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VIP-BOOKING.COM PREMIUM ›› VOL. 109 ›› DECEMBER 2008 WWW.VIP-BOOKING.COM The last News of 2008, would you credit crunch it - it all started off reasonably well, then indications of unease became apparent in the US in the spring, but we got through the Festival season in pretty good shape before the true and increas- ingly ugly picture revealed itself and we became more aware that things were so serious that even our seemingly buoyant live industry was likely to be affected and we were taking Banks of our sponsor wish lists, now we’re having to keep a close eye on things – by March 2009 there will be much to discuss at ILMC 21! Certainly 2008 had its success stories and at least at the top end of the business the money continued to roll in, according to the ever dependable keeper of the figures, Billboard Boxscore, from November 2007 to November 2008 Bon Jovi’s North America and Europe Lost Highway tour promoted by AEG Live, grossed $210.6 million and drew 2,157,675 fans. Bruce Springsteen & the E Street Band’s Magic tour came in second grossing $204.5 million for the pe- riod. The rest of the top 10 included Ma- donna, The Police, Celine Dion (!), Kenny Chesney, Neil Diamond, The Spice Girls, The Eagles and Rascal Flatts who grossed a mere $55.8 million! Grosses reported to Billboard Boxscore for the international touring industry, totalled just under $4 billion worldwide, the most ever for a year and up almost 13% over last year. A recent press release from live industry investment specialists Edge Performance VCT plc stated, “The live music and fes- tival market in the UK has continued to demonstrate strong growth. Research by BRMB/TGI data indicates that 60 million visits are made annually to paid live music events across all musical genres generat- ing £1.9bn in 2007 in UK ticket revenues alone, up 20% on 2006.” 2008 figures are of course not yet fully collated. But although these figures are impressive they are mainly inflated by high ticket pric- es paid for long established and re-formed acts with fewer shows taking place and, concert attendance down, although this reflects the decrease in the number of shows, on individual shows, at least in the US, the data is more encouraging with av- erage attendances up. Certainly the industry is expecting to deal with the fact that there will be less money in ticket buyers pockets next year; Edge Group founder (see Business News in this issue.) David Glick said: “No sector is recession- proof, but we believe the impact of the cur- rent downturn on live music will be a flight to value. Acts who set ticket prices at the appropriate level will continue to do well.” Michael Rapino, head of Live Nation, has stated that they may have to consider dis- counting tickets, although their own new ticketing operation may save fans money as they have announced that they intend to cut back on the sort of handling fees previ- ously charged by Ticketmaster. The newly formed Ticketmaster Entertainment has jumped in quickly however announcing that their first major tour of 2009 with the Eagles will be free of handling fees. 1 McGowan’s Musings: Allan McGowan The VIP-Booking European Live Entertainment Book Advertising in the VIP Book will make you visible to 10.000 business professionals all over Europe. You will find no better place to expose your company to the whole European Live Entertainment Industry. ›› RESERVE YOUR AD NOW ON WWW.VIP-BOOKING.COM VIP- News
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  • VIP-BOOKING.COM

    PreMIuM ›› VOl. 109 ›› DeCeMBer 2008

    www.VIP-BOOKING.COM

    The last News of 2008, would you credit

    crunch it - it all started off reasonably

    well, then indications of unease became

    apparent in the US in the spring, but we

    got through the Festival season in pretty

    good shape before the true and increas-

    ingly ugly picture revealed itself and we

    became more aware that things were so

    serious that even our seemingly buoyant

    live industry was likely to be affected and

    we were taking Banks of our sponsor wish

    lists, now we’re having to keep a close eye

    on things – by March 2009 there will be

    much to discuss at ILMC 21!

    Certainly 2008 had its success stories and

    at least at the top end of the business the

    money continued to roll in, according to

    the ever dependable keeper of the figures,

    Billboard Boxscore, from November 2007 to

    November 2008 Bon Jovi’s North America

    and Europe Lost Highway tour promoted

    by AEG Live, grossed $210.6 million and

    drew 2,157,675 fans. Bruce Springsteen

    & the E Street Band’s Magic tour came in

    second grossing $204.5 million for the pe-

    riod. The rest of the top 10 included Ma-

    donna, The Police, Celine Dion (!), Kenny

    Chesney, Neil Diamond, The Spice Girls,

    The Eagles and Rascal Flatts who grossed

    a mere $55.8 million! Grosses reported to

    Billboard Boxscore for the international

    touring industry, totalled just under $4

    billion worldwide, the most ever for a year

    and up almost 13% over last year.

    A recent press release from live industry

    investment specialists Edge Performance

    VCT plc stated, “The live music and fes-

    tival market in the UK has continued to

    demonstrate strong growth. Research by

    BRMB/TGI data indicates that 60 million

    visits are made annually to paid live music

    events across all musical genres generat-

    ing £1.9bn in 2007 in UK ticket revenues

    alone, up 20% on 2006.” 2008 figures are

    of course not yet fully collated.

    But although these figures are impressive

    they are mainly inflated by high ticket pric-

    es paid for long established and re-formed

    acts with fewer shows taking place and,

    concert attendance down, although this

    reflects the decrease in the number of

    shows, on individual shows, at least in the

    US, the data is more encouraging with av-

    erage attendances up.

    Certainly the industry is expecting to deal

    with the fact that there will be less money in

    ticket buyers pockets next year; Edge Group

    founder (see Business News in this issue.)

    David Glick said: “No sector is recession-

    proof, but we believe the impact of the cur-

    rent downturn on live music will be a flight

    to value. Acts who set ticket prices at the

    appropriate level will continue to do well.”

    Michael Rapino, head of Live Nation, has

    stated that they may have to consider dis-

    counting tickets, although their own new

    ticketing operation may save fans money

    as they have announced that they intend to

    cut back on the sort of handling fees previ-

    ously charged by Ticketmaster. The newly

    formed Ticketmaster Entertainment has

    jumped in quickly however announcing

    that their first major tour of 2009 with the

    Eagles will be free of handling fees.

    1

    McGowan’s Musings:

    Allan McGowan

    The VIP-Booking european live entertainment BookAdvertising in the VIP Book will make you visible to 10.000 business

    professionals all over europe. You will find no better place to expose your

    company to the whole european live entertainment Industry.

    ›› reserVe YOur AD NOw ON www.VIP-BOOKING.COM

    VIP- News

    http://www.vip-booking.comhttp://www.vip-booking.com

  • 2

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    Colophon ››

    VIP-News is published by: VIP-Booking26 York StreetLondon W1U 6pZ

    Managing Director: Ronni [email protected]

    General Manager: Peter [email protected]

    writer and editorial: Allan [email protected]

    writer: Manfred Tari [email protected]

    For advertising enquiries pls. contact Peter Briggs [email protected] or +44 870 755 0092

    lay-out: Pekaye Graphics, Phuket – [email protected]

    VIP- News - D e c e m b e r 2 0 0 8

    T in the Park Ticket scamAllan McGowan [email protected]

    T in the Park 2009

    T in the Park organisers have warned fans not to buy tickets from a Hungarian-based web-

    site, www.tinthepark2009.com, which falsely claims to have passes for next year’s festival.

    Promoters DF Concerts emphasise that the site has no ticket allocation and that fans should

    not under any circumstances give their credit card details, legal action is to be taken against

    the unauthorised Hungarian site.

    Meanwhile The Bonnaroo and Langerado

    music festivals have responded to the eco-

    nomic crisis in the US by employing a famil-

    iar tactic used by many other retailers by

    offering staggered payment plans, what we

    used to call hire-purchase, on weekend tick-

    ets to the festivals in 2009. It will be interest-

    ing to see if other events in both the US and

    Europe adopt the idea.

    As far as acts on the road next year there

    seems to be no let up in this reformation

    business, (as the Pope said to Henry VIII) –

    next year we’ve got Tina, Fleetwood Mac,

    The Faces (allegedly!), The Kinks, Cliff Rich-

    ard & The Shadows (!) and now …Blur (isn’t

    it a bit soon?) and apparently Morrisey and

    Johnny Marr are speaking again, so anyone

    want to put a bet on dates on hold for The

    Smiths?

    But whatever happens in 2009 we must take

    confidence from the fact that the live indus-

    try is made up by resilient characters, quite

    capable of dealing with crises, and I think

    now, perhaps more than in the past, adapta-

    ble enough to work together – co-operation

    may well be necessary to see us through

    this. Also in down times people need cheer-

    ing up, they will still be looking to be enter-

    tained and that’s our product and when and

    where there’s demand there’s business!

