HOUSE OF BLUES AT&T, Net Marketing Firm Electric (Continued from page 8) TWEENTHE several financial backers for HOB. The purchase price is gratifying, Artists Workifig On Music Venture Marciano says, reflecting future poten- BY MARILYN A. GILLEN "broadband pipe" that could be used ULLETS .. tial as well as current earning power. NEW YORK- Communications to deliver music into homes. C "It speaks not only to our potential powerhouse AT &T is "deepening its "That [observation] hasn't been but to our profitability as a company," relationship" with New York -based lost on us," says Varley, while declin- he says. "Ultimately, some of the price Internet music marketing firm Elec- ing to comment yet on specific plans. by Geoff Mayfield that House of Blues paid for Univer- tric Artists as the first step in what The wider goal is to leverage more sal is a reflection of Universal being it says will be a "significant expan- than the company's infrastructure, THUNDERING HERD: What two things do AC /DC; Alice In Chains; one of the most profitable concert sion" of its activities in the music he adds. "AT &T is not in the `dumb A Tribe Called Quest; the Backstreet Boys; Michael Bolton; Toni companies in the business." business in the coming months. pipe' business. We are a services Braxton; Garth Brooks; Mariah Carey; Eric Clapton; Natalie Cole; Hodges agrees. "We feel good AT&T, which markets the propri- company-we know how to offer Crosby, Stills, Nash & Young; Cypress Hill; Celine Dion; the Doors; about what we've accomplished as a etary a2b Music online- distribution services to customers." DMX; Ice Cube; Kenny G; Jay -Z; Korn; Live; Paul McCartney; Mas- team, which helped make [Universal] technology and is a member of the He notes, for example, that AT &T ter P; Meat Loaf; Metallica; Nas; No Doubt; Pantera; Puff Daddy; attractive for any buyer," he says. "We industry's Secure Digital Music Ini- has experience offering subscription Rage Against The Machine; LeAnn Rimes; Stone Temple Pilots; did too good a job, in a way-$190 mil- tiative, expects to announce details services to people and providing the George Strait; and Barbra Streisand all have in common? Each has lion is a nice little compliment." about its as -yet- unnamed new music devices -such as cell phones -to go placed albums at No. 1 on The Billboard 200. And each is expected to have Universal's deal compares favorably venture in mid-August, according to with them. a new album hit stores in the last four months of the year, as labels jock- with what its former rivals brought Chris Varley, GM of AT&T's a2b Mu- "I have obviously looked at ways ey for their fair share of the Christmas- shopping sweepstakes. when acquired by SFX. All divisions of sic and VP of market development at that we could create and make mar- There are also murmurs of possible fourth -quarter releases by Pearl PACE, including interests in 13 sheds, AT&T Labs. kets around some of these [portable Jam, Michael Jackson, and Bush, but any of those may get pushed back went for $130 million in early 1998. Cel- Electric Artists has been tapped digital music] devices, offering serv- to next year, a fate already met by a Steely Dan album that had been lar Door, with two major sheds and a to help "build the projects and exe- ices where we would subsidize or expected. There will no doubt be some traffic jams during the holiday bevy of regional offices, brought about cute the vision," says Ken Krasner, give the device away for free on a drive. One appears to be Oct. 26, when the Dion, Master P and Nas titles $106 million last summer. president of the company, which ini- large scale to help develop and grow are due. And, of course, all release dates are subject to change. The retention of the management tially worked with AT &T in 1997 on the market for delivery of music to The Dion, Clapton, Tribe, and Master P sets will be hits collections; team is a key element in the deal. the launch of the a2b platform and those devices," he says. Genesis and Gin Blossoms have ones coming, too. The Doors and Alice While HOB has packaged national has also worked on Internet cam- AT &T intends to work with both In Chains are among the acts that will be represented by boxed sets, as will tours, such as Smokin' Grooves, in the paigns with such companies as BMG, labels and artists -a goal in which Buffalo Springfield and Yanni, which all follow the $400-plus Elvis Pres- past, it hasn't been a concert promot- Universal, and Warner Bros., as well