Live Nation - Memo Leaked

Matts3221

https://www.rollingstone.com/pro/news/live-nation-memo-pay-cuts-covid-1016989

So I guess artist have to take pay cuts so Live Nation can keep making the money it wants.

Reading this article just blew my mind.

Matts3221

"Most of the new policies shift financial burdens to artists: For example, the company wants to decrease the monetary guarantees promised to artists before an event by 20% across the board. Live Nation also says that if a concert is cancelled due to poor ticket sales, it will give artists 25% of the guarantee (as opposed to the 100% that promoters are currently expected to pay). Moreover, if an artist cancels a performance in breach of the agreement, the artist will pay the promoter two times the artist’s fee — a type of penalty that, as Billboard notes, is unheard of in the live music industry."

Matts3221

Also I love Pearl Jam but this is going to hurt so many up and coming artist and those that play small ( 500-1000 ) venues operated by Live Nation.

I really feel for new bands trying to get out to tour , when touring and merch is were all the money is made now.

Poncier

Wonder if PJ and a select few others will agree to this point"

Ticket Prices: Ticket prices are set by the promoter, at the promoter’s sole discretion, and are subject to change.

Weston1283

Correct me If I’m wrong, but what I took from it (from a consumer standpoint) was:

1) Bands should only play venues they are 100% sure they can sell out, and raise the price of tickets to help cover their own insurance (which they must now provide) and to do whatever it takes to avoid having to cancel due to ticket sales

So basically we will see smaller venues and a significant increase in cost to the consumer

Poncier

Though after reading through the memo, it appears these new rules apply to festivals, its not made clear in the opening paragraph, but most of the bullet points contain the word "festival" and it concludes with:

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.

cutz

Live Nation Wants Artists to Take Pay Cuts and Cancelation Burdens for Shows in 2021

In a memo obtained by Rolling Stone, Live Nation cites “unprecedented times” and “the exponential rise of certain costs” as reasons for adjusting payment policies

By SAMANTHA HISSONG 

There’s still no telling when music venues will be able to reopen their doors to large crowds of concertgoers, and Live Nation — the largest live events company in North America — is making changes seemingly in reaction to the uncertainty. In a recent memo obtained by Rolling Stone, the company told its talent partners that it plans to make an array of alterations for concerts and festivals held in 2021.

Most of the new policies shift financial burdens to artists: For example, the company wants to decrease the monetary guarantees promised to artists before an event by 20% across the board. Live Nation also says that if a concert is cancelled due to poor ticket sales, it will give artists 25% of the guarantee (as opposed to the 100% that promoters are currently expected to pay). Moreover, if an artist cancels a performance in breach of the agreement, the artist will pay the promoter two times the artist’s fee — a type of penalty that, as Billboard notes, is unheard of in the live music industry.

 

“We are fully aware of the significance of these changes, and we did not make these changes without serious consideration,” Live Nation wrote. The company did not respond to request for comment.

A source close to the matter tells Rolling Stone that some of the terms detailed in the memo are standard in existing concert contracts prior to the pandemic, and that the new aspects are part of broader negotiations with the music industry to navigate the post-COVID future when shows get back up and running.

Read the full memo below.

Live Nation Memo to Talent Agencies

The global pandemic has changed the world in recent months and with it the dynamics of the music industry. We are in unprecedented times and must adequately account for the shift in market demand, the exponential rise of certain costs and the overall increase of uncertainty that materially affects our mission. In order for us to move forward, we must make certain changes to our agreements with the artists. The principle changes for 2021 are outlined below.

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

Ticket Prices: Ticket prices are set by the promoter, at the promoter’s sole discretion, and are subject to change.

Payment Terms: Artists will receive a deposit of 10% one month before the festival, contingent on an executed agreement and fulfillment of marketing responsibilities. The balance, minus standard deductions for taxes and production costs, will be paid after the performance.

Minimum Marketing Requirements: All artists will be required to assist in marketing of the festival through minimum social media posting requirements outlined in artist offer.

Streaming requirements: All artists will be required to allow their performance to be filmed by the festival for use in a live television broadcast, a live webcast, on-demand streaming, and/or live satellite radio broadcast.

Billing: All decisions regarding “festival billing” are at the sole discretion of the promoter.

Merchandise: Purchaser will retain 30 % of Artist merchandise sales and send 70% to the artist within two weeks following the Festival.

Airfare and Accommodations: These expenses will be the responsibility of the artist.

Sponsorship: The promoter controls all sponsorship at the festival without any restrictions, and artists may not promote brands onstage or in its productions.

