Live Nation To Increase Burden On Artists For Live Concerts In 2021
On Wednesday (06/17), Live Nation announced that it will be changing its terms in 2021, effectively putting more burden on touring artists. The most significant changes are to the “guarantee” (the upfront amount the artist will make from the concert or festival) and to the cancellation policies.
Starting In 2021:
1.There will be a 20% decrease in artist guarantees.
2. If there is force majeure, guarantees will not be paid.
3. Poor ticket sales -> 25% guarantee (industry standard is 100%)
4. Artist cancellations if in breach of contract will result in artists paying 2x artist’s fee
While these changes are understandable to protect promoters and Live Nation, these changes hurt artists as somewhat flexible guarantees make it difficult to project touring revenues. Therefore, artists must take touring revenue uncertainty into their budgets.
As Live Streaming Grows, Focus On Proper Licensing Grows As Well
With many concerts and tours postponed or cancelled, live-streaming in the past few months has seen considerable growth as many artists and entertainers have flocked to these services to connect with their fans and earn additional revenue. In order to capitalize on these new revenue sources, entertainers must obtain the proper licensing for their live-streams. However, understanding licensing rules is somewhat complicated as different forms of content mean different revenue sources. For example, artists must determine whether the stream is broadcasted only or also recorded. As we see the potential for live-streaming to become a future channel for artists, it is important they keep licensing at the forefront of their minds to make sure that they don’t lose out on their earnings.
UMGBecomes First Major To Expand Into Israel And Morocco
This week, Universal Music Group opened offices in Tel Aviv and Casablanca after a year of planning, continuing the major music company’s global expansion initiatives. In Morocco, the new office will focus on A&R and marketing and will work alongside Universal Music France to develop local, regional French artists. It will also work to popularize and commercialize traditional Arabic and North-African hip-hop genres with demonstrated success in Europe and internationally. In Israel, UMG will continue to work with Helicon Music, its official licensor and distributor in the region, to find and develop local talent. As Israel, in terms of GDP, is one of the “most-developed markets in the world where UMG [does not] have an office,” this addition leverages Israel’s growth in streaming and strength in the tech space to allow Israeli artists to reach global audiences. These offices, along with recent new offices in Singapore, South Africa, Nigeria, and potentially Vietnam, connect artists globally and introduce many new musicians and genres to the American and European music markets. This may open up many new options for independent artists both abroad and in developed music markets. For indie artists abroad, the majors’ global expansion trends present opportunities to work with larger corporations with more established distribution and marketing channels. For artists in more developed markets, this means more diversification in music and collaborations, much like how Despacito and Justin Bieber’s collaboration of the same song dominated the charts in 2019.
SiriusXM Acquires Simplecast, Becoming An All-In-One Podcast Platform
On June 17th 2020, broadcast company SiriusXM completed its acquisition of Simplecast, a “leading management platform that enables podcasters to publish, manage, and measure their content”. Simplecast’s packages are designed for both independent podcasters and enterprises and support and provide unlimited storage and uploads, distribution, consumption analytics, custom show websites, and tens of thousands of monthly downloads. SiriusXM, being an established radio broadcasting company, has better technology and infrastructure, including AdsWizz, the “adtech subsidiary of SiriusXM”. By incorporating AdsWizz with Simplecast, podcasters can benefit from dynamic and personalized ad insertion, ad serving, and ad inventory management. SiriusXM also acquired Pandora last year, meaning Simplecast podcasters may also connect with Pandora’s millions of users in Pandora for Podcasters. Altogether, the acquisition is another step forward that allows podcasters to have “everything they need to be successful,” from data analytics to monetization solutions.
BTS Earns $20 Million From One Virtual Concert
On Sunday, June 14th, Korean pop band, BTS, hosted a pay-per-view “Bang Bang Con The Live” concert that resulted in nearly $20 million in earnings, making it the highest paid virtual concert to date. Additionally, the concert also broke the record for the largest ever internet concert audience, with 756,000 concurrent attendees from 107 different regions at its peak (equivalent to 15 shows at a 50,000 person capacity). This was not another at home recording, but a full concert performed in five rooms, two stages and topped with props and dance choreography. The concert featured multi-view live stream technology that allowed attendees to view the concert from six different angles. The concert was well received, as BTS’ fan club grew by 10,000 members. Therefore, BTS has shown that virtual concerts can be profitable.
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