    So we hope you all have a good and relaxed

    Christmas holiday and a Happy and if not

    exactly prosperous – comfortable - New

    Year (if anyone is thinking of sending me

    a Christmas present Euros would probably

    fit quite nicely thanks – my pounds appear

    to have shrunk!) Finally lets all add positive

    thinking to our New Year Resolutions and

    please – continue to let us have your opin-

    ions and your news in 2009.

    In the meantime, Ladies & Gentlemen – here

    is the last News of 2008….

  • 3

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    http://www.ilmc.com/21

  • 4

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    6th european Border Breakers Awards at eurosonic Noorderslag 2009

    On January 15, 2009, ten European groups

    and artists will receive this year’s European

    Border Breakers Awards during a show to

    take place on the opening night of the Eu-

    roSonic Noorderslag Festival in the Neth-

    erlands. The ceremony will be hosted by

    musician and presenter of the BBC-televi-

    sion programme ‘Later’, Jools Holland, and

    Jan Fígel, the European Commissioner re-

    sponsible for Education, Training, Culture

    and Youth.

    In giving these awards the European Com-

    mission, in cooperation with the European

    Broadcasting Union (EBU) wishes to re-

    ward debut artists’ and groups’ success in

    crossing national borders. The prizes are

    also intended to highlight and promote

    the richness and diversity of European

    music, its creativity and its contribution to

    innovation.

    10 debut acts will receive a European Bor-

    der Breaker Award during a spectacular TV-

    show recorded live at The Oosterpoort, Gro-

    ningen and broadcast throughout Europe.

    The ceremony will be recorded by Dutch

    national television (NOS) and broadcast on

    Saturday January 17th from 20.15 hrs on-

    wards, and will receive European coverage

    through the EBU broadcasting network of

    European television and radio stations.

    Former winners of European Union Bor-

    der Breaker Awards include artists such

    as Carla Bruni, Tokio Hotel, Damien Rice,

    The Thrills, Gabriel Rios, The Fratellis,

    Basshunter, Dolores O’ Riordan and many

    more.

    This is the sixth edition of this European

    Union award, with which the European

    Commission – in close partnership with

    the European music industry – aims to

    highlight the creative richness and diver-

    sity of European contemporary music,

    the existing need to open up the Europe-

    an market to European creativity and to

    stimulate the mobility of artists and their

    work within Europe and beyond. The Eu-

    ropean Border Breakers Awards honour

    those debut artists, groups, the compa-

    nies, composers and text writers who suc-

    ceed in reaching audiences outside their

    own country.

    The artists receiving this award are se-

    lected on the basis of statistics provided

    by the Billboard Information Group and

    the European Broadcasting Union ac-

    cording to the following criteria: Original

    debut album of artists or groups from a

    country participating in the EU Culture

    Programme; Sales in EU Member states

    outside the country of production; Sales

    during the last year (between September

    2007 and 31 August 2008) Experience in

    touring outside the country of origin and

    ability to perform live.

    Trade events in 2009Allan McGowan [email protected]

    The new year launches us straight in to the new trade event calendar: The VIP-Booking team will of course attend all the

    major events, here is up to date information on the first three of 2009. This year the dates of Eurosonic Noorderslag col-

    lide somewhat with Midem, but in a spirit of ‘entente cordiale’ transport will be provided from Groningen to Amsterdam

    Airport to ensure that delegates attending both catch the only direct flight to Nice. Co-operation may well be the order

    of the day in many areas of the business in 2009!

    Both EuroSonic Noorderslag and Midem will emphasise the trade and cultural need for acts to continue to cross inter-

    national borders by showcasing ‘export ready’ talent. After some years in Cannes, The European Commission takes its

    European Border Breakers Awards ceremony to Groningen.

    ILMC, having considered the showcasing element appear to have found it well enough catered for by these two events

    and others, and will continue to do what it does best, which is to provide a high level forum dedicated to the discussion

    and often resolution of the major concerns of the international live music industry.

    Jools Holland will host European Border Breakers Awards at Eurosonic 2009

  • 5

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    MIDeM Talent 2009

    Never mind the Bol***ks, Here’s the IlMC!

    The 43rd MIDEM will again take place at

    the Palais des Festivals, Cannes, France

    from 18-21 January 2009, and will feature

    the second edition of MidemTalent.

    This event will showcase an array of up-

    coming artists with strong international

    potential. Around 20 groups or artists cov-

    ering pop/rock, electro, folk, world music

    and jazz, hailing from every continent, will

    perform in Cannes in front of an audience

    of industry executives and the public.

    American rock group Blue October; Co-

    lombian artist Monica Giraldo, recently

    nominated in the “Best New Artist” cat-

    egory at the Latin Grammys and South

    African band The Parlotones, crowned

    Best Rock Group at the 2006 South African

    Music Awards, are among the artists due

    to perform. They will be joined by John

    Shannon (U.S.), Hogni (Faroe Islands),

    Charlie Winston (U.K.), Ndidi Onukwulu

    (Canada), Sliimy (France) and Magnus

    Lindgren’s Batucada Jazz (Sweden).

    Aimed at discovering and developing art-

    ists, MidemTalent event offers four days of

    concerts and conferences. It is sponsored

    by the world’s leading independent video

    game publisher Activision Blizzard Inc.

    and its Guitar Hero franchise, and by the

    on-line promotional platform Sonicbids.

    MidemTalent is organised in association

    with Billboard, Musikwoche, Pangaea/A&R

    Worldwide and VIP Booking.

    Line-up so far:

    ABHIJIT POHANKAR URBAN RAGAS

    (Big Music - India)

    ANNE PACEO (Laborie Jazz – France)

    BLUE OCTOBER (Brando/Universal – U.S.)

    CHARLIE WINSTON, U.K.

    (Atmosphériques, France/Real World, U.K.)

    DAVE STAPLETON QUINTET

    (Westbury Music – UK)

    DORANTES (World Music Factory – Spain)

    FRØY AAGRE (Pling Music – Norway)

    HJALTALIN (Kimi Rec. – Iceland)

    HOGNI (Tutl – Faroe Islands)

    JOHN SHANNON (ObliqSound Inc. – U.S.)

    MAGNIFICO (ARIH D.O.O - Slovenia)

    MAGNUS LINDGREN’S BATUCADA JAZZ

    (Higher Ground - Sweden)

    MAMAS GUN (Decca Rec. – U.K.)

    MATTHEW ANDRAE (France Music – USA)

    MISINTERPROTATO (Jazzhead - Australia)

    MONICA GIRALDO, Colombia

    (Wattsup!/Codiscos - USA & Colombie)

    NDIDI ONUKWULU, Canada

    (Naïve - France)

    ROTARY DOWNS (Rookery Records, U.S.)

    SCOTT MCKEON BAND

    (Provogue Records – U.K.)

    SLIIMY (Warner - France)

    THE GHOST, Faroe Islands

    (Sunday Best – U.K.)

    THE PARLOTONES

    (Sovereign Ent. – South Africa)

    YODELICE (Mercury - France)

    For more information on MIDEM and

    MidemTalent:

    www.midem.com/midemtalent

    Blue October plays at Midem 2009

    ILMC 21 will take place from March 13-15th 2009

    The annual International Live Music Con-

    ference returns to The Royal Garden Hotel,

    London, UK on 13th – 15th March 2009

    when ILMC 21 will no doubt take a serious

    look at, amongst other things, how the live

    music industry is weathering the world

    wide economic crisis. But, as ever with this

    long established market-leading event,

    which takes its fun theming very seriously,

    all will certainly not be doom and gloom!

    Having come down from last year’s spaced

    out mellow hippy trip theme, ILMC 21

    lurches to the other end of the pop music

    spectrum by celebrating all things Punk!

    In their own words:

    More raw than a nasty sore throat, more

    dangerous than running with a pair of scis-

    sors, more street credible than a traffic war-

    den with toothache. Yes, the ILMC is back

    – but this time we’ve moved on from be-

    ing boring-old-fart hippies. Thirty years on

    from the heyday of punk we’re spitting and

    bouncing up an’ down and hell-bent on a

    new wave of anarchy and destruction.

    It seems that it’s not just ‘Anarchy in the UK’,

    but anarchy on a global scale. With chang-

    ing fortunes affecting almost everyone in

    the industry the ILMC will be focusing on,

    amongst other points, the world’s eco-

    nomic crisis. As well as the usual spread of

    panels, meetings and social events, we will

    as ever be offering up a multitude of sur-

    prises. Further announcements of panels

    will be made early in January 2008.

