vip-news premium - vol. 153 - january 2013
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VIPNEWS > JANUARY 2013
VIPNEWS PREMIUM > VOLUME 153 > JANUARY 2013
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VIPNEWS > JANUARY 2013
So, how was your Christmas? All at VIP-News
hope you had a great holiday and welcome
to the first News of 2013 and of course the
first important thing to say is we wish you a
Happy, Healthy and hopefully profitable New
Year!
The rain just won’t stop in the UK and most
parts of Northern Europe and in combination
with high winds this has caused serious
flooding in many areas. The wettest year for
over a hundred years, in fact since records
began, so it could be for even longer than
estimated, caused serious problems for the
industry, particularly of course for festivals.
The aftermath is still affecting future plans
for many event organisers and the prospects
for the 2013 season is of course a matter of
some trepidation. Some festivals have already
cancelled their 2013 editions before the year
begins. (See story in this issue.)
Some markets will be planning for this year
with a certain amount of optimism; the US
business returned very good figures for 2012
(see the list of top tours in this issue) and
this puts promoters in good stead for 2013,
although the weather has caused major
problems of late. In Europe, Spain and Por-
tugal have very little reason for optimism as
the economy shows no improvement, and
French promoters have had a hard time in the
last few months, although Germany seems
to be generally in good shape.
In the UK a recent report by ticket search
engine Tixdaq indicates a decrease in gigs at
major venues, although London holds steady,
performances in areas such as Manchester ,
Birmingham, Cardiff and Edinburgh have
apparently halved compared to 2011.The
problem could be that the major venues in
these cities are too big for all but the bigges t
of acts to fill. It appears that we could be
entering 2013 with the ongoing problem of
a lack of new headliners. In the meantime
the established major acts are finding new
markets in areas with strong economies like
S.E.Asia. Rob Hallett, head of international
touring at AEG Live, says bands are now
focusing on other markets including Jakarta,
Kuala Lumpur, Manila, Seoul, commenting,
“We’re playing all those markets regularly .
Asia and Eastern Europe, and even the
Eastern European territories are picking up.”
So, as they say in China, so I’m told, “We
live in interesting times”. Are we going to see
a changing pattern in international touring
this year? Will major acts concentrate on the
remaining secure festivals for their European
exposure while looking elsewhere for new
audiences and new revenues? Will small
to medium venues prosper as the business
continues to attempt to build new talent
to fill our arenas and stadiums before these
venues fill their date sheets with even more
family shows, comedians and spectaculars
than they did in 2012?
No doubt all these questions and more,
including the ongoing and seemingly
irreconcilable dispute over secondary ticketing
in the UK, will fill the Agendas of this year’s
Conferences. January will see members of
the VIP team in Groningen for Eurosonic/
Noorderslag (likely to be cold!) then Cannes
for Midem (hopefully with some sun!)
So, if we don’t see you there we look
forward to seeing some of you at the other
Conference and Festival (we always used to
say showcase…) events throughout the early
part of the year. So, again we wish you well
for 2013, and remember, let us know how
you and your businesses are doing, so that
we can spread the word!
For the first time in 2013, Ladies and
Gentlemen … The News!
McGowan’s Musings
COLOPHON >
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VIPNEWS > JANUARY 2013
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VIPNEWS > JANUARY 2013
Madonna World Tour Tops 2012 Allan McGowan [email protected]
According to Billboard figures Madonna’s World Tour was the
highest money earner in 2012, raising $228m, beating Bruce
Springsteen. The Boss only managed to return a gross of $198
million.
Worldwide the MDNA Tour played to more than 1.6 million fans
in more than 65 cities since last June. The MDNA album also
did well; in the UK it became her twelfth number one. Elements
of the tour produced controversy (probably no bad thing from a
promotional point of view at this stage in her career…), several
dates in Australia were cancelled with no real reason being given,
and France’s National Front party threatened her with legal action
following the use of an image of French Politician with a swastika
on his face during her Paris show.
MDNA Tour played to more than 1.6 million fans in more than 65 cities since last June
Top ten highestgrossing tours of 20121) Madonna - $228.4m
2) Bruce Springsteen & The E Street Band - $199.4m
3) Roger Waters - $186.5m
4) Michael Jackson - The Immortal World Tour by Cirque Du Soleil - $147.3m
5) Coldplay - $147.2m
6) Lady Gaga - $124.9
7) Kenny Chesney & Tim McGraw - $96.5m
8) Van Halen - $54.4m
9) Jay-Z and Kanye West - $47m
10) Andre Rieu - $46.8
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VIPNEWS > JANUARY 2013
EBBA Award Winners Added to the Eurosonic ProgrammeAllan McGowan [email protected]
The 2013 edition of Eurosonic/Noorderslag
again takes place in the city centre of
Groningen from Wednesday 9 to Friday 11
January.