Electric Artists is expected to assist. ley box. er per se, whereas Universal and its as a number of artists. "Certainly one aspect of this is Need Christmas albums? Chart- toppers Backstreet Boys, Cole, Kenny team rank among the best in the busi- "Over the course of the last 18 that we are connected to all the G, and Strait each go the seasonal route, the second time around the Christ- ness. Last year, Universal promoted months, [AT &T] has made acquisi- spokes of the wheel of the music mas tree for Cole and Kenny G. Amy Grant brings her second Christmas or co- promoted concerts grossing a tions that have changed the shape of business and bring that knowledge title; Brooks is scheduled to follow his Chris Gaines outing with his second total of $144.5 million, according to what AT &T is, and as a result music and relationships to AT &T," says seasonal album, due Nov 23. Also fishing the yule tide: Jewel, 98 °, Reba Amusement Business' Boxscore. is far more strategic to us as a core Marc Schiller, Electric Artists' CEO. McEntire, and Ringo Starr. Marciano says long -term expan- part of our business," says Varley. In May, the majority of AT &T's Among the other high -profile acts aiming for the last trimester: Will sion plans for Universal Concerts will He was brought in two months ago a2b Music team -including co- Smith, `N Sync, Sting, Creed, Nine Inch Nails, Insane Clown Posse, remain largely intact. Previously to "take a2b from a spinout to basi- founders Larry Miller and Howie Adam Sandler, Melissa Etheridge, David Bowie, 311, Jars Of Clay, announced amphitheater projects in cally a spin -in," he says -"a larger Singer -left to join digital rights Paula Cole, Big Bad Voodoo Daddy, Tony Bennett, Tori Amos, Primus, Minneapolis, Salt Lake City, and AT &T initiative that will incorporate management company Reciprocal; Everything But The Girl, Meredith Brooks, Queensryche, UB40, the Austin, Texas, will go forward, as will and leverage all those other assets AT &T retained a2b Music. AT &T Cure, George Winston, and Kenny Wayne Shepherd. Rappers Method plans for midsized theaters. Addi- that AT&T has, including our college has since rebuilt the a2b operation, Man and Redman team up for one album, then release individual ones, tionally, more than a dozen new marketing group and our general which competes in the marketplace with OutKast, Mobb Deep, 01' Dirty Bastard, Goodie Mobb, and the House of Blues venues are planned. communications customer base." with Liquid Audio, among others. Roots also waving hip -hop's flag. Alan Jackson, Faith Hill, Brooks & The new company will also create In addition to its core telephone On a separate front, AT &T has Dunn, Randy Travis, Martina McBride, Clint Black, Toby Keith, new programming for non -HOB operations, AT &T's recent takeover been working with Universal, BMG, Trace Adkins, and Mindy McCready lead Nashville's invasion. venues. The company will produce a of TCI Cable -which is being and Matsushita on development of a new "Lord Of The Dance"-style arena rebranded as AT &T Cable -posi- digital music delivery system, code - STEADY ON: Although Limp Bizkit continues to trail the Backstreet dance show that will kick off in March tions it among the nation's largest named Nigel (Billboard, May 15). Boys on The Billboard 200, consistent sales of "Significant Other" are shap- 2000 at Madison Square Garden in cable-TV companies, offering lots of ing up as a significant story. The rock'n'rap band's sophomore album has New York. The game plan calls for the exceeded 200,000 units in each of its first five weeks, the first rock title to show, titled "Burn The Floor," to play do so since -drumroll, please -the Beatles' "Anthology 1" in 1995. arenas in the spring, sheds in the POST -WOODSTOCK ACTIVITY ON TRACK A few rock titles came close to this feat. Last year, Metallica's "Garage summer, and theaters in fall 2000. Inc." was above 200,000 copies for all but the third of its first five weeks (Continued from page 8) The $190 million purchase price on the street. Bush's 1996 release, "Razorblade Suitcase," exceeded that includes cash and assumed debt and plates, pizza boxes, and garbage That event, boasting a lineup that milestone in all but the third of its initial six weeks. In '93, Pearl Jam's buys the bulk of the Universal sheds strewn around the field, erupted included Green Day, Bob Dylan, and "Vs.," which set what was then a first -week record of 950,000 copies, sur- and venue -booking arrangements. during the