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Live Nation Wants Artists to Take Pay Cuts and Cancelation Burdens for Shows in 2021
Old 1 week ago
  #1
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turnstile's Avatar
Live Nation Wants Artists to Take Pay Cuts and Cancelation Burdens for Shows in 2021

Just ran across this and thought it was worth reading. Considering LN is one of the largest concert promoters, this seem like a pretty big ask on their part. I always thought the reason bands paid promoters their share was because the promoter took most of the risk. Now with these new stipulations, it would seem that risk is being shared equally. I've highlighted a few of the more major 'asks' from the article below.

https://www.rollingstone.com/pro/new...covid-1016989/

Artist Guarantees: Artist guarantees will be adjusted downward 20% from 2020 levels.

Insurance: The artist is required to maintain its own cancellation insurance as the promoter is not responsible for the artist fee in the event of a cancellation of the festival due to weather or a force majeure.

Cancellation by Artist: If an artist cancels its performance in breach of the agreement, the artist will pay the promoter two times the artist’s fee.

Cancellation Due to Poor Sales. If a show is cancelled due to poor ticket sales, the artist will receive 25% of the guarantee.

Last edited by turnstile; 1 week ago at 12:49 AM..
Old 1 week ago
  #2
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bgood's Avatar
LN must be taking notes from Major League Baseball owners...

This is a great example of some BS that would get killed dead if a few top acts said “fuxt that”
Old 1 week ago
  #3
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turnstile's Avatar
“ We are fully aware of the significance of these changes, and we did not make these changes without serious consideration. We appreciate you – and all artists – understanding the need for us to make these changes in order to allow the festival business to continue not only for the artists and the producers, but also for the fans. “

I know the pandemic has destroyed the concert business but last I looked LN generated over $11 billion in 2019. By the statement above you would think they are on the edge of collapse.
Old 1 week ago
  #4
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guavadude's Avatar
The first 11 billion is the hardest to make.
Old 1 week ago
  #5
COVID-19 has changed the way we have worked and the way we will work in the future. Restaurant prices are up about 10 to 15% due to reduced seating. They still have to make money to pay their cooks and servers and this will see prices rise. The same for live shows. Let's say a top headliner has a major performance date and at the last minute they decide to not perform due to health concerns. The promoters will still have to pay out large sums of money for hall rental, promotion and advanced advertising. Probably none of this is recoverable. Live Nation just wants to cover their a$$es. I agree they are making a lot of money and want to continue to do so in the future. If these changes go down badly with major acts then they themselves maybe in trouble. Only time will tell.
Old 1 week ago
  #6
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turnstile's Avatar
Quote:
Originally Posted by Thomas W. Bethe View Post
COVID-19 has changed the way we have worked and the way we will work in the future. Restaurant prices are up about 10 to 15% due to reduced seating. They still have to make money to pay their cooks and servers and this will see prices rise. The same for live shows. Let's say a top headliner has a major performance date and at the last minute they decide to not perform due to health concerns. The promoters will still have to pay out large sums of money for hall rental, promotion and advanced advertising. Probably none of this is recoverable. Live Nation just wants to cover their a$$es. I agree they are making a lot of money and want to continue to do so in the future. If these changes go down badly with major acts then they themselves maybe in trouble. Only time will tell.
I agree with you to a certain degree but I think some of their new requirements are over the top. You are talking about one of the largest concert promoters that just happen to own over 200 venues as well as Ticketmaster. This is no restaurant chain.
Old 1 week ago
  #7
Gear Maniac
I formed a new band in February, just few weeks before pandemic and for the first time in my life I wonder if it's worth the effort.

R'N'R and live music in general doesn't seem that appealing to younger people and with the pandemic showing no signs of stopping I wonder how many gigs we'll get and how many people will be interested.
We operate at club level locally, so different world to Live Nation but we all face same problems now, even if at different scale.
Admittedly, they have problems with money whilst we are happy to break even.

I fear this might be the final nail in the coffin for live rock music.

