4-Live Perf & Merch.pptx

Live Performance & Merchandising Passman Ch. 23-25 Halloran PP. 244-255 Role of the Team Members The Manager gets you on the right tour oversee the tour oversee the booking agent, to make sure they are getting the best possible deal for artist could serve as tour manager, or supervise tour manager Role of the Team Members The Booking Agent book the tour organize the itinerary have to be mindful of image coordinate promotion (radio, meet and greets, retail) timing of ticket sales pricing of tickets (age of audience, status of artist, pricing strategy) Hi prices Low prices increases exposure, builds fan base booking agents collects deposits Role of the Team Members The Business Manager oversee and monitor $$ aspects of tour budget and forecast which then becomes the asis for spending decisions on tour (tour support) pay the bills make sure everyone gets paid make sure the money is collected Role of the Team Members Tour Manager in charge of transportation, accommodations, settlement($$) logistics (getting from here to there) maintaining schedule Promoter regional, national, international book and manage the venue, advertise and promote show Trends Marketing everything has gone online (ticket sales, promo, marketing) Venues Starting to promote their own shows and compete with promoters promote cheaper cuase they already have everything in place Consolidation buying up of venues Personal Appearances Personal Appearance Deals (Concert Dates) touring usually loses money, unless you are established why do it?? Create a buzz and hype, get a record deal, increase fan base no respect, have to have a good attitude New Artist Tours Where can we play?!? Headline a night club, or something, open act for someone Buy-On: pay to be on someone tour Timing summer, most common time to tour tour in off season to have less competition touring during the winter New Artist Tours Fees: depends on record sales/clout 0-a few grand get a split of guarantee split against a guarantee Expenses: commissions, gas, food, lodging, pay roll Mid-Level Artists What?s Mid-Level? 750,000-1,000,000 records sold should be able to break even or make some money 10 ? 15 for ticket prices should be to cover expenses Covering Expenses $ Q Covering Expenses $ Q Superstar Touring Fees: 500,000-1,000,000 a night Splits 85/15, 90/10 Guarantees ?Versus? deals split against a guarantee ?Versus? Deal Assume $60,000 guarantee ?versus?85% of net profits: Superstar Touring Computation of net profit: revenue minus expenses (advertising, rent on venue, insurance, stage crew, catering, PRO license) Kickbacks; increasing promoter net profit so you don?t have to pay the artist as much (example with the invoice for 10,000 and giving the person who writes it extra cash) Promoter Profit Deal Split point deal Splits Based on Gross Splits Based on Gross A Penny Saved? The Big Culprits: salaries, how many people you bring out and how much you are paying them stage sound and lights travel catering Touring Riders; addendum to the contract, what your artist wants, stage dimensions, food allergies (rides along with the main contract) Not Just For Green M&Ms? Large Promoters cross collateralize one show with another, rather than pay you on a show by show basis, makes you only work with one promoter which is easier. Tour Merchandising Merchandisers bands license their rights to the merchandising company, they manufacture that stuff and pay royalties on it, which are paid on the gross usually 30-40% foreign merch is about 80% of the US rate stadium gigs and festivals, profit splits b/c they are less profitable b/c there a many more artists concert programs are % of net not gross Tour Merchandising Hall Fees; amount of money the venue will take for merch sales 30-35 % of gross merchandiser pays the hall fees artists are negotiating lower hall fees with artist royalties Tour Merchandisers Advances merchandisers will give artists big advances, based on the tour details, who is playing how many dates etc. ask for a min. number of dates and audience size, could be well of 1,000,000$ merchandisers can get their advance back Term; 1 album cycle or until advance is recouped Tour Merchandisers Advance repayment triggers: tour doesn?t start on time artists is unable to perform artist may not meet the performance min What artists can do: ask for a pro-rata repayment (what % you meet is what you do not have to pay back) if the merch company recoups, the performance measure goes out the window Tour Merchandisers Performance Minimums Exclusivity; not allow you to sell own merch, or not sell stuff with in a certain radius for a certain amount of time exclude retail Creative control Tour Merchandisers Sell-Off rights give them a right to sell what is left, but can make anymore at the end of the tour, had to be non exclusive no stock pilling (manufacturing more than you need) no distress sales or dumping artist could ask for the right to purchase the stuff back after sell off period is over company has to destroy stuff or give to charity Bootleggers Retail Merchandising What is it? Non concert merchandising Sub-licensees ; posters, patches, stickers etc Royalties 15-20% of wholesale mail ordered 25% of retail internet usually the same as retail could hold internet rights for yourself and not give them to the merch company foreign is usually 80% Retail Merchandising Other terms: approval sell off rights approval of sublicense Cross collateralization Club Contracts Unions Showcasing Don?t Be The Cable Guy Pay to Play Club Contracts Get a ... Terms: Taxes Getting paid