Radius Clause. Violation of a radius clause without the festival’s prior authorization in writing will, at the festival’s sole discretion, result in either a reduction of the artist fee or the removal of the artist from the event, with any pre-event deposits returned to the festival immediately.

 

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.

Force Majeure: If the artist’s performance is canceled due to an event of force majeure – including a pandemic similar to Covid-19 – the promoter will not pay the artist its fee. The artist is responsible for obtaining any cancellation insurance for its performance.

Inability to Use Full Capacity of the Venue: If the promoter – either because of orders of the venue or any governmental entity – is not permitted to use the full capacity of the venue, then the promoter may terminate the agreement, and artist will refund any money previously paid.

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.

Matts3221

Poncier said:

Though after reading through the memo, it appears these new rules apply to festivals, its not made clear in the opening paragraph, but most of the bullet points contain the word "festival" and it concludes with:

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.

the company told its talent partners that it plans to make an array of alterations for concerts and festivals held in 2021.

Matts3221

Weston1283 said:

Correct me If I’m wrong, but what I took from it (from a consumer standpoint) was:

1) Bands should only play venues they are 100% sure they can sell out, and raise the price of tickets to help cover their own insurance (which they must now provide) and to do whatever it takes to avoid having to cancel due to ticket sales

So basically we will see smaller venues and a significant increase in cost to the consumer

Higher Ticket Prices while paying bands less and taking more on the merch cut.

So everyone losses except for Live Nation.

RatherStarved

Hey, at least they’re talking about shows in 2021 and not 2022.

pjl44

There is no shortage of bullshit in there but I'm not convinced higher ticket prices are a given. I don't think anyone knows what demand will be once venues open again. It's a total crapshoot and that will ultimately drive everything from ticket prices to the size of a venue a band will play. I have a really hard time believing people will pay more to see a band play the same sized venue they would have pre-covid.

It's a total shot in the dark, but my guess is if you're paying a higher ticket price you're seeing a band in a room that's typically small for them. I'd be totally fine with that. 

pjl44

And that's not even considering the supply side. Once places open, does every band want to hit the road at once? Or is it a small trickle? The number of shows coming through in, say, a given month would have a big impact on how much I'm willing to pay for a ticket. It also determines how much competition any particular show is up against.

JOEJOEJOE

I hope AEG doesn't follow suit.

This opens the door for smaller promoters to outbid Livenation for the services of many bands.

hrd2imgn

Well what a shock, the TM/LN kabal is in it for the money and don't  give a shit about Joe Common. Welcome to forever 

mr bungle

all businesses that rely on crowds gathering in set spaces are going to have to re-evaluate their business model for the next few years.  It has nothing to do with fucking artists or fans over.  It's just going to be the reality for awhile.

Poncier

Matts3221 said:

Poncier said:

Though after reading through the memo, it appears these new rules apply to festivals, its not made clear in the opening paragraph, but most of the bullet points contain the word "festival" and it concludes with:

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.

the company told its talent partners that it plans to make an array of alterations for concerts and festivals held in 2021.

That is the RS writer's spin on it.
When you read the actual memo, its clearly referring to festivals.

KV4053

When a talking head on television does stupid things, the people rise up against the advertisers. The talking head then straightens up or gets fired. Maybe we need the same mechanism against Live Nation. Rise up against the venues who signed these stupid contracts with Ticketmaster.

bootlegger10

The price of guaranteed money upfront....

BF25394

KV4053 said:

When a talking head on television does stupid things, the people rise up against the advertisers. The talking head then straightens up or gets fired. Maybe we need the same mechanism against Live Nation. Rise up against the venues who signed these stupid contracts with Ticketmaster.

I'm on board.  I will not attend any event at a Live Nation venue for the rest of 2020...

Foriginal Sin

Weston1283 said:

Correct me If I’m wrong, but what I took from it (from a consumer standpoint) was:

1) Bands should only play venues they are 100% sure they can sell out, and raise the price of tickets to help cover their own insurance (which they must now provide) and to do whatever it takes to avoid having to cancel due to ticket sales

So basically we will see smaller venues and a significant increase in cost to the consumer

For most bands, not for any headliners. Rage will still sellout, PJ will still sell out a place as big as Wrigley. If Pink Floyd ever gets back together, 100,000 a night in any football stadium, etc. Band of Horses, Beck, Chris Stapleton, etc would want to stick to small venues (all great live btw)

Zod

It seems a little harsh, on the other hand it seems like right now promoters/venues/ticket agency are all taking the biggest hits?  IE they're running business but currently have no revenue.  So they're bleeding money.  I guess they're trying to avoid having that happen again if concerts turn out to be a crapshoot next year too.