Perhaps a bit of topic, sorry about that, but I had to chime in.
Old 1 week ago
  #8
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turnstile's Avatar
Quote:
Originally Posted by brk303 View Post
I formed a new band in February, just few weeks before pandemic and for the first time in my life I wonder if it's worth the effort.

R'N'R and live music in general doesn't seem that appealing to younger people and with the pandemic showing no signs of stopping I wonder how many gigs we'll get and how many people will be interested.
We operate at club level locally, so different world to Live Nation but we all face same problems now, even if at different scale.
Admittedly, they have problems with money whilst we are happy to break even.

I fear this might be the final nail in the coffin for live rock music.

Perhaps a bit of topic, sorry about that, but I had to chime in.
I think there will be a huge renewed interest in live concerts once the pandemic fades. The challenge is being able to make it to the end, or say the new beginning. Personally I’m optimistic.
Old 6 days ago
  #9
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Pro Sound Guy's Avatar
 

Insurance companies are running for the hills for live show coverage.
Old 6 days ago
  #10
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edva's Avatar
Quote:
Originally Posted by brk303 View Post
I formed a new band in February, just few weeks before pandemic and for the first time in my life I wonder if it's worth the effort.

R'N'R and live music in general doesn't seem that appealing to younger people and with the pandemic showing no signs of stopping I wonder how many gigs we'll get and how many people will be interested.
We operate at club level locally, so different world to Live Nation but we all face same problems now, even if at different scale.
Admittedly, they have problems with money whilst we are happy to break even.

I fear this might be the final nail in the coffin for live rock music.

Perhaps a bit of topic, sorry about that, but I had to chime in.
Live music at the "club level" has always been a struggle, but, has always managed to attract enough musicians and customers to remain viable. Except for now of course.
But personally, I do believe that part of the business will come back eventually, presuming of course the virus doesn't end up wiping us all out.
And just like it was six months ago, or 50 years ago when I started playing out, the pay will be minimal, the working conditions often poor, and the lifestyle unhealthy. Good times!

As to large venue shows, well, the "powers that be" will decide when and where that is going to happen, and also, who will be the "major acts" that you will be instructed to like. Pretty much the way it was before, but with more desperation and less pretending it's about anything other than the money now.

IMHO. Good luck.
Old 6 days ago
  #11
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bgood's Avatar
Make no mistake... this is little more than a form of profiteering. Read the whole article... if you’ve ever worked on the biz side of talent, it’s crystal clear that they’re using this crisis to squeeze out every last cent from the talent and escape every bit of risk that the promoter has historically shouldered

It’s a great example of why monopolies were outlawed to begin with... there was a reason venues And artists liked dealing with promoters... that all falls apart when the venues are owned by promoters.
Old 6 days ago
  #12
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turnstile's Avatar
Quote:
Originally Posted by bgood View Post
Make no mistake... this is little more than a form of profiteering. Read the whole article... if you’ve ever worked on the biz side of talent, it’s crystal clear that they’re using this crisis to squeeze out every last cent from the talent and escape every bit of risk that the promoter has historically shouldered
The airline industry also uses this tactic when it comes to increasing or creating new fee structures.
Old 5 days ago
  #13
We live in a capitalistic society. The driving force is MONEY and the accumulation of wealth is the driving force behind any company or entity. You either learn to live within the society you find yourself in or you try and change things. <Hint it is not so easy to change the reason a capitalists society exists> So you have to learn to live and work in that society. We all would like things to be more equatable but that is just not the way things are at present. LN is a company and they are making money and want to stay making money. It is not as simple as some people would want to believe. I don't fully understand what drives large companies like Apple and Pepsico but I assume it is the accumulation of a lot of money and to continue to be "in business" for the foreseeable future. FWIW
Old 17 hours ago
  #14
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when a ticket seller becomes this big/influential, something has gone awfully wrong!

the only language they speak is money so start here if you want things to change: don't get them your money and stay away from any of 'their' tours/festivals/shows!

i stopped working for a festival i did (as chief tech) for ca. 20 years when they got on board...
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