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McGowan’s Musings
It’s been pouring with rain here for the last below normal levels. As the festival season weather! Still the events themselves do get couple of days, but it seems that it’s not the looms and the situation continues, we may covered in the News you’ll be glad to know. right type of rain, or there’s not enough of see our increasingly ‘green’ events having it because we are still officially in drought. to consider contingency plans to deal with I was very taken by the Neil McCormick River levels across England and Wales are the water shortages and yet more problems report in UK newspaper The Telegraph from lowest they’ve been for 36 years, since our caused by increasingly erratic weather. I’m the Coachella festival in California, as he last severe drought in 1976, with, according sure that many in other countries who still wrote, “The hairs went up on the back of my to the Environmental Agency, two-thirds picture England as a rain swept country neck…” as he watched the live performance ‘exceptionally’ low, and most reservoirs where everybody carries umbrellas will find of Tupac Shakur…” This is perfectly it strange to see us indulging in rain dances understandable, as unfortunately, and not to over the next couple of months! put too fine a point on it, Tupac is actually dead. His apparently very realistic appearance Since the last issue of VIP News I have was made possible by the application of new journeyed to Canada, Estonia and Paris, and holographic projection technology. This all talking of strange weather, things on that puts a new slant on the phrase, You can’t front were not as usual. Having prepared recreate the Live experience’ and opens myself to pack thermal underwear and ski up all sorts of quite bizarre and disturbing COLOPHON > wear for Toronto, having been told by old possibilities, as apparently you can do more hands at Canadian Music Week to expect than just holographically present a pre-filmed temperatures of – 10º and below, I discovered performance, it is now possible to work the VIP-News is published by: VIP-Booking on checking that shorts and swimwear were images to present something entirely new. 145-157 St John Street London Ec1V 4PW nearer the mark (especially as my hotel room We hear all the time that there is a lack of flooded on the first night – but that’s another new headliners, and about bands reforming Managing Director: Ronni Didriksen story!) and in fact the first day there turned all the time to sell out tours, but bringing [email protected] out to be the hottest March day ever recorded acts back from the dead now seems at General Manager: at 21º. Estonia a few days later was cold, but least visually – and of course acoustically – Peter Briggs [email protected] just above freezing, unlike last year when The possible? The Sonisphere show with Adam
Writer and editorial: Great Escape’s Martin Elbourne managed to Lambert fronting Queen at Knebworth in the Allan McGowan [email protected] bring attention to himself, becoming Tallin UK was recently cancelled, seemingly due Music Week’s first casualty by skidding on to poor ticket sales – now if Freddy made Writer: Manfred Tari the ice covered pavement and breaking three a virtual comeback it may well have been a [email protected] ribs. This year was happily as far as I know different story… For advertising enquiries injury free. Then a trip to Paris in connection please contact: Peter Briggs with this year’s MaMA event was positively So, with Frankenstein images and thoughts [email protected] +44 870 755 0092 spring like! – Oh no! - I’ve just realised that of the Grateful Undead going through my I’ve done that most English of things and head – Ladies and Gentlemen – The News… spent the whole time talking about the 2 VIPNEWS > APRIL 2012 The UK Live Music Act Becomes Official Allan McGowan [email protected]
It has been confirmed that The Live Music Jo Dipple, chief executive of UK Music Act will come into effect on October 1. said: “This act will reverse the damaging The implementation of the Act means that effect the Licensing Act had on live musical performances of live amplified music with performances in the UK. Our most successful audiences of less than 200 people between musicians, such as Joy Division, The Sex Pis- the hours of 8am-11pm will no longer tols and the Rolling Stones all learnt their require local authority permission in England trade and earned their livings in small clubs and Wales. Also there will be no audience and bars. Reversing overzealous licensing limit for performances of unamplified live regulations will create new opportunities for music. British artists. The Rose & Crown in Totteridge Park and The Constitution in Camden Town The Private Members Bill which became the will be - thanks to this Act - full of music and Live Music Act was introduced by Liberal seedbeds for talent. Tomorrow’s headline Democrat Peer, Lord Tim Clement-Jones and acts will grow from these seedbeds which is was championed in the Commons by the great for music lovers and for the wider UK Member of Parliament for Bath Don Foster. economy.” Jo Dipple The intention and the hope is that the Act will encourage more pubs and small venues John Smith, MU General Secretary, said: will be a real boost for live music, and we to host live music events in 2012 and beyond. “The MU is delighted to be hosting this thought it was right to celebrate it with a live event alongside UK Music. Personally, I music party in Parliament.” VIP News attended the party held hosted have been campaigning on this issue ever by UK Music and the Musicians Union at since the Licensing Bill first started going Lord Tim Clement Jones told VIP News, Westminster to celebrate, as did musicians through Parliament in 2002-03, and once “After a campaign lasting several years it was such as Roxy Music’s Phil Manzanera, the Licensing Act came into place in 2003 hugely satisfying to see the Bill go through folk artists Show of Hands and producer our members immediately started telling us on the 20th January, especially when no-one Trevor Horn along with various MP’s and that the number of gigs being held in small except Don Foster seemed to understand representatives of the music industry. There venues was going down. the procedure! I am sure the Act will make a weren’t that many small venue operators real difference especially to young musicians that I was aware of, but presumably they “The exemption that the Live Music Act will and local small venues. It’s high time we were at their desks preparing for more gigs! bring in is fantastic news for musicians and celebrated not regulated our musical talent.”