Finland will be the featured country, the
Finns have been conducting an aggressive
and successful export marketing campaign
orchestrated by their Export Music Office,
MUSEX and this will be the first major event,
featuring many of their leading acts, including
French Films, winners of an EBBA Award.
Jools Holland will again present the televised
European Border Breakers Awards ceremony
on 9 January. The ceremony will be recorded
and broadcast by Dutch National Television
(NTR) and will also receive European coverage
through TV channels and radio stations
associated with the European Broadcasting
Union (EBU) and others. The EBBA’s are
handed out by the European Commission to
ten European artists who have proven to be
successful in crossing borders with their first
international release in Europe. The winners
are: Nabiha (DK), French Films (FI), Emeli
Sandé (UK), Of Monsters and Men (IS), Amor
Electro (PTl) and Niki and the Dove (SW). The
other four winners, C2C (FR), Dope D.O.D.
(NL), Ewert & the Two Dragons (EE) and Juan
Zelada (ES) will also perform at Eurosonic
showcase festival programme, which will be
presented in multiple venues in Groningen
from the 9th to 11th January.
Rockpalast Covers Eurosonic Noorderslag Opening NightManfred Tari [email protected]
For the first time ever, German live music
TV-Show Rockpalast will stream the opening
night of the Eurosonic Noorderslag Festival
in Groningen.The event will take place in
the Huize Maas venue on January 9 and will
feature seven acts; Bernhoft, Frankie Chavez,
Birth Of Joy, Death Hawks, Jake Bugg, Honig
and The Excitements.
As usual VIP-News will cover this first major
music convention of the year in the upcoming
issue.
Jools at EBBA 2012,Photo by Rene Keizer
Bernhoft among others will perform in the Huize Maas
venue on January 9
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VIPNEWS > JANUARY 2013
European Festival Awards Announce Lifetime Achievement AwardAllan McGowan [email protected]
Last year in Groningen the European Festival
Awards award presented Glastonbury’s
Michael Eavis with the Lifetime Achievement
Award. On January 9th , the opening night of
Eurosonic Noorderslag, this year’s ceremony
will see the award go to a prominent music
industry figure in Belgium, the CEO of Live
Nation Belgium Herman Schueremans.
This honour, decided by the Festival Awards
board, recognises a prestigious 40 year career
that saw Herman not only help put Belgium
on Europe’s live music map, but create
one of the first and most celebrated major
festival brands in the world; the form 80,000
capacity Rock Werchter. Today, his company
produces more than 180 concerts each year
and other notable, award-winning festivals
including TW Classic, Werchter Boutique and
I Love Techno (winner of last year?s award for
Best Indoor Festival).
Herman Schueremans began his career as
a record company exec and rock journalist .
At this time, in the 1970’s, Belgium seldom
featured on the European touring circuit .
Herman set about changing this and
established an alternative concert scene that
began to attract a new generation of live
acts including Dire Straits, Talking Heads and
Simple Minds.
It was the creation in 1973 of the Torhout/
Werchter (renamed Rock Werchter in 1999)
Festival that would open the floodgates and
attract major international acts to the small
country, turning it into a premiere touring
territory. In the process, Rock Werchter grew
to become one of Europe’s top 5 music
festivals , consistently selling-out. The event
has been voted Best European Line-Up in the
European Festival Awards twice in the past
three editions, having staged such artists as
U2, Metallica, R.E.M., Chemical Brothers,
Coldplay, Editors, Muse and Kings Of Leon as
they evolved from opening acts to headliners ,
Herman himself has risen to become one of
the industry’s most respected and well-liked
statesmen of the international live music
business.
Steve Jenner, Festival Awards co-founder
comments, “We are honoured to present this
award to Herman Schueremans, a creato r
of incredible events and a pioneer whose
work has inspired so much of the vision and
creativit y, not only in Belgium, but throughout
the entire European live music and festival
market. Best of all, he remains so clearly a
passionate live music fan above all else, and
his guiding motto ‘music unites’ underlines
all that is so special and important about this
industry and why we were all so attracted to
become part of it in the first place?
Herman Schueremans to receive the Lifetime Achievement Award.
Photo: eu.festivalawards.com
VIPNEWS > JANUARY 2013VIPNEWS > JANUARY 2013
MIDEM 2013 Presents Second FestivalAllan McGowan [email protected]
In its continuing drive to attract more professionals from the live
industry , the 44th edition of Midem to be held as usual in Cannes,
South of France from January 26-29 will stage the second Midem
festival. Over 3 nights, more than 80 showcases will be presented in 5
venues and clubs in Cannes. Amongst some of the better known acts
will be Madness and Mark Hoppus (Blink-182).
