VIP-News Premium - Vol. 152 December 2012

VIP NEWS >

DECEMBER 2012

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VIP NEWS

PREMIUM > VOLUME 152 > DECEMBER 2012

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VIP NEWS >

DECEMBER 2012

McGowan’s

Musings

Well here we go with the last News of the

Just in case you’re worried the real Mayan

weather spoilers­for many a festival. Some

year, and if the doomsayers who point to the

experts­say we have nothing to worry about,

European­territories have had a torrid time,

end of a cycle in the Mayan calendar which

so that’s OK – although I wonder if somebody­

with French promoters declaring 2012 one of

has been running accurately for over 5000

said that to the Dinosaurs…

the worst years ever, and promoters in Spain and Portugal­desperately trying to pitch

years indicating the end of the World on December 21 are correct, Vol: 152 will really be

Talking of Dinosaurs the Rolling Stones have

tickets­at a price affordable to cash strapped

the last! It causes a bit of a dilemma about

been confounding critics by presenting a

fans. However Germany had a good year,

the Christmas shopping though – should we

couple of barnstorming shows at London’s

the Nordic­countries stayed steady, and the

bother – or shall we wait to see if we wake

O2 Arena with a bunch of top flight guests

UK having braced itself for huge economic

up on the 22cnd and rush out to the shops!

helping to celebrate their 50th Anniversary.

problems­following dire warnings early in

Much has been said about Jagger’s still sylph

the year from the Governor of the Bank of

like figure and energy quite unique for a

England­has had a reasonably good year

man of his age. It was noted that the only

apart from several festival organisers going

Stones who aren’t still mean and lean are

into administration­following the wettest

ex- Stones Bill Wyman and Mick Taylor who

summer in a hundred years, and immense

are definitely rounder than the others. So if

competition from The Olympics. The end of

you want to retain a youthful figure become

year figures will look pretty good when the

a permanent Rolling Stone! Bit late for most

Stones returns are included. The US also had

of us though.. Our longest active Rock ‘n’

a good year with commentators observing­

Roll band was rapped on the knuckles for

that the majority of tickets were finally

playing 35 minutes beyond the Greenwich

being­pitched at acceptable levels to attract

Council 10.30pm curfew, being fined either

previously­cautious fans.

COLOPHON > VIP-News is published by: VIP-Booking 145-157 St John Street London Ec1V 4PW Managing Director: Ronni Didriksen rd@vip-booking.com General Manager: Peter Briggs pb@vip-booking.com Writer and editorial: Allan McGowan am@vip-booking.com Writer: Manfred Tari mt@vip-booking.com For advertising enquiries please contact: Peter Briggs pb@vip-booking.com +44 870 755 0092

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£200,000 as reported by many or according to Jagger £100,000, quipping, in a reference

So basically you’ll be glad to know although

to very expensive tickets that, “…that’s only

the European overview is patchy – we still

10 front row seats anyway!”

have a functioning industry – and we hope all your individual parts of that industry have

So apart from the fortunes of the seemingly

fared as well as they might in difficult times,

indestructible Stones, it’s not been the best

and will continue to do so in 2013 – as usual

of years for the live industry; after some

let us know! For those of you that celebrate

very good years of being the cash cow for

it, have a great Christmas, and Ladies and

the music­industry the dark clouds again

Gentlemen, just before I go off to shout,

began to gather both metaphorically as

“You deserve it!” at an iced-up seagull, here

indicators­of the economy and in reality as

is the News!

VIP NEWS >

DECEMBER 2012

Finland’s Weekend Festival Fined Allan McGowan am@vip-booking.com A court in Finland has imposed fines upon the organizers of the Weekend Festival­ ,

Organizers of the Weekend Festival in Finland fined

which featured­David Guetta, held in Luukki­ , Espoo­last August. The promoter was RLE, and Directors­Hardi Loog and John Rugemalira were given 10 days in which to pay the fines.

The local police had claimed that the organiser­s had not complied with designated­ public meeting regulations, and although not specifying any particular­infringement­, claimed that there were flaws in basically everything including traffic control­ , the amount of security and overall operation during the festival.

Police Inspector Henrik Niklander told local

press, “We were forced to give notice to the

for the better. Therefore we saw that we

organizers but they didn’t make changes

couldn’t let the situation get any worse”.