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3 VIPNEWS > APRIL 2012 > CONFERENCE ROUND UP Canadian Music Week Allan McGowan [email protected]
Harvey Goldsmith at CMW 2012 Neill Dixon
This was the 30th edition of CMW and CMW is truly international and as far as sense, these insights may be life-or-death it’s taken me this long to actually gets Europe was concerned this year Portugal – especially in the face of the exponential there. For the last few years the event has and Spain were featured territories. The growth of social networking, mobile web, unfortunately clashed with ILMC, but a International Market Place was the main viral marketing and online TV. Competitive strategic rescheduling to allow international meeting point for the out of Canada guests, executives need an “edge,” and CMW is professionals to fit in both SXSW and CMW and the room in the Tardis like Fairmont Hotel the place to acquire it. Of course have not made it possible for me to make it to Toronto was one of the main networking places. forgotten our roots and CMW continues to – and I’m glad I did! be Canada’s biggest, internationally-focused Speakers included Harvey Goldsmith, Slash new music fest showcasing over 1,000 bands The event is big… nearly 3000 delegates and Paul Rodgers of Free and Bad Company from 40 countries” attended. CMW incorporates the Conference, fame. The panels were full and active, with Awards Shows a Trade Show, and Comedy, the Festivals session attracting 400 plus - one Next year’s CMW European focus will be Film, and of course Music Festivals; featuring of the best-attended panels I’ve ever seen! on Northern Europe’s Nordic Countries – international and home grown acts in 35 Norway, Iceland, Finland, Denmark and venues over three nights.. There are a lot of CMW President Neill Dixon told VIP News, Sweden – and the associated regions of good bands coming out of Canada and I was “For Canadian Music Week’s 30th anniversary the Faroe Islands, Greenland and Aaland. particularly impressed by Half Moon Set from and beyond our goal is to be on the forefront Japan the second largest music market in the Montreal (playing at Brighton’s Great Escape of issues and trends shaping both the digital world, just after the US will also be featured. next month) and Sheepdogs from Saskatoon. environment and opportunities for both the The venues are pretty spread out across the live and recorded music business in the years City and a lot of time is spent in cabs – ahead. although a certain Scottish delegate walked everywhere resulting in severe chafing of We spent a lot of effort to create a first-wave his inner thighs as the heavy fabric of his think-tank, one that maps out our industry’s kilt swung backwards and forwards as he future for our participants benefit. I think marched from venue to venue! we succeeded this year. In a business
4 VIPNEWS > APRIL 2012 > CONFERENCE ROUND UP Tallinn Music Week Allan McGowan [email protected]
This was my second visit to Tallinn and it is more than clear that something is going on in Estonia! This small republic with a population of only 1,318,005 people, historically and culturally connected to the nearby Scandinavian countries, and neighbour to Russia, Latvia and Lithuania. Estonia is the home of Skype and has recently fared better than many countries beset by the ongoing financial difficulties.
The annual showcase festival and music industry conference took place for the fourth time and as you can see this year’s figures show a significant advance on 2011.
The conference was again opened market for the whole Europe and the world. Just five years with a welcome speech from ago it was quite rare to see an Estonian band play in the President of Estonia Finland or Latvia and as rare to see any Latvian Toomas Hendrik Ilves. bands play in Estonia. Things have changed I was extremely significantly and suddenly the whole region impressed by his is a bigger and more open market place knowledge of 2011 for new talent.” music in general 16 stages and his attitude 147 artists from 10 countries last year and 123 artists from Estonia we featured an interview 7.600 festival visitors with him in VIP 423 delegates – 229 from Estonia News. This year’s 194 international delegates address was, if 52.483 unique hits on the website anything, even more from 88 countries striking, referring to the 2012 27 stages perhaps recently overlooked connection of rock’n’roll to 183 artists from 13 countries democracy and freedom of speech. It is 150 artists from Estonia worth taking the time to watch and listen to Pres. 11.200 festival visitors Ilves speech which can be accessed in full here: http://www. 589 delegates – 283 from Estonia youtube.com/watch?v=SyMN3hmcoHE 306 international delegates 61.549 unique hits on the website The close connection to the Nordic countries in terms of geography, from 110 countries Helsinki is only two hours away by ferry, and increasingly, business, was emphasised, by NOMEX, the recently formed umbrella for the music export organisations of Denmark, Finland, Iceland, Norway and The confe Sweden, choosing the event to outline its strategy for the first time in rence also addressed a speech by MD Anna Hildur Hildibrandsdottir. copyright, music entrepreneurship, and the essential role of a manager. This section included Organiser Helen Sildna commented, “We are happy to see that TMW entertaining and informative interviews with Ed Bicknell, long has now a solid place at the annual calendars for our region’s music time manager of Dire Straits, Brian Ferry and others, and industry key players and organizations. If we manage to boost up the Russian cultural figure Artemyi ‘Artjom’ Troitsky. artist and knowledge exchange between the neighbouring countries by making it possible for the right people to meet each other, we It’s only 20 years since Estonia gained independence and delegates have already succeeded, simultaneously providing a gateway into the were reminded of this by a trip to the KGB Museum (Which I 5 VIPNEWS > APRIL 2012 > CONFERENCE ROUND UP
unfortunately missed) in a Hotel opposite the Conference hotel, Ed Bicknell and Helen Sildna apparently the door to the office displayed a sign saying, “There’s at Tallinn Music Week nothing behind this door.”
Undeterred by his injuries from a fall on the ice last year, Martin Elbourne of The Great Escape and Glastonbury told VIP News, “I have seen this event develop over the last three years. It was always well organised in a fantastic city, and is now bigger, with more delegates and better bands. As a regional event it can only become more important. Aside from the Great Escape it’s the one conference showcase event that I will definitely attend next year.”
Ed Bicknell commented, “I thoroughly enjoyed it. Extremely well organised, great people, interested and enthusiastic audiences. Oh... and the interviewer wasn’t bad either (I wonder who that could have been? Thanks Ed – ED.). Thanks to Helen and all her colleagues for the field in this year’s ETEP festival bookings following Eurosonic their professionalism, hospitality and sheer doggedness in getting the 2012, having been confirmed to play at festivals in Finland, Sweden, Conference/Festival established in such a short time, really impressive. Belgium, France and Lithuania. The band were the winners of the I would definitely go again”. Skype Award at TMW 2011 and since then they have played festivals across Europe and played their first tour in North America. Manager Mark Meharry, CEO of UK based Music Glue said, “The setting was Toomas Olljum told VIP News, “Helen Sildna and Tallinn Music Week great and the town is picture postcard. The bands that I saw were have played an important role in my development into an artist not that great, but then I am not the target demographic. I didn’t manager. I started working with acts a few years before TMW, but see many panels except the ones I was on. It was a great networking the event gave me a networking possibility with key international event and the people Helen brought in were of a good level. Maybe industry players in my hometown. 4 years after its start, my artists are less vodka would be a good thing!” doing well - Ewert and The Two Dragons just finished a series of gigs in North America where they played at Canadian Music Week and Dan Panaitescu of he Sziget Office in Budapest was short and to the in NYC, and Iiris, Tallinn Music Week skype ‘Go Change The World’ point, “The best ever. Very well organized, interesting panels, good award winner 2010 just released a debut album on EMI.” artists... no complaint...” The Skype Award winner 2012 will soon be announced and the prize Following on from TMW the European Talent Exchange Programme of 3500 EUR will go to an artist with the most international potential announced that a Estonia’s Ewert and the Two Dragons are leading as selected amongst TMW
Ewert and the two dragons - photo by rasmus jurkatam 6
VIPNEWS > APRIL 2012 > CONFERENCE ROUND UP UK Conference Events Allan McGowan [email protected]
May is a busy month in the UK Conference Calendar with both Brighton’s Great Escape and Liverpool’s Sound City. VIP News will cover the Southern and the Northern events and report back in the nest issue.
