If It’s Not One Thing, It’s Another

There are two articles of interest to the event & entertainment marketing community in today’s Wall Street Journal.  

Anybody want a slightly used ticketing system?

The WSJ article states that Live Nation Entertainment is being sued by European ticketing company CTS Eventim for breach of contract.  After I read the article I was still confused but here is what I think is the issue.  Before the merger with Ticketmaster, Live Nation wanted its own ticketing system and cut a deal with CTS to compete with TM.  This was the Live Nation ticketing system.   Now that Live Nation and Ticketmaster are one and the same LN does not need a ticketing system and CTS is suing.  I don’t know enough about this to really comment.  However, you got to believe that Live Nation and Ticketmaster had a plan on how to deal with the disbandment of LN’s ticketing system?

Michael always liked the circus

The other article of interest in today’s WSJ is the deal being cut between Michael Jackson’s estate and Cirque du Soleil.  The always thinking live entertainment company is going to produce a themed show on Michael’s music.  Kind of like the Beatles themed show in Las Vegas.  The plan is to produce two shows.  One will be an arena show that will travel and the other will have a home at the MGM Mirage in Las Vegas.  I think this is a really smart move for both parties.  The shows will keep the MJ brand moving and Cirque will sell lots of tickets.  I hope to hear more about this from Cirque at the Event & Arena Marketing Conference in June.

So…What Does This Mean?

Since the news broke on Monday that the merger between Live Nation and Ticketmaster was approved by the Government, the number one question I am asked is “what does this mean?”  The quick answer is: I don’t know yet.

Depending on where/what you are in the industry could determine if you see changes now or later.  For the customer I don’t see any real changes at least in the short term.  Christine Varney from the Department of Justice Anti-Trust division was quoted as saying “we expect that we will see ticket prices coming down”.  Why does she think this?  Live Nation alone does not control the price of tickets.  If Live Nation, AEG or anyone else is still willing to pay “out of whack” dollars for talent then prices are not going to drop. Greed is not with one company alone. Ticket prices will drop when effort is made from artists, managers, agents, promoters, and venues to work together. 

DOJ is also making the new company license its ticketing software to AEG.  For Live Nation Entertainment, this is no big deal.  The ticketing software is not a major piece of the company.  For AEG, this is a good deal because they can now sell their own tickets “ready made”.

For peeps working at Ticketmaster and Live Nation, there is a lot of uneasiness.  What will the consolidation look like?  Are there jobs that could be considered duplicates?  Yesterday, Liberty Media offered to buy more stock in the new Live Nation Entertainment.  If this happens it would give them a 35% share of the new company.  How will they play into this? They are known for taking over companies.

I do know this.  The industry as a whole is not in the best shape.  This past year was a killer for all of us.  We need to see improvement and growth in 2010.  We need to move lots of tickets.  It’s in Live Nation Entertainment’s best interest to help facilitate this.  I ask that they don’t just look at their bottom line but the bottom line of the whole industry.  As the line in the movie Spiderman said “With great power comes great responsibility”.

So This Is Christmas

UK gives TM/LN a Christmas present

The United Kingdom’s version of anti-trust regulators has given Ticketmaster/Live Nation a surprise holiday gift.  They are now allowing the merger to go through on their side of the pond.  This should open the door and allow the U.S. to move forward.  I hear we could see the merger completed in the first quarter of 2010.  

Holiday Wishes

This week means one of two things to people in the live event industry.  You are either lucky enough to have the holidays off or your lucky enough to be working your ass off.  While Hollywood usually shuts down over the holiday period, the shows on the road are trucking along at full speed.  This is a very busy time for arena venues.  I remember several Christmas and New Year’s nights spent in Toronto with the cast of Disney On Ice.  While it is traditional to spend the holidays with family, my wife and I both agree we really did enjoy spending those holidays with our road show family too. 

This holiday period can be our version of “Black Friday”.  I hope that stockings are filled Christmas morning with tickets to all our events.  Let’s make the best of the next two weeks and put lots of butts in the seats.

I wish everyone either at home or on the road a wonderful holiday season!