    ILMC has reached the ripe old age of 21,

    but rather than leaving home and getting

    a sensible job involving a suit, we will be

    donning our tartan, safety pins and bad

    language and endeavour to bring you more

    of what the delegates enjoy every year.

    More information:

    www.ilmc.com

    http://www.midem.com/midemtalenthttp://www.ilmc.com

  • 6

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    WITH2500 International delegates250 European acts100 Panels and industry meetings24 EBU public radio stations 150 European festivals 80 European journalists29 Nationalities

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    REGISTRATION DEADLINES: Late 235,- (if registered before 16 December 2008)Walk Up 260,- (after 16 december 2008)

    “THE MOST IMPORTANT GATHERING IN THEEUROPEAN LIVE MUSIC BUSINESS CALENDAR"POLLSTAR (US)

    "THE PLACE TO SECOND GUESS WHO'LL BE THE BIGEUROPEAN BANDS OF THE YEAR" NME (UK)

    http://www.eurosonic.nl

  • 7

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    Green initiatives for the live music industry continued to attract at-

    tention throughout 2008 and great strides have been made in the

    education of both those working in the industry and audiences.

    But as I was made aware at last week’s Julie’s Bicycle (The not for

    profit company established to find ways to reduce the UK music

    industry’s greenhouse gas emissions – www.juliesbicycle.com)

    Christmas gathering in London efforts will have to be redoubled

    to keep the Green Agenda to the fore during a time when indi-

    viduals and companies become distracted by the preoccupations

    of the downturn in the world economy.

    The financial crisis will pass, but global climate changes continue

    to happen, and they are some of the biggest threats to the world.

    UN’s climate experts recommend immediate action if the most

    serious consequences of human emission of greenhouse gasses

    are to be avoided.

    The 2009 Roskilde Festival’s ‘Green Foot-

    steps’ initiative intends to put the focus

    on climate changes calling for a united

    approach towards climate change agree-

    ment.

    The festival’s campaign intends to show

    how the festival can shoulder its part of

    the responsibility to solve the potential cli-

    mate catastrophe. Naturally, festivalgoers

    are invited to be part of the campaign to

    take Green Footsteps in the right direction

    and to join in sending a message to the

    world that there is no time to waste with

    regards to obtaining a globally sustainable

    climate.

    It appears that there are still way too many

    people who do not take the climate issue

    seriously nor recognise that we all play an

    active role in the climate changes. Danish

    newspaper Politiken carried an article stat-

    ing that 40 % of the Danish population still

    do not believe in the greenhouse effect.

    Roskilde Festival wants to deal with this.

    The Festival’s own Green Footsteps to re-

    duce the greenhouse gas-emitting activi-

    ties will include: The instigation of a CO2

    account, making it possible to calculate

    the emission from Roskilde Festival; In the

    energy sector, the festival will go over the

    possibility of buying windmill power and

    getting generators running on vegetable

    oil instead of diesel; working on recycling

    as much garbage as possible so that in-

    cineration of waste and the following CO2

    emission is reduced.

    Odeon is the festival’s ‘green’ stage, low-

    energy stage lighting is used, and an ‘LED

    carpet’ functions as a big screen. Power

    will be produced with renewable tech-

    nology – by generators running on bio-

    mass fuel, vegetable oil, solar cells and

    windmill(s).

    The Audience will be motivated to be

    part of it all and to economize on CO2 to

    take part in the climate battle. They will

    be encouraged to see that it is an advan-

    tage to save the environment. As thanks

    for their environmentally friendly actions

    – e.g. using public transport or turning

    off stand-by power at home – the festival

    will let the participating audience mem-

    bers reserve a spot at the camping area,

    thus securing an advantageous spot even

    before the camping area opens. These

    festivalgoers will be part of the festival’s

    Climate Community – a camping quarter

    primarily running on CO2-neutral energy.

    The energy will come from sources such

    as energy-producing bicycles and ditto

    dance floors.

    Green Footsteps is a step in the right direc-

    tion – a step that we all have to take to

    stop the global climate changes from run-

    ning out of control.

    Green Issues - recession May Cause DistractionsAllan McGowan [email protected]

    Climate Focus at roskilde Festival ‘09

    Roskilde Festival introduce ‘Green Footsteps’

    http://www.juliesbicycle.comhttp://www.schleyerhalle.de/index.php?tacoma=webpart.pages.TacomaDynamicPage&navid=4114&coid=4114&&cid=0

  • 8

    VIP-BOOKING.COM

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    VIP-News asked Karsten Jahnke about his

    opinion of Record Companies earning

    money from concerts, the recession and

    the difference between corporate or own-

    er driven concert businesses.

    VIP-News: How was the concert business 2008?

    Karsten Jahnke: Pretty good, thank you.

    VIP-News: You have been in the business for so many years now. What has changed in recent years?

    Jahnke: You cannot help but worry about

    the big trust companies getting more and

    more power

    VIP-News: Do you see many differences in working with corporate or stand alone companies?

    Jahnke: Well, in stand-alone companies

    like mine we have to actually make and

    earn money so we have to calculate pretty

    hard to compete. On the other hand we

    know our business from the inside out and

    can offer the best possible promotion plus

    we can put our companies reputation (in

    my case, even my own name) behind the

    work we do. With the corporate compa-

    nies it’s a whole different ballpark: To get

    an impressive roster together, these com-

    panies have a lot more money they can

    throw into the pit to raise their chances

    of actually getting an act they want. They

    do not necessarily have to make money

    on the spot as we do, so it’s a bit like them

    having the opportunity of ‘playing’ with

    money that is actually not their own. Obvi-

    ously this kind of distorts the whole finan-

    cial system behind our business.

    VIP-News: There are many record compa-nies these days aiming to participate in the live music income of their artists. What is your point of view on this one?

    Jahnke: Well, good luck to them.

    VIP-News: Do you believe that they deserve to take a share out of the concert business earnings of their artists?

    Jahnke: I can see their point when it comes

    to establishing an act from scratch these

    days, but I doubt this will work with any es-

    tablished act. And by the way sooner or later

    they will find themselves in the same bidding

    war as everybody else if the newly estab-

    lished act becomes hot news and successful

    because of that. The list of artists whose live

    careers I’ve built up from the very beginning

    is long - I’ve had contracts with all of them

    - but as we all know: If you really want, you

    can get out of any contract you like.

    In Dialogue with Karsten JahnkeManfred Tari [email protected]

    VIP-BOOKING.COM THE VIP-BOOK VIP-NEWS

    Having the right tools for the job is often the key to success. Through our ongoing communication with key Live

    Entertainment Industry Professionals, we have developed a range of services to meet the demands of agents, pro-

    moters, talent buyers, venue bookers etc. It’s no coincidence that we are now considered to be the No. 1 information

    provider for this thriving industry.

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    ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???? ??? ????? ???? ????????????? ???????? ???????? ????? ??????? ???????? ???????? ???????? ??????? ???? ??????? ???????????????????????????????????????? ????????? ????? ???????? ??????????????????????????????????????????????????????????????????????

    ???????????????????????????????????????????????????????????????????????

    ??????????????

    ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

    ???? ??????? ??? ???? ??????????? ??? ?????????? ???? ???????????? ???????????????????????????????????????????????????????????????????????? ?????????? ?????? ????? ??? ??????????????? ???????????????????? ??????? ???????? ????? ?? ???????? ??????? ?? ????? ??? ??? ???? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

    ?????????? ??????? ?????? ???? ???? ??????? ?????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ??? ????? ???? ????????? ????? ????? ??????? ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

    ?

    VIP-Booking.com is now the most widely used online information service for the European Live Entertainment Industry with subscribers in over 25 countries. Using the latest technology and state of the art tools, the service provides in-depth information streamlining the day-to-day operations of industry professionals, saving both time and money.

    Karsten Jahnke

    http://www.vip-booking.com

  • 9

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    VIP-News: When it comes to the recession there are serious concerns in the business that high price shows won’t sell as they used to do. Do you agree with this?

    »It will take until next yearuntil the recession that is in

    everybody’s minds now arrivesin real life and is fully felt,

    so we’ll have to watch that«

    - Karsten Jahnke

    Jahnke: Yes and no. It will take until next

    year until the recession that is in every-

    body’s minds now arrives in real life and is

    fully felt, so we’ll have to watch that. But

    despite this culture and arts have always

    had high times in troubled times. Maybe

    not the over-expensive shows, but I have

    no fear for the casual live music business.