Last year the MIDEM trade fair attracted over 6900 delegates from
over 75 countries and the list of registrants for this year’s edition
already shows a good turnout of Record Labels, Publishing Companies ,
Management Companies, Industry Bodies, Tech Companies, Brand &
Ad Agencies and several big names from the Live Sector such as A.S.S.
Concert Promotion, CTS Eventim, Karsten Jahnke Konzertdirektion ,
Konzerthaus Vienna and Live Nation Entertainment.
As with all of these major events VIP will include a report in the next
issue.
ILMC 2013 Presents it’s Quarter Century AnniversaryAllan McGowan [email protected]
This year’s International Live Music Conference
continues it’s adventurous themes;
following conferences set in
prehistoric jungles and post-
apocalyptic wasteland s,
a 1000 or so of the
world’s leading live
music professionals
are invited to enter
an enormous time
machine, cunningly
disguised as London’s
Royal Garden Hotel. The
intention is to travel through the
ages to mark a quarter century of the
conference, effectively ‘Backing into The Future’ in
celebration of ILMC’s 25th anniversary from March 8-10.
Although the Conference venue stays the same
and will host panels and sessions on
current key industry concerns, as
well as some ongoing topics
from years gone by, the
ILMC Gala Dinner and
Arthur Awards has
increased capacity and
moved to the famous
surroundings of the
Savoy Hotel.
As ever delegates require
recommendations in order to
register for the Conference .
7All information about the conference and registration can be found at www.ilmc.com
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VIPNEWS > JANUARY 2013
Early Cancellations for UK 2013 Festival SeasonAllan McGowan [email protected]
Even before the start of 2013 the first UK festival casualties of the
year have been announced .
Announcing this year’s cancellation in nodirectionhomefestival.com/”
\t “_blank” a statement on the festival’s website, the organisers of
The No Direction Home festival, also the team behind End Of The
Road said:
“No Direction Home Festival 2012 was a great success and lots of fun.
It also lost a good deal of money. Not more than we could cope with,
but more than expected. We had planned for NDH to get somewhere
near to breaking even in the second year, and that is now perhaps a
tougher target than it was. We have decided to take a year out from
No Direction Home in 2013 to give us time to get our planning right,
to create a fantastic line-up and to build on the feel that everyone
liked this year. The change will be a disappointment to everyone who
has already bought tickets or who was planning to come along and
we regret this, but overall we are happy with the decision. Welbeck
Estate was pleased to host No Direction Home’s first year, and is
supportive of its return in 2014”.
Those who have already bought tickets are to be provided with
automatic refunds.
This cancellation was quickly followed by the news that the indoor
Summer Sundae event in Leicester that has been running since 2003,
has announced that it will also take a break this year. In a statement
on the event’s website organisers said:
“After much consideration we have decided it’s best for Summer
Sundae Weekender to take a year off and as such there will be no
Summer Sundae at De Montfort Hall in 2013”.
They continued…
“We have taken this decision against the backdrop of a very difficult
year for festivals in 2012. The Olympics, the recession and the
weather have created a perfect storm leaving many independent
festivals struggling to survive. We feel it’s a good idea to take the next
year to look at different models and fresh ideas to bring the festival
back for 2014 and beyond.”
The biggest event so far to throw in the towel for 2013 is the UK leg
of Sonisphere. Organisers say the rock festival , only recently confirmed
as being due to take place at Knebworth Park, has been cancelled for
2013. Organisers Kilimanjaro Live said, “We made offers to over a
dozen major artists but for various reasons none of these offers lead
to securing a strong bill.”
This dissatisfaction with the available bill has led to
the decision for the event
to take a second
year off.
Sonisphere - back in the good old days
The 2012 festival was also cancelled , with Kilimanjaro CEO Stuart
Galbraith, describing it as a ‘hiccup’, although The UK Festival Awards
voted 2011the best festival line up.
The festival will still go ahead in Italy and France in June 2013, and the
plan is to bring the festival back to the UK in the future. Organisers
concluded that, “We have already started work on Sonisphere UK
2014 so hope to be able to bring you news about that later next
year.”MCD organised Oxegen Festival which took a year out in
2012. Run by Denis Desmond in partnership with Live Nation MCD
is the parent company of English promoter Festival Republic who run
Latitude at Henham Park Estate, Suffolk.
