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In a Wall Street Journal article out today, former Ticketmaster CEO, Fred Rosen, denounces the Ticketmaster model that he essentially created in the 1980s and ’90s. Says Rosen, “The middle-man model is dead.” Rosen’s new venture, according to the Journal, is different because “…instead of listing and selling tickets for thousands of events on a single, centralized website, the new company plans to offer a so-called white-label service that will enable clients … to sell tickets to consumers directly from their own websites.” What a concept! Not to toot our own horn, but this is the model TicketBiscuit has espoused since we opened the doors in 2001.
Back before Google, Facebook, Songkick, Eventful, and the other myriad services and websites that help fans find events, Ticketmaster arguably provided a valuable service in aggregating events on one website. But now, that “service” does more to hijack event owners’ website traffic than it does to provide exposure for those events.
I often hear Ticketmaster clients claim that “people just know to go to Ticketmaster.” I disagree. They know to go to Google; they know to go to Facebook; and they subscribe to services like Songkick which notify them of events they’re interested in. This new paradigm frees event owners from having to get the word out about their events (let your customers do that for you) and lets them instead focus on building brand loyalty and establishing direct communication with customers.
The live entertainment biz is changing – for the better if you ask me. As the combined Ticketmaster and LiveNation struggle to maintain their outdated business model, event owners would do well to sidestep the “middle man.” Those who do not may find their life rafts getting pulled under by that massive sinking ship to which they are tethered.
Most of you have probably seen the press release by now, but for those who have not, we made a very big announcement today. Essentially, we’re allocating $10 Million dollars to contribute to America’s live entertainment venues and promoters to help keep them independent.
What does “independent” mean? Basically, not involved contractually with Ticketmaster and/or Live Nation. In my opinion, Ticketmaster has done more harm than good in the live music space as of late. The most recent troubling revelation was that Ticketmaster allegedly used its secondary ticketing subsidiary, TicketsNow, to inflate ticket prices for high demand concerts. Ticketmaster has denied any wrongdoing and an investigation is pending. But the whole thing just looks bad.
And now the impending merger with Live Nation. Live Nation enjoyed relatively favorable customer relations until earlier this year. Many folks (including us) were rooting for Live Nation’s new ticketing platform at launch. We know that they’re competitors. But competition is good in this market. It keeps talent accessible and fees low. But our cheering, like that of many, turned to jeering upon first learning that Live Nation’s fees were as high – if not higher – than those of Ticketmaster. And based on the experience of many a Phish fan, the Live Nation ticketing systems were seemingly insufficient for a massive onsale event.
From a business standpoint, the merger makes great sense. It makes sense because TM’s and LN’s previous competitive stance toward each other would have ultimately ended in mutual destruction. It makes sense because they have complementary strengths. It makes sense because Wall Street loves it; the stock price of both companies jumped at the mere rumor of the merger.
I will also acknowledge that this deal will be good for some. Major headlining acts will benefit. Management companies could benefit. Advertisers could benefit. But make no mistake about it: in this relentless focus on financial benefit and the money to be made, music fans, independent musicians, independent venues, and independent promoters, in my opinion, will lose out. In short, this deal will represent the largest consolidation in the history of the live music industry.
Consolidation means fewer choices and higher prices for fans. And that’s what the Music Liberation Fund is meant to fight against.
Is there something in it for us? Yes. Are there strings attached? Sure. But we’ll make all of that perfectly transparent to those who qualify for fund proceeds. The bottom line is that artists, fans, venues, and promoters need a choice. And with any luck, the MLF will help ensure that they always have one.
When I got home last night from “MMA 101″ class at Spartan Fitness, my wife told me I had something on my eyebrow. Turns out, it was a piece of leather from my training partner’s glove, left there when he landed a stiff jab during the “live sparring” we do at the end of class. As we prepare to launch BattlePass.com, the first and only ticketing system built for combat sports, my MMA training is much more than just a tough workout:
1. It gives me intimate knowledge of – and respect for – the country’s fastest growing sport, something that will prove invaluable as we approach the many promoters who regularly sell out MMA, Boxing, Jiu-Jitsu, and Muay Thai fights in town halls and community centers across the country. I expect this knowledge will come in very handy as we fight for the belt of “fastest growing ticketing company in the country”.
2. It strengthens my resolve and competitiveness in the business world. There’s nothing like learning to weather punches to the face, knees to the ribcage, neck cranks, and arm bars to put things in perspective when you’re trying to convince a prospective client of the value of your software.
3. It reminds me that size doesn’t matter – at least not in fighting or business. In the early days of modern civilization, David brought down Goliath; in the early days of the UFC, Royce Gracie brought down countless bigger fighters who, on paper, should have crushed him; and call it post-fight euphoria if you want, but I have a feeling that ticket buyers and sellers alike will one day tell stories of how “scrappy little TicketBiscuit” took down the ticketing behemoths of their day by out-thinking, out-maneuvering, and out-executing them.
On Independent Ticketing
February 3, 2012 in Commentary, Musings, best practices | by jgale | Leave a comment
In years past, independent ticketing companies were challenged when it came to handling big spikes in demand. And when phone sales ruled, only the largest ticketing companies had call centers big enough to handle the volume. But times have changed. Independent ticketers are now the technology leaders. And telephone demand has fallen off dramatically. Massive demand spikes are no longer a problem for the leading independents.
So that leaves marketing. For a minute, let’s assume that a massive email database and domain name recognition are as effective at moving tickets as some of the tools and techniques offered by leading indies. I don’t believe for one minute that’s true. But let’s pretend it is. The question becomes, are the email list and domain name worth it?
What if you had an extra couple of bucks per ticket to spend on marketing – without increasing the total cost to fans? Could you use that extra money to market your shows as effectively? My bet is that you could do a better job. All promotion is local, right?
First, consider those happy times you find yourself with a show that’s going to sell itself with no marketing? With a major, you – via your customers – have paid for that email list and domain name whether you need it or not; with the right indie, those unneeded marketing dollars can fall to your bottom line.
Or what if you could lower the total cost for fans, without it impacting your bottom line, and without it dulling your artist’s image? Maybe that cost difference is enough to move the bulk of your sales into the advance column, saving you from the whims of weather and everything else that can decimate your door sales.
Have you considered the good will that a smaller ticket fee can engender amongst your customers? YOUR customers. With most indies, you have unfettered access to your customer data. You can slice and dice and data mine and analyze and target like never before. This, after all, is what good promotion is all about. It’s not just placing bets on bands you think will sell. It’s about having an intimate knowledge of your audience so you can match them up with the right events and take some risk off the table. Sometimes it’s about having some powerful data to give you the confidence to pass on the “next big thing” that’s not right for your customers – or to recognize that you can fill the house for an emerging artist while you can still afford them.
The real promise of independent ticketing is that it puts more of your fate back in your hands. If you don’t want that control, and the responsibility that comes with it, go play craps. Go play roulette. Promoting shows wasn’t always just about assuming the risk. A promoter is a marketer, an entertainment broker. To be successful, you must know the product and the market better than anyone. And you must have the tools and authority to put that knowledge to work.
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