    As long as a band is really good and doesn’t

    lose its ground, there will be people want-

    ing to see them.

    VIP-News: Are you happy with the back-ing and considerations of the political and administrational bodies for the concert industry?

    Jahnke: For Hamburg locally, yes. We have

    a established a great relationship work wise

    over the last couple of years, especially

    their support for our Reeperbahn Festival

    is excellent. On the national level we’re far

    from being quite there yet to be honest.

    VIP-News: What are your expectations re-garding developments in the concert busi-ness in the near future?

    Jahnke: Well, it’ll stay thrilling, won’t it?

    With so many new developments on the

    cards you’ll have to watch every step pret-

    ty carefully.

    VIP-News: What is on your agenda for 2009?

    Jahnke: Quite a lot, actually: We’re begin-

    ning the planning for our fourth Reeper-

    bahn festival, which we’re about to show-

    case internationally at the Eurosonic and

    SXSW Festivals in 2009 for the first time;

    we´re about to set up a sequel to last

    years highly successful Open Air Festival

    in Uelzen (smaller northern town in lower

    Saxony) in August; I’m further establish-

    ing my own little concert series for new

    young and exciting contemporary jazz

    artists called Jazz2day, our beloved Stadt-

    park Open Air season is about to take

    more and more shape - plus lots of other

    things we cannot talk about openly at the

    moment.

    The general financial crisis, and local author-

    ity opposition to live venues aggravated by

    the recent closure of several Madrid venues

    following the widely publicised death of

    an 18-year-old youth following his violent

    ejection from a well-known city centre dis-

    cotheque, have made things very difficult

    for live music in Spain.

    Hopefully, two live music initiatives for small

    venues will help new talent and strengthen

    the live music circuit, in both the Spanish

    capital Madrid and the country as a whole.

    From December 2 until 21, 19 concerts have

    and will be staged in 19 different Madrid

    venues of up to 300-capacity. Libertad 8,

    Barco, Galileo Galilei, La Sala Live!, Clam-

    ores, La Frontera (Villalba ), Colonial Norte

    Reciclaje (Guadarrama), Sol, Siroco, La Boca

    del Lobo, Jimmy Jazz, Cardamom, Búho

    Real, Hebe, Joaquín Sabina -TAF (Móstoles),

    Wurlitzer Ballroom and Cafe La Palma.

    The event, called ‘Alternativas En Concierto’

    and now in its fourth year, sees emerging

    artists support better-known stars, many

    having begun their careers playing in these

    same venues and now with gold discs to

    their names. The initiative has been or-

    ganised by Madrid’s 45-venue La Noche

    En Vivo, the AiE artists and interpreters as-

    sociation, the Agedi collection society, and

    financed in part by the Madrid regional

    government.

    La Noche En Vivo VP Angel Viejo, who has

    run Madrid’s Galileo Galilei club for the past

    26 years, told Billboard Biz that in 1985 the

    city had some 112 small venues, but that

    the 45 existing members still stage some

    10,000 concerts per year.

    Spanish/French Co-Operation:

    Also, Acces, Spain’s national association of

    concert halls, and its French counterpart,

    La Fédurok, continue to develop an accord

    signed in late October at the 20th Mercat

    de la Musica Viva in Vic near Barcelona, in

    the presence of representatives of both

    the Spanish and French culture ministries,

    aimed at sharing experiences to strengthen

    live music and venues, and bringing aware-

    ness of their cultural and business value to

    local and regional administrations. In atten-

    dance were regional live music associations

    from Catalonia (Asacc), Galicia (Clubtura),

    Andalucia (Cosa), Basque Country (Kultura

    Live), and Castilla y León (Old Castile).

    The accord aims to encourage small-venue

    live music either side of their common

    border. Acces communication director

    Armando Ruah says Acces is interested in

    learning from the La Fédurok’s experience,

    as “France is one of the pioneer countries in

    defence of its popular music and the recog-

    nition of its own culture.”

    live Initiatives in spainAllan McGowan [email protected]

    Libertad 8

  • 10

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

    resistant to recession?Manfred Tari [email protected]

    Exponents of the concert business mostly

    appear unimpressed by the economic cri-

    sis. But if we take a look at the event mar-

    ket the situation differs: The sector that

    earns its money with the organisation of

    company parties and business galas is suf-

    fering a lot of cancellations. Moreover the

    actual economic models seem to confirm

    the conclusion that it will take a long while

    until ‘Business as usual’ returns.

    In the champions league of the live music

    industry, the tour and concert business,

    the core business seems to be still going

    strong. Thorsten Seif of Buback Konzerte,

    responsible for well known German acts

    like Deichkind und Jan Delay comments:

    “For the concert business the economic cri-

    sis will not have immediate consequences.

    Especially if you try to budget the concerts

    carefully and keep them on a good value

    level as we do.”

    The opinion of Klaus Maack from Contour

    Music, who is organiser of the Summerjam

    Festival and tour agent of Beenie Man and

    Anthony B., is similar. He thinks that the

    economic crisis has only little influence

    on the concert business because he esti-

    mates “that the people will spare money by

    avoiding big expenditures but not concerts

    and tickets if they are on a reasonable price

    level.”

    Ralf Scheffler, chief of the venue Batschkapp

    in the finance metropolis Frankfurt, an-

    swers the question of how the crisis will

    affect his daily business as follows: “In no

    way, I hope. We still don’t know yet if this cri-

    sis really will come or if it is just hysteria. I’m

    a little bit sceptical as to whether it is just a

    media hype.”

    »Strange to say but small eventsor events in the rock and pop segment are yet not affected«

    - Berhard Lewkowicz

    Bernhard Lewkowicz is executive direc-

    tor of the regional presenter Concertteam

    NRW. He appreciates the situation in the

    event market is more critical: “It is gener-

    ally the case in the event market that you can

    hardly say exactly why an event works well

    or not, so you just can assume.” But Lewko-

    wicz adds: “What I can clearly say is that

    family events like ‘Bob the Builder’ or ‘Käpt´n

    Blaubär’ which normally attract two adults

    and two kids from the middle class with only

    little money for spare time activities, are suf-

    fering a lot from the actual development.

    Strange to say but small events or events

    in the rock and pop segment are yet not af-

    fected.”

    All respondents are of the opinion that ne-

    gotiations with bankers regarding financ-

    ing these days are no fun. Seif remarks:

    “This is definitely the case, we are a company

    and we don’t even have an overdraft limit

    and we won’t get it these days anyway.”

    Maack is sceptical, too: “My situation is quite

    comfortable because I’ve been running a fes-

    tival for 24 years and we have results and ex-

    perienced data. But for new projects I think it

    will be very difficult to get any credits.”

    “Of course I have experienced that.” Lewko-

    wicz agrees. The long time Toten Hosen

    agent comes to the point: “Every segment of

    our business that is affected by the monetary

    sector like pre-financing a show, overdraft

    credits or what ever has big problems. The

    bankers are keeping their wallets closed.”

    Scheffler states bluntly: “My banker hasń t

    given me money before and he won’t give

    me any now. Common sense would say ‘O.K.

    let’s be sensible and finance the medium

    sized business’, but the reaction of the fi-

    nance sector at the moment is ‘We keep our

    money and in the best case, do nothing’. But

    they can’t do that in the long term because if

    they do they won’t earn money.”

    Klaus Maack

  • 11

    VIP-BOOKING.COM

    VIP- News - D e c e m b e r 2 0 0 8

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  • VIP-BOOKING.COM

    12

    VIP- News - D e c e m b e r 2 0 0 8

    DeAG release Business report for the 3rd QuarterManfred Tari [email protected]

    CTS Eventim announced that it

    will provide European wide tick-

    eting for the art exhibition ‘Van

    Gogh and the Colours of the

    Night’. The exhibition will take

    place in the Van Gogh Museum in

    Amsterdam and will run from the

    13th of February until 7th of June.

    The show itself is presented in col-

    laboration with the MoMA (Muse-

    um of Modern Arts) in New York

    where the exhibition is on show

    until January 9 and is expected to

    draw at least 800.000 visitors of

    which two thirds are expected to

    come from abroad.

    CTS offers the tickets via their

    website www.eventim.com and

    their network partner. The ar-

    rangement furthermore foresees

    the usage of a ‘print at home’ ser-

    vice that is compatible with the

    scanner system of the Van Gogh

    Museum as well as hotline and

    box office service provided by

    CTS Eventim.