Feedback: Maybe A Blogs Most Important Tool

People like to read daily blogs as part of their online reading. But do they realize they can comment?  Did you know you can be a part of the discussion?  

Most blogs are written in first person.  You can use “I”.  It is the writer’s opinion. This lends itself well for starting a discussion.  Think of it as a hybrid “letter to the editor”.  I believe you do a disservice to your readers when you don’t allow feedback.  Many bloggers don’t post feedback.

People like to read what other people have to say on an issue. Bob Lefsetz makes a great effort to post feedback from his readers.  Sometimes this feedback is more popular then his original post on the topic. Depending on how controversial the topic is will dictate the amount of feedback. 

Feedback is really the most important element of blogging.  Think of blogs as online discussions. Allow feedback and you can take the pulse of an industry.

With feedback in mind I pose two questions today:

1. Do you think the merger of Live Nation/Ticketmaster will happen and why or why not?
2. How do you think H1N1 will affect ticket sales in the upcoming months?

Send me back your answers and I will post them on Friday. 

People in the biz reminder

Don’t forget that I will also post updates on what people in our industry are up to this Friday.  Please email me your updates.  As I mentioned last week, I will post these updates every Friday. This is a great chance for your fellow event & entertainment marketers to hear what you are doing or your business is doing.  We can all learn from this.

Now Comes The Meat Of The Merger

Anyone who reads this weeks media reports on the Ticketmaster/Live Nation merger might think it’s all doom and gloom.  One might think the merger is not going to happen.  However, this just means we are getting to the fun part. 

The United Kingdom’s version of anti-trust regulators released their preliminary report on the merger yesterday.  Of course it was critical.  Of course it currently shows Live Nation/Tickmaster controlling everything.  The U.S. report is due shortly and they will most likely mirror the U.K. report.  Why is anyone surprised by this?

During the Senate hearings on the merger, all the assets of both companies were exposed.  Discussion of what would happen with these assets already came up. Everyone was in agreement that both companies would have to give stuff up.  We discussed all this months ago.  Have you noticed that nothing has been given up yet?  Now that the Government reports are coming out, you will see what happens with some of these assets.  This is when the real negotiation begins.  For example, I bet Tickmaster will sell or spin off TicketsNow and Live Nation will dump its ticketing system. Both companies are not stupid.  As much as they would like to, they know they can’t completely control the promoting/ticketing world. 

The U.K. commission left the door wide open.  In their statement they said they would consider possible “remedies”.  This is where the meat and potatoes come in.

I still believe this merger is going to happen.  In the weeks ahead you will see changes announced. Live Nation and Ticketmaster properties spun off or sold.  Both companies have been waiting for this moment.  They have the “remedies” waiting in the wings.

Have a great weekend!

Just New Ways Of Doing It

Free food always brings attention

My marketing / PR friend Adam Klein did an old PR event with a new spin on it.  In case you are not aware, October is National Pizza Month.  Adam’s client is Uno’s Chicago Grill.  Adam and his team spent last Thursday morning delivering pizzas to radio/TV personalities, celebrities, and politicians in the Boston area.  These were not just your typical deep dish pizzas, they were pizzas with pizzanility.  Uno’s created pizzas that fit the personalities of the recipients.   Check out the link above for a picture example.  The idea of delivering food for PR is not a new idea.  But as they always say “there are no new ideas, just new ways of doing it”.

If the movie industry does it, then so should we

There is an article on today’s Ad Age website about how the movie industry is using social network sites to market.  While social sites may not have taken over word of mouth yet, they are having an impact.  The article discusses how Sony Pictures used social media as part of the marketing mix. The results of their last three releases were impressive.  They also gave an example of social networks having a negative effect on the box office.  Many industry people believe that Twitter and other sites helped with the quick drop in tickets for Bruno.  People bitching on these sites is very contagious.  Negative breeds negative.

Ticketmaster scalped?