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13.11.12 18:32

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VIP NEWS >

DECEMBER 2012

Sonic Visions 5th Edition Allan McGowan am@vip-booking.com

From left: Jake Beaumont-Nesbitt, Executive Director-IMMF. Volker May, Head of Booking & Events FZW Event. Carl Blom, CEO Flagstone. Stuart Worthington, IMMF and MMF Training

The Rockhal venue in Luxembourg again

for many touring international artists. (On my

Each day ended with a keynote speech: Firstly

hosted the 5th edition of the Sonic Visions

first night at the Rockhal I saw the extremely

Stuart Worthington (IMMF – International­

conference and showcase festival on 23

good Zappa plays Zappa perform a sold out

Music­Managers Forum) gave an overview

and 24 November. 250 delegates, including

show.)

of today’s music industry landscape and

representatives­from 15 countries and VIP-

discussed­the exciting opportunities for artists­

News for the third time, attended the event

However Sonic Visions is providing a focus­and

and their central role in working with a team

to follow through on the theme “It’s all about

the panels were well attended by both local

to determine their own creative business­

the artist”

musicians from Luxembourg and the Greater­

direction­. On the second day Carl Blom (Chair

Region with artists crossing the borders­ MMF Sweden, CEO Flagstone Sweden, and Since its inception Olivier Toth, Thomas

from France and Germany and visitors from

manager of The Hives) talked about the role of

Roscheck­, Sam Reinard (who also performed

Belgium­. Topics covered ranged from the local

the manager in the development of an artist’s

with his band at the Festival) and the rest of

situation; Luxembourg Music Talk: Musicians

career. He also discussed the relation between

the Sonic Visions crew have worked hard to

& Music professionals from Luxembourg in

the artist and the manager and technical

provide a foundation for a fledgling music

2012, and general information on how to de-

topics­such as the different revenue streams

industry­for Luxembourg. Government and

velop and build a career; Touring: Tips & Tricks

and income models as well as certain legal

local­media (RTL is of course based in the

from those on the road, The DIY Panel or

aspects­of the manager’s work.

country) are supportive and there is now an

what you need to know about going it alone;

Export Bureau run by Patrice Hourbette, late

ways to earn money with my music: Licensing,

Nearly 5.000 fans attended the two-day Festival­

of the London office of the French Export

Games, Touring and more, plus meeting the

featuring headlining bands The xx, C2C and

Office­. However it is not an easy task to build

right person or how to put in place the best

Django Django. New talent included Elektro­

up all the various expertise required to create

team for your project. Chairmen included Olaf

Guzzi from Austria and Belgian artist Oscar &

and stimulate both a domestic market and an

Furniss of Edinburgh based Born to be Wide

The Wolf as well as the Luxembourgish acts

export market, much as this country of only

and yours truly.

Monophona, Natas Loves You, Say Yes Dog

half a million people is an established location

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and Hal Flavin. Sonic Visions looks set to grow.

January 26-29th, 2013 Palais des Festivals Cannes / FranCe

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VIP NEWS >

DECEMBER 2012

Isle Of Wight Festival Retains Licence Allan McGowan am@vip-booking.com

Following a two day licensing committee

The Festival Licence Review Committee­ In the end both the Committee and the

review, which upheld the event’s current

decided­that in future promoter John

licence, The Isle Of Wight Festival will go

Giddings­will be required to make public­ “fit for purpose” as it currently stood, and

ahead in 2013. Local aerospace firm GKN

an Event Safety, Operational & Traffic

Giddings­agreed to invest in improving the

called for the consideration of the licence.

Management­ Plan.

local infrastructure­around the festival site

The Company­argued that the festival

Police­said that they felt the licence was

to hopefully avoid similar problems next

should be licenced on an annual basis, to be

At the hearing, promoter John Giddings

year if there is another occurrence of very

reviewed­every five years after consultation

claimed that the GKN changes would make

wet weather. Parking charges are to be

with local residents and businesses. Presently

long-term

improvements

introduced­in future in the hope that more

the licence is issued on an ‘in perpetuity’

financially­unviable for his company to cover,

ticket-buyers would choose to access the

basis­.

and may result in him not staging a festival on

festival­by public transport.

infrastructure

the island at all. He told the Committee­that The objections resulted from the problems

an alternative site on the English mainland­

The 2013 edition of the festival will take

caused by bad weather this year, causing

not subject to the Isle Of Wight Act and out

place from 13-16 Jun.

extensive traffic tailbacks across the island’s

of their control, had already been found. He

road system as a result of festivalgoers trying

concluded: “I’m willing to put my hand in my

to access the festival site by car. Some had to

pocket, but if you don’t want us to, just tell

sleep in their cars, or even remain on ferries,

me and we’ll go away”.

unable to disembark due to the jams.