    CTs handle euro-Ticketing for Van Gogh exhibitionManfred Tari [email protected]

    Peter Schwenkow - CEO DEAG

    In the first 9 months of the business year

    2008 DEAG gained a turnover of 80. 8

    million Euros , but declared a good will

    impairment of 5 million Euros due to

    the “increasing pressure on margins in

    the international Rock/Pop business”

    and amended currency exchange rates.

    Therefore the net loss of DEAG is 5.2 mil-

    lion Euro. Nevertheless DEAG expects

    to gain a revenue of about 110 million

    Euros for the entire business year . The

    company furthermore announced a cost

    cutting program of its administrative ex-

    penses and “a more performance based

    executive board remuneration.”

    Within the last 52 weeks the DEAG Share

    has dropped by about 80 percent. VIP-

    News spoke to DEAG CEO Peter Schwen-

    kow about the current situation of the

    company and the financial market in

    general.

    VIP-News: Could you please comment on the current situation regarding share price development.

    Schwenkow: It’s the same for Live Na-

    tion, Ticketmaster or any entertainment

    company listed on the stock exchange.

    We find ourselves in a gigantic crisis in

    the condition of the financial market

    and so it has nothing to do with the ac-

    tual condition of the company. Look at

    shares such as those of Daimler Benz or

    Commerzbank.

    VIP-News: To what extent in terms of financing and investments is your com-pany affected by the credit crunch?

    »I think that we are facingan enourmous economic crisis,which will become even more

    dramatic than weimagine today«

    - Peter Schwenkow

    Schwenkow: At the moment in no way.

    In comparison to other suppliers we

    have very low commitments. We have

    two financial partners: One is Dresd-

    ner Anschutz Mezzanine Invest and the

    other is the Commerzbank and we have

    a very good relationship with both of

    them. I can very well imagine that we

    will look for acquisitions again in the

    coming year and we definitely have

    the resources to do this. My opinion is

    that the only winners will be those that

    stabilize their resources for the next

    six or twelve months and learn to run

    a leaner operation than at present. We

    have started this process very early and

    announced two weeks ago that we are

    undertaking a good will amortization.

    This step has also been well received

    within the financial community. I think

    that we are facing an enourmous eco-

    nomic crisis, which will become even

    more dramatic than we imagine today.

    Please take a look at the fact that the

    three big American automobile compa-

    nies have requested $15 billion just to

    keep them alive until Barack Obama´s

    inauguration on January 20. In refer-

    ence to this I think a company must be

    very lean and aggressive today to in or-

    der to survive.

    VIP-News: What about the fact that the DEAG has increased its long-term debts from 5.6 to 9 million Euros?

    Schwenkow: Yes, through this we fi-

    nanced acquisition of Raymond Gubbay

    Ltd., which is from our point of view a

    brilliant acquisition.

    http://www.eventim.com

  • VIP-BOOKING.COM

    13

    VIP- News - D e c e m b e r 2 0 0 8

    VIP-News: But at the same time it is stated that within the financial results 1 Million Euros is specifically a result of interest paid.

    Schwenkow: Yes, but that is consequential.

    When I buy something I have to pay higher

    rates and have bigger bonds. I think that

    Raymond Gubbay Ltd is a superb acquisi-

    tion such as the one in Good News which

    is one of the best investments we have ever

    made. They make their business exclusively

    in in the fourth and first quarter.

    VIP-News: What will happen to Good News when André Béchir steps down as MD?

    Schwenkow: At the moment he has a con-

    tract until the end of 2009, which will cer-

    tainly be extended. Béchir is Good News

    and Good News is Béchir! André wanted

    to have a four-day working week to have

    more time for himself after spending more

    than 30 years in the business. He wants to

    do more private things and that is a wish we

    totally understand. In order to accommo-

    date that we have to supplement the team,

    but besides that Béchir will always stand for

    Good News and that is very good.

    VIP-News: I assume that your competitors have put you under pressure this year in the light of Waldbühne and the ticketing deal with the O2 Arena?

    Schwenkow: The Waldbühne is a great

    loss even though the venue hasn’t made

    money in the last years. Although it is not

    a financial loss for us it is bitter for us be-

    cause Waldbühne was part of the identy of

    DEAG as the venue was the first deal we did

    in 1981.

    VIP-News: DEAG built up the reputation of the Waldbühne and undertook a lot of ef-forts to run the arena…

    Schwenkow: Of course it hurts us, but in my

    opinion every breakup is also the chance for

    a new start. Nevertheless we have a joint

    venture with Anschutz Entertainment for

    the O2 Arena and we will present concerts at

    Waldbühne in the future as well. I think we

    already started the pre-ticket sales for the

    first events last week. There is a saying that

    the death toll is counted after the battle, so

    we have to analyse the situation very gradu-

    ally. Over a three-year run it is quite a chal-

    lenge to guarantee a mortgage of 750.000

    Euros per year, that’s quite something!

    VIP-News: Yes, that’s right, but you have to admit that CTS Eventim is certainly in a good condition today and can therefore easily afford to take this on…

    Schwenkow: I can’t say anything against

    that...

    VIP-News: There are rumours that CTS is also interested in moving into the classic music market which is a domain of DEAG.

    Schwenkow: First of all: I think 95% of the

    stars in classical music have long-term con-

    tracts with us. Secondly: I don’t see any

    CTS activity in the classical segment so far,

    with this in mind I can´t comment. The only

    exception is Juan Diego Florés for whom Marek Lieberberg is responsible because of

    private passion, that’s it!

    The British venture capital company The

    Edge Performance VCT PLC have an-

    nounced another live music investment

    fund. The new fund aims to raise £10 mil-

    lion and aims to invest in ‘Blue-Chip Artists’.

    The Edge, which has already issued C- and

    D-Shares for their existing investment bas-

    kets, declared that it will issue a new share

    entitled as E-Share.

    The minimum investment is £5,000 and

    is linked with an incentive program that

    means that every subscriber who signs be-

    fore the first of January will receive a bonus

    of 30 additional E-Share for every1.000 E-

    Shares, then before 1st of February 20, and

    until the 1st of March 10 E-Shares. Holders

    of C- and D-Shares who apply for this offer

    also receive another bonus of about 20 ad-

    ditional E-Shares for the purchase of every

    1000 E-Shares.

    In the press release Alasdair George, Di-

    rector of Edge Investment Management

    concludes, “The live music and events sec-

    tor continues to attract strong demand with

    world class individual performers and groups

    selling out within minutes of tickets becom-

    ing available. As the industry leader we an-

    ticipate good deal flow and that we will con-

    tinue to have a pick of first class investment

    opportunities.”

    He goes on to explain the investment tar-

    gets of Edge PerformanceVCT: “Since the

    establishment of Edge our performance has

    outstripped those targets set out by the Board

    by some considerable margin. [A total return

    per Ordinary share of 87p is anticipated, for

    a net cost of investment of 60p, versus a tar-

    geted return of 75p] While the economy and

    stock markets are unsettled, Edge has offered

    both capital security and dividend flow.”

    David Glick the founder of the Edge Group

    founder is quoted as saying: “No sector is

    recession-proof, but we believe the impact

    of the current downturn on live music will be

    a flight to value. Acts who set ticket prices at

    the appropriate level will continue to do well.

    We believe our market-leading position as

    an investor, our unrivalled team of executive

    talent and our established relationships with

    market-leading promoters will stand us in

    good stead.”

    According to the Edge, the company invest-

    ed 2008 in concerts of ‘blue-chip names’

    such as Bon Jovi, Primal Scream, Kanye West.

    The term Blue Chip itself is a well know term

    within the financial community and means

    - well, maybe in these days probably meant

    - financial heavy weights.

    The edge Offer New live Music FundManfred Tari [email protected]

  • 14

    VIP-BOOKING.COM

    14

    VIP- News - D e c e m b e r 2 0 0 8

    TICKeTINGAllan McGowan [email protected]

    where Next in the Fight against Ticket Touts?

    regulation Attempts

    In January 2008 The House of Commons

    Culture, Media and Sport Select Commit-

    tee, chaired by MP John Whittingdale,

    criticised eBay’s practices in allowing the

    auction of charity event tickets (such as

    Live 8) and called for the estimated £1 bil-

    lion ticketing industry to clean up its act.

