The common responsibilities of a concert promoter: |
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1. Orchestrating Ticket Sales 2. Organizing sale of artist merchandise 3. Assisting in securing sponsorship deals to support the tour 4. Arranging stage setup 5. Providing some of the event staff 6. Financial Accounting 7. Complying with live event safety regulations |
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The four (4) common talent fee structures utilized by concert promoters: |
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Flat Guarantee- pays a flat rate, usually 50% in advance, 50% after performance. Used in festivals Advantage: You get paid no matter how many tickets are sold Straight Percentage- Net revenue= less customary expenses (venue rental, box office fees, marketing/promotion). 85% (Artist) 15% (Promoter). Promoter covers all his expenses, what is left over is split Disadvantage: at the mercy of ticket sales Advantage- aligns promoter and artist interests Versus Deal- a guarantee vs. a % (whichever is larger) Disadvantage- used as a way to low ball artist Plus Deal- Guarantee plus a %. Used in larger tours. How the promoter’s profit is calculated is what is different. Promoter’s profit at 15% is calculated as an expense. Est expenses, multiply by 15%, and then add that back into total expenses. Promoter is guaranteed to cover his expenses. Artist is offered a guara |
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The four (4) common types of performance agreement riders |
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Technical rider- shows various requirements of artist stage production Rig points Stage plot Lighting plots Crew parking Power requirements Sound inputs Security Rider- lets promoter know what security concerns of the artist are. Warranty that promoter and venue will engage adequate security to reasonably protect artist and crew Security meetings Backstage security Credentialing Stage barrier description Merchandising Rider- defines terms and conditions that venue must follow in exchange for a % of sales. Use venue staff to sale merchandise. In exchange for providing staff and resources, venue takes a cut Artist has exclusive right to sell all non-food/beverage items- venue has the right to sell the food/beverage Hospitality Rider- request for food/beverages/accommodations of artist Food, drinks, catering Hotel accommodations |
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The three (3) most common sources of tour revenue for performing artists |
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Ticket Sales Merchandise Sponsorships |
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5) Licenses or permits a concert promoter may have to secure for the production of an outdoor music festival |
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Force Majeure Insurances Performance licensing Power Zoning Security Sanitation |
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The problems that could crop up in managing sponsorships for concerts |
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Act and venue are sponsored by competing products (Pepsi vs. Coke) Artist may reject sponsor, or limit exposure of sponsors image (Page 284) Artist may also ask for additional fees in exchange for letting a sponsor display brand (Page 284) |
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The factors in setting the price for a venue rental? |
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What season it is (summer vs. Winter) Day of the week The areas geographic exclusivity for star acts |
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What performance mediums make up the arts industry? |
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Ballet Opera Choral groups Church groups Sacred Music Classical music |
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Sources of philanthropic and market funding for nonprofit arts organizations |
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Earned income-tickets sales, music downloads receipts, and other direct payments for what they do Contributed- includes donations and grants |
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The duties of an Executive Director/General Manager of a nonprofit performing arts organization |
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Supervise the work of the staff. Hire and fire Organize and supervise volunteers Direct long range planning Raise Money Prepare Budgets Work with artistic director in the conception and implementation of programs Negotiate contracts for professional services Supervise technical matters relative to live performances Handle press relations and public relations |
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Product sales leaders in the music products industry |
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Fretted instruments Sound Reinforcement products Printed Music Percussion Wind Instruments |
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Retail sales leaders in the music products industry |
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Full Line retailer (Guitar Center) Combo Stores (Guitars, bass, drums, P.A.’s-don’t offer everything) Specialty Shops (High end, occupy niche market) |
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The current challenges facing the music products industry today |
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Outsourcing of production overseas for cheaper labor Cuts in arts education- budgetary cuts Big box retailers are entering the market- cheap instruments Technology- rise in technology leads to more music being created from synths Digital distribution- lowers demand for offset printing Piracy and counterfeiting of print music Poor economic conditions |
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The advantages and disadvantages to both artists and fans of consolidation in the concert promotion and ticketing industries: |
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Can buy ticket from comfort of home-don’t have to go/wait in lines at the box office Gives artist a better idea of how well tickets are selling Can get more in depth knowledge of fan base/get their email etc.… Allows for more direct and specific promotion of the shows to people who will actually be interested in the artist. |
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The relative importance of the Live Music sector to the overall music industry, how this importance changed over time, and why the concert promotion business experience so much consolidation in recent years: |
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Extremely important due to the fact that this is where the artist makes majority of their money, boosts record sales, merchandise sales, expand fan base. Changed from when live shows were used as promotion to boost record sales, back when record sales where primary moneymaker- ticket prices increased 2% from 1975-1996 Ticketmaster and Livenation merged. Prior promoter and ticketing agents were separate. Ticketmaster standardized industry. Primary customer is the venue for ticketmaster. Made ticketing a profit center. Convenience factor, cause ticketmaster had all info- became one stop shop for all tours Ticketmaster makes money off service charges |
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Per capita expectations for licensed merchandise are for an artist playing a stadium versus an intimate setting with small seating, and the reasons why expected sales per ticket holder is vastly different: |
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Per capita- Average dollar amount that artist will sale in merch per ticket/person Generally speaking, the smaller the seating capacity, the higher the expectations are for sales per head- the thinking is that majority of the people at small shows are big fans and more likely to purchase merchandise Large stadiums share a converse relationship to the small venue idea because it is a mix of light and die-hard fans |
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The historical development of patronage in the arts. Why is it still needed today? |
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Patronage has been a huge part of art music throughout history- first acts of patronage were done by the Church and nobility Concert halls and public theatres increased in numbers and ticket sales supported musicians as did people with wealth In modern times, art societies were developed to organized financial backing for orchestras and operas It is still needed because this is the case since the beginning of the arts and it simply is impossible to survive off simply ticket sales. |
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The factors typically considered by a business on whether or not to give a financial grant/donation to a nonprofit performing arts organization: |
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Proper solicitation- many big companies haven’t given because they haven’t been asked- someone needs to show them why they should give the money Companies want to know about audience demographics- if the people seeing the show are their clients |
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How and why the market for music instruments and equipment is changing: |
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Outsourcing of production overseas for cheaper labor Cuts in arts education- budgetary cuts Big box retailers are entering the market- cheap instruments Technology- rise in technology leads to more music being created from synths Digital distribution- lowers demand for offset printing Piracy and counterfeiting of print music Poor economic conditions |
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