Isle Of Wight Festival

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VIP NEWS >

DECEMBER 2012

European Border Breakers Awards 2013 Allan McGowan am@vip-booking.com

The 10 winners of the tenth edition of the European Border Break-

winner and the act that receives the most votes will go on to win the

The winners of the European Border­Breakers Awards 2013 are:

Public Choice Award’.

Nabiha (Denmark)

ers Awards 2013 have been revealed. From now until December 21, 2012 the European public can vote for their favourite EBBA Awards

Ewert and The Two Dragons (Estonia) Danish singer Nabiha­winner of the European­Border Breakers Awards 2013

French Films (Finland) C2C (France) Emeli Sandé (Great Britain) Of Monsters and Men (Iceland) Dope D.O.D. (Netherlands) Amor Electro (Portugal) Juan Zelada (Spain)

Anzeige_VIPMag_ProSky_X4.pdf

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09.12.10

10:43

Niki and the Dove (Sweden)

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VIP NEWS >

DECEMBER 2012

MUSE Cancel Shows

Matt Bellamy from Muse

Allan McGowan am@vip-booking.com

Muse frontman Matt Bellamy has broken his foot forcing the band to cancel three shows on their European tour in Oslo, Stockholm and Malmo. The tour is expected to restart­ with a show in Helsinki on 10 Dec. A message­ on their website stated, “The band have made the difficult decision to cancel these gigs as they feel that they will not be able to do justice to their live show, and the fans who have bought tickets, with Matt performing on crutches. Matt’s progress will be monitored over the next few days, but the remaining dates on the tour are still scheduled to go ahead as planned”.

IMAGINE if you could go to one website and learn ALL about the European Live Music Industry?

WELL YOU CAN! www.vip-booking.com

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VIP NEWS >

DECEMBER 2012

Festival Awards UK – and Conference Allan McGowan am@vip-booking.com

Conference

agreed and also stressed that Mobile Network­

of

coverage must be improved at Festivals, and

Sonisphere­, were up beat about prospects for

As I downed my dinner last night (Dec. 3) in

that Wireless must really work.

the industry. Galbraith also told one delegate­

London’s Round House (a venue which means

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the

travelling

heavy

metal

festival

in the room who had asked a question­about

a lot to me having seen many great bands

Good

including­Pink Floyd, The Doors and The Who

everything­from solid pre-planning, insuring­

practical

advice

was

given

on

arrangements for concessionaires, “After­ 30 years of attending Conferences I’ve

there in my long distant and probably­partiall­y

and evacuation­procedures in a session

learned that you don’t get answers – lots of

wasted youth!) I was quite surprised to be

called, ‘When Lightning Strikes’. Continuing­

discussion­, but no real answers!”

reminded­that this was the 9th edition of the

the themes of the major problems in terms of

UK Festival Awards. It still has the feel of a

weather – the wettest summer in the UK for a

All the various areas of difficulty considered

developing event – probably no bad thing in

hundred years – the economy, and increased

responsible for the poor results of many

such a volatile and vital sector of the business.

competition from The Olympics etc, Gordon­

festivals­in 2012 are very well covered in

Masson, Editor of IQ Magazine­chaired a

the UK Festival Market Report, compiled by

The first Conference session I attended

panel called, @The Festivals Emergency­ UK Festival Awards in association with CGA

addressed­‘The New Bottom Line’, basically­

Board Meeting.’ Tony Scott of Guilfest which

a discussion on ‘where else can we make

went into administration this year after 20

some money?’ – very important as the

years of running his event, warned that we

economy remains­uncertain pretty much

could have 10 years of really bad weather –

The Awards

everywhere.

Organisers

strongly

reminding­everyone that the River Thames

Half a million public votes combined with

advised­to approach prospective partners

used to freeze over! However he declared

those of official judges to determine the

in new collaborative commercial­ventures

himself still optimistic whilst prepared­to work

winners­. In a good evening for independents­,

as soon as possible by Universal’s Head

from the worst scenario. Andy Redhead­ ,

Bestival, won ‘Best Major Festival’ adding to

of Broadcasting Services, Sarah­Verrell,

Head of Production for SJM Concerts­said

a string of Awards marking every stage of

and this was backed up by Patrick­Walker­,

that “…it’s in the promoters nature to

the event’s rapid development. Founded by

Senior Director of Content Partnerships

worry.” Overall the members of the panel,

BBC Radio 1 DJ Rob Da Bank, who also took

EMEA, YouTube/Google. Brian Grew, V.P.

