Music Business Handbook and Career Guide

Part 5: Live Music
Chapter 17
Start Thinking. . .
 Does venue size affect promoter responsibilities?
 Which provides the bigger revenue, concert
performances or merchandising?
Chapter Goals
 Gain an understanding of venue contracts and
performance rights responsibilities
 Learn how ticketing works
 Discover the role merchandising plays at live concerts
Venue Contracts
 Venue operators take a hard line in negotiations due to
lack of clout post-event
 Venues offer a limited spectrum of stage-related
equipment and staff-supplied technical service
 it is difficult to fulfill all equipment requests
 portable on-stage equipment can get damaged or
disappear
 Venue fees: fixed price rentals, percentage of box
office, or a combination
 Contracts demand an artist cannot play near the
hosting facility for a specified time period
Venue Contracts
Performance Rights in Concerts
 A public performance of a copyrighted song triggers a
fee usually collected by a PRO
 Venues are responsible for securing the performance
rights license
 The promoter and not the venue may be responsible
for paying the PRO
 The fee is typically a small slice of gross ticket revenue
 the fee is due even if the performing artist is the sole
composer of the performed works
Seven Types of Concert Venues
[insert Table 17.1]
Ticketing
 Purchasing
 fans typically purchase tickets online
 ticket prices vary based on several factors
 fan customs vary by city
 Terms
 deadwood
 paper the house
 scale the house
 Secondary markets
Licensed Music Merchandise
 Innovations
 more than T-shirts + posters
 now leading fashion brands + fragrances
 Merchandise contracts
 royalties
 360 deals
 If an advance was paid, the artist doesn’t get further pay
until royalties exceed the upfront pay
 Artist merchandise at concerts
Venue Trade Association
 International Association of Venue Managers
 www.iaam.org
 helps industry professionals navigate the venue field
For Further Thought. . .
 What are the advantages and disadvantages of
securing a larger or smaller venue?
 Should artists handle their own merch, cutting out the
middleman? Why?