U2 sign up with the devil
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Promoter Expands Reach With U2
Live Nation, Preparing To Battle Ticketmaster, Signs Up Irish Band
By ETHAN SMITH
March 31, 2008
As it girds for a looming battle with IAC/InterActiveCorp's Ticketmaster, concert promoter Live Nation Inc. is looking to enlist powerful allies. The latest to sign on: U2, which has reached a 12-year deal giving the promoter exclusive rights to produce the Irish rock band's concerts, manufacture and sell its merchandise, license its image and run its Web site and online fan club.
The situation highlights the shifting landscape of the concert industry, as various players vie to expand their influence. Live Nation, the world's largest concert promoter by revenue, has said it is parting ways with Ticketmaster, the biggest ticket seller, when their partnership ends at the end of this year. Live Nation plans to launch its own competing ticket service to sell seats to its own concerts as well as events staged by others.
Live Nation hopes the likes of U2 can help it in its looming battle with IAC's Ticketmaster.
Live Nation has also acquired several companies that run Web sites and sell merchandise for artists, and it is looking for artists to sign to record deals like the one it entered last year with Madonna -- a move pitting it against record labels. Promoters, labels and ticketing companies alike are looking for ways to expand their presence online, by acquiring companies that market and promote music on the Web.
"It's clear that the lines, or the silos, that were in place historically are breaking down," Arthur Fogel, Live Nation's chairman of global music, said in an interview. Many previously disparate parts of the music business are being consolidated, he added: "Companies such as us are best positioned to execute on that basket of rights."
The U2 arrangement, which follows an even broader 10-year deal with Madonna, would guarantee desirable inventory for the new ticketing service, set to launch at the beginning of 2009.
Unlike Live Nation's $120 million deal with Madonna, the U2 agreement -- which is to be finalized soon -- doesn't cover distribution of recorded music or music publishing. For the same rights Live Nation is getting from U2, the promoter paid Madonna about $70 million. Terms of the U2 pact weren't disclosed. U2 extended its record contract with Vivendi SA's Universal Music Group late last year, according to people familiar with the matter, and also has a long-term publishing deal with Universal.
For U2, the arrangement represents a windfall that results ultimately from Live Nation's newly embattled position and its resulting need for loyal allies. The promoter is effectively paying the band to lock in the status quo: Live Nation or its predecessors have produced and promoted every world-wide U2 tour since 1997, and a Live Nation subsidiary already manages the band's Web site and fan club.
Live Nation Chairman Michael Cohl said he considers Ticketmaster "already our competition." He added that long-term artist relationships are one of two keys to the company's ability to compete effectively with its rival; the other key, he said, is building up infrastructure like venues and subsidiaries that can execute merchandise deals.
In preparing for this kind of battle, Mr. Cohl said, "one of the things you do is start to position yourself in terms of the hardware, and you try to position yourself in terms of the content. We're trying to line up as much of both as we consider meaningful and beneficial."
Live Nation's stock closed Friday at $11.83 in 4 p.m. composite trading on the New York Stock Exchange, sliding 10 cents and coming in at nearly half its closing price of $23.36 on Oct. 10, the day before the Madonna deal became known.
Formed in Dublin in 1976, U2 remains one of the most potent live draws in the world. Its most recent tour was the second-highest-grossing concert tour in history, earning $389.4 million at the box office, according to data from Billboard magazine. The Rolling Stones' 2005-07 "Bigger Bang" tour took in $558.3 million. Live Nation promoted both. U2's record sales haven't held up quite as well; 2004's "How to Dismantle an Atomic Bomb" wasn't among the 10 best-selling albums in the U.S. that year.
The deal may also offer ways for U2 to address problems that arose on its last tour. The band offered members of its online fan club, who paid $40 apiece to join, early access to tickets. But during the so-called fan-club presales, many would-be buyers encountered frustrating waits and a limited, expensive inventory comprising some of the worst seats in the house.
Ticketmaster had a hand in the presale fiascoes, inasmuch as its infrastructure couldn't handle the surge of ticket requests that flooded its computers. But people involved say the bigger problem was that there were simply too many members in the club to provide them all premium seats.