    Event promoters have repeatedly urged

    MPs to recommend a change in the law to

    make ticket touting illegal, claiming those

    who sold tickets at grossly inflated prices

    often deprived grassroots fans of the op-

    portunity to see their favourite bands or

    sports team or collaborate with criminal

    gangs – and promoters have tied the issue

    to dodgy websites selling non-existent

    tickets.

    Recently legitimate online ticketing agen-

    cies called on the UK government to

    clampdown on rogue online sites after a

    spate of cases involving bogus tickets and

    high profile examples of consumers being

    ripped off - including Reading Festival tick-

    ets, the Led Zeppelin reunion, and shows

    by Bruce Springsteen and the Kings of

    Leon amongst others. The Association of

    Secondary Ticket Agents called for a ‘kite

    - mark’ (a recognised industry stamp of ap-

    proval) scheme to reassure consumers but

    promoter Harvey Goldsmith said “there is a

    huge criminal element involved in this busi-

    ness - they send hundreds of people out to

    buy tickets, then have a cache of tickets they

    sell for as much as they can”.

    The UK government is already working with

    the Society of Ticket Agents and Retailers

    to draw up a new code of conduct in an at-

    tempt to soft-touch regulate ticketing. But

    the Select Committee cited recent polls

    that showed many consumers saw touts as

    a ‘godsend’ to fans who were desperate to

    obtain tickets for oversubscribed events, or

    who wanted to sell on tickets they could no

    longer use. At present, buying and selling

    second-hand tickets is not illegal, except

    for football games in England and Wales.

    Under the 1994 Criminal Justice and Pub-

    lic Order Act, now extended by the Foot-

    ball (Offences and Disorder) Act 1999 and

    Violent Crime Reduction Act 2006 any fan

    selling or offering to sell, without authority,

    a ticket for a ‘designated football match’ in

    any public place faces a fine of up to £5,000.

    The law was introduced after the Taylor re-

    port into the Hillsborough disaster. Its aim

    was to crack down on touts, and keep op-

    posing fans segregated.

    David MacLean, then a Home Office minis-

    ter, indicated that the law was not intended

    to trap the fan seeking to get rid of an un-

    wanted match ticket (although it does and

    can be seen as particularly criminalising for

    those with innocent intentions). The Guid-

    ance for the 2006 Act, which extends the

    legislation to internet sites, makes it clear

    that the legislation is in place to preserve

    public order rather than for commercial

    considerations. Similar legislation will be

    introduced for the 2012 London Olympic

    Games, prohibiting the re-sale of tickets.

    The 2010 Glasgow Commonwealth Games

    will also have similar provisions although

    Without doubt all sectors of Ticketing have

    been the biggest area of discussion in the

    live industry throughout 2008. Particu-

    larly, the vexed question of the legitimacy

    of secondary ticketing has been hotly

    debated, by government, in conference,

    on-line, in print, and of course privately.

    This Newsletter has of course regularly

    reported on developments, so in this last

    issue of the year we turned to an expert

    observer for a summing up of this ever-

    contentious topic. UK Lawyer Ben Challis

    had already compiled an overview of de-

    velopments for his excellent Music Law

    Updates (see link at end of article), which

    he has adapted for VIP-News. Although

    this concentrates mainly on the UK Market

    it is relevant to the secondary practice in

    all main markets.

    Ben specialises in entertainment law, acts

    as General Counsel for 3A Entertainments,

    one of the UK’s leading concert promoters,

    and for the Glastonbury Festival for which

    he is also Executive Producer for televi-

    sion, managing the Festival’s broadcast

    and other media rights. He regularly writes

    articles and other material on music busi-

    ness and intellectual property law, contrib-

    utes to books and is a regular conference

    speaker in particular on the live music in-

    dustry. Ben sits as a magistrate in Cumbria,

    England and is a Visiting Professor in law at

    Buckinghamshire New University.Ben Challis

    Promoter Harvey Goldsmith

  • 15

    VIP-BOOKING.COM

    15

    VIP- News - D e c e m b e r 2 0 0 8

    there may a distinction to protect fans re-

    selling tickets at face value.

    The re-sale of other event tickets might be

    ‘immoral’ to some and indeed is usually

    in breach of the terms and conditions laid

    down by the event organiser - but it is not

    currently a criminal offence in the UK. The

    use of terms and conditions can give pro-

    moters a legal tool to prevent the re-sale of

    tickets but such terms have to be reason-

    able and certain in the UK when applied

    to consumers (under the Unfair Contracts

    Terms Act 1977) and in the only test case

    this writer is aware of, the Australian Fed-

    eral Court found against the promoters of

    the Big Day Out, Creative Festival Entertain-

    ment, who included a term prohibiting re-

    sale, as it was found to be misleading under

    the Australian Trade Practices Act 1974. In

    fact one solution to touting that has been

    put forward is the ‘Queensland Solution’,

    an Australian concept that allows fans to

    resale tickets up to 10% over face value.

    A long Term Debate

    Industry self regulation

    The debate on whether or not to crimi-

    nalise ticket touting is hardly new. In 1989

    this exchange took place in the House of

    Commons between conservative MP The-

    resa Gorman and Home Office minister

    John Patten:

    Mrs. Gorman “Will my hon. Friend agree that ticket touting is a form of brokerage between

    a willing seller and a willing buyer - that it is

    no more reprehensible when it takes place

    on a pavement than when it takes place in

    one of our City exchanges, that brokers are

    risk-takers and that everyone is jealous of

    them when they make a profit but nobody

    has sympathy for them when they make a

    loss?”.

    Mr. Patten: “I do not want to get into ideo-logical trouble with my hon. Friend, but I

    agree with her that nobody is compelled to

    take part in the process, that the person who

    raises the price of a ticket to sell it on the street

    does not defraud the person who originally

    set the ticket price and that the person who

    pays the price is not unaware of the differ-

    ence. I believe that it is pretty obnoxious and

    that it is extraordinary the prices people are

    prepared to pay, but it is a lawful activity”.

    A similar debate took place in the House

    of Lords in 1990 with Baroness Gardner

    saying “the way that the system works now

    it is not a free market. It is being taken over

    to too large an extent by a criminal ele-

    ment. Big money has become involved. If

    there were some system whereby people

    were licensed to sell tickets they would

    still be making a profit. It could still be an

    open market with tickets freely sold. But

    we would not have tickets being sold and

    resold for so many times their value” and

    calling for legislation on ticket tout-

    ing which would include local author-

    ity licensing. In response Lord Monson

    compared ticket touting with the City of

    London saying “always providing that they

    are acting within the law, the touts fulfil

    the useful, indeed Thatcherite, function of

    bringing supply into line with demand... In

    a sense touts can be compared with jobbers

    in the City of London ... Surely the solution

    is to let the initial price of the ticket reflect

    the demand just as the price of old masters,

    Impressionists or first, second, third, fourth

    or fifth growth clarets reflect the ebb and

    flow of demand, and let a due proportion

    of the additional profits made by increas-

    ing the prices be paid over to the Treasury

    in corporation tax to the benefit of the rest

    of us ... Therefore if one wishes to eliminate

    the unsavoury type of ticket tout one must

    encourage the promoters to get their prices

    right in the first place”.

    Whilst free markets are perhaps now

    seen as the main cause of the current

    global economic downturn, ticket tout-

    ing wasn’t banned in 1994 and there

    seems little chance it will be now or in

    the near future. Select Committee chair

    John Whittingdale criticised companies

    and individuals selling second-hand tick-

    ets for popular events but stopped short

    of recommending a change in the law,

    http://www.recordoftheday.co.uk/http://www.pop1000.com/

  • 16

    VIP-BOOKING.COM

    16

    VIP- News - D e c e m b e r 2 0 0 8

    saying that legislation should remain “a

    last resort”. Whittingdale called for a vol-

    untary code of practice to be drawn up

    by the Office of Fair Trading that would

    block the resale of charity tickets (with

    perhaps a test case against secondary

    agents) and he gave his support to a

    “middle way” which would see promot-

    ers license secondary ticket sellers in re-

    turn for a share of the profits adding “It

    would neither be practical nor in the inter-

    ests of consumers to impose a ban on the

    onward sale of tickets to events through

    the secondary market”.