YMCAS Return to The Great Escape
This May 10-12 will see the return of The appear in the Alternative Escape fringe Great Escape to Brighton, and I am glad programme this year. to see that the now semi-legendary Yearly Music Conference Awards (or YMCAs to its Amongst the sessions will be ‘DIY In The friends), will again be part of the programme Spotlight’, specifically aimed at providing (particularly as I proudly won one last year – practical advice, tricks of the trade, and still it is my hometown)! These Awards aim hopefully inspiring stories for artists, to recognise all that is good, and sometimes managers and music entrepreneurs early on quite strange, about the world’s music in their careers, and those musicians looking business conventions and showcase festivals. to self-release their own work for the first time. Holy Roar’s Alex Fitzpatrick, Chris TT, Presented at an exclusive ticket-only Good Lizard’s David Riley, Create Spark’s event as part of the final day of The Great Debbie Ball, ACUMEN’s Josh Little, Sony By Escape convention, the awards also bring Toad’s Matthew Young, Memphis Industries’ Sally Abbott together the travelling community of agents, Ollie Jacob, Tru Thoughts’ Robert Luis and managers, bookers, and business owners Sentric Music’s Simon Pursehouse will help and export offices that visit many of these to provide a focus on what artists and their This year’s events, along with the people who organise managers need to do logistically and legally them. Many of you VIP News readers attend when setting up their own music enterprise. prestigious these events so here’s a chance to add your categories: voices to the selection of the winners. The DIY In The Spotlight strand is being enabled by Arts Council England, who have Best Delegate’s Bag Nominations are already being accepted in all confirmed they are supporting a number of Best Delegate Bar eleven categories. These can be emailed to activities at The Great Escape this year. Sally Best Hotel/Convention Centre [email protected]. Nominees for each Abbott, Regional Director of Arts Council category will then be announced and people England, South East, told CMU: “Arts Council Best App Or Digital Tool will be invited to vote in each section. England are delighted to support The Great Best Export Office Escape festival in Brighton with £38,000 of Ticket information for the YMCAs will go Grants For The Arts funding”. She added: Best Networking Event Or Feature online at www.escapegreat.com next week. “The Great Escape festival attracts music Full listings for bands, 42 new names have fans, young people and industry specialists Best Award Show recently been added to the line up, etc can from all over the world to Brighton and we Best Small/Regional Event also be accessed at this site. are delighted to support it in delivering local Best Panel Near Punch-Up collaborations, education and development Red Stripe will be sponsoring this year’s and to promote international diver- Accident (or Incident) Of The Year programme of street gigs; and Ford will be sity and collaboration between artists’’. recording Bands In Transit sessions at the PRS For Music will once again present a Conference Junkie event. Tthe open air stage on Jubilee Square, whole strand of panels, keynotes and con- Of The Year. The Hub, will be back; and 20 venues will versations on day one of the convention. 8
VIPNEWS > APRIL 2012 > CONFERENCE ROUND UP
Mobile Roadie to Keynote Liverpool Sound City
Sound City will take place in Liverpool the Creative Content Agency), Generator, Digital week after Great Escape on May 17-19. Derry, PPL, Musicians Union and c/o Pop as Andrew Mains, COO of the massively well as bands from as far afield as Australia, successful app developer Mobile Roadie Austria, Brazil, Canada, Denmark, France, used by amongst others Madonna, Adele, Germany, Korea, Italy, Japan, Netherlands, Noel Gallagher, Take That, Miami Dolphins, Norway, South Africa, Spain, Sweden Taiwan Cristiano Ronaldo, LA Kings and, yes, and USA Liverpool Sound City, will deliver the first keynote speech. Chief Operating Officer at Alan Welby, Director of Knowledge Economy Mobile Roadie since September, 2011 Mains at Sound City 2012 partner Liverpool City oversees business development, grows the Region’s Local Enterprise Partnership (LEP) MR global sales team, and manages day- said: to-day operations. He is a digital music and Andrew Mains entertainment industry veteran with extensive “This region is home to over 3,000 creative experience helping artists, managers and and digital businesses at the forefront of one hosting Sound City. The 2012 event offers labels deepen engagement with fans, and will of the most vibrant and competitive sectors in us a unique opportunity to showcase the be discussing the future of music apps. our economy. Creativity is in our DNA. There region for more leading creative and digital is a very strong core of locally established industries to do business here, and attracting This year, Sound City will be hosting parties and locally grown businesses and we set up keynote speakers like Andrew reflects the and events with Sounds Australia, Brazil the UK’s first creative industries development importance of the event and its appeal to Music Exchange, New Zealand Music agency in 1997. All of this positions Liverpool delegates from all over the world”. Commission, Taiwan GIO, KOCCA (Korea perfectly to build on its success to date in
9 VIPNEWS > APRIL 2012 > indepth story > SEcONDARY TICKETING DEBATE
INDEPTH – Continuing the Secondary Ticketing Debate
In the last issue we presented varying views on the ongoing discussion about the whys and wherefores and the rights and wrongs of Secondary Ticketing, following the active and sometimes heated debate that followed the screening in the UK of ‘The Great Ticket Swindle’, the ‘Dispatches’ investigative documentary on the practice in the UK. In this issue we present further opinion and comment on the topic…
Legal Action Against Secondary Ticketing Manfred Tari [email protected]
Within the past decade companies such as Seatwave or Viagogo fore in the concert industry. Two journalists that worked undercover have ‘conquered’ Europe and converted a business model previously at Seatwave and Viagogo revealed the use of business practises widely considered a black market into a viable business model that many in the concert industry already suspected. One of the dealing profitably in the secondary sale of tickets. findings of the “Great Ticket Swindle” revealed that the majority of tickets offered on those ticket exchanges are traded by employees The demand for live events has continued to rise, and understandably of these companies or so called power sellers. Not long ago these the ticketing business has benefited from this development. Leading ‘power sellers’ would actually have been considered ‘touts’ by more ticketing companies such as Ticketmaster and CTS Eventim became concerned concert promoters or artists. leading players operating and making both high profits from and returns to the value chain of the concert industry within the primary But the Great Ticket Swindle also revealed that prominent companies sales market. such as Live Nation UK or SJM Concerts provided ticket contingents for concerts and tours of artists such Coldplay, Rihanna or Westlife. But companies active within the so called secondary market for tickets only contribute to a certain and limited extent to this value However, there are promoters that strictly refuse to work with chain, as in most cases neither concert promoters nor artists receive secondary ticketing websites. In France the concert promoter a share on tickets passed on to buyers at above face value. However association Prodiss successfully lobbied for a legal solution against observation of the websites of Companies such as Viagogo or unauthorized secondary ticketing. Seatwave proves that the profit margins for selling tickets at inflated prices can run up to and sometimes even exceed 500 percent. Prodiss reported that this new French law implemented on March 12th 2012, aims to “facilitate the organisation of cultural and sports For many years several concert promoters tried to fight the secondary events” creating a new criminal offense (article 313-6-2, French ticketing companies, but in most cases failed. Since the TV-magazine penal code) for the unauthorized ticket resale to sporting, cultural, Dispatches on Channel4 aired a report entitled “The Great Ticket trade events, and live performances”. Swindle”, the issue of secondary ticketing once again came to the