including­Stuart Galbraith of Kilimanjaro Live

part in the Emergency Board Meeting panel

Commercial

who was forced to cancel this year’s UK leg

earlier­ , first won ‘Best Medium Festival’ in

Partnerships,

were

Strategy. www.cgastrategy.co.uk

Live

Nation

VIP NEWS >

DECEMBER 2012

2012 Awards Winners: Best Major Festival:

Bestival

Best Medium-Sized Festival:

Bloodstock Open Air Festival

Best Small Festival:

Y Not Festival

Best New Festival:

Festival No 6

Best Dance Event:

GlobalGathering

Festival No. 6, staged at Portmeirion in

Best Metropolitan Festival:

Camden Crawl

Wales, took the title of ‘Best New Festival’

Best Family Festival:

Latitude

The Grass Roots Festival Award:

Green Man

Best Overseas Festival:

Benicassim (Spain)

The Greener Festival Award:

Croissant Neuf Summer Party

Best Line-Up:

Download

The Extra-Festival Activity Award:

Live From Jodrell Bank

Lodestar from presenter Phil Jupitus, Alex

Best Toilets:

Lodestar

Hardee used the opportunity to propose

Agency Of The Year:

William Morris

ovation­– happily she said yes!

Promoter Of The Year:

Gareth Cooper (Festival No 6, Beach Break, Lollibop)

Live Nation’s Chief Operating Officer, John

Concession Of The Year:

Paelleria

Probyn, received the Lifetime Achievement

Best Brand Activation:

Southern Comfort Juke Joint

John Probyn won the Lifetime achivement award

2005.

in its very first year., racking up further successes with festival organiser Gareth Cooper picking up ‘Promoter Of The Year’, and New Order, who actually turned up to collect the prize for ‘Headline Performance Of The Year’ at Festival No. 6.

Picking up the Award for Best Toilets for

to girlfriend Eloise, resulting in a standing

Award. In his acceptance speech Probyn said that it didn’t seem that he’d been in the

Headline Performance Of The Year: New Order at Festival No 6

business for any time at all, it was only when

Best Breakthrough Act:

Jake Bugg

Anthem Of The Summer:

Django Django - Default

Lifetime Achievement Award:

John Probyn

Awards co-founder Steve Jenner referred to his past when making the presentation that he realised quite how long he’d been around.

He thanked his partner for her support and dedicated the Award to all of his staff and those he worked with.

newspaper, “It was a tough year, and 2013

Steve Jenner, Festival Awards co-founder­

was likely to see more smaller events fall by

commented­: “It is pleasing to see so many

An article in The Guardian last week report-

the wayside. There was a time six to seven

first-time category winners breaking through

ed that this summer, Live Nation put on the

years ago when everybody thought you could

this year and indicative of the dynamic

largest series of live music events ever staged

put on a festival, the more quirky the better.

movements­in the market at this time. Much

in a single year by one company in the UK,

But the ones that have survived have been

more than winning gongs, though, the Festival­

including the sold out Download in Donnig-

consistent and given the whole experience.”

Awards are about celebrating and uniting the

ton Park, as well as a series of events during

UK festival industry which, in these turbulent­

the London Olympic Games. Probyn told the

times, is more vital than ever.”

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VIP NEWS >

DECEMBER 2012

Area4 Cancelled Manfred Tari mt@vip-booking.com

The Area 4 Festival was foundeVIPd in 2005

According to a press release by FKP Scorpio,

According to Folkert Koopmans, MD of FKP

by Konzertbüro Schöneberg and FKP Scorpio­

the festival ran at a loss for some years. The

Scorpio, another reason for Area 4’s demise

and latterly located in Lüdinghausen, it is

set up of the event was a serious attempt to

was significant increases in outlay for health

probably the most prominent event to be

establish a festival in Northrhine Westphalia

& safety measures. Since the tragedy of the

cancelled in Germany since the departure of

(NRW) which also includes the Ruhr-District,

Loveparade in Duisburg in NRW in 2010,

the Bizzare Festival.

the most populated region in Germany.

requirements­by public authorities have drastically­ increased.

The Area 4 Festival is cancelled

Need to know who is touring Europe

charter for festivals ®

artists production crew cargo

vip-booking.com

Go online - www.vip-booking.com

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PREVIOUS EDITION IN NUMBERS: Total visitors Eurosonic Noorderslag (sold out) • 33,000 Visitors Conference (sold out) • 3,150 Nationalities • 41 Acts • 293 Media and journalists • 404 EBU radio stations • 28 ETEP festivals • 70 International festivals • 413 Number of stages Eurosonic • 34 Number of stages Noorderslag • 11

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VIP NEWS >

DECEMBER 2012

ADE 2012 – A Visitors Experience Manfred Tari mt@vip-booking.com

Well, again it appears that this year’s

Fed Conti

edition­of Amsterdam Dance Event (ADE) was probably­one of the most successful internationa­l music conventions. ADE once again slightly increased visitor figures and continues to bring new formats such as ADE Playground, a docking element of the event for non-music companies and brands from the fashion and other sectors.