To me this is going to make bands think twice about touring until covid is over.

JimmyV

BF25394 said:

KV4053 said:

When a talking head on television does stupid things, the people rise up against the advertisers. The talking head then straightens up or gets fired. Maybe we need the same mechanism against Live Nation. Rise up against the venues who signed these stupid contracts with Ticketmaster.

I'm on board.  I will not attend any event at a Live Nation venue for the rest of 2020...

I'm with you. Solidarity.

pjl44

I don't see how boycotting Live Nation venues helps the artist. If the artist chooses to work with them, they're counting on people to buy tickets, show up, and buy merch. If anything, I can see going out of your way to support an artist who is explicitly trying to circumvent Live Nation by driving a little further to a show or paying more for a ticket.

Whenever Greg Dulli's Paradise (LN venue) show goes off, there is zero chance I'm missing it and I guarantee he wants a packed room. Who am I really sticking it to if I stay home?

Zod

pjl44 said:

I don't see how boycotting Live Nation venues helps the artist. If the artist chooses to work with them, they're counting on people to buy tickets, show up, and buy merch. If anything, I can see going out of your way to support an artist who is explicitly trying to circumvent Live Nation by driving a little further to a show or paying more for a ticket.

Whenever Greg Dulli's Paradise (LN venue) show goes off, there is zero chance I'm missing it and I guarantee he wants a packed room. Who am I really sticking it to if I stay home?

I think they were kidding.   There are no shows in 2020 to boycott

pjl44

Zod said:

pjl44 said:

I don't see how boycotting Live Nation venues helps the artist. If the artist chooses to work with them, they're counting on people to buy tickets, show up, and buy merch. If anything, I can see going out of your way to support an artist who is explicitly trying to circumvent Live Nation by driving a little further to a show or paying more for a ticket.

Whenever Greg Dulli's Paradise (LN venue) show goes off, there is zero chance I'm missing it and I guarantee he wants a packed room. Who am I really sticking it to if I stay home?

I think they were kidding.   There are no shows in 2020 to boycott

Ah yeah. I am a giant dummy!

eboweddie

What happens if an artist refuses to play ball with live nation?. Will they be locked out of venues.  Where have we seen this before!!! 

RF123172

The concert industry is going down before our eyes.  By me, the Nassau Coliseum has closed until they find a new investor.  We may hate the past profiteers, but I certainly do not want to have to live without concerts.  This is why i was upset with all the people hammering to get refunds on postponed shows.  It was mostly COVID...but we partly created this.

ZAPPER

Zod said:

It seems a little harsh, on the other hand it seems like right now promoters/venues/ticket agency are all taking the biggest hits?  IE they're running business but currently have no revenue.  So they're bleeding money.  I guess they're trying to avoid having that happen again if concerts turn out to be a crapshoot next year too.

To me this is going to make bands think twice about touring until covid is over.

Hopefully this will put those scumbag “ticket broker” businesses out. Ive never had a problem with a fan selling their 2 tickets because they can no longer attend, but when we have these brokers that have retail stores buying tons of tickets to scalp when fans cant even buy them through TM, LN, or even fanclub tickets, those types of price gouging businesses shouldnt even be legal.

PB11041

anyone who thinks that concert industry is going to come back resembling anything close to what you experienced prior to March of 2020 is going to be in for a shock. 

JOEJOEJOE

ZAPPER said:

Zod said:

It seems a little harsh, on the other hand it seems like right now promoters/venues/ticket agency are all taking the biggest hits?  IE they're running business but currently have no revenue.  So they're bleeding money.  I guess they're trying to avoid having that happen again if concerts turn out to be a crapshoot next year too.

To me this is going to make bands think twice about touring until covid is over.

Hopefully this will put those scumbag “ticket broker” businesses out. Ive never had a problem with a fan selling their 2 tickets because they can no longer attend, but when we have these brokers that have retail stores buying tons of tickets to scalp when fans cant even buy them through TM, LN, or even fanclub tickets, those types of price gouging businesses shouldnt even be legal.

I agree that it sucks to have to compete with resellers to get tickets.  

However!   You can often beat them at their own game when they are forced to sell tickets below face due to over-speculation.  

Gern Blansten

I thought it was odd that I recently received an email related to a cancelled Sammy Hagar show that I bought tickets for.  Live Nation gave me the option of a 100% refund or a 150% credit if I let them keep the $$.  

I figured the credit would be too hard to use later and asked for the refund.