News of New Event
Three festival-casualties so early on do not bode well for the
UK 2013 season, and it is suspected that we may expect more
cancellations . However according to the Irish Times, just across the
water Irish concert promoters MCD are planning Longitude, a new
festival to take place on the same weekend as Latitude Festival
over the weekend of Thursday 18th to Sunday 21st July 2013.
The Newspaper reports that possible venues for the new event
could be Fairyhouse Racecource in Meath or Belvedere House, Co.
Westmeath .
MCD organised Oxegen Festival which took a year out in 2012. Run
by Denis Desmond in partnership with Live Nation MCD is the parent
company of English promoter Festival Republic who run Latitude at
Henham Park Estate, Suffolk.
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The weather along with the recession are to blame for the cancellations of several festivals in 2013
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AEG Reveals plans for 2013 Hyde Park EventsAllan McGowan [email protected]
Having recently won a five year contract to
present summer concerts in London’s Hyde
Park, taking over from Live Nation, AEG
Live has given some idea of its plans to the
London Evening Standard. The newspaper
reports plans for an eco-friendly stage made
of living trees, illustrating this with a rather
bizarre mock up illustration of how they
think this might look.
Live Nation had to deal with strict
curfews , bringing the Bruce Springsteen /
Paul McCartney duet to a premature
end, along with complaints from locals
about noise and disruption, not to
mention the almost irretrievably dam
aged grounds following torrential rain and
the resultant churning into mud.
AEG plans to address these problems by only
staging six events over two weekends in late
June and early July, setting out to make these
only premium live experiences. The hope is
to profit from these from higher ticket prices
paid by more affluent festival-goers and
providing organic food stalls and ‘treehouse
viewing platforms’.
AEG Event Director Jim King told the
Standard :
“We want everything to be unique and
bespoke and don’t want you to have seen
this anywhere else before. You will still
be able to get a burger - but it’ll be the
most amazing, organic one you can get
in London”Steve Jenner , Festival Awards
co-founder commented : “It is pleasing to
see so many first-time category winners
breaking through this year and indicative of
the dynamic movements in the market at
this time. Much more than winning gongs,
though, the Festival Awards are about
celebrating and uniting the UK festival
industry which, in these turbulent times, is
more vital than ever.”
Hyde Park Summer of 2012 with The Boss and Live Nation. AEG’s Hyde Park events will take place in late June and early July 2013
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VIPNEWS > JANUARY 2013
New Acts – New ManagementGuestwriter Dave Reilly
As you’re all probably aware at VIP we think
it’s as important to keep an eye on what’s
going on at ‘entry’ level to the business as
events in the more established areas. After
all if the business is to continue to thrive it’s
important to look out for and to encourage
new talent – both artists and those begin-
ning careers in the business. To help us out
with this we sometimes invite guest writers
to contribute to VIP-News. In this case newly
active Manager, Dave Reilly, who we met
and talked with at this year’s edition of Go
North in Inverness last June, tells us what’s
happening with him and his acts.
Hi, I’m Dave Reilly, and I’m new to the
industry ! I started by moving to London for
an internship at Warner Music Entertainment
about 3 years ago, filling in spreadsheets and
sending emails until I tricked them into giving
me a job as an Asset Library Assistant (like an
archivist) at WM HQ. Where I fill in databases
and send emails. Actually it’s more interesting
than that, but that’s for another piece…
Once settled into my role at Warner, I was
itching to get more creatively involved in
the industry, and before long I realised
management was where I wanted to be. So
I found a couple of artists (after a draining
combination of seeing lots of crap, and lots of
great already-managed-bands!), and at the
start of 2011 started The Management:MK.
18 months on, I’m still learning a lot (and
making plenty of mistakes), but I’ve got 3
very exciting artists who I think have great
careers ahead of them.
There’s Danny Pape, an EMI Publishing Most
Promising Artist Award-winner; a young
indie-rock-pop troubadour with a swagger
reminiscent of Paul Weller. Then there’s
Beanoir, an ethereal soundscape-making
multi-instrumentalist, pushing his solo career
for the first time (having worked with artists
including Gabriella Cilmi, Rudimental and
Various Cruelties). And Transformer, an indie-
dance trio Q Magazine called “dapper disco
mavericks and the only British band capable
of turning any venue they play into a dream
version of The Danceteria in 1979.” Right
now, the sole aim of The Management:MK
is to further the careers of these two acts,
which, certainly at the early stages I feel,
breaks down into three categories; playing
shows, making records, and getting people
talking about both.
Playing shows is essential to any artist’s career .
At the very beginning you need to play lots of
shows in your local area, so that you become
familiar with, and known within , the local
scene. Once you have earned a reputation
locally, however, you need to gig much less
frequently there, while branching out to
neighbouring areas. This helps create more
Guestwriter Dave Reilly
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buzz and excitement about your hometown
shows, where you can negotiate playing
anywhere and it selling out, and gives you
time to expand the fanbase further afield.