VIP-News spoke with Fed Conti, a UK based DJ and Producer­and James Best of the Coach Night Club, Banbridge­in the UK and John Massinade who journeyed­all the way from Chile to visit ADE. What’s your opinion of ADE? James Best – This is my second year here, love it, This is my third year, wearing a t-shirt for a change as it’s almost sunny and I’ve met a lot of nice people.

Fed Conti – Compared to past visits, because I’ve been here a few years ago from 2005 to 2009, there’s maybe a little difference as the conference is expanding year after year.

In the beginning it was only three days, now it’s a five day event, which goes to show that this conference works. Certainly for me as a DJ-Producer it’s not only a place to promote and license the new available tracks, it’s also a place to find people in the business of live booking. Because now it’s not just records­, now records and live-gigs are totally­ connected­ , and those markets help each other. So I think this is the best conference for bands and music-professionals.

Business wise, was it okay for you?

Best – Very good, I came here to approach

14

publishers and to get club-aggregators and

John, what attracts you to Amsterdam?

vocalists and I think I’ve done quite well so

John Massiande – In the first place the

far.

music­. I was coming to Europe before I knew about the Amsterdam Dance Event. Then I

Conti – It’s not pure business, because when

heard about it and now I’m here. I’ve come

it was more about licensing you were maybe

here to look for something different than

received the request to licensing your tracks

what I see in my country, because I believe

just after the conference when getting back

that in the Chilean scene, people have been

to the office. Now it is a little bit different,

following too closely what Chilean-German

longer term investment especially, because

superstar DJs Ricardo Villalobos and Luciano

it’s more about the entire artist aspect. So it’s

have been doing, and not really connecting­

not just the records, but also the entire artist-

with the roots of these genres of music

management­.

(House/Techno). That’s what I look forward to doing, meeting great people who think

What was your favorite show?

and feel likewise, who are passionate for

Best – My favorite show must be Laidback

both the music and the knowledge and

Luke, that is the one I’ve been looking out

respect­its true roots in a pure way. I believe I

for.

have achieved this so far.

Conti – My favorite show was at Ziggo

How did you hear about the ADE?

Dome, a big arena, for the Dirty Dutch

Massiande – I had to make a plan for my

Exodus­Party, with Chuckie, Knife Party and

Europe­tour, so I checked the dates of

Porter Robinson.

everyone­that I’m a huge fan of and they are all here in Amsterdam.

VIP NEWS >

DECEMBER 2012

Which shows did you go to?

As a fan, what kind of events do you go

television­. It may be that I decide that music

Massiande – This is my third day here, the

to?

has to be my life now, it might well be.

first day I met Heidi from Canada, and also

Massiande – I don’t anymore. I started as a

DJ Deep from France, they are all wonderful

DJ in 2007 and I stopped it in 2010 because

Do you purchase music online, or how

people and excellent artists.

I could not really meet people like me, as I

do you get it?

can here in Europe. That is why I come here

Massiande – I do, but I get a lot of promos

You’ve also got a t-shirt with you…

hoping to meet people who listen to and

and I share music as well with other DJ’s. I

Massiande – Yes, I think I have to keep a

love the same stuff as me. I really don’t go to

buy stuff that is really hard to find, mostly

memory of this, because this is my first time

clubs anymore. I try to make my own stuff, to

classic records, records that have been remas-

in Europe. I decided to do something that

make my own music trying to be an artist. I

tered, they’re the things that I really enjoy.

would remind me of all this.

don’t know exactly where I have to look, but

So, all the artists you’ve met signed your

I know that I can’t find thekind of music that

So, what else will you see at ADE and

I want in Chile.

have you enjoyed it?

t-shirt?

Massiande – Tonight I’m going to the

Massiande – Yes, everyone. It’s funny,

Do you also travel to the U.S?

Freerange­-Record-Label show, tomorrow I’m

because­they were all getting as excited as

Massiande – First I went to Argentina, I met

going to meet Joe Claussell, Daniel Howells,

me, as they knew that I come from so far

some Argentinean DJ-Friends first, the scene

and they are all good people. It has all been

away, from Chile. They’re all very happy.

is very different from Chile, it’s much bigger

much more than I expected, everyone has

there.

supported me in a good way.

Is Dance-Music big in Chile?

