Tour promoter

Tour promoters(also known asconcert promotersor talent buyers) are the individuals or companies responsible for organizing a liveconcert touror special event performance. The tour promoter makes an offer of engagement to a particular artist, usually through the artist'sagentormusic manager.The promoter and agent then negotiate the live performancecontract.The majority of live performance contracts are drawn up using theAmerican Federation of Musicians(AFM) standard contract format known as theAFM Performance Agreement.

Services

Included among the tour promoter's various job responsibilities are: (1) obtainingvenue,concert hall,theater,nightcluborarenabookings; (2) pricing the event or tour; and (3) providing air, sea or landtransportation(optional). However the promoter must have upfront cash and orsponsorshipfinancing to pay for advertising the tours of the artists. Such advertising costs, usually referred to as a Media or Promotional Kit, commonly includetelevisionand radioadvertisements,posters,newspaperandmagazineadverts,online marketingand so on.

Promoter compensation

There are no figures available concerning how much an average concert promoter makes annually. Like mostmusic industryprofessions, compensation depends on the level of success possessed by the artist the promoter works with, location, and what a given market will bear. The promoter assumes all thefinancial riskin putting on a show, so compensation also depends on how successful the promoter is at negotiating withvendorsand creating sold-out shows. Additionally, in-depth knowledge of their operating market and audience characteristics are critical success factors for any tour promoter.^[1]

Industry overview

The rise of large corporation mega-promoters over the past ten years has made it much more difficult for aspiring tour promoters to break into the industry.Live Nation(previously known asClear Channel Entertainment) is the number one concert promoter in the world according to figures released byPollstar Magazinein 2006. TheBeverly Hills, California-based corporation accounted for about $1.3 billion in concertbox-officesales during 2005, according toBillboard magazine's tracking.Anschutz Entertainment Group(AEG Live) was ranked second with $417 million, followed byHouse of Blues(HOB Entertainment) at number three with $245 million. On July 5, 2006, Live Nation purchased HOB Entertainment for $350 million, further expanding their market share in the live-music business.^[2]

While average ticket prices jumped to roughly $57 in 2005, the number of tickets sold for the 100 biggest tours dipped 3.5%, to 36.3 million.^[2]Some fans have complained to government officials, particularly after they found tickets to the same concerts or sporting events available – sometimes at many times the face value – on secondary sellers like Stubhub and TicketsNow minutes after the public sale began. After hearing from some would-be ticket buyers, theMissouri attorney generalannounced the state was suing three ticket resellers on charges they violated state consumer protection laws. That same day, theArkansasattorney general said he was seeking documents from five resellers. And the attorney general's office inPennsylvaniais also looking into the ticket sale business after receiving several hundred complaints over the recent sale of tickets for aHannah Montanaconcert in Pittsburgh.^[3]

Live Nation and Ticketmaster

On December 21, 2007, Live Nation announced it would acquire the software and services to ramp up its ticket-selling operation, potentially positioning the company to compete directly with its longtime contractor,Ticketmaster.^[4]

Live Nation, the largest concert promoter, and Ticketmaster Entertainment, the No. 1 ticket seller, announced merger on February 10, 2009. Then on January 25, 2010 theU.S. Department of Justiceapproved the merger with terms that include that Ticketmaster sell Paciolan, its ticketing and software services unit, to Comcast's sports and entertainment firm or "another buyer suitable to the department."

Ticketmaster must also license its software toAnschutz Entertainment Group(AEG), the company's largest customer. With a copy of the Ticketmaster software, AEG will be able to market an attractive ticketing system to venues, according to the DOJ; under the settlement terms, both companies will be able to compete head-to-head with Ticketmaster.^[5]

College concert market

Colleges can provide "dedicated fans, an excellent testing ground, eager workers, [and] loyal fans." The college market provides a network of new potential fans that artists, labels, agents, and managers could focus on for promotion. The major record labels have departments dedicated to college promotion and hire students as representatives for all the artists on these labels.Sony Music Entertainmenthas a college marketing department, which promotes records released by Sony and by their independent label affiliates. Other music marketing companies such as Cornerstone Promotion focus on college marketing. Cornerstone Promotion hires representatives from colleges all around the country to implement small scale marketing campaigns on their campuses. Artists began breaking into the college market in the 1990s.Billboard Magazinepublished articles dating back to the early-mid nineties urging artists and agents to take advantage of the college market. Artists such asDave Matthews Bandand R.E.M. played college shows to increase their presence in the college market in the nineties. Billboard Magazine has emphasized the extent to which college concerts can help an artist in multiple articles.

Education

There are numerous degree programs and academic courses focusing on concert promotion and venue management. Some of these are full degree programs, while others are certificates offered for post-graduate studies. For example,New York Universityoffers a Certificate in Meeting, Conference, and Event Management, and a Certificate in Sports Marketing.^[6]

Notes

^MusicBizAdvice Q&A.Archived2009-01-15 at theWayback Machine.January 2008.
^^a ^bBig Promoter of Concerts to Acquire House of Blues,New York Times.July 6, 2006
^In the Race to Buy Concert Tickets, Fans Keep Losing,New York Times.October 6, 2007.
^Top Concert Promoter Sets Up a Challenge to TicketmasterNew York Times.December 21, 2007.
^Reagan, Gillian."Ticketmaster And Live Nation Get Approval As One Giant Music Monster".Business Insider.Retrieved12 October2012.
^New York University.Archived2007-10-10 at theWayback Machine.

References

[1] MusicBizAdvice Q&A.Archived2009-01-15 at theWayback Machine.January 2008.

[nyt1-2] Big Promoter of Concerts to Acquire House of Blues,New York Times.July 6, 2006

[3] In the Race to Buy Concert Tickets, Fans Keep Losing,New York Times.October 6, 2007.

[nyt2-4] Top Concert Promoter Sets Up a Challenge to TicketmasterNew York Times.December 21, 2007.

[5] Reagan, Gillian."Ticketmaster And Live Nation Get Approval As One Giant Music Monster".Business Insider.Retrieved12 October2012.

[6] New York University.Archived2007-10-10 at theWayback Machine.

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