10 VIPNEWS > APRIL 2012 > indepth story > SEcONDARY TICKETING DEBATE
The statute states: “To sell, offer for sale or expose for sale or Aline Renet transfer of ownership, or to provide the means for sale or transfer of ownership of access rights to a sporting, cultural or trade event or to a live show, habitually and without authorization from the promoter, the organizer or the owner of the rights of exploitation of this manifestation or event, is punishable by a 15 000 euros fine. The penalty is up to 30 000 euros in the event of a repeat offence. For the purposes of the application of the first subparagraph, any ticket, document, message or code, in all forms or mediums, evidencing the right to attend the manifestation or event having been obtained from the producer, organizer or owner of the rights of exploitation, will be considered as access card.”
VIP News spoke to Aline Renet of Prodiss about this legal initiative:
VIP News: What does this mean for French concert promoters? – “The French law now recognizes full control of the tickets for the live performance producers. Event promoters contracts with the artist’s representative for their appearance, hire venues, determine the face value of tickets and their allocation between the venue box office and ticket agents, and undertake the advertising and marketing of the event. The promoter has the sole right to grant ticket distribution to any third party he may choose. French law prohibits the resale of tickets to an event by third parties, not duly authorised by the organiser of the event. The phenomenon of “unauthorized ticket resale” is largely but not exclusively attributable to Internet websites, set up for this purpose. Among targets are resale sites, based in France or abroad, operating without the agreement of promoters, as well as individuals who habitually engage in the practice of reselling tickets to an event.”
VIP News: How did you lobby for this law? – As there were several prior attempts –five rejected bills in total in the last two years- we focused firstly on the timing: we are close to the election in France and secondly we got 100 artists to co-sign a public statement in Le Monde etc. against the resale of tickets at inflated prices just three days before the vote of the original amendment in order to raise more pressure, helping to secure the adoption of the bill. Thirdly we mobilized MPs from Parti Socialiste and UMP and additionally worked out a media campaign for the last 6 month with two different but combined approaches: One was to raise public concern/awareness, the other one was Economic & Financial press, giving them an outlook on who was pulling the strings.
This means that France now joins Denmark in implementing a legal backing for concert promoters, helping promoters and artists to ban secondary ticketing.
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VIPNEWS > APRIL 2012 > indepth story > SEcONDARY TICKETING DEBATE Ben Challis on Secondary Ticketing at Glastonbury and the UK Manfred Tari [email protected]
It is well known there are promoters that kind of ‘official’ link with the Festival. Where enjoy working with secondary ticketing necessary, in situations where fraud or websites. But for those who do not get criminal activity is suspected, we will involve involved in this kind of ticketing business, the Police’s e-crimes branch or Trading the following interview with Ben Challis, Standards. However it is difficult to protect general counsel of Glastonbury and music people against their own stupidity. lawyer might pick up a hint or two, on how to prevent secondary ticketing or simply gain The French promoter organisation a better understanding of the generalities of Prodiss successfully lobbied for a the practice. law against unauthorized secondary ticketing. Would you say that a similar Ben Challis What did you think when you saw the lobby campaign is possible in the UK? TV-report “The Great Ticket Swindle”? – My personal view is that no UK Government – I thought it was interesting and a brilliant has wanted to do this. The re-sale of There is one more point - who would expose of some of the less savoury aspects of Football tickets in England was prohibited actually enforce this sort of law? It is difficult ticketing. I think it lifted a veil on what some to curb crowd violence. The prohibition enough when criminal activity is detected - in the secondary market had been up to for on the re-sale of 2012 Olympic tickets is a I can’t see why this would be high on any some time, so perhaps now we can have a specific piece of legislation. If you read back politician’s agenda unless the groundswell bit more transparency so fans know who is through the various debates that have taken of public opinion pushed it there. And the making what out of inflated ticket prices. If it place in our Houses of Parliament, the same music industry now knows from lessons is the band or the promoter making the mark arguments come up again and again - free learnt from peer-to-peer file sharing - that up - so be it - I just think fans have a right to market policies / consumer freedom to re- suing / prosecuting your customers is a VERY know whom they are paying. sell vs. consumer protection and the right bad idea. And an unenforced / ignored law of artistes / promoters to control admission. is a bad law. What is the policy of Glastonbury Festival Is it obnoxious to re-sell a ticket for a big when it comes to secondary ticketing? profit, or a useful market function? It is never Do you think the OFT should look into – The Festival has a registration process, ending! With the Dispatches programme the market of secondary ticketing? limits on ticket sales and personalised tickets identifying a number of major promoters – I think it should seek to protect consumers, (with a photograph). It is a substantial who are engaged in re-selling tickets and but if it went any wider it would enter the investment of time, effort and money but the somewhat vague comment from the realms of competition regulation, which seems effective so far. We are also vigilant UK’s Concert Promoters Association - clearly might be very difficult. to ensure websites such as eBay don’t re- even the live events sector doesn’t have a sell our tickets, and as we have a number shared view. If WE cant agree as the live For more background information of UK and European Community Trade events industry - why should politicians please check an earlier article by Challis Marks we can take legal action when bother? in 2009 at http://www. unauthorised vendors purport to have some musiclawupdatescom/?p=162