Massiande – No, it’s not, it’s a very small

Will you come back to ADE next year?

scene in Chile, there is a very small group

Massiande– No, I think I have to sort out my

of people who handle it more as a business

life first because I have a full time job in

than a pure musical thing.

15

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VIP NEWS >

DECEMBER 2012

> INDEPTH STORY

Tim Chambers

– A Corporate Industry Analysis Manfred Tari mt@vip-booking.com Until September 2012 Tim Chambers served as

Whilst the event creation and promotion

ownership­of the [IP] assets, the length of any

Senior Vice President International­Corporate­

process­is a ‘creative act’ it is increasingly

venue management agreement, access to

Development at Live Nation Entertainment­.

supported­by professionals from other

ancillary revenues etc.), and the opportunity­

He has had a long career within the live music

disciplines­and skill-set’s to ensure a vibrant,

to increase future profitability (if only to pay

industry, starting in 1996 as General Manager

diverse and successful sector – the envy of

back any debt incurred by purchasing AEG)

at Brixton Academy, followed­by stops at

many other industries.

but the final price paid will also reflect a

the McKenzie Group and Ticketweb, before

subjective­desirability for the new owner

joining­Ticketmaster UK in 2000.

Growth, so long as events continue to be

as well as any deal-tension caused by the

perceived as offering an unique and quality­

number­of bidders.

In his latest position Chambers oversaw

experience with relative price sensitivity,

acquisition­s of companies such as Ticknet in

will therefore continue to be experienced

You are familiar with M&A’s. Is the live

France and Servicaixa as well as partnerships

both within the global touring market (Lady

music business ready for a new round of

agreements for the global concert player.

Gaga, Madonna, Bon Jovi, Cirque Du Soleil,

corporatisation and consolidation?

Disney On ice, Walking With Dinosaur’s etc.)

– Yes, and it’s undoubtedly already underway.

VIP-News asked him to explain his view

as more international markets ‘emerge’,

The only thing guaranteed is that ‘change is

of the present situation and the outlook

and also within the local-language / single-

coming’.

for corporate­companies and the concert

territory­­­markets - whether Swedish Indie-

community­.

Pop­or Bulgarian rock music etc.

The corporatisation of the live music

business is a relatively new development­.

entertainment

Since AEG is for sale, are you rather

How do you think the near future for this

marke­ t in Europe, where do you see

expecting­that the Company will be

part of the music industry will develop?

growth potential­for corporate concert

bought by a player who is already

– In the near future the live industry will look

companies?

familiar­with the music industry or by an

very similar, with operators at every level

investor wishing to enter this part of the

– small or large – continuing to evolve the

arguably­an indicator that the live music

market?

sector into new forms of entertainment and

industry is maturing­and taking on various­

– AEG, should it survive in either its current

strengthen in emerging territories. Potentially

responsibilities­to

Looking

–

17

The

at

the

process

live

of

‘corporatisation’

both

consumer

is

and

form, or be sold off as (US) Sports, Venues

operators will either be attracted to become

regulatory­authorities, the requirements of

& Live Music divisions, will attract interested

part of a formal corporate consolidation­

fiscal & tax reporting, adherence to health

suitors from both within and external to the

such as LNE, CTS/Eventim, SMG etc., or

& safety legislation, agreements for trade

live industry.

further­develop­networks of like-minded

union representation etc., and reflective

but independent­companies e.g. Association­

that individual­owner / operators are no

Aside from any economic analysis of

Independent­Festivals,

longer able to entirely self-fund without

AEG’s assets and performance metrics,

Forum­, YOUROPE etc…

commercially­combining with others.

live entertainment­is a particularly ‘sexy’

Music

Managers

commodity­to be associated with, and so

Up till now the record industry didn’t

On the one hand this will lead to greater­ the normal expectations of commercial

undertake significant efforts to invest in

conglomerates­entering the sector whether­live

Enterprise Value are sometimes exceeded

live music companies. Rather most record­

industry specialists – venue operators­/ festival­

as would-be owners imagine their future

deals with young artists and talents

organisers / concert promoters­/ ticketers - or

closeness­to stars of sports and the arts.

foresee percentages deals that allows­

other / newer entrants potentially such as

record­companies to benefit from income

record­companies­, broadcasters, online media,

Commercial Diligence is likely to focus­on

streams generated through live music. Is

social­networks­and/or mobile operators etc.

the value of contracts held (percentage

that already the full extent of the idea

17

2012 2012 > INDEPTH STORY > DECEMBER > DECEMBER VIPVIP NEWS NEWS

While the business model of promoting

Data mining means a lot for the equity

concerts and live events more or less

story of Facebook and Google. Is the live

rmains the same, the ticketing business­

music business already able to assemble­

has to adapt to new and innovative­ and to exploit concert consumer data aptechnologies­and changing consumer­ propriately preferences.