"We feel we've got a great Web site," U2 lead singer Bono said in a statement. "But we want to make it a lot better." U2.com is already hosted by Signatures Network, one of several merchandising companies recently acquired by Live Nation; they are being merged into one unit.
While Live Nation has been snapping up artists along with companies that provide them services, No. 2 concert promoter AEG Live has been seeking to make strategic moves of its own. Earlier this month talks stalled in a deal for Ticketmaster and Cablevision Corp. to take a 49% stake in the promoter, which is owned by Anschutz Corp.
IAC and Dow Jones & Co., publisher of The Wall Street Journal, together operate a personal-finance Web site.
Live Nation, Preparing To Battle Ticketmaster, Signs Up Irish Band
By ETHAN SMITH
March 31, 2008
As it girds for a looming battle with IAC/InterActiveCorp's Ticketmaster, concert promoter Live Nation Inc. is looking to enlist powerful allies. The latest to sign on: U2, which has reached a 12-year deal giving the promoter exclusive rights to produce the Irish rock band's concerts, manufacture and sell its merchandise, license its image and run its Web site and online fan club.
The situation highlights the shifting landscape of the concert industry, as various players vie to expand their influence. Live Nation, the world's largest concert promoter by revenue, has said it is parting ways with Ticketmaster, the biggest ticket seller, when their partnership ends at the end of this year. Live Nation plans to launch its own competing ticket service to sell seats to its own concerts as well as events staged by others.
Live Nation hopes the likes of U2 can help it in its looming battle with IAC's Ticketmaster.
Live Nation has also acquired several companies that run Web sites and sell merchandise for artists, and it is looking for artists to sign to record deals like the one it entered last year with Madonna -- a move pitting it against record labels. Promoters, labels and ticketing companies alike are looking for ways to expand their presence online, by acquiring companies that market and promote music on the Web.
"It's clear that the lines, or the silos, that were in place historically are breaking down," Arthur Fogel, Live Nation's chairman of global music, said in an interview. Many previously disparate parts of the music business are being consolidated, he added: "Companies such as us are best positioned to execute on that basket of rights."
The U2 arrangement, which follows an even broader 10-year deal with Madonna, would guarantee desirable inventory for the new ticketing service, set to launch at the beginning of 2009.
Unlike Live Nation's $120 million deal with Madonna, the U2 agreement -- which is to be finalized soon -- doesn't cover distribution of recorded music or music publishing. For the same rights Live Nation is getting from U2, the promoter paid Madonna about $70 million. Terms of the U2 pact weren't disclosed. U2 extended its record contract with Vivendi SA's Universal Music Group late last year, according to people familiar with the matter, and also has a long-term publishing deal with Universal.
For U2, the arrangement represents a windfall that results ultimately from Live Nation's newly embattled position and its resulting need for loyal allies. The promoter is effectively paying the band to lock in the status quo: Live Nation or its predecessors have produced and promoted every world-wide U2 tour since 1997, and a Live Nation subsidiary already manages the band's Web site and fan club.
Live Nation Chairman Michael Cohl said he considers Ticketmaster "already our competition." He added that long-term artist relationships are one of two keys to the company's ability to compete effectively with its rival; the other key, he said, is building up infrastructure like venues and subsidiaries that can execute merchandise deals.
In preparing for this kind of battle, Mr. Cohl said, "one of the things you do is start to position yourself in terms of the hardware, and you try to position yourself in terms of the content. We're trying to line up as much of both as we consider meaningful and beneficial."
Live Nation's stock closed Friday at $11.83 in 4 p.m. composite trading on the New York Stock Exchange, sliding 10 cents and coming in at nearly half its closing price of $23.36 on Oct. 10, the day before the Madonna deal became known.
Formed in Dublin in 1976, U2 remains one of the most potent live draws in the world. Its most recent tour was the second-highest-grossing concert tour in history, earning $389.4 million at the box office, according to data from Billboard magazine. The Rolling Stones' 2005-07 "Bigger Bang" tour took in $558.3 million. Live Nation promoted both. U2's record sales haven't held up quite as well; 2004's "How to Dismantle an Atomic Bomb" wasn't among the 10 best-selling albums in the U.S. that year.