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VIPNEWS > APRIL 2012 > indepth story > SEcONDARY TICKETING DEBATE Steve Roest from Viagogo About The Great Ticket Swindle Manfred Tari [email protected]
These core business principles of delivering on Viagogo websites, this would mean every ticket on time for the event were not that the Viagogo business model is questioned or challenged by the programme, actually business-to-consumer. If this is which gives us confidence in the service we the case the Viagogo claims to be a resale offer consumers. platform for “fans to fans” is actually in contempt of the “Unfair Competition The report stated that employees of Act” as part of UCP-directive (2005/29/ Viagogo offer the vast majority of ticket EC) by the European Union. So as such offers on the websites of Viagogo. Viagogo is misleading consumers. Do The report even presented evidence of you maintain the claim that Viagogo is a Steve Roest Viagogo employees using various credit fan to fan ticket exchange following the Channel 4 airing of the Dispatches TV- One might have expected that the following cards with different names to purchase report “The Great Ticket Swindle”? interview would have proved difficult to multiple tickets offered by primary – Viagogo is an open marketplace and we obtain but this was not the case. Actually an ticket vendors. As such Viagogo staff allowed anyone to use our platform provided external PR-Agent of Viagogo even offered present false identities in order to work that they deliver the tickets that they sell. the opportunity for an interview shortly around per person capped ticket sales. This is clear on our website and we have after the first stories about The Great Ticket Will Viagogo continue these kinds of never claimed to be exclusively a fan-to-fan Swindle went to print. business methods in the future? exchange. While, the overwhelming majority – The section where Viagogo was accused of of sellers are ordinary sports and music fans The questions and answers were sent and buying up tickets was misrepresented in the who sell one or two tickets, there are larger received by email, supported by a conference programme. It is certainly not the case that sellers on the platform, including promoters call with Steve Roest, who works as European the tickets on Viagogo are offered by Viagogo and event organisers. Sales Director for Viagogo and his PR-agent. employees. We have in the past purchased a very small number of tickets ourselves. The The report furthermore revealed that The Great Ticket Swindle actually primary objective in purchasing tickets is to Viagogo received ticket contingents revealed an inside view on the business ensure we have a small number of tickets from promoters. Which promoters does practices of Viagogo. What are your in reserve for fulfilling our guarantee that Viagogo officially work with, and what comments on the programme? purchasers will receive their tickets in time for are the benefits for these promoters – Viagogo was created to provide people the event. In the secondary market there are selling tickets on the secondary instead with a secure place to buy and sell tickets a number of reasons as to why a seller may of the primary market? to live events. Before Viagogo, consumers not fulfil their obligation to the buyer. We – Viagogo has publicised many partnerships looking for the most popular tickets often firmly believe that every customer should get where we work with event organisers to sell had little choice but to take their chances the ticket they paid for or their money back. certain premium tickets on our marketplace with a shady character outside the venue or Therefore, a small number of tickets are at market prices for example; Madonna an auction website, with no guarantee they purchased as “replacements” in the instance and Roger Waters. However, as a ticket get what they paid for. a seller fails to deliver. If the tickets are not marketplace, our sellers are our customers, With Viagogo every ticket on Viagogo is used they get sold on – sometimes at a profit, and it is not our place to discuss the details guaranteed – the buyers are guaranteed to sometimes at a discount. of our contracts publicly. These are legitimate get the tickets they paid for in time for the business arrangements, but like many event. In the rare instance that a problem If as maintained by the Dispatches commercial contracts, the specific details are arises, Viagogo will provide similar or better programme the majority of Viagogo staff confidential. tickets, or in the worst case a full refund. members apparently sell tickets offered 14 VIPNEWS > APRIL 2012 > indepth story > SEcONDARY TICKETING DEBATE
In an advertisement for the Madonna their existing business practises, which customers with a secure environment, and concert in Germany in the weekend not so long ago were considered a “black the guarantee of getting what they pay edition of tabloid paper “Kölner Express” market” business model. Don’t you fear for. We’re proud that the problem that on March 3 it says, “To secure best tickets that politicians or consumer protection existed before we launched six years ago, of and selling at Viagogo.de”. How is organisations will undertake efforts to thousands of fans every weekend being left Viagogo involved in the ticketing for this forbid the resale of tickets as for instance disappointed after buying dodgy tickets from Madonna show or even the entire tour? in the case of tickets for sport events sites like eBay, is now almost a thing of the – Viagogo is the official premium and such as the Olympic Games in London? past. secondary ticketing partner for Madonna’s 2012 European tour, which includes – We believe that legislation would Did Viagogo close its German office last Germany. We are officially endorsed by the drive the secondary ticket market back summer as a result of the several court organisers of the tour as the place where underground with all the consequent safety cases filed against ticket sellers who fans should go to sell on their spare tickets and transparency issues that arise from offered tickets via Viagogo for the Take and to buy tickets once they have sold out at that. Powerful legislation already exists to That concerts in July 2011? the box office. outlaw scam websites and fraudulent street – No, Viagogo has managed its operations touting, which already face problems of from its main office in London since the The French promoter association Prodiss effective enforcement. These policing and beginning of 2011. currently lobbies against the resale enforcement problems would mean that the of tickets. Similar political efforts are bill would have little effect on the ‘wild west’ Where else does Viagogo have going on in the UK, as well in Sweden. of scam websites and street touts, but would subsidiaries in Europe and how many In particular the TV-report “The Great unfairly restrict the activity of legitimate people does Viagogo currently employ? Ticket Swindle” can been seen and used websites like ours. – Viagogo manages its operations from as piece of evidence against Viagogo its main office in London where it employs Anzeige_VIPMag_ProSky_X4.pdf 1 09.12.10 10:43 and other ticket re-sale platforms and What’s most important is providing around 100 people
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15 VIPNEWS > APRIL 2012 YOUROPE Creates Standard Terms for European Festival Contracts Allan McGowan [email protected]