you

– The required sophistication­of data-

consider­as being most relevant for the

What

trends

do

warehousing­has yet to fully arrive within

ticketing business?

the live sector. However, this is increasingly­

– Ticketing is a technology-based service

a focus for all B-2-C retailers and B-2-B

industry­that has two masters: the consumer­

system­providers and the ability to under-

and the client - whether artist, promoter­ ,

stand and then utilise consumer profiling will

venue­ , media partner or the sponsor.

be vitally important going forward. Within

Historically­the development of technology­

Europe though we have a set of consumer

(for instance call centres or the internet)

protection­standards, which will restrict some

when combined with a financial incentive for

types of data-mining or abusive commercial

clients to externalise ticketing enabled some

exploitation of our personal data.

level of consolidation to a number of larger

Tim Chambers

Will RIFD-payment and access control

systems be the next big thing in the

of so called 360 degrees business­models

However, technical developments continue­ venue­and event business?

within the music industry?

apace – ‘Paperless’, Mobile, RFID / NFC,

– The recent growth of “green field” RFID

–

18

operators.

The

recorded

music

industry

has

‘Bundling­ ’ (Ticket + Recorded Product­ ),

operator­ s will inevitably lead to the major

experienced­a massive disruption to its

‘Packaging­ ’ (Ticket

and/or

venue system installers of Access Control

economic­model over the last decade, and

Accommodation­) and this has led to a further­

and the various Payment Service Providers

although­considerably­smaller in terms of

disruption­of service provision and pricing

seeking­new opportunities.

revenue­and profitability than historical

and a greater number of operators within

levels­ , is arguably drawing upon a wider

the sector.

The task for all operators will be to show

pool of artists­and genres – K-Pop, Bhangra,

the event producers why the incremental

or Dutch Gabber Techno – and still able to

The ease of market entry for a single-­ costs associated with RFID (e.g. installation­,

quickly market its products to a local­and/

language­­territory GA (General Admission)

hardware­, licensing, training, power, system­

or global audience. Its key issue remains the

ticketing software or Secondary Ticketing

redundancy etc.) can lead to either lower

monetisation of its business and that will

marketplace has never been lower, but the

costs (security, events going ‘cashless’)

inevitably­lead the leading players to continue­

skill and ingenuity of those larger operators

or raise revenues (through advertising &

to review linked-opportunities within­the live

who repeatedly, robustly and reliably offer

sponsorship­, or geo-positional data-mining.

sector. This will take various forms ranging

a “bureau” service across multiple territories

from record companies owning­live concert

should not be underestimated.

Looking into the situation for business

promoters (as already occurs in a number of

newbies, what is more likely for them,

European territories), the development of

However, the task for all ticketers going­ a career as entrepreneurs or employees?

artist-related services e.g. fan clubs, or the

forward­is to become more social in their

– Both. As an old mentor Tony Wilson often

bundling of recorded product with ticketing

dealings­with consumers (personal­opt-in

stated, “There are those on stage, and then

and/or merchandise, as well as the continued­

with­ ­­relevant & appropriate communications­),

there are the secondary artists who enable

extension of artist contracts to directly

more flexible in their distribution­and

those others to perform”.

include­live revenues.

marketing­of tickets (API’s between­numerous­

Live is an industry that requires a team ethic­,

systems and functions­is a key technical issue)­,

is always exciting to be involved within,

The ultimate expression of the “360” model

and more transparent in their pricing – this

although­rarely equally rewards all involved.

could be the bringing together of a global

ultimately­means explaining­to both the client

It is however a great industry to work within

record­company

international

and the consumer­where the various­rebates,

and the future will undoubtedly be better

concert­p ­romoter & ticketer – obviously

commissions­and other costs of business­are

than the past.

dependent­upon regulatory approval within

incurred and distributed (ticketing’­ s ‘dirty

the US and Brussels.

secret­’).

with

an

+

Travel

VIP NEWS > BUSINESS > DECEMBER 2012

MUSIC IN SHARES

Music in Shares Manfred Tari mt@vip-booking.com

CTS Eventim

Live Nation

A Prosperous 9-Months A Corporate Saga

Yes, the revenue is rising, but the resulting profit can easily be misinterpreted­. Within the first nine months Live Nation has been able to increase its revenue results from $4.198 in the same period last year up to $4.381 billion. The company operating income also rose from CTS reports growths for the main company results, despite a revenue