Once you have a buzz at home, and in
neighbouring areas, that’s when I think you
can look to gain help from further afield.
With Transformer, they have built a strong
fanbase at home in Brighton, and are
booking busy shows in London as well.
They’re at the point where they need help to
make the next steps in their careers, to play
further afield and expand their fanbase, and
so it’s my job to find that help. In my mind,
regarding the live show, this means looking
to booking agents.
Now, good booking agents are hard to get
hold of, and are constantly bombarded by
approaches from all manner of bands, so to
get yours noticed by one is very tough. While
I am still hunting them down for Transformer
at the minute, I think there’s some logic in
thinking that to make your band stand out
above the others, you need more reasons
for them to sign you than just because you
sound brilliant.
For example, Transformer signed a publishing
deal with District 6 in September. Having the
backing of a publisher (or label) gives your
band more clout, as it proves that other
companies are enthusiastic about your
band, and are willing to show that with their
investment of time, energy and money. Many
publishers and labels will have relationships
with booking agents as well through their
other artists, and so can open doors you
can’t on your own.
Most important though, is making sure the
band is active. By this I mean if an agent was
to check out your band online, they’ll want to
see your social networks buzzing, that you’re
playing good gigs already and that you’re
putting out music. There’s a big difference
between playing a big show because you’re
about to put out a single, and playing a show
because you fancy it. Transformer have 3
singles planned for release between now and
next summer, along with videos, remixes,
and some free giveaways. The first single
we’re putting out ourselves with the help of
a PR company, which will serve to raise the
band’s profile, and get a buzz around them
and catch some agents’ attention.
Booking agents, like publishers and labels,
prefer to find bands they want to work with
themselves, rather than being deluged with
emails from all and sundry, so find ways to
get them excited and eventually they’ll come
to you.
To other people new to the industry, or those
wanting to get started in it, be they artists
or those behind the scene, I would say while
you’ve got to work harder now than ever to
find success, there is still success to be had.
There will always be an appetite amongst
fans for new music, something exciting
and original that no-one else has heard
before . And through constant technological
breakthroughs , it’s getting increasingly
easier for fans to connect to new artists and
music.
There’s never been more competition for
bands trying to catch the eye of agents,
publishers and labels. But there have
never been more opportunities for bands
to be creative to stand out amongst the
masses. It’s tougher than ever to carve out
a route to success today. But it’s also more
exciting !
TransformerDanny Pape
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Creative What?Manfred Tari [email protected]
At whatever level they operate in the concert industry, whoever you
ask about how relevant the European Parliament or the European
Commission is to their daily business, the majority would probably
reply, “not at all”. And, to a certain extent, this answer is probably
correct, but also in some ways wrong. What goes on in Brussels in
the darkened rooms of policy and bureaucracy matters more for all
players within the concert community than they may think.
Just think of the sanctioning of the merger between Universal
Music and EMI, the reform of copyright or the next bill embodying
new EU-regulations concerning load bearing capacities for stage
constructions ... And then there is the highly contentious matter of
subsidies, granted to almost every kind of industry except the music
industry. Let’s face it: As the live music business grows, it becomes
ever more, directly or indirectly, affected by policy and administrative
issues.
As the live music community proceeds with a policy of ‘business as
usual’ there is something going on in the background that once again
impacts on the live industry. It is linked with the ‘Creative Industries’,
a political term that has passed across the desks and been considered
by politicians, officials and lobbyists for a number of years now.
The European Commission at least aims to order some form of
priority for the subject, entitling its new culture programme “Creative
Europe ”. The new programme is intended to support the so-called
creative industries and unlike previous culture programmes to
consider economic aspects.
The proposals are currently under consultation and should be ratified
at the beginning of 2013. The main obstacle at the moment is
politica l agreement on the budget. The master plan foresees that
the European Commission should finance “Creative Europe” to the
tune of 1.8 billion Euros from 2014 until 2020, replacing the current
culture programme.
Due to the fact that the live music community has never been able to
set up effective trade bodies similar to those of the record industr y,
such as the International Federation of Phonographic Industrie s
(IFPI) or the copyright collection societies with the International
Confederation of Societies of Authors and Composers (CISAC) it is
almost impossible to find a proper lobbyist looking after the interests
of the live music industry in Brussels....
However there is one and a good one at that, particularly taking
into consideration that his organisation has never ever received a
cheque from, or even recognition by, the live music community, who
still believe s that it is so important, that it doesn’t need to act like
most other industries which managed to identify the advantages of
commo n trade associations, in some cases centuries ago.