set by Red Hot Chili Pep- Aerosmith, spawned a double -CD set passed the 200,000 mark for all but the fifth of its first 11 weeks on the Seagram will retain ownership of the pers, the last scheduled performer on A &M that has sold 454,000 copies, market. Universal Amphitheatre in Universal at the festival. "In the end, there was according to SoundScan. The long - The timing of this album's release clearly sets Limp Bizkit apart from City, Calif., with HOB operating the no damage to any permanent struc- form music video has sold 74,000 the pack. The other mentioned rock titles, including `Anthology," all came venue under a long -term lease. ture. No one was hurt," Scher says. copies. out during the fourth quarter and therefore benefited from the rising tide Universal Concerts, along with "The bottom line is "Woodstock '94" of holiday shopping traffic, while "Other" has staked its claim during the PACE Concerts and Cellar Door, made that there were a lot of also went on to summer months, far from the pull of Santa Claus' magnet. for a powerful live entertainment tri- hard -news reporters become one of the Perhaps as a result of the attention it received for playing Woodstock '99, umvirate for more than a decade. there who were hunt- highest -grossing Bizkit gains ground on the chart -topping Backstreet Boys. The former has PACE, Cellar Door, and a veritable ing for anything sen- pay -per -view events a sales decline of just 1.25 %, while the Boys see a 10% dip. Last issue, a 14% who's who of the business have been sational," Scher adds. ever, raking in margin separated the two titles, but there's just a 4% difference on this acquired by SFX over the past two "This little rampage, between $10 million issue's list. years in a $1.5 billion shopping spree which was started by and $12 million. that forever changed the industry. a small group of peo- Although there is OF WOODSTOCKS PAST AND PRESENT: Since the July 23 -25 Wood- Universal operates or has exclusive ple, gave them a sen- already speculation stock '99 fell at the end of the tracking week, we won't see the full effect booking agreements with 20 premier sational headline. about a 35th- anniver- of the event-witnessed by some home viewers via pay -per -view and cov- concert venues in the U.S. and Cana- However, it didn't sary Woodstock festi- ered extensively through the weekend on MTV-until next issue's charts. da. Thirteen of the venues are con- capture the entire SC HER val, Scher insists it's There are 25 albums by Woodstock '99 performers on The Billboard 200, trolled through wholly owned entities. event -which was premature. "We have of which only four bullet: Kid Rock (11 -7), the Offspring (46-40), Limp Universal Concerts Canada, in three days of relative calm, great to catch our breath and assess," he Bizkit's previous set (87-82), and Sheryl Crow (151 -124); the last men- partnership with Molson Breweries, music, and great interaction. But says. "Doing this certainly gave me a tioned has been invigorated in part by a new edition, which contains her promotes live entertainment through- that's not big news." greater appreciation of the people who "Big Daddy" soundtrack cover of "Sweet Child O' Mine." out Canada and operates the Molson Although the final financial num- put together events like the Olympics. Meanwhile, a band that rose to stardom 30 years ago at the original Amphitheatre and Molson Park in bers for Woodstock '99 have yet to be Actually, it's almost like running a mil- Woodstock festival, Santana, continues to impress with its latest set, which Toronto and the Commodore Ball- crunched, the festival's estimated itary operation. It was incredibly bullets for a second straight issue (20-18). The album has been bolstered room in Vancouver. 225,000 tickets sold outpaces the tally tough, but ultimately gratifying." by the multi- format success of its lead single, "Smooth" (see Hot 100 Sin- A partnership between Universal of 164,000 tickets sold for its 1994 gles Spotlight, Billboard, July 31), a track that has been picked up by MTV and SFX operates the Starplex edition, which was held Aug. 12 -14 in Assistance in preparing this story and VH1. Also coming from VH1 is a Santana special that premieres Sat- Amphitheatre in Dallas and Lake- Saugerties, N.Y. (many more got in was provided by Carla Hay and urday (7) and will repeat throughout the month. wood Amphitheatre in Atlanta. without paying, however). Robyn Lewis.

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