The European Festivals Organisation, VIP News spoke to Ben Challis: YOUROPE, having introduced health & safety programs with the YES Group (Yourope VIP News: What exactly was your role in Event Safety Group) and addressed the this initiative? matter of sustainable festivals with a series – I was approached by YOUROPE in 2011 to of workshops with the GO Group (Green advise on a set of standard terms that could Operations Europe), have now turned their be eventually used by all of their member attention to the problems of artiste contracts festivals. Christof Huber had already had and riders. one meeting in Hamburg in 2011, and we then sent out a questionnaire to members For those who don’t know YOUROPE was before EuroSonic in Groningen to see what founded in November 1998, and now members’ views were. After a very well represents close to 80 festival members attended meeting in Groningen and input including the most well established festivals from a number of events, I drafted a set of Christof Huber in Europe. The intentions of the Association terms that covered areas of concern that all and its members are to collaborate and of the festivals felt needed to be rectified share best practice to improve the European - in particular force majeure provisions, Marc Lambelet chaired an interesting session festival scene in terms of working conditions, cancellation, insurance, payment terms, tax, at the ILMC 2012 on this issue with a good audience welfare, health and safety and noise limits, visas, curfews and safety. We and well-informed panel - and some of the music talent. then re-consulted members and received pitfalls of ‘bad’ contracts became clear - not another good response and additional least when nothing is signed at all. I can say Over the past year the members have comments led to the final draft being that in 90% of the cases the use of our terms, conducted workshops at their meetings in finalised over the ILMC weekend in March which are festival specific, saves time and Groningen and Hamburg, and most recently after another meeting with members. adds clarity and I think many European festi- in London, to produce a final version of vals had the same feeling. To be fair - its not standard contract terms applicable to the Obviously you think this is a good idea, usually the agency contract that is the prob- engagement of artistes and performers for do you think it will have positive results, lem - it is more and more the artist contact all participating YOUROPE member festivals, and how do you see agents taking to it? riders which have expanded to cover issues as well as a simple and fair standard booking such as cancellation, control of the venue, agreement for smaller bands. During – We introduced similar terms at Glastonbury force majeure and insurance for example. the project music lawyer Ben Challis and in 2010 across four of our main stages (the I have spoken to a number of agents and insurance broker James Dodds (Doodson Pyramid Stage, The Other Stage, The John obviously their first loyalty is to their artiste Entertainment) advised YOUROPE. Peel Tent and West Holts) and extended this - and their own contracts - but most can to the Dance Village in 2011. Like the new see some benefits. However I have to say In the Press Release Christof Huber, General YOUROPE terms, we designed these terms some don’t like the idea. That said, I think Secretary of Yourope said “It was the wish to be fair, reasonable and appropriate. We that the weather related tragedies at Pukkle- from so many members to create such were receiving many, many riders at a very pop and the Indiana State Fair are focussing Standard Terms for the European festivals. It late stage, often with wholly inappropriate everyone’s minds - not least when in appears should make life easier for festivals as they and often irrelevant provisions: Often theatre from some press reports that Sugarland are have standard terms for important topics, tour or standard arena or stadium tour riders potentially exposed to litigation because of rather than a number of contract terms that were sent containing provisions that could their own contract terms. I hope what these they can’t fulfil.” never be met by a festival. terms provide is a ‘win win’ situation in the long term: 16 VIPNEWS > APRIL 2012
Christof Huber was on holiday when we called, and then went on to Budapest for the • OYA FESTIVALEN NORWAY next GO Group Seminar, but he mailed us to (NORWAY)
say, “We have informed the main agencies • MELT! (GERMANY) about the standard terms. We have received • OPENAIR ST.GALLEN some questions and some comments, but (SWITZERLAND) only a few. We will have to work on these feedbacks within our group and check if we • SUMMERDAYS FESTIVAL have to react.” (SWITZERLAND) • WINTERTHUR MUSIKFEST- VIP News contacted a few agents to get WOCHEN (SWITZERLAND) their views on whether or not a ‘standard’ • ITALIA LOVE WAVE FESTIVAL contract is viable. Some had not yet seen it; (ITALY) John Giddings of Solo, who operates both as • SZIGET (HUNGARY) an Agent and promoter of the Isle of Wight Festival said, “…Never read it, in my experi- • EXIT FEST (SERBIA) ence it’s all about trust, all the contracts in • INMUSIC (CROATIA)
the world don’t mean that you get paid...” • BERGENFEST (NORWAY)
• SELECTOR (POLAND) Rob Challice of Coda Agency has read it and • LIVE MUSIC FESTIVAL (POLAND) replied, “I have taken a look at the ‘standard contract’ and have to ask whether any agents • OPENER (POLAND) were consulted in putting this together? He • ROCKWAVE FESTIVAL (GREECE)
continued, “It just seems that this introduces • HEITERE FESTIVAL MyMusicMailer.com an extra level of work that is not needed. (SWITZERLAND) enables artists to MAIL We think we do a good job on marrying • MONTREUX JAZZ FESTIVAL their music to more artists requirements with those of festivals.” (SWITZERLAND) than 6.000 venues and Rob also thinks that the contract has been • WOODSTOCK FESTIVAL agencies worldwide… circulated too late “ With more consultation (POLAND) perhaps it should be for 2013, not 2012.” Rob Challice also runs the Summer Sundae • GURTENFESTIVAL Festival in Leicester but as he says, “I’m not (SWITZERLAND) sure I have formed an opinion as a festival • SLOTTSFJELLFESTIVAL organiser yet.” (NORWAY)
• DOGNVILLFESTIVALEN Eric van Eerdenburg organiser of the (NORWAY) Lowlands Festival in the Netherlands told us, • ONE LOVE FESTIVAL (TURKEY) “We did not use it.I have been looking into it and think it’s pretty good but there are details • DIA DE LA MUSIC (SPAIN) that need adjustment. Yourope -at this stage- • POHODA FESTIVAL (SLOVAKIA)
asked not to make any adjustments.” • 10 GIORNI SUONATI (ITALY)
It seems to be a fair point that it artist booking arrangements for the 2012 season must No doubt there will be a lot more discussion in most cases be fairly well advanced, but on the use – or not – of this ‘standard’ according to the Yourope press release the contract and we will of course report on following festivals have already confirmed their developments. VIP News has seen the participation in the new scheme, and will use contract and those that haven’t yet and have the new standard terms for the 2012 festival need to see it will we presume be able to get season: a copy from Yourope. www.yourope.org 17 VIPNEWS > APRIL 2012 New Gema-Rates for Music Clubs and Discotheques Manfred Tari [email protected]
Following the German copyright collection society GEMA introducing significant rises in the rates for performing rights on concerts last year, the society has now announced, among others, a new scheme for rates for playing recorded music in bars, music clubs and discotheques. Besides the usage of recorded music, the new scheme also foresees revamped rates for live performances with musicians in restaurants, piano bars and other locations.