$85 to $104.7 million, while the diluted net loss per share is reported

decline for its ticketing division. The company revenue moved up

with $0.02.

from 345.9 to 362.7 million Euros a rise of 4.8 percent. The Earnings before Interests, Taxes, Depreciation and Amortisation (EBITDA) rose

Anyhow Michael Rapino, CEO of Live Nation Entertainment concludes:

28 percent from 55.7 up to 71.3 million Euro, the Earnings before

“For the quarter, global concert attendance is up 2 percent and ticket

Interests and Taxes (EBIT) growing 39.5 percent from 39 up to 54.4

sales for Ticketmaster increased 3 percent. We expect to have continued­

million Euros.

growth in ticket sales in the fourth quarter, as compared to last year, for both Concerts and Ticketmaster. As a result, we currently anticipate

Within the ticketing division revenue declined from 151.1 to 140.1

growth across Concerts, Ticketing and Sponsorship & Advertising for

million Euros. CTS Eventim declared that in 2011 this part of the

the fourth quarter and full year.”

company­benefited from sport events such as the Football World Cup for Women in Germany and that this year’s events such as the

In Q3 alone the revenue of the concert division was $1.4 billion

UEFA-Cup and the Olympic Games lead to a lower figure of events

compared­to $1.2 billion one year ago. For the 9 months period the

in general.

concert revenue rose 5.1 percent from $2.81 to $2.95 billion. The ticketing­department moved within the last nine months from $966.7

Nevertheless for its Live Entertainment division CTS Eventim reported­

up to $1001.5 million, the department Artist Nation from $293.9

an increase in turnover of 13.8 percent, from 198.9 up to 226.4 million­

up to $298.6 million. Percentage-wise the biggest gain has been in

Euros. The profits reached record increases within this segment­, with

Sponsorship­& Advertising which moved up 5.9 percent from $182.5

the EBITDA moving up 57 percent from 14.7 to 23 million Euro, the

to $193.2 million.

EBIT even hit 62.3 percent, leaping up to 21.5 compared to 13.2 million­Euro one year ago.

The company also expect to deliver strong results in the fourth quarter (Q4) and state that upcoming tours of acts such as Pink, Depeche Mode, Roger Waters, Linkin Park, KISS, Joe Cocker, Rihanna, Eric Clapton will backing this trend.

19

2012 > DECEMBER VIP NEWS > DECEMBER BUSINESS

MUSIC IN SHARES

DEAG

HMV

A Promising 12 Months

sells MAMA Group

Germany’s other stock market listed concert company announced

HMV finally sold its MAMA stake to Juno Newco Limited, a subsidiary

that it expects a revenue result of 160 million Euros for the ongoing

of Lloyds Development Capital Limited. The purchase price was £7.3

business year. Within the nine months business report the revenue

million, but does not include the G-A-Y Group Limited and Heaven

went up from 93.9 to 96.5 million Euros. The EBIT went down from

(London) Limited.

5.8 to 4.2 million. As the company stated, the earnings results are affected by advance expenses for events to take place in the fourth

The UK-trade paper Musicweek reported that the company addres­s of

quarter.

Juno Newco is the same as that of MAMA Festivals Ltd. and Lovebox­ Festivals Ltd and speculated that the reason for this might be a

However, the board of DEAG believe that, “the trend suggests that

management­buy out deal financed by Lloyds.

the strong Q4/2012, as the dominating quarter of the full year, will continue in fiscal 2013 with very positive ticket sales and a strong

HMV bought the MAMA Group at the end of 2009 for £46m. Earlier

event pipeline.”

this year the Hammersmith Apollo, which previously belonged to the company portfolio, was sold to a CTS Eventim and AEG joint venture.

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MONTHLY FEATURED ARTIST POWERED BY

ARTIST AVAILS Chic Feat. Nile Rodgers Territory: Europe Period: 2013 Agency: GLP Agent: Georg Leitner E-mail: gleitner@glp.at

WINTERGARDEN

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WINTERGARDEN is the musical creation of international singer, songwriter,

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The English/Danish songstress had been singing her own pop/soul songs for years and after releasing her debut double album “Ultimatum”, she started to seek new ways of musical expression, and turned to her metal guitarist and producer­husband for inspiration and co-writing.

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At present Miriam’s company VOCAL STATION is producing a debut album and 3 music video’s for re- lease early next year, and has also gathered a band together for the live set up, and will be intially releasing thier first single/Ep in September 2011 Origin: Denmark (DK) Read more about WINTERGARDEN: http://www.click-a-gig.dk/epk/42/bio

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VIP NEWS > MISC > DECEMBER 2012

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