    Artist manager Petri Lunden’s view re-

    flects this “although loud voices within the

    live industry scream for legislation against

    the touts, I am sure the industry as a whole

    is brighter than this” calling on the live

    music industry to come up with realistic

    solutions to ticket reselling and saying

    that ticket trading isn’t going to go away,

    adding “if you own it, you should be able to

    trade it if you so wish, at whatever price you

    can get for it”. The UK government’s posi-

    tion is set out in its response to the Select

    Committee’s report:

    The Committee commented that regula-tion must be a last resort and the Govern-ment agrees with this. The Government does not see a case for any general restric-tion of ticket resale. However, the Govern-ment has listened to the arguments that some aspects of ticket resale may restrict access to sport or major cultural events; especially where these events are unique,

    of national or international significance and meet public interest objectives.

    John Whittingdale

    The Fans View

    Fraudulent sales

    The Football example

    Now a recent survey of 5,200 predomi-

    nantly UK music fans seems to support the

    idea that the public are reluctantly toler-

    ant of ticket touts, often considering them

    a necessary evil! Results from the www.vir-

    tualfestivals.com survey of music fans on

    a range of matters ranging from environ-

    mental concerns to festival tourism asked

    fans about touting and with the question

    ‘what do you think about tickets being

    sold above face value on eBay and other

    sites’. Only a tiny percentage (2%) didn’t

    care about the issue at all, and 4% posi-

    tively supported online auction sites say-

    ing it was a great way to get tickets. 10%

    didn’t see a real problem in a free market,

    leaving a finely balanced argument be-

    tween those who thought the procedure

    was appalling - 40% saying online touting

    should be stopped, and 44% feeling that

    whilst they didn’t approve, the practice

    was acceptable in a demand driven mar-

    ketplace and it couldn’t be stopped. In fact

    more fans are agitated about booking fees

    charged by bona-fide ticket agencies. Four

    out of five consumers surveyed by watch-

    dog magazine Which? thought that book-

    ing fees from ‘official’ agents expensive

    and poor value for money, and many were

    incensed that ticketing charges and ‘credit

    card’ fees were not refunded in the event

    of a cancellation - even more wanted more

    transparency in pricing event tickets.

    Even if promoters do secure legislation

    against ticket touts and touting, what

    shape this would take? It is important here

    to differentiate between selling counter-

    feit or non-existent tickets and touting.

    Counterfeiting, fraud, theft and obtain-

    ing money by deception are all charges

    at the disposal of the Crown Prosecution

    Service and the courts have a variety of

    disposals available for existing criminal ac-

    tivities. Only recently police closed down

    Paperticket who had advertised shows by

    Barry Manilow and Kings of Leon amongst

    others and have arrested the owner, John

    Koukoullis who now faces charges under

    the Fraud Act. In another case four compa-

    nies including London Ticket Shop linked

    to the owner of GetMeTickets, Michael

    Rangos (which had itself been compulsory

    liquidated in 2006) were wound up in the

    High Court with registrar John Simmonds

    saying that having read the evidence he

    was satisfied that there had “been a con-

    spiracy to defraud the public and benefit

    Rangos”. And finally here, after an inves-

    tigation by the Serious Fraud Office there

    have now been five arrests in connection

    with Xclusive Tickets, the operation that

    allegedly sold non-existent tickets to over

    4,000 people for music festivals including

    Reading and sold out events at the 2008

    Beijing Olympics. Ebay users are most cer-

    tainly not exempt; a fraudster who sold

    counterfeit electronic goods on the inter-

    net auction site has been fined £55,000.

    Ebrahim Rahimtulla had previously been

    sentenced to 12 months in prison after

    being convicted in August 2007 of selling

    fake phone accessories and games.

    Criminalising touting of legitimate tickets

    will produce its own ‘law of unintended

    consequences’ - and will the music in-

    dustry end up with the same position as

    football where “hundreds of normally law-

    abiding football fans involve themselves

  • 17

    VIP-BOOKING.COM

    17

    VIP- News - D e c e m b e r 2 0 0 8

    each weekend in a criminal act because a

    law aimed at ticket touts can trap ordinary

    supporters. It is a familiar scene outside

    every football ground, or in nearby streets

    and bars. A supporter, let down by a friend

    who unexpectedly cannot attend a game,

    makes contact with someone looking for a

    spare ticket. they complete their seemingly

    innocent transaction and proceed content-

    edly to the match. But in the eyes of the law,

    their exchange amounts to illegal touting.

    The offence is committed even if - as gener-

    ally happens - the ticket has changed hands

    between followers of the same club and

    at face value”. I for one wouldn’t want to

    differentiate between the fan who needs

    to sell a ticket and ‘any reasonable offer

    secures’ and the fan out to make a profit

    who advertises a ticket as ‘highest offer

    secures’.

    A Telegraph survey of police forces with Pre-

    miership clubs in their areas back in 1996 re-

    vealed stark differences in the way the police

    deal with the re-sale of football tickets. A fan

    arriving at Southampton’s ground, the Dell,

    looking to dispose of a ticket would proba-

    bly be successful - police are unlikely to take

    action unless he offers it to a rival supporter.

    However, someone attempting the same

    exercise outside the away end at Leeds or

    Bradford could expect to be arrested and

    charged. Remember here the police are pri-

    marily concerned with maintaining public

    order - something that couldn’t be levelled

    at music events - and even here there have

    been unintended and sometimes harsh

    consequences for fans just wanting to pass

    on unwanted tickets - as well as empty seats

    at games - when there are willing fans want-

    ing to see the game.

    Another possible unintended conse-

    quence is the potential cost to promot-

    ers (and fans) here. With the Association

    of Chief Police Officers (ACPO) wanting to

    now charge for policing large scale events,

    promoters will also then have to ‘pay’ to

    police touting and would have to pass on

    the cost to fans (or the artist) – otherwise

    they would be paying to arrest their own

    customers! I am not sure that making the

    re-sale of tickets a criminal offence would

    help event organisers remove tickets from

    being resold on eBay and other online

    sites. Whilst two recent French court deci-

    sions held that eBay was liable for damag-

    es after allowing the auction of counterfeit

    goods, the internet site’s ‘mere conduit’

    defence proved successful in a US fed-

    eral court when accused of allowing trade

    mark infringement.

    So where to next in the fight against touts?

    Some events like Glastonbury have intro-

    duced complex registration systems to try

    and eliminate touting and enable real fans

    to buy tickets; certainly well written terms

    and conditions prohibiting re-sale might

    prove valuable in the future but the ef-

    fectiveness of these have yet to be tested

    in a British civil court and the Glastonbury

    system is not fool proof - and indeed was

    partially abandoned in the run up to the

    2008 Festival when Glastonbury almost

    didn’t sell out.

    The Resale Rights Society has been set up

    by the Music Managers Forum with the

    support of the MCPS-PRS Alliance with the

    role of (attempting) to regulate the second-

    ary ticket market and impose a levy on tick-

    ets re-sold on sites like Viagogo and Seat-

    wave. The RRS has two primary aims: first,

    to ensure music fans are protected from

    unscrupulous or bogus resellers through

    the introduction of a ‘kite-mark’ scheme

    for ticketing sites; second to ensure that

    artists and the live music industry share

    in the proceeds of resold tickets. But there

    must be inherent difficulties here: Whilst

    the MCPS-PRS Alliance can legally collect

    royalties for its own members because of

    the statutory provisions of copyright law,

    tickets have no such ‘protection’. Other

    ideas are more pragmatic. There are the

    fan’s own ticket exchange sites like Scarlet-

    Mist where tickets can be swapped at face

    value and indeed the Concert Promoters

    Association recently talked of setting up

    their own similar scheme. Some artists, like

    Madonna, have embraced secondary tick-

    eting as a solution to the ‘problem’ of tout-

    ing and secondary ticketing, appointing

    an ‘official’ premium and secondary ticket-

    ing partner. But will any of these schemes

    really put an end to touting?

    Recent headlines from world of football

    such as “touts net huge profit on ille-

    gal cup final tickets” suggest not: Whilst

    Football League spokesman John Nagle

    might well say “Re-selling match tickets is a

    criminal offence and where tickets are made

    available for purchase this year action will

    be taken” the fact remains that there are very

    few prosecutions of any nature and the prob-

    lem is compounded because “almost all the

    sites are based abroad, making it harder for

    the authorities to bring prosecutions.”

    As the live industry (as well as the leisure

    sector) still comes to terms with the neg-

    ative fallout from the 2003 Licensing Act,

    is more government legislation which

    may not even be effective really what

    the live sector needs? In the 2004-2005

    football season just 146 individuals were

    arrested for touting football tickets and

    in the 2005 - 2006 season just 99 – and in

    both seasons just fourteen club grounds

    were affected. In 2006 eight premiership

    grounds had arrests - with 11 at Chelsea’s

    home ground, 10 at Arsenal, 7 at Liver-

    pool and just 2 at Manchester United.