The new rates system is intended to become effective in January 2013 and has caused an outcry from those who will be affected. The “Bundesvereinigung der Musikveranstalter”, (BMV - Association for Music Promoters) commented on the new rates schemes insisting that, “GEMA has lost its sense of proportion.” The Association of Culture Promoters in Munich (VDMK) even published on its website Meanwhile the promoter Matthias Rauh of Giga Event launched an a calculator that evaluates what promoters are supposed to pay for online appeal petition at openpetition.de, presumed to be the petition their events in the future. According to this calculator the future looks commission of the German Government. The petition has already great for composers and rights holders, but definitely not good for gained more than 43.000 signatures but unfortunately never will be promoters. accepted by the petition commission as the website openpetition.de isn’t the official website. Various calculations reveal that even for smaller clubs the new rates easily rise by about 500 percent. For instance a music club of 80 In May 2009 the promoter Monika Bestle of the Kulturwerkstatt square meters, open three days a week charging 5 Euro entrance fees in Sonthofen successfully filed an official petition against GEMA currently pays a yearly flat fee of 3417,71 Euro. According to the new regarding the unfair distribution of royalties, a lack of democracy and scheme the annual fee charged by GEMA would increase to 11.700 transparency. This petition gained more than 107.000 signatures and Euros. For bigger locations the new rates go up even more drastically. as such qualified to be taken on by the petition commission. But until A big discotheque with 1.200 square meters, open 2 days a week now, the Parliamentary Members of the petition commission have not charging an entrance fee of 7 Euro so far pays 22.389,67 Euro per made a decision. year. From 2013 onwards such a venue will supposedly pay 131.000 Euros annually. Also it is interesting to be note that promoter associations such as the BDV or the VDKD did not ally with the BMV in taking joint measures These examples were given at a press conference by VDMK, an against the latest attempt by GEMA do increase royalty payments association that also represents most relevant concert promoters and from the live music business. clubs in Munich such as Target Concerts and United Promoters AG. However the BMV might benefit from the political rise of the Pirate While previous negotiations with BMV have failed, GEMA has Party in Germany. Since the party recently obtained 7.3 percent of announced an appeal to the arbitration court at the German Office the votes in the March province election in the Saarland, established for Patents and Brands (DPMA) for clearance of the new rates. The ar parties in Germany are rethinking their copyright policies. As bitration court is known for being very GEMA-friendly and so it is no elsewhere, the Pirate Party expressly calls for a reform of copyright big surprise that Georg Oeller, a GEMA board member who is also laws. Nevertheless, this development probably won’t harm the know for being a hardliner is quoted in a press release as saying: traditionally good relationship between GEMA and the arbitration “We are convinced that going ahead with the new rate scheme is the court at the DPMA for some time… right direction and looking forward positively to the outcome of the arbitration case.” 18 VIPNEWS > APRIL 2012
Bruno Kramm Commissioner for Copyright at the Pirate Party Germany Manfred Tari [email protected]
Actually Bruno Kramm is a long time musician and owner of the What is your point of view on GEMA’s new proposed tariff dark wave label Danse Macabre. But aside from his music business scheme for music promoters? activities Kramm has been active in politics for a long time. Before he joined the Pirate Party, he was on the copyright steering committee – Wrong Tariff - Wrong Timing. I wonder how a corporation like of the Green Party but left this party as didn’t agree with the agenda GEMA, equipped with a large strategy department causes so big harm of his party colleagues. for its own public image by releasing this tariff file while the public debate is fired up concerning copyrights. There are many reasonable VIP News asked Kramm about his point of view and his experience proposals for changes in tariff structures - starting from small events with the copyright collection society Gema and the copyright agenda to welfare and public performances of small artists with their own of the Pirate Party in Germany. repertoire, but GEMA takes the big cut. Making the difference for recorded music in MP3s and higher tariffs for regular CDs shows how
19 VIPNEWS > APRIL 2012
little GEMA respects transformational music styles which tend to use – When it comes to Urheberrecht (A copyright term, but very distinct computer driven systems like Ableton Live and others for creative and from US copyright) we want to accompany the paradigm shift into spontaneous performances. informational society by putting the creator and the user on a priority level and cutting out some more of the privileges of industry and lobby. Do you think the new rates are appropriate? We need to rethink the protection periods of TRIPS into a reasonable – From all points of view GEMA is blowing up tariffs massively while level of max 20 years after death. Those 70 years just help law trolls not giving any rebate for smaller performances. Even performances and publishers. Modern society runs today so fast in rearranging free of admission are inflated. Club culture in metropolitan areas are and recreating styles and art. Those long limits would obstruct the deprived as they start to perform much later than in smaller cities. development of societal participation. Bill Gates reference, “We are They also pay exorbitantly higher fees up 300% on the old tariff. sitting on shoulders of giants” is not only a term for technology; it is As club culture is hard enough to schedule for success these tariffs about all human creation. The far more intensively discussed demand will put the small businesses at much higher risk. This is the way to of our copyright reformation is the uncommercial legal exchange and suppress culture in times of a global culture industries downturn. copy of immaterial goods and files for the private field. We do not Gema puts chains on to the organizers and imposes sanctions for the accept that evaluation rights disproportionately harm privacy in the smallest mistakes. net; this means classical systems like P2P sharing and copying. We need to find as we did already for the CDR and the music tape a kind GEMA already appealed the arbitration court at the German of compensation for the culture balance - but this is something that office for patents and brands D( PMA). This court is known for does not need the lobby. It needs to be a direct agreement inside the being very GEMA friendly. How would you comment if the human society between creator and user. We are still discussion about court once again comes to a decision on the new rates that are various ideas from cultural flat rates to micro payments and crowd only in favour of GEMA? funding systems. In contrast to many other parties, we also discuss in – It would be further proof that the patent court is not the right depth the necessary reforms of copyright corporations and contract place for conciliating perceptual copyright