Touring Musician's Revenue and Management
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Touring Musician's Revenue and Management

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What percentage of revenue from touring musicians typically comes from live performances?

  • 70% (correct)
  • 60%
  • 80%
  • 50%
  • What is one of the main purposes of touring for comedians?

  • To promote their personal brand (correct)
  • To participate in television shows
  • To record a new album
  • To minimize travel costs
  • Which of the following is NOT a constraint when planning a tour?

  • Social media engagement (correct)
  • Popularity of the venue
  • Availability of the artist
  • Core audience consumption time
  • What tools are mentioned for project management within the context of event organization?

    <p>Gatt charts and run sheets</p> Signup and view all the answers

    What are anchor dates used for in tour planning?

    <p>To market other nearby dates</p> Signup and view all the answers

    What percentage of ticket income for performing arts organizations is typically generated from fundraising?

    <p>10%</p> Signup and view all the answers

    Which company owns a significant majority of Broadway theaters?

    <p>Nederlander</p> Signup and view all the answers

    What is the average household income of Broadway theatergoers?

    <p>$271,277</p> Signup and view all the answers

    How much can large commercial musical productions cost before opening?

    <p>$17-23 million</p> Signup and view all the answers

    What is the breakeven sell-through rate given the provided financial assumptions?

    <p>83%</p> Signup and view all the answers

    Which type of theater primarily focuses on commercial performances?

    <p>Commercial theatre</p> Signup and view all the answers

    What percentage of the audience attending Broadway shows is female?

    <p>65%</p> Signup and view all the answers

    What are mounting costs in the context of theatre productions?

    <p>Expenses before the show starts</p> Signup and view all the answers

    How many orchestras are there in the US?

    <p>Over 1,600</p> Signup and view all the answers

    What role does a manager play in a musical artist's career?

    <p>Shaping overall image and progression</p> Signup and view all the answers

    What is the primary role of performers in the live music industry?

    <p>To create and monetize their content through live performances</p> Signup and view all the answers

    How do managers typically earn income from the artists they represent?

    <p>By taking a percentage of the artist's income</p> Signup and view all the answers

    What percentage of gross revenue from concerts do bookers generally earn?

    <p>15%</p> Signup and view all the answers

    What is a major responsibility of promoters in the live music industry?

    <p>To stage events at their own risk</p> Signup and view all the answers

    Which stakeholders are directly responsible for the logistics of a live event?

    <p>Event Organisers and Producers</p> Signup and view all the answers

    What income model do venues rely on for generating revenue?

    <p>Rent and ancillary services</p> Signup and view all the answers

    What is the primary focus of managers in the live music industry?

    <p>Strategic career development and branding</p> Signup and view all the answers

    How do promoters' earnings commonly differ from those of bookers?

    <p>Promoters earn based on event profits, while bookers earn from gross revenue.</p> Signup and view all the answers

    What impact does high operating leverage have on ticket pricing for events?

    <p>It increases the need for maximizing attendance to cover fixed costs.</p> Signup and view all the answers

    Why do artists prefer hard tickets over digital tickets?

    <p>Hard tickets offer better control over ticket reselling and scalping.</p> Signup and view all the answers

    What is one of the three factors that determine tour availability for an artist?

    <p>Artist's personal and professional schedule.</p> Signup and view all the answers

    How can artists enhance the fan experience through hard tickets?

    <p>By creating limited edition tickets that serve as memorabilia.</p> Signup and view all the answers

    What is meant by the term 'fixed costs' in relation to high operating leverage?

    <p>Costs that are incurred regardless of the number of attendees.</p> Signup and view all the answers

    Which of the following is NOT a reason for high costs in live music performances?

    <p>Digital ticket processing expenses</p> Signup and view all the answers

    What benefit do additional ticket sales provide once fixed costs are covered?

    <p>They contribute directly to profit.</p> Signup and view all the answers

    What is a critical consideration when scheduling tours regarding venue availability?

    <p>Large venues may require booking months or years in advance.</p> Signup and view all the answers

    What is the typical percentage of income that managers take from indie artists?

    <p>15%</p> Signup and view all the answers

    What is the primary role of a booking agent?

    <p>To negotiate fees and schedule performances</p> Signup and view all the answers

    What percentage of profits do promoters typically take?

    <p>20%</p> Signup and view all the answers

    What is a key difference between performing arts organizations and live music?

    <p>LM includes a mix of commercial companies</p> Signup and view all the answers

    Which of the following factors is NOT a type of event impact?

    <p>mythical</p> Signup and view all the answers

    What impact do events generally have on host communities?

    <p>Can create a loss of authenticity</p> Signup and view all the answers

    Which of the following BEST describes the purpose of a business model canvas in events?

    <p>It defines the problem an event solves</p> Signup and view all the answers

    What is the role of event organizers?

    <p>To hire and manage specialists for event production</p> Signup and view all the answers

    What kind of expenses are categorized as production operating costs?

    <p>Expenses that change based on attendance levels</p> Signup and view all the answers

    Which organization is recognized as the largest producer of live concerts in the world?