The deal may also offer ways for U2 to address problems that arose on its last tour. The band offered members of its online fan club, who paid $40 apiece to join, early access to tickets. But during the so-called fan-club presales, many would-be buyers encountered frustrating waits and a limited, expensive inventory comprising some of the worst seats in the house.
Ticketmaster had a hand in the presale fiascoes, inasmuch as its infrastructure couldn't handle the surge of ticket requests that flooded its computers. But people involved say the bigger problem was that there were simply too many members in the club to provide them all premium seats.
"We feel we've got a great Web site," U2 lead singer Bono said in a statement. "But we want to make it a lot better." U2.com is already hosted by Signatures Network, one of several merchandising companies recently acquired by Live Nation; they are being merged into one unit.
While Live Nation has been snapping up artists along with companies that provide them services, No. 2 concert promoter AEG Live has been seeking to make strategic moves of its own. Earlier this month talks stalled in a deal for Ticketmaster and Cablevision Corp. to take a 49% stake in the promoter, which is owned by Anschutz Corp.
IAC and Dow Jones & Co., publisher of The Wall Street Journal, together operate a personal-finance Web site.
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Comments
And I'm not sure that there will be any benefit for fans with Live Nation leaving Ticketmaster. Live Nation has no incentive to make ticketing fees lower than TM. And with how Live Nation operates their venues, it really doesn't seem like they are shy about charging high prices or fees to customers.
was like a picture
of a sunny day
“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln
Artist need record companies less and less. What they need is a company to promote and market them. not a distribution company. Bands can get their music out on the web themselves at a cheap price for fans.
A company like Live Nation competing against ticketmaster will be awesome!
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Your living in the past. The Ticketmaster battle was in 1994. I guess every band that didn't support PJ in 94 sucks? Yeah Soundgarden really sucks, so does REM, Neil Young and everyone else who wasn't as reckless as PJ was. The Ticketmaster battle nearly destroyed PJ. It cost them a huge world tour in 94 and also hindered their 95 & 96 tours. It wasn't until the Yield tour of 98 that they were back playing proper venues. They were told going in that they had virtually no chance of winning and yet they chose to do it anyway. Instead of organizing the music community and being more responsible they chose to essentially go it alone and accomplish nothing. Some people think PJ are heroes for what they did and that's fine. But a lot of people in the industry thought and still think it was a huge mistake to not wait and fight a proper, better organized battle with TM a year or two later. Unfortantely that fight never came, after other bands seen the toll TM took on PJ there was no way they would put themselves through the same mess. So here were are 14 years later and TM is bigger than any of us could have imagined.
to me it's alittle to late but like i said i'm not a U2 fan so to me it doesn't really make a difference,and yeah all those bands were very intimidated by the giant that is ticketmaster i commend PJ for at least trying to say fuck off ticketmaster ...
If you took the time to discover you'd find out that LiveNation is actually more of a threat to the music industry than ticketbastard. Let me say this, in ticketmaster's defense...at least they only sell tickets!
LiveNation is a completely different story...ever wonder why radio is crap? Ever wonder why you can't get good seats at the outdoor summer sheds? The monopolization of the music industry, by this company, is not good for music.
Bill Graham is rolling in his grave :(
...and this also only helps prove what I knew all along...U2 are all about big money. Expect ticket prices to go up is all I can say! So ya let me slag on U2 if I want
http://tinyurl.com/2vjzeb
Charlottesville-based Musictoday, founded by Dave Matthews Band management in 2000, has sold a majority stake to event and venue management company Live Nation, Jane Dunlap Norris reports in today’s Daily Progress. Musictoday employs 200 people out at the old ConAgra plant, which band manager Coran Capshaw bought in 2001. Musictoday sells tickets and merchandise online, which dovetails nicely with Live Nation’s line of business. The two businesses also will be in a better position to combat the nemesis of each, Clear Channel. Musictoday has sold out to their spiritual nemesis, Clear Channel Entertainment, which was renamed Live Nation earlier this year. Live Nation == Clear Channel. Bummer
House Of Blues is also LiveNation now...
Garth Brooks got behind Pearl Jam I believe.