VIP-News spoke with Jean Marc Leclerc, the Executive Manager of the
European Music Office (EMO) in Brussels about Creative Europe and
the reasons why proper lobbying is more necessary than ever before.
What do you consider as the most relevant changes in ‘Creative
Europe’ compared to previous programs?
– The biggest change is in the EU policy-makers’ mentality regarding
support measures for the cultural sectors; words like ‘enterprise’,
‘profit-making’, ‘industries’, ‘jobs’ or ‘growth’ are finally part of
their vocabulary. The new Creative Europe proposal has taken into
consideration the message from all the cultural industries, with a
bigger budget, a financial mechanism, and the inclusion of cultural
enterprises in the programme.
Until now there are only very few popular music projects that
benefited from support programs provided by the European
Commission. Do you think this might change with ‘Creative
Europe’?
– I certainly hope it will change; we have been working on this for
several years. We have asked for specific funding for touring, it
has been included in the program. We have asked for a financial
VIPNEWS > JANUARY 2013 > INDEPTH STORY > AN INTERVIEW WITH JEAN MARC LEDERC
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VIPNEWS > JANUARY 2013
mechanism for music SMEs to obtain bank loans, it has been included
too. We have also asked for funding regarding the collection of data
and studies for our sector, this has also been included. Thanks to the
new philosophy of the Culture programme (open to industries) and its
bigger budget, and thanks to the financial mechanism (bank loans to
cultural organisations guaranteed by the European Investment Fund),
music industry organisations will have easier and better access to
grants and loans for their projects.
The previous culture program has often been criticised for
being overly bureaucratic. Creative Europe even has a focus
on economic issues. Have you already discovered any signs
that the European Commission has undertaken efforts to have
well educated staff able to effectively take care of not only
administrative requirements but also the needs of the creative
sector within Creative Europe?
– This is a very important question, which I have discussed many times
with the European Commission. The positive part is that things are
going to change, in fact they have already started to change; within
several Directorates of the Commission dealing with cultural activities ,
teams have been reorganized according to the field of expertise of
staff members, so that there will be a person in charge of music,
another one for literature, etc. Regarding the Agency that manages
the cultural funds, changes will be made in the selection, follow-up
and evaluation of projects towards a more qualitative approach. And
regarding the new financial mechanism, the administrative burden
will be obviously greatly reduced. Also, the number of calls has been
reduced from 9 to 4, which is an improvement. The other side of
the coin is, once again, the same question; when exactly will these
changes be made?
The proposed budget for Creative Europe is 1.8 billion Euros
of which 900 million Euros is earmarked for the film industry.
Do you know why the music sector isn’t treated equally within
Creative Europe?
– First of all there is an obvious structural/financial reason; the
production of a film costs a lot more than most other cultural
activities , at least a lot more than the recording of an album. But this
is not the only reason: the cinema sector has been very united and
very active for years lobbying the EU institutions, which isn’t the case
for the music sector, which rarely speaks with one voice.
Do you think the music sector needs to improve its lobbying
efforts?
– That is more urgent than ever, especially when we consider the fact
that on many issues and policy subjects, most music organisations
share the same opinions. It is crucial for the sector to work on
common strategies and messages to policy makers, at both national
and European levels. There will be no success without unity and
coherence .
However, the European Commission isn’t easy to access or so
to say easy to impress. Nevertheless popular music matters
in terms of cultural relevance in particular for many young
European citizens. Would you say that decision takers within
European Parliament and the European Commission consider
this aspect appropriately?
– I think they would consider this more appropriately if things were
explained in a better way. The music sector often appears as an
industry that focuses too much on its structural problems, rather
than showing its assets and or displaying a proactive approach. Let’s
stress the link between music and youth. Let’s talk about the huge
economic impact of festivals in the tourism industry. Let’s put the
new digital entrepreneurs in the spotlight. In a nutshell - let’s show
another image of the music industry.
Can you please explain how the The European Music Office
(EMO) is structured?
– The European Music Office is an international non-profit association
promoting musical diversity and representing the interests of European
music professionals to the EU institutions. EMO also develops music co-
operation projects responding to the EU calls for proposals with the aim
of promoting the mobility of artists and of works of art. The European
Music Office represents through its members and associates all music
genres and sectors. EMO members are mainly European Author Rights
Collecting Societies, Music Information Centres and Music Export Offices.
VIPNEWS > JANUARY 2013 > INDEPTH STORY > AN INTERVIEW WITH JEAN MARC LEDERC
17
What is on the agenda of the EMO in 2013?