    The majority of Premiership clubs had

    no arrests and these included Tottenham

    Hotspur, Fulham, West Ham, Everton,

    Blackburn and Manchester City. Only six

    Championship clubs had arrests (with

    the highest being just 2 at Preston North

    End). There were no arrests in Divisions

    1 and 2.

    Football fans say that they “doubted that

    the highly lucrative practice would ever

    be stamped out” and Toby Brown, editor

    of Chelsea fans’ online forum CFC.net,

    said “For every site you close down five

    will spring up”. Perhaps in the digital age

    the issue of touting is one which promot-

    Next?

    New Thinking Versus legislation?

  • VIP-BOOKING.COM

    steve winwood Territory: Europe, Australia & Asia Period: January - February 2009 Agency: Helter Skelter Agent: Peter Nash Phone: +44 207 376 8501 E-mail: [email protected] Homepage: www.stevewinwood.com

    Alvin Youngblood Hart Territory: Europe Period: March 2009, Summer 2009 Agency: Kultopolis GmbH Agent: Markus Sollner Phone: +49 6861 939980 E-mail: [email protected] Homepage: www.kultopolis.com

    Barclay James Harvest feat. les Holroyd Territory: Worldwide Period: Summer 2009Agency: Kultoplis Gmbh Agent: Markus Sollner Phone: +49 6861 939980 E-mail: [email protected] Homepage: www.kultopolis.com

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    VIP- News - D e c e m b e r 2 0 0 8

    ers, artists and fans will just have to live with - whether face to face or in

    cyberspace.

    The digital age has led to significant challenges for the music industry. The

    recorded music sector, particularly in the USA, has provoked hostile criti-

    cism and public ridicule for brining civil and criminal actions against music

    fans – and for each illegal download the record labels get paid nothing. For

    each legitimate ticket sold on eBay the promoter has at least been paid the

    value they set for the ticket. If promoters and artists are concerned about

    the number of tickets reaching the secondary market then they should

    implement systems to control this – or embrace secondary ticketing. If

    promoters and artists are concerned about tours selling tickets at vastly

    inflated prices then they should look at pricing structures – the live sector

    already has sponsors tickets and hospitality tickets – Live 8 had a very vis-

    ible golden circle for the privileged not-so-few – and at the moment it is

    the travel industry who have set the standard in flexible pricing balancing

    supply with demand. We don’t need new laws. We need new ideas.

    Ben Challis is a lawyer and edits www.musiclawupdates.com.

    He is a visiting professor in law at Buckinghamshire New University.

    ht tp://w w w.homeof f ice.gov.uk /documents/ VCR A-football - guidance.pdf?view=Binary

    http://www.publications.parliament.uk/pa/cm198889/cmhansrd/1989-05-11/Orals-2.html

    http://hansard.millbanksystems.com/lords/1990/apr/18/ticket-touts

    http://www.urban75.org/football/tickets.html(Article by Colin Randall Daily Telegraph 1996)

    Crackdown urged on rip-off web ticket touts The Observer 23 December 2007

    Pressure grows on the online touts dream ticketThe Observer Media 6th January 2008

    Whose Ticket? (Petri Lunden)IQ Issue 15 2007 p13

    eBay International AG v Creative Festival Entertainment Pty Limited at http://www.craddock.com.au/Document/eBay-Scores-Partial-Win-in-Big-Ticket-Case.aspx and in Legal News (Ben Challis)IQ Issue 18 2008 p10

    Virtual Festival’s fan survey (European Festival Report)IQ Issue 20 2008 http://www.nytimes.com/2008/07/15/technology/15ebay.html?em&ex=1216267200&en=4dcc0c8323ecf63b&ei=5087%0A

    http://www.thisislondon.co.uk/standard/article-23437322-details/Touts+net+huge+profit+on+illegal+cup+final+tickets/article.do

    Statistics on Football-Related Arrests and Banning Ordershttp://www.homeoffice.gov.uk/documents/football-arrests-0506?view=Binary Greenfield S, Osbourne G & Roberts S Contradictions Within The Criminalisation Of Ticket Touting: What Should Be The Role Of The Law?http://webjcli.ncl.ac.uk/2008/issue3/greenfield3.html

    Which? Survey reported in Live UK Issue 1-2 p8

    Court Closes rip-off ticket website companies Live UK issue 99 p4

    references

    http://www.stevewinwood.comhttp://www.kultopolis.comhttp://www.kultopolis.comhttp://www.kultopolis.comhttp://www.kultopolis.comhttp://www.hotb.tvhttp://www.decimacolina.pthttp://www.boeseandfriends.com http://www.incredibleartists.co.ukhttp://www.vip-booking.com/http://www.vip-booking.com/http://www.musiclawupdates.comhttp://www.homeoffice.gov.uk/documents/VCRA-football-guidance.pdf?view=Binaryhttp://www.homeoffice.gov.uk/documents/VCRA-football-guidance.pdf?view=Binaryhttp://www.publications.parliament.uk/pa/cm198889/cmhansrd/1989-05-11/Orals-2.htmlhttp://www.publications.parliament.uk/pa/cm198889/cmhansrd/1989-05-11/Orals-2.htmlhttp://hansard.millbanksystems.com/lords/1990/apr/18/ticket-toutshttp://www.urban75.org/football/tickets.htmlhttp://www.dailytelegraph.co.ukhttp://www.craddock.com.au/Document/eBay-Scores-Partial-Win-in-Big-Ticket-Case.aspxhttp://www.craddock.com.au/Document/eBay-Scores-Partial-Win-in-Big-Ticket-Case.aspxhttp://www.craddock.com.au/Document/eBay-Scores-Partial-Win-in-Big-Ticket-Case.aspxhttp://www.nytimes.com/2008/07/15/technology/15ebay.html?em&ex=1216267200&en=4dcc0c8323ecf63b&ei=5087%0Ahttp://www.nytimes.com/2008/07/15/technology/15ebay.html?em&ex=1216267200&en=4dcc0c8323ecf63b&ei=5087%0Ahttp://www.thisislondon.co.uk/standard/article-23437322-details/Touts+net+huge+profit+on+illegal+cup+final+tickets/article.dohttp://www.thisislondon.co.uk/standard/article-23437322-details/Touts+net+huge+profit+on+illegal+cup+final+tickets/article.dohttp://www.homeoffice.gov.uk/documents/football-arrests-0506?view=Binaryhttp://webjcli.ncl.ac.uk/2008/issue3/greenfield3.html

  • 19

    VIP-BOOKING.COM

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    united stage Artist

    MeMber presentation ››

    In this section we offer members of VIP-Booking.com some space to present their company to VIP-News readers. If you would also like to present your company please contact Peter Briggs at [email protected]

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    About Our Company

    VIP-Booking’s core product is the Internet’s oldest and largest data-base for the European Live Entertainment Industry www.vip-book-ing.com developed as a tool for industry professionals. Since it’s launch in the year 2000, we have consistently offered our subscrib-ers the very best in database services and now boast subscribers in over 30 countries.

    Today VIP-Booking offers a range of tools for the industry – inclu-ding VIP-News, VIP-Booking, VIP-Book and VIP-Contract.

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    VIP- News - D e c e m b e r 2 0 0 8

    United Stage Artist is an independent company within the

    Swedish music industry. Our main activities are to exclusively

    represent record-artists as tour agents and tour producers. The

    company represents close to 100 artists today. (enclosure: ros-

    ter) History/ United Stage was set in 1984. When Managing Di-

    rector, Anders Larsson, founded the company in Malmö it had

    a very strong regional influence but has over the years become

    one of the two leading companies in the Swedish market. In

    1991 United Stage established a minor office in Stockholm and

    in 1996 the whole operation was moved to the capital. During

    the autumn of 1997 a rival company, Siljemark Production AB,

    was incorporated within the company. Activity/United Stage

    Artist is a service company catering for the artist, its client. This

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    It´s very important with co-ordination in the market, negotia-

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    established a department that will act as a concert promoters

    for public shows, an activity that is not limited to the perform-

    ances of the artists represented by United Stage. It includes a

    wider range of entertainment arrangements, without artistic or

    geographical limits. Along with the development of the concert

    promotion department, the company will increase its activities

    in the growing market of corporate events Best Regards! United

    Stage Artist

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