Podcast
Questions and Answers
What percentage of revenue from touring musicians typically comes from live performances?
What percentage of revenue from touring musicians typically comes from live performances?
What is one of the main purposes of touring for comedians?
What is one of the main purposes of touring for comedians?
Which of the following is NOT a constraint when planning a tour?
Which of the following is NOT a constraint when planning a tour?
What tools are mentioned for project management within the context of event organization?
What tools are mentioned for project management within the context of event organization?
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What are anchor dates used for in tour planning?
What are anchor dates used for in tour planning?
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What percentage of ticket income for performing arts organizations is typically generated from fundraising?
What percentage of ticket income for performing arts organizations is typically generated from fundraising?
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Which company owns a significant majority of Broadway theaters?
Which company owns a significant majority of Broadway theaters?
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What is the average household income of Broadway theatergoers?
What is the average household income of Broadway theatergoers?
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How much can large commercial musical productions cost before opening?
How much can large commercial musical productions cost before opening?
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What is the breakeven sell-through rate given the provided financial assumptions?
What is the breakeven sell-through rate given the provided financial assumptions?
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Which type of theater primarily focuses on commercial performances?
Which type of theater primarily focuses on commercial performances?
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What percentage of the audience attending Broadway shows is female?
What percentage of the audience attending Broadway shows is female?
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What are mounting costs in the context of theatre productions?
What are mounting costs in the context of theatre productions?
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How many orchestras are there in the US?
How many orchestras are there in the US?
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What role does a manager play in a musical artist's career?
What role does a manager play in a musical artist's career?
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What is the primary role of performers in the live music industry?
What is the primary role of performers in the live music industry?
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How do managers typically earn income from the artists they represent?
How do managers typically earn income from the artists they represent?
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What percentage of gross revenue from concerts do bookers generally earn?
What percentage of gross revenue from concerts do bookers generally earn?
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What is a major responsibility of promoters in the live music industry?
What is a major responsibility of promoters in the live music industry?
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Which stakeholders are directly responsible for the logistics of a live event?
Which stakeholders are directly responsible for the logistics of a live event?
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What income model do venues rely on for generating revenue?
What income model do venues rely on for generating revenue?
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What is the primary focus of managers in the live music industry?
What is the primary focus of managers in the live music industry?
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How do promoters' earnings commonly differ from those of bookers?
How do promoters' earnings commonly differ from those of bookers?
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What impact does high operating leverage have on ticket pricing for events?
What impact does high operating leverage have on ticket pricing for events?
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Why do artists prefer hard tickets over digital tickets?
Why do artists prefer hard tickets over digital tickets?
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What is one of the three factors that determine tour availability for an artist?
What is one of the three factors that determine tour availability for an artist?
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How can artists enhance the fan experience through hard tickets?
How can artists enhance the fan experience through hard tickets?
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What is meant by the term 'fixed costs' in relation to high operating leverage?
What is meant by the term 'fixed costs' in relation to high operating leverage?
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Which of the following is NOT a reason for high costs in live music performances?
Which of the following is NOT a reason for high costs in live music performances?
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What benefit do additional ticket sales provide once fixed costs are covered?
What benefit do additional ticket sales provide once fixed costs are covered?
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What is a critical consideration when scheduling tours regarding venue availability?
What is a critical consideration when scheduling tours regarding venue availability?
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What is the typical percentage of income that managers take from indie artists?
What is the typical percentage of income that managers take from indie artists?
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What is the primary role of a booking agent?
What is the primary role of a booking agent?
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What percentage of profits do promoters typically take?
What percentage of profits do promoters typically take?
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What is a key difference between performing arts organizations and live music?
What is a key difference between performing arts organizations and live music?
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Which of the following factors is NOT a type of event impact?
Which of the following factors is NOT a type of event impact?
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What impact do events generally have on host communities?
What impact do events generally have on host communities?
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Which of the following BEST describes the purpose of a business model canvas in events?
Which of the following BEST describes the purpose of a business model canvas in events?
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What is the role of event organizers?
What is the role of event organizers?
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What kind of expenses are categorized as production operating costs?
What kind of expenses are categorized as production operating costs?
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Which organization is recognized as the largest producer of live concerts in the world?
Which organization is recognized as the largest producer of live concerts in the world?
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What percentage of revenue do venues generally generate from their operations?
What percentage of revenue do venues generally generate from their operations?
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What type of impact can events potentially have on the physical environment?
What type of impact can events potentially have on the physical environment?
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What does the 'value proposition' refer to in the context of events?
What does the 'value proposition' refer to in the context of events?
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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.