– 2013 will be yet another busy year for EMO, regarding lobbying
activities and European cooperation projects. Concerning our
lobbyin g, we will continue our campaign towards the adoption of
the Creative Europe programme, we will make new proposals to
the Commission regarding music export strategies, we will proceed
with our efforts with local professionals towards the creation of new
nationa l export offices, etc. On the projects side, we will particularly
focus on developing a future project for European venues investing in
young talents together with Brussels venue Ancienne Belgique.
What are the criteria required to join the EMO?
– Organisations active at the national level and representative of their
music industry, with a focus on cultural policy and export.
For more information on the activities of EMO and Jean Marc
Leclerc and his four member team please check www.emo.org
VIPNEWS > JANUARY 2013 > INDEPTH STORY > AN INTERVIEW WITH JEAN MARC LEDERC
17
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VIPNEWS > BUSINESS > JANUARY 2013 MUSIC IN SHARES
Music in SharesManfred Tari [email protected]
19
It is too early for annual business reports, but nevertheless it is time for an annual review about the share price performance and highlights of
corporate concert companies:
CTS Eventim – On the Rise Again
For CTS Eventim the year ended better than it began. While on
December 30, 2011 the share stood at 23.20 Euro by December 29
2012 it stood at 26.65 Euro. However, CTS Eventim has not been able
to maintain its highest level of 29.49 Euro, attained on April 30. By
mid November 2012 the price even went down to 22.83 Euro but
since then rose again towards the current level. The current market
capitalisation is at 1.29 billion Euros.
As well as the delivery once again of solid business results, the hope for
an extra profit bonus is triggered by a crucial question to be answered
in 2013. It concerns the decision by the International Chamber of
Commerce (ICC) regarding an arbitration case filed by CTS Eventim
in Paris in April 2010 against Live Nation regarding the non-fulfilment
of a joint venture between both companies for the ticketing of Live
Nation in North America, Europe and the UK. Live Nation cancelled
the deal when the company merged with Ticketmaster. Basically a
compensation to be paid by Live Nation could boost CTS Eventim
profit results but until now the ICC haven’t ruled on the case.
Another question not yet answered is the outcome of an investigation
against CTS Eventim CEO Klaus Peter Schulenberg by the Munich
prosecution department regarding the unauthorized resale of tickets
for the football World Cup in 2006. As reported in June 2012 the
department undertook a search of the offices of CTS Eventim but
until now there has been no further information given, as to whether
there will be a prosecution.
Also the departure of former Vice President of Sales at CTS Eventim
Arndt Scheffler passed almost unnoticed. Scheffler worked for eleven
years as a senior manager within the CTS Group and officially left the
company in November 2012 to start his own company named white
label eCommerce AG.
20
VIPNEWS > JANUARY 2013VIPNEWS > BUSINESS > JANUARY 2013 MUSIC IN SHARES
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Live Nation – A Call for Patience
From $8.31 to $9.13 isn’t a big step for mankind, is it? For Live Nation
instead it’s the reality and this even after the merger with Ticketmaster.
The current market capitalisation is estimated at $1.74 billion.
The current Live Nation news for is also not overflowing with good
news. In fact Bloomberg reports that ticket sales for Madonna and Lady
Gaga in South America are slow, while at the same time Music Week
in the UK reported that Live Nation is to end its venue management
contract for Wembley Stadium.
So, for the moment Live Nation isn’t that what investors consider as
an outperformer. But improvement is in sight. That is at least what the
website Motley Fool assumes when concluding: “Live Nation is one
of the largest ticket selling and live entertainment businesses in the
U.S. and in many other parts of the world. The company is still not
profitable, but as the recent reorganization with Ticketmaster.com is
www.reuters.com/article/2010/01/26/us-ticketmaster-livenation-
idUSTRE 60O4E520100126”integrated, the bottom line results should
improve.”
What else?
In the top-level segment of the live music industry one of the most
interesting questions to be answered in 2013 will be the sale of the
Anschutz Entertainment Group (AEG). The company owns around 120
venues and arenas worldwide, including the Staples Center in L.A. and
the O2-Arenas in London, Berlin and Hamburg. Interesting to note
is that in media reports regarding potential buyers of AEG no music
company is mentioned.
It is obvious that major record companies in particular don’t have the
financial resources these days to undertake significant investments to
set up strong live music units themselves. But also the financial sources
of Live Nation are limited.
Unlike Live Nation who already have to cope with liabilities of $1.7
billion, CTS Eventim has to a certain extent the financial wherewithal
to undertake further growth investments. However, while CTS Eventim
with its portfolio of national promoters dominates the live music
market in Germany, in other European countries the company invests
predominantly in ticketing companies. The only exception is a joint
venture with AEG for the take over of the Hammersmith Apollo in
London previously owned by the Mama Group, purchased by HMV in
2009. The remaining Mama Group portfolio was sold by HMV for £7.3
million in a management buy out.