There is an article in today’s Wall Street Journal about TM being sued.  The article says that a ticket broker has filed a lawsuit against Ticketmaster claiming that brokers were paid to sell tickets at premium prices.  This was part of a secret trial project from a couple of years ago called “Project Showtime”.  While I am not always known for defending TM, I do smell a rat with the timing of this lawsuit.  The merger of Ticketmaster and Live Nation is close and ticket brokers are getting very nervous.

The Live Nation/Ticketmaster Senate Hearing

I did watch the Senate hearing the other day on the Ticketmaster / Live Nation merger.  That was the most interested I have ever been at watching C-SPAN.   Usually it is like watching paint dry.

I had to laugh at the beginning of the hearing.  The Senators all get to make an opening statement.  They just love to hear themselves talk and compliment each other.   They also like to say stupid things because they know they are on TV.

The cast of characters representing the concert industry was the right mix.  Of course you had Michael Rapino representing Live Nation and Irving Azoff representing Ticketmaster.  But you also had a few of the smaller promoters from the industry. Jam Production’s Jerry Mickelson and independent promoter Seth Hurwitz did a great job of giving their side.  They are part of a very small group.  They are on the endangered species list.  They have very legitimate concerns about this merger.  For example will they be able to do business in Ticketmaster venues if the merger goes through? 

I was surprised at Michael Rapino’s testimony.  I have never met him but I understand he is a very smart and talented guy.  He runs a very big and powerful company and has to deal with a lot of stress.  Yet, he seems nervous and distracted.  Every time someone walked by him he looked up and seemed to lose his place on his written statement.  I have been to senate hearings.  People are always walking around. 

One interesting statement that came up was when someone mentioned (maybe Seth Hurwitz) that Live Nation’s ticket system was a failure.  I took the statement that LN may have dumped the system? Michael Rapino never challenged that statement.  Did LN already dump their ticketing system?

Senator Charles Schumer went after Irving and Ticketmaster on the Bruce Springsteen issue.  While he had every right and should question that screw up, Senator Schumer didn’t seem to be up to speed with the latest news.  Ticketmaster had just settled the day before with the NJ Attorney General.  Among the settled items, TM is going to stop linking TicketsNow with Ticketmaster for a period of time.  I don’t know how long that is.  His questions did not seem to reflect this news.  Senator Schumer asked Irving if TM plans to sell TicketsNow.  Of course Irving is not going to answer that in front of Congress.  Irving did admit that “he” would not have bought TicketsNow if he was in charge of TM at that time.

Here are my predictions:

1) The merger will go through

2) Ticketmaster will dump TicketsNow.  They will need to do this for the merger to go through

3) Live Nation will dump their ticketing system (unless they already have)

4) Irving will get his “fee included” price for live event ticketing

5) Ticket prices will still be high with or without the merger until the fans make them change

 

The Mother Of All Mergers

The Wall Street Journal is reporting that a merger of epic proportions is about to happen. 

The merger of Live Nation and Ticketmaster.

Holy Shit!  I did not see this coming.  But then again with what has been happening in this business for a while and the players involved namely Irving Azoff and Michael Rapino I guess I should not be surprised.  If you think about it, this has been slowly building for a while.  I have been writing about the battle of these two since the fall. I did say that it would come to head at some point.  My first post on these two was back in September and was named “Earthquake in the Ticket World”.  If that was the earthquake then this must be a nuclear bomb blast.

The first reaction from most people is “no way this will pass antitrust”.  Don’t be so sure on that.  Both of these companies did not get where they are from being stupid.  I am sure they thought about that several times.  I am sure they have that all covered.  There first argument will be that the music industry has changed so much that these types of deals are the only way they can survive.  This was already hinted at in the article.

The two biggest questions that need to be asked are:

1) How does this affect all of you in the event & entertainment business?

2) How does this affect the ticket buying customer?

I am not too sure this is a win-win for either.  Do we want no competition when our customers can’t afford to see a show now?  What happens to Live Nation’s new ticket system? 

Of course this deal is still not been officially announced nor have the boards of either company voted on it yet.  But let’s be honest, you know they leaked this to the WSJ for a reason. 

As I stated back in September, let’s sit back, grab a popcorn and watch this Hollywood story take place.