agreements. It will create law for artists and also the need of more support for artistry and another1 complicated climate for urgent structural reformations, culture. Culture is the essence of our society - simple economisation is which are so much, needed for artists and the modern informational not the ongoing solution; culture better follows utilitarianism. society. In a current position paper you request a significant reform of You are yourself a musician and a label owner. What is your GEMA. In May 2009 a petition filed by the promoter Monika experience with GEMA? Bestle at the petition commission of the German government – Still the old routine for mechanical payments: When it comes to also appealed for significant amendments atG EMA. So far the licencing repertoire from GEMA they are so quick in sending their petition commission has not come to a conclusion. However, invoices. The GEMA legislative conjecture stresses us a lot when it could it be the case that in the case of GEMA, politicians comes to GEMA free repertoire, as they always find some artist with may have no legal opportunities to intervene on the internal the same name and quickly send an invoice. On the other hand as settings of the copyright collection society? an artist, I wait forever for my GEMA royalties. It took so long for the – This is one of the problems. Through the Urheberrecht GEMA holds VUT to get independent labels a tariff, which can compete with big an institutional level as an economic association with many direct industries. When it comes to our own shows and tour booking it is links into the political system. This makes it too hard to change it as it horrifically complicated to arrange all the paperwork to get at least a is still an association, which is driven by members. Unfortunately the small share of what we pay for our own live repertoires. GEMA still weight, division and vote is not balanced, therefore, drastic changes believes that most listed music is so called standard repertoire, which are almost impossible. Therefore we want to change the Urheberrecht. commands a higher multiplicator in the royalties. Therefore our own We want to check GEMAs actions for their compatibility with Basic alternative songs will never have a chance to get the fair and real Law, Associational Law, and start this reformation with simplification, royalties since the PRO system tariff is dismissed. transparency and the change of collection procedures and tariffs, to finally make the GEMA what it should be: An association for all artists. Since the Pirate Party won 7.3 percent of the votes in March for the province election in the Saarland, established parties in For further information please check Germany rethink their copyright policies. The Party expressly Twitter: @brunogertkramm calls for a reform of copyright laws, could you please explain what kind of copyright policy it is aiming for?
20 VIPNEWS > BUSINESS > april 2012 MUSIC IN SHARES Music in Shares Manfred Tari [email protected]
CTS Eventim Music Festivals PLC – Waiting for the Arbitration Court: – A Lack of Optimism: It is about time for the Arbitration Court at the International The share price reflects, so to say, a lack of optimism regarding Chamber of Commerce to reveal its decision on their findings prosperity and profitability. Since the end of February the share as to whether or not CTS Eventim will receive compensation price of the company went down from 58 to 48.5 Pence. concerning its former fulfilment agreement with Live Nation. There are rumours in the market that the decision has already been made, but one of the two involved parties has asked for the judgement to be held back for a certain time. Anyhow, since Mid April the share went up from 25.77 to 27.85 Euros.
DEAG – First Dividend Ever: For the very first time ever the DEAG board will propose to its shareholders to decide on the payment of a dividend of 4 Cents per share at its upcoming general assembly on June 22. Since the Beginning of April the share price ranged between 2.75 and 2.84 Euros.
Live Nation – Business Results for Q1 to be reported on May 9: Live Nation has announced that it will reveal its business results for the first quarter in the second week of May. Looking at the share price performance indicates that there may be a certain reluctance, as the share price went down from $9.80 to $8.45 since the end of March. 21 VIPNEWS > APRIL 2012 NOTICE BOARD PrimaveraPro - First Details DayPro Programme
PrimaveraPro 2012 will programme over thirty conferences, workshops, presentations, receptions and exclusive showcases within One of the main novelties of the DayPro will be a series of interviews the framework of DayPro, its programme of activities has been with important national and international artists who will tell us, what extended to three days from Wednesday 30th until Friday 1st June their participation in the development of their professional careers has from 11am till 6pm. been, all based on first-hand experience. The artists, key players in the music industry, will also participate in round table discussions that will Hotel Zero will be the headquarters of daytime operations with a analyse the current Spanish scene and the role of musicians in these programme that has been tailor made for professionals from the times of profound social change. The conference about music events music sector. It is just opposite the Parc del Fòrum de Barcelona site, will deal with questions such as the economic impact of festivals, where the San Miguel Primavera Sound and the showcases associated their future, the opinions of fans… and will discuss the creative to PrimaveraPro will take place. The increase in the number of strategies that they must adopt in order to survive. The Association accreditations for this, its third edition is highly significant with more of Independent Festivals UK will be present at this debate. Other than 65% of international professionals. activities will tackle the crowd funding system as a way to finance projects and its application in the different areas of the sector, as well The DayPro programme will focus on three main subjects: The role of as new tools for the promotion of music. the artist in society and in their music career; Festivals and big music events; and The new ways to promote and finance music. For more info: http://pro.primaverasound.com/ VIP-Magazine: The most In-Depth B2B Magazine for the people of the LIVE Music Industry.
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VIPNEWS >> MISCAPRIL 2012 > APRIL 2012VIPNEWS > MISC > september 2011 MEMBER PRESENTATION Christopher Entertainment
Christopher Entertainment is a Danish owned management, promotor The Skanderborg Festival, The Jelling Musicfestival etc. Christopher and booking agency, established in 1986. Entertainment is management for mostly Danish artists: Stig Rossen, Gudrun, Jacob Andersen etc and we represent Andrew Strong and Christopher Entertainment has over the years presented some of Barrage in Scandinavia. For more info please see www.christopher.dk the world’s finest artists such as: Whitney Houston, Tina Turner, Santana, Boyzone, The Corrs etc. As a booking agency Christopher
Entertainment has delivered artists to major festivals such as: The Roskilde Festival, The Midtfyns Festival, The Langeland Festival,
About Our Company
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Read more about Mercury Tide feat. Dirk Thurisch: http://www.mymusicmailer.com/epk/209/bio 25