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!

To Flyer Or Not To Flyer…That Is The Question

Does flyering a show work?  Why do you flyer?  How does it translate to ticket sales?  This is my question to you today.

When you flyer do you just promote the event or do you offer something?  When is the right time to flyer?  Where is the right place to flyer?  Like any type of marketing, it’s all how, when, and why you do it.  If you flyer just to make it look good, you will waste everyone’s time and money.

The best flyer marketing experience I ever had was in Atlanta with Ringling Bros.  I produced a big circus parade for them through the streets of Atlanta.  The parade was late morning and was followed by an afternoon performance.  We had at least 30,000 people lining the parade route.  I hired people to pass out flyers with a special discount good only on that afternoon’s show.  We walked up 2000 customers for that performance.  Most had the discount ticket offer flyer.  It did not hurt the overall gross of the week.  In fact we had a record week.

This flyer marketing campaign worked because we had the right demo, interested customers, an offer, and a very limited time offer.  Yes, everything was set up correctly for this to succeed.  In many cases you won’t get this “perfect storm”.  The point I am making: If you are going to flyer, do it right.  When you plan a flyer campaign, think about what it is going to say.  What is the offer or call to action?  Where are you distributing it?  Who is getting the flyer?  When is the right time to flyer?  Can you create an atmosphere that will attract your customer to the flyer?  One easy way to attract attention is handing out flyers on a Segway.  From my observations, it works every time.  Like any type of marketing just think before you spend.

What’s up with that? (update)

I did get the tickets I ordered from TicketsNow for this Sunday’s Bruins playoff game.  They came via FedEx.  The tickets were either someone’s season tickets or unsold season playoff tickets.  They are not on Ticketmaster stock.  They were from a tear off ticket package. 

One interesting piece of information that I didn’t mention before: I could have bought the whole row.  Who owns an entire row of season tickets?  Does anyone else find that interesting? I will let you know on Monday about my experience at the game. 

Have a great weekend!

What’s Up With This? (part 2)

A couple of weeks ago I wrote about my experience in trying to buy Boston Bruins playoff tickets online.  I discussed how my son was on the Ticketmaster website at exactly 11:00 AM when they went on sale.  There were no tickets available except the $250+ club seats.   

A heard from a few “in the know” peeps who gave me some reasons why this may have happened:

1) The season ticket holders not only had rights to their seats but could buy additional seats.

2) As part of the effort to attract more season ticket holders, the Bruins offered new 2010 season ticket holders the opportunity to purchase playoff tickets.

Both of these reasons make sense. Are they the only reasons?

So if the above reasons are true and season ticket holders take all the tickets, why even have an on-sale?  If you have no tickets to sell except for a few club seats why promote the on-sale?  Just release the few tickets.  You know fans are going to go online and look anyway.

Yesterday, they put this Sunday’s playoff game on sale.  I was at the Ticketmaster site before 11:00 AM and kept refreshing until the event popped up.  One of my friends did the same thing.  Guess what, the only tickets available at 11:00 AM were those $250+ club seats again.  However, there were lots of tickets available over on TicketsNow. 

I did something I have never done before.  I purchased tickets from TicketsNow.  Yes, I paid above face value. Yes, they have all the infamous TM service fees attached. Yes, this spoiled ticket marketing guy is going to sit in the nose bleeds (it’s all I could afford).

I took the bullet for two reasons: 1) my son and his friend really want to go to the game; 2) I thought this would be a good learning experience for event marketers like you and I.

The next step in the process will be getting the tickets.  I had to pay $14.00 for FedEx shipping.  I will let you know how the rest of my experience goes.

Do Sports Teams Need A Bailout?

I have had sports on my mind this week.  Not only with the exciting playoff action in the NHL and NBA but with the business of sports tickets.

The other day I discussed how the Red Sox may be having an issue with selling tickets.  Well, they are not the only MLB team concerned.  The most famous of all baseball teams has issues too.  My friend Doak forwarded me a story that was on the Fox Sports website about the Yankees are having problems selling their new premium seats. The headline of the story says it all “Pricey Seats at New Yankee Stadium Bomb”.  The article mentions how many of the prime infield seats in the Legends Suite sections have been empty.  Of course these seats are in camera view all the time.  These seats go from $500 to $2,500 per seat, per game for season ticket holders.  The article says that individual seats can cost as much as $2,675 per game.  I have one big question for the Yankees:  WTF? 

Instead of media talking about how the team is playing or which player is going to get caught on steroids next, they are all talking about the empty seats.  In typical bad PR form the President of the team, Randy Levine said “We’re done talking about seats”. “We’re not talking about seats.”

Has anybody informed professional sports teams that we are in a recession?

What’s up with this?

My son is a big fan of the Boston Bruins.  They just swept the Montreal Canadians in the first round of the playoffs.  He asked about going to see them live in the second round.  Tickets went on sale yesterday at 11:00 AM.  He was on my computer and on the Ticketmaster website at exactly 11:00 AM.  The only seats available for any of the home games were a few $250 premium seats.  He clicked again and they were gone.  However plenty of $150 upper level seats (normally $35) popped up immediately on TicketsNow.  How was this possible?  Did anyone learn anything yet from the Bruce Springsteen ticket mess?  Ironically, The Boss played in the same arena the night before.

The man behind the talent

I am very sad to hear that Tim Holst died last week.  Tim was the VP for talent at Ringling Bros.  I understand he died after a short illness while on an overseas trip to sign up acts.  He was the Performance Director of the show when I first started at Ringling Bros. in the 1980′s.  I will always remember him as a very kind person who really cared for the performers.  He had a very tough job but always enjoyed what he did.  He died too soon at the age of 61.  There is one lonely spotlight in the Center Ring today.

