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I recently started subscribing to the Lefsetz Letter. Bob Lefsetz (the author) has been publishing his thoughts for 25 years. He addresses the issues that are at the core of the music business: downloading, copy protection, pricing and the music itself. To say he is an expert is a bit of an understatement.
Anyhoo, Bob’s latest post is one that I think all owners of venues should read. In it, he talks about the perceived value of admission and tries to get you thinking about what it is, exactly, that keeps folks coming out to see shows at your place. Here’s an excerpt:
Music needs to be a good value. It hasn’t been a good value for in excess of a decade. Ever since Robert Sillerman rolled up the regional promoters into SFX. Now prices are high. It’s like sports. But music ain’t sports. And I won’t go to a baseball game on a whim anymore. Used to be $3 and you sat in the upper deck or bleachers and got fucked up and who gave a shit about the game. Now, you’re pissed if you go and the game is shitty. Because you paid a fucking fortune! But, at least the teams are classic, they don’t change. We’re trying to break acts in the music business. We can’t overcharge.
We need some innovation.
Bob has some interesting thoughts on how to increase perceived value and pack the house without giving away tickets. Check out the full post here, and if you are in the music industry, you should mos def subscribe.
I found some very cool news in my inbox this morning. One of our newest BattlePass clients, Xtreme Fighting Championships, has inked a very cool deal with MTV.
XFC President John Prisco and crew put on shows in Tampa to crowds averaging over 10,000, making him the largest regional promoter in the United States. In this deal, the XFC will host tryouts for the MTV reality show “Made”, the winning contestant will then train at the XFC training facilities, and the newly made fighter will debut on the April 18 fight card in Knoxville, Tennessee. The “made” episode will air in 2009.
John is a savvy promoter, so say the least. I encourage anyone in the marketing or public relations fields to read his Anatomy of a Fight Promotion series on mmajunkie.com. His strategy is pretty straightforward: tell an honest story, tell a compelling story, and aggressively court the “free” media to help you tell your story. This MTV deal is evidence of that strategy in action. How much free community exposure will John’s operation get when MTV comes to town and hosts tryouts? How much free national exposure will the XFC brand and franchise-able training facilities get when the show airs on MTV?
John knows the difference between commercials and media – commercials create awareness, media creates action. Oh, and media is a LOT cheaper.
This is where Elite XC got it wrong. They spent too much money too quickly and failed to establish a brand that could compete with the UFC. I don’t know if Prisco is interested in competing per se with the UFC, but it is apparent he has the foundation and skills to carve out a significant share of the market for the sport. And we’re in his corner.
Live Nation ticketing is, um, “live”
December 26, 2008 in Commentary, ticketing news | Tags: live entertainment, live events, live nation, ticketmaster, ticketng | by ehoush | Leave a comment
Today TicketNews posted a story about the soft rollout of Live Nation Ticketing, signaling that the giant’s move away from Ticketmaster is still on course. Since Ticketmaster has extensive long term contracts in the industry, the move will take time. As one Live Nation insider put it, it won’t be like “flipping a switch.”
So Live Nation enters the event ticketing space. As a competitor of ours, I had to go check out their system. Live Nation partnered with German-based CTS Eventim to develop the interface, and on the surface it is clean and elegant. They even have a java powered seat selector like the one we feature, although ours is a bit easier to use, I think (of course that assertion is free of bias).
The event I checked out was a Temptations concert in New York. On a $66 dollar ticket the fees were over $15. High, sure, but being in New York there are probably facility fees and parking fees rolled into that amount.
Then I went through the purchase process, and was forced to create an account and provide personal info (including phone number?!?!?!) before I could complete the purchase. This is where we start to see the cloak lift, and as the industry moves away from ticketing fees as a primary source of revenue we can see that they have their intentions aimed squarely at advertising.
Look at the event page- There is a prominent Citi Cards ad. The venue is The Capitol One Bank Theater at Westbury. Rest assured after you buy tickets you’re going to get pummeled with direct mail and email from “Live Nation Partners.” The beast feeds the beast.
I’m glad Ticketmaster now has a big name competitor, but I hardly think this is good for the business. The “360” or “all inclusive” deals that Live Nation and Ticketmaster have been making recently are engineered to squeeze every last cent out of the live entertainment marketplace. Exploit the big acts and venues at the expense of the customer. Only play our acts on the radio. Sell your CD in Wal Mart. It will be a semi-profitable bloodbath between the two companies for a while, until the mass public finally realizes they’re being force fed garbage like the Pussycat Dolls and starts to embrace real music again.
Real music won’t be dead. It will be at venues like WorkPlay, or Minglewood Hall, or Exit In. It will be at the local 1200 seat clubs being created passionately by folks who are actually good at it, listened to by folks who appreciate it, and yes, bought by those who value it.
The future of the business looks a bit like the past.