That the live music business operates in a fragile and risky market again
became evident when Vince Power’s Music Festivals PLC which only
undertook its IPO (Initial Public Offering) in June 2011 at the London
Stock Exchange, went into administration in September 2012. The
company promoted the UK festivals Hop Farm and Feis, and Benicassim
and Costa de Fuego in Spain.
VIPNEWS > JANUARY 2013
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DEAG – A Petit Share Price Wonder
2012 went well for DEAG. The share price went up from 2.24 Euro on
December 30, 2011 to 3.05 Euro on December 29. 2012. However, at
just 37.5 million Euros the market capitalisation is negligible.
Nevertheless, alongside Live Nation forerunner SFX Entertainment
DEAG was one of the pioneers of the corporatisation of the live music
industry, with the company undertaking its IPO (Initial Public Offering)
in September 1998. Since then the company has experienced, shall
we say, ‘interesting times’ while competing with German arch rival
CTS Eventim.
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VIPNEWS > BUSINESS > JANUARY 2013 MUSIC IN SHARES
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European Talent Broker is an independent company within the
Swedish music industry. Our main activities are to exclusively represent
record-artists as tour agents, tour producers and/or as management.
The company represents 10 artists today. (enclosure: roster) History/
The company Siljemark Production was founded by Lars Telbrant and
Jonas Siljemark in 1992 and grew to one of the bigger agency’s in
Europé within it’s niche during the 1990s, with clients such as Ace
of Base, Dr Alban, E-type, Haddaway, Culture Beat, Rednex, Lutricia
McNeal and many more. During the autumn of 1997 Siljemark
Production merged with Sweden based United Stage and formed
one of the largest agency’s in Scandinavia called United Stage Artists
2001. Lars Telbrant sells his stocks in United Stage and founds the
new agency and management company European Talent Broker AB
Geographic/ The Company is situated in Rosersberg just outside of
Stockholm, Sweden, its focus is on the World wide market Activity /
European Talent Broker is a service company for its client. The agency
part of the company’s responsibilities include… * Booking tours and
concerts * Economising the project * Renting of technical equipment /
hiring of personnel * Arranging travel, transport and accommodation
* Project direction and co-ordination * Sponsorships * Consultation
in general management with the project * Consultation in marketing
and copyright legislation * Consultation with record companies.
Current Roster / ALCAZAR / Top 3 in Germany, Top 2 in Italy, Top 13
in UK etc during 2001 with the song “Dancing in the discoteque”
ARMY OF LOVERS / New album out “Le Grand docu-Soup” BOBBY
FARRELL / Former member of Boney M with more than 150 million
sold units and hits like “Daddy Cool”, “Sunny, Ma Baker”, “Rivers of
Babylon”, “Rasputin” and many more. Bobby is currently working
in the studio on his new album together with parts of the “Army of
Lovers /Alcazar/Vacuum” production team. This is something to look
up for. BOSSON / Top ten in 10 country’s in Europé with the song
“One in a million” DEE / The sidekick of E-type has gone solo, now
with two released singel’s in the luggage. The new upcoming singel
is the titel team from the American movie “Blade” DR ALBAN / World
wide mega star with over 11 million albums sold. Hits: “Its my life”
“Sing halleluja ”, “Hello Africa”, “No coke” and many more. LUTRICIA
MCNEAL / 1,2 million of the debut album “My side of town” and 1,5
million of the first singel “ Aint it just a way” sold throughout the
world. New album released during 2002 partly produced by Brian
Rawling (Tina Turner, Cheer, Enrique Iglesias etc.) REDNEX / Number 1
in the German chart for 10 weeks with the song “spirit of the hawk”
autumn 2000. Other hits “Cotton eye joe”, “Old pop in an oak”,
Wish you where here”. New singel of the upcoming album is released
during march 2002 RICHI M / Released his debut album 1998 and
the second album “Songs of tomorrow” the year after. Both of them
top 20 in the Swedish chart and was also nominated to the Swedish
Grammy Award in the category of “Modern dance”. Richi M makes
us dance. A few people are born to make people dance and he is
one of them. The first singel of the new album will be released soon.
VACUUM / Biggest territory’s, Scandinavia and Russia. Biggest hit: “II
breathe” Specialization / Dance & pop oriented festivals Rantarock
festival in Vaasa Finland Beat machine festival / Beiruth, Dubai Gorgy
park dance festival / Moscow / 150 000 in the audience/.
European Talent Broker AB
23