a ticket at a fair price thanks to blockchain. A perfect example of this is SECUTIX’s use of blockchain for Ed Sheeran’s 2022 tour in Europe to combat ticket fraud.” And Ziche tells IQ that while there are obstacles to overcome, the sector has been preparing itself for a full-scale assault, post-pandemic. “The building blocks have been coming to maturity in 2021 and solutions like our own TIXNGO is already embracing those new capabilities and applying them to ticketing. For example, leveraging blockchain smart contracts to regulate secondary market transactions, generate new revenue stream for organisations, and create a trusted resale experience for fans.” Indeed, GET Protocol’s Biggs concludes that the current wave of blockchain operations is The Carlson merely the start of a new commercial marketCenter in place that he insists will grow exponentially in Fairbanks, the yearshosted ahead. Alaska, the risk Foo“At Fighters inof coming across slightly biased, IAugust feel it is safe to say that we have only seen the 2021 first iterations in a lot of revolutionary blockchain-based applications,” says Biggs. “From our own NFT ticketing applications to the enormous potential of metaverse events, the drastic increase in people building of When Frank Turner walkedwithin on thethis stagecorner at the industry illustrates the fact that have Clapham Grand on 19 July. After 438we days of truly only seen thethink tip ofitthe iceberg.” silence. I don’t would be possible to explain all the emotions that went through my head in words. Mark Davyd | Music Venue Trust
CONTRIBUTORS
Kings of Convenience matinee show at Royal Festival Hall, 26 September: a warm Sunday afternoon on the South Bank; first of two shows. A large percentage of the crowd had travelled to London from around the UK and Europe. This was the band’s first major show in years, and it was sublime. Rob Challice | Paradigm I can only reply self-centredly as it was mostly a bleak year in terms of concerts (not other things). It was [early December] performing in Mexico City in the courtyard of the Vernacular Institute to 50 or soOLIVIER arty BIGGS types. thinkThousands I | GETI PROTOCOL of channelled all theSTATHIS fury MITSKAS that lingers inside me read | COMETOGETHER professionals following two years of JOSHabsurd PAMPLIN struggle. | BEAT IQ HIVE every day. Make Nick Hobbs | Charmenko LUCA ZICHE | SECUTIX sure you get the
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