Livenation Case

The world went into meltdown and ticket sales were setting new records. The demand was so high, a 10-night residency show turned into 50 between 2009 and 2010. 360,000 tickets were sold during the presale. ‘One million people would have the

3) The breakeven analysis is likely to be more important for a fixed fee performer because the fixed costs are higher (because of the talent cost), and there is a greater risk from poor attendance at the event.

I propose that all unsigned rising artist should target the business side of the music industry to be successful in the entertainment business because it allows the artist to be taken seriously and make solid connections that can further his/her career. Learning the works of the music industry also enables a new artist to be further successful and profitable. Recent studies show that most new artists without professional representation and a business mindset have a slimmer chance in getting signed to major or independent labels (Lowry, 2011). Overall, the specific change needed is that unsigned artists should be concentrating on their careers as professionals and not amateurs, thus focusing on the ins and outs of the music business and

I believe that Kid Rock is a great business man. With his economic strategy, he can keep prices at a point where his fans, typically working class, are still able to afford and purchase tickets but, he is increasing the quaintly in the amount of tickets available, by adding additional shows. This helps shift the demand curve for his tickets. By shifting the demand curve, he is helping to decrease the scalping of his tickets and keep more money in his pocket from his fans. I think by increasing the amount of tickets available it also increases the time it takes to sell out each concert allowing more of his fans a chance and reasonably priced concert tickets. His other ideas such as platinum seating, which takes some of the best seats available

Iconic legends like Michael Jackson, Madonna, Bon Jovi, Prince, Def Leppard, and Guns N' Roses built MTV. Music fanatics like myself used to run home from school, just so we could witness a Michael Jackson music video. MTV is the reason I listen to all genres of music including Rock, Hip-Hop, Pop, and R&B. BET was so instrumental in making sure R&B artists were recognized and respected. If it wasn't for BET, legendary musicians like Patti LaBelle, Luther Vandross, Anita Baker, and New Edition may have gone unnoticed by the world. MTV and BET were important factors in the music business- I just wish the networks understood how essential they are in this battle to get music back to its dominance. Music deserves to be played/viewed on the major MTV and BET channels- not the affiliate MTV and BET channels that most people don't have access to. Television is a vital platform, and artists need that platform in order to help promote their

The intriguing aspect about the Van Halen brown M&Ms is the genius act of the intent of why they placed this clause into the contract in the first place. In the text, they call this type of contract, “Express Contract”, which means the agreements are precisely defined (Lee, Myeducator). In order to keep his crew and the audience safe, Van Halen made sure this clause was in the contract to easily see if the promoter actually read the contract. For instance, if he walked back stage and saw brown M&Ms, he knew they did not read the contract and there may be safety issues with the set. Consequently for the promoter this would mean they would forfeit the entire show at full pay.

Music has become a center piece of life; however it comes with a vigorous price unknown to most of the public. The music industry is littered with corruption. My proposed research problem focuses on the manipulation and control the music industry has upon its artists through an unescapable 360 deal, which in and of itself is not only reducing an artist to almost indentured servitude, but also cripples record labels themselves. The 360 deal is a common mandatory contract record labels utilize to financially support an artist. This includes advances and funds for promotion, touring, and marketing, all which the artist has to pay back to the label. I believe this problem is significant and warrants further research because the record labels are unconstitutionally taking away artists rights in favor of their own greed, in turn, leaving the artist without ownership of their own songs, money, and rights to royalties.

Musical fans from across the globe have been recently troubled with the incessant cancellation of world tours by the inspiring musical icon, Janet Jackson.

Working in the music industry for his entire career, I’m sure Grainge has dealt with hardships that have come to question his decisions. Through the music business, Grainge has managed to break a string of records with UMG to become the first company in the U.S. to have nine out of the top ten songs on the digital chart. He has been recognized by the music community and has received industry honors and achievements such as the world’s most influential and successful executives in music and outstanding achievements in business and his education and his dedication to philanthropic causes. Grainges’ love for music has allowed him to become one of the most successful and well respected CEO in the music

This remains attributed to the fact that Live Nation will not buy any more music. However, Live Nations plans on continuing their support for

The other advantages to signing with Live Nation is that they are an Artist Nation; this means they believe in being a partner to the artist and assist in managing a variety of rights, fanbases, touring, and provide direct connection to fans. Unlike the 360 deal, Artist Nation does not confiscate publishing from the artist, which is a big revenue stream typically. In turn, this provides the artist with more income. The major areas that Live Nation profits from are: recorded music, merchandising, fan sites and ticketing, broadcast rights, sponsorship, marketing, and digital rights management. This may seem like a lot, but the percentage they take is about 6% in each of these areas. The biggest percentage Live Nation takes is from ticket sales because that is what they are known for and that is the money making part of the business for most artists. A disadvantage to Live Nation is they lack licensing and distribution like record labels however, sometimes a deal can be made through a record label just for distribution purposes. Although Live Nation lacks in certain areas that major labels have; they are making agreements with other companies such as, Ticketmaster, to help their artists as well as themselves to become successful. One of these strategies involves ticketing and fan clubs. The core of the music industry is not albums or singles, but live performance; hence why Live Nation is

The popular music industry in the late 1990s was dominated by a small number of integrated corporations with headquarters in Europe, the United States and Japan. This music market starts simply with an artist and moves along through many steps to the consumer. Everything has its start when a musician presents his music to a music manager, and if he/she finds the music promising, a contract is signed between the two, recordings are made and a marketing plan is drafted for the

The major music-only stores such as Tower Records (which once wielded considerable influence in the industry) went bankrupt, replaced by box stores (such as Wal-Mart and Best Buy). Recording artists began to rely primarily on live performances and merchandise for their income, which in turn made them more dependent on music promoters such as Live Nation (which dominates tour promotion and owns a large number of music venues.)[6] In order to benefit from all of an artist 's income streams, record companies began to rely on the "360 deal", a new business relationship pioneered by Robbie Williams and EMI in 2007.[7] At the other extreme, record companies also used simple manufacturing and distribution deals, which gives a higher percentage to the artist, but does not cover the expense of marketing and promotion. Many newer artists no longer see any kind of "record deal" as an integral part of their business plan at all. Inexpensive recording hardware and software made it possible to create high quality music in a bedroom and distribute it over the internet to a worldwide audience.[8] This, in turn, caused problems for recording studios, record producers and audio engineers: the Los Angeles Times reported that, by 2009, as many as half of the recording facilities in that city had failed.[9] Consumers benefited enormously from the ease with which music can be shared from computer to computer, whether over the internet or by the exchange of

This deal enables them to have a share of all the artist revenue streams including concert ticket sales, music sales, merchandising and endorsements among others. More so Agents whose main job is of booking concerts, commercials and tour sponsorships get at least 10% commission deducted from Gaga’s gross profits. So since the small venue tour is not profitable Live Nation, WME, and Hew record label Interscope are likely to go for the arena tour because it has high ticket sales and large capacity and it means high profits if the percentage of ticket sold is 100%. More so to WME it means more money to them due to high gross profit gained by Gaga. The success of the tour results in Gaga’s increase of fame which can bring in more revenues from other avenues like merchandising, commercials or endorsements. So at the end of the day these three partners has a lot to gain hence the reason why they have the same preferences of going for the big arena tour in spite of the risk involved.

four to six albums’ worth of music, while the label agreed to manufacture, distribute, and promote