    <p>Live Nation</p> Signup and view all the answers

    What percentage of revenue do venues generally generate from their operations?

    <p>10 to 30%</p> Signup and view all the answers

    What type of impact can events potentially have on the physical environment?

    <p>Higher likelihood of pollution</p> Signup and view all the answers

    What does the 'value proposition' refer to in the context of events?

    <p>The unique benefits provided by the event</p> Signup and view all the answers

    Study Notes

    Touring Musician's Revenue

    • 70% of revenue comes from live performances and 30% comes from digital music sources

    Touring Considerations

    • When to tour: When the artists are available, when new recordings are released, when the artist is getting television or radio exposure
    • Touring Constraints: Audience, Venue, Artist/event experience
    • Touring Issues: Environmental Impact, Industry Concentration, Equity Diversity and Inclusion, Insurance Crisis

    Project Management

    • The process of organizing and managing resources in a controlled and structured manner
    • Delivering clearly defined work to complete a project within given scope, time, and cost constraints
    • Gantt charts: illustrate various tasks in time sequence order (task, time budget)
    • Run sheets: details timing for each element of the event on the day of execution
    • Floor plans and diagrams: shows where equipment or items are placed within the venue

    Types of Ticket Sales

    • Single event concerts: single seats, family packs, VIP
    • Multi-event festivals: single seats, family packs, promotions, multi-day passes, VIP packs
    • Seasonal theatre or music: group packages, season tickets

    Increasing Customer Revenue

    • Increase purchase frequency
    • Increase purchase quantity
    • Increase price points
    • Reduce discounting tactics
    • Sell higher priced products instead

    Broadway

    • 41 theatres with more than 500 seats each
    • $1.54 billion in ticket sales and ~12.3 million attendees in the last year
    • 3 companies own 95% (Shubert, Nederlander, & AGT)
    • 65% of the Audience is not from New York City
    • 65% of Audience is female
    • Average age was 40.4 years old
    • 86% of the audience completed a college/university degree & 43% completed a masters
    • Attend in pairs or small groups of family and friends
    • Average household income of Broadway theatre goer was $271,277

    Types of Performing Arts

    • Theatre non-profit
    • Commercial theatre: Highly centralised on Broadway, makes up 60% of gross in 2005, 12 million tickets sold, touring versions of shows can make up to 80% of sales
    • Orchestras: Over 1600 orchestras in the US, 26.5 million attendees, 4 major companies, Can take 200 professionals for one show alone
    • Opera: Over 100 companies presenting, 3.6 million attending the main seasons
    • Circus
    • Dance

    Funding Performing Arts Organisations

    • Most of these organisations are non-profits
    • Government 10-30%, ticket income 30-50%, fundraising 10%

    Intellectual Property

    • 42% of box office revenue is gone before operating and development costs
    • If a show makes money it is shared within creators and investors

    Mounting Costs

    • Production (mounting) costs are the expenses which exist even before the start of the show
    • Musicals: Large commercial shows can cost 17-23 million dollars even before the show is opened, Small shows 10 million dollars
    • Plays on broadway can cost 3.5-5 million dollars pre opening
    • If a show gets cancelled pre-production costs still need to be paid

    Breakeven

    • Financial assumptions: Running costs of 100,000perweek,Averageticketpriceof100,000 per week, Average ticket price of 100,000perweek,Averageticketpriceof30, Capacity for 500 seats, Assuming royalties are not scaled, 8 performances weekly
    • Breakeven at 83% sell through

    Live Music Stakeholders

    • Performers: Musical artists are entrepreneurs, Higher self-employed rates than the rest of the population, Create licensable content to monetise it through publishing and live performances, Invest ‘sweat equity’ into their creations
    • Managers: Focused on shaping and maintaining the overall image and progression of the artist, Usually take a percentage of the artist’s income (typically 10-20%)
    • Bookers: Work with artists to schedule concerts, tours, and in-person appearances, negotiate fees and contracts, Get paid through commissions and bonuses, Travel and accommodation arrangements, Standard commission is around ~15%
    • Promoters: Organise concerts, tours, and festivals at their own expense and risk by selling tickets, Small local promoters who organise concerts in small venues, Regional promoters organising concerts in medium-sized venues, National/ International promoters who spread the risk of staging the show across multiple concerts in multiple markets
    • Event organisers and producers: Usually responsibility of the promoter, they can hire specialists to get it done, Hire personnel, catering and lodging, negotiating with vendors and contractors, oversee set, costumes, sound systems, and lighting
    • Venues: Supervises and coordinates fan experiences in the venue, Generate revenue from rent and ancillary revenue (parking, food and beverage, ticketing fees, building fees)

    Performing Arts vs Live Music

    • PA: In Canada most organisations are not for profit, driven by idealistic purposes like educational, social, political, and religious
    • LM: Mix of sole proprietors, contract producers, and commercial companies, driven by economic considerations