 

When You Can’t Win…Make It Look Good

Today’s Wall Street Journal is reporting that New York Sen. Charles Schumer is working on legislation on the re-sale of tickets.  Of course he is no stranger to this controversy.  He made more headlines during the Live Nation/Ticketmaster hearings then anyone else.  He has been very vocal in his criticism of how Ticketmaster/TicketsNow handled the Bruce Springsteen on-sale a few months back.

Sen. Schumer’s proposal would require a two day waiting period before tickets would be available to buy from re-sellers.  On the surface this sounds good. It would give fans an opportunity to buy “face value” tickets.  It also helps companies like Ticketmaster who have a re-sale product save face.  For some reason I see this as an olive branch from Sen. Schumer (not sure why).  Irving Azoff at Ticketmaster responded by calling the proposal a “thoughtful proposal”. 

When the Bruce Springsteen ticket mess first surfaced I suggested some kind of “hold” from TicketsNow on re-selling of tickets.  I suggested they wait a day or two for the general sale first.  Since that time, I have been enlightened on how TicketsNow and other re-sell systems work and who puts the tickets up for sale.

Here is why this legislation will not work:

1) In the past few weeks it has ”come to light” that some artists and maybe promoters are holding back tickets to put up for re-sale themselves.  This will not be stopped by a two day wait period.

2) There are lots of other people and groups that always gobble up good seats. Venues offer “premium seats” to season ticket holders, suite holders, and sponsors.  These seats end up on the re-sell sites also.  Again, a two day waiting period is not going to stop these people from getting the good seats first and re-selling them.

3) How is this going to be enforced?  Oh sure, the big re-sellers like TicketsNow and StubHub will follow the rules but who is going to go after all the smaller ticket agencies?  Scalping laws never worked before and this is why we now have “legal” re-sellers.

 

Live Nation / Ticketmaster Hearing (Part Deux)

What a difference two days and the other side of the US Capital can play on the merger of Live Nation and Ticketmaster. 

Yesterday LN and TM were back on the hill testifying this time before the House.  The House was much softer and kinder.  Michael Rapino was back on his game.  He looked confident and seemed ready for all questions thrown at him.  This was the Michael Rapino that I had heard about.  Irving Azoff was ready for battle again.  He did a great job of spinning and seemed to satisfy the House hearing members with every answer.

While I was watching the hearing via webcast (only way I could watch it) I was also following comments made on Twitter.  One person asked how come there was no testimony at either hearing from fans or artists.  I concur with that question.  If you are going to discuss a merger you need to hear from the participants and the end users.  Fans and artists will be directly affected.

The topic of TicketsNow came up again.  Irving Azoff did hint that Ticketmaster would be willing to dump TicketsNow to help pass the merger.  Didn’t I say that yesterday?  That’s a “done deal” in my book.  Irving also said that ticket prices are higher due to reduced revenues from music sales.  He may be part right on this but the real reason is because promoters like Live Nation over pay for acts.  Rapino has admitted that LN paid “big bucks” to lock up acts and lost money doing it.  If promoters are willing to pay the price then the acts will take it.  This is just like sports. 

Michael Rapino mentioned that he would like to see Ticketmaster.com become the Amazon.com of live music (aren’t they already?).  He went on further to explain that he sees the site becoming a one stop shop for the music fan.  A site where you can buy tickets, songs, and merchandise for the artist.  I think that is a great idea.  I really do.  If you want the artist on your side, that is a damn good way of doing it.

Have a great weekend!

 

What Came First The On-Sale Or The Re-Sale?

As I sat down to write today’s post I thought how could I top yesterday’s news about the possible merger of Ticketmaster and Live Nation?  Well I can’t so let’s move on. 

What were they thinking?

Yesterday’s original post was going to be on the ticket snafu between Ticketmaster and Bruce Springsteen but TM decided to make even bigger news.  So I am writing about it today.

In case you didn’t hear about it, Ticketmaster put The Boss’s tickets on sale and they had an “issue”.  Many fans were shut out of buying at the beginning of the on-sale.  However, the system gave them the opportunity to buy tickets from TM’s TicketsNow system.  Of course these tickets are selling at a much higher price.  TicketsNow is TM’s way of competing with ticket brokers.  It is so funny, for years Ticketmaster claimed that re-selling tickets was illegal and now they have their own system.  Of course Ticketmaster said it was all a mistake and it will never happen again.  My kids say that all the time (coincidence?).  Bruce released a statement and blasted Ticketmaster. He was not a happy Boss!

Here is the part I don’t understand.  TicketsNow is designed as a platform for customers to re-sell their tickets.  If fans were online trying to buy tickets in the opening minutes of the on-sale, how did TicketsNow already have tickets for re-sale?  There is no way a customer can buy a ticket and then get it up on the TicketsNow system that fast.  Again, we are talking the opening minutes of the on-sale.  I have heard no one at Ticketmaster explain how that happened. Where did those tickets come from?  The big ticket scalpers and brokers have computer software that helps them buy blocks of tickets fast.  However, doesn’t TM have systems in place that counter that?  They always make me type in the coded wavy word when I buy tickets online. 

If Ticketmaster wants to have a re-selling platform like TicketsNow I am ok with that.  There are good uses for that type of system.  It gives a fan a safe place to buy tickets if they can’t buy them when the show goes on sale and it’s sold-out.  This type of system should not offer any tickets to a show until it has been on sale at least a day.  If a show is not sold out, TM should put all its efforts to selling the current inventory first. Their first priority is to the show and the venue.  As a promoter or a show, I want fans to buy my open seats.  This is where I make my money.