    Event Math

    • Pre production: one time fixed expenses which are involved in developing an event
    • Production operating: keep the show running, can be fixed or variable
    • Variable: changes based on number of tickets sold or number of people attending an event
    • Fixed: costs that do not change

    Emotions that make up events

    • Joy, sadness, trust, disgust, surprise, anticipation, (fear & anger)
    • Entertainment mediums → physical locations and facilities → promotions → support agencies and organisations
    • Live nation can lose money on concert operations because they make it up in ticketing fees and sponsorships
    • Types of impacts: Social & Cultural, Physical & Environmental, Political & Legal, Economic & Tourism
    • Identify major impacts on host communities
    • Understand why governments get involved in events
    • Describe the use of economic impact studies

    Ottawa Festival

    • Social & Cultural impacts: 16,000 volunteers, 4400 artists gaining exposure, Festivals aim to be accessible to all income levels, Exposing people to new cultures and experiences, Offering free workshops

    Business Model Canvas

    • Live events don’t solve a problem
    • Type of event, Purpose of event, Value proposition, Key resources, Selling tickets, Risks & opportunities, Financial matters

    Producers

    • Creative / script
    • Budget
    • Contact sheet
    • Schedule
    • Contract

    Impacts of Events: Social and Cultural

    • Positive: Shared experiences, Revitalising traditions, Building community pride, Increased community participation, Introducing new ideas
    • Negative: Community alienation, Negative community image, Bad behaviour, Substance abuse, Social dislocation, Loss of amenity

    Impacts of Events: Physical and Environmental

    • Positive: Showcasing the environment, Providing examples for best practices, Increasing environmental awareness, Infrastructure legacy, Improved transport and communications
    • Negative: Environmental damage, Pollution, Destruction of heritage, Noise disturbance, Traffic congestion

    Impacts of Events: Tourism & Economic

    • Positive: Destination promotion and increased tourism, Extended length of stay, Higher yield, Increased tax revenue, Business opportunities, Commercial activity, Job creation
    • Negative: Community resistance to tourism, Loss of authenticity, Damage to reputation, Exploitation, Inflated prices, Opportunity costs, Financial loss

    Impacts of Events: Political

    • Positive: International prestige, Improved profile, Promotion of investment, Social cohesion, Development of administrative skills
    • Negative: Risk of event failure, Misallocation of funds, Lack of accountability, Propagandizing, Loss of community ownership and control, Legitimation of ideology

    Events & Entertainment

    • Events: A thing of importance that happens, Planned public or social occasions
    • Entertainment: The action of providing or being provided with amusement or enjoyment, An event, performance, or activity designed to entertain others

    Growth in Events

    • Spending has increased 70% since the 80s
    • Youth would rather experiences that can be shared on socials
    • Events now make up 25% of organisations’ marketing budgets
    • Live events drive human connection and emotions
    • Events will grow at an average rate of 11% from 2021 to 2028

    Industry

    • A manufacturing activity as a whole
    • A distinct group of productive or profit-making enterprises
    • A department or branch of a craft, art, business, or manufacture especially one that employs a large personnel and capital especially in manufacturing
    • Systematic labour especially for some useful purpose of the creation of something of value

    Live Nation

    • Largest producer of live concerts in the world
    • Ticketing: Ticketmaster 580 million fans in 2019
    • Concert production: 40,000 events, 90 million fans, 5000 artists
    • 320 venues
    • 100 managers providing services to 450 artists

    Revenue Streams

    • Audience and ticketing are everything
    • Merchandise
    • Sponsors
    • Exhibitor fees
    • Food & beverages
    • Government grants

    High Operating Leverage

    • High fixed expenses
    • Events must maximize attendance to spread fixed costs
    • Tickets can be priced higher to cover fixed costs, and discounted to incentivize sales

    Artists Preference for Hard Tickets

    • Tangible connection
    • Scalping control
    • Fan interaction

    3 Tour Availabilities

    • Venue availability: dictates tour dates
    • Artist's schedule: impacts availability
    • Market demand and timing: prioritizes markets with strong fan bases or festivals

    Live Music Stakeholders

    • Performers: Creators, entrepreneurs, earn income from live performances and publishing
    • Managers: Strategists, guide artists, earn a percentage of artist’s income
    • Bookers: Schedule events, negotiate fees, earn commissions and bonuses
    • Promoters: Organise events, sell tickets, bear financial burden, earn profits
    • Event Organisers and Producers: Execute logistics, hire personnel, manage production, earn fees or salaries
    • Venues: Host events, oversee experience, earn revenue through ticket sales, rent, and ancillary services

    Differences Between Live Music and Performing Arts Stakeholders

    • Focus and expertise:
    • Performing arts: idealistic, non-profit, driven by educational, social, political and cultural goals
    • Live Music: economic, mix of ownership models, driven by profit

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    Description

    This quiz explores the various aspects of a touring musician's revenue, including sources of income and key considerations for planning tours. Additionally, it covers project management techniques related to organizing and executing successful live events. Test your knowledge on ticket sales, event planning, and the dynamics of live performances versus digital revenue.

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