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A capital investment

The corporatisation of the live music industry to form a series of vertically aligned international conglomerates has attracted the attention of a growing number of private equity (PE) and capital investment groups, all, it seems, subscribers to the notion of perpetual sector growth.

Against a post-pandemic background of challenging global market conditions – high inflation and growing interest rates; slowing economic growth; and violent geopolitical disputes – the sector seemingly operates in contradiction to one of the basic rules of economics i.e. that as the cost of living goes up, discretionary spending goes down.

As PwC asserted in its Global Entertainment & Media Outlook 2023-2027 report, “Going out is in again.” Indeed, their expectation is that global live music and cultural events will surpass 2019 revenues in 2024 and that by 2027, live experience revenues will be growing at 9.6% CAGR (compound annual growth rate).

The Bank of America in its report, Media & Entertainment. Funflation in full force, concurred that “live entertainment is the brightest star” and identified several sustainable drivers for sector growth. These included: a continued trend for consumer expenditure on experiences; greater utilisation of dynamic pricing; the willingness of artists to service the expansion of new international touring markets; and, that IRL events might enjoy growth, rather than harmful disruption, when it comes to the adoption of digital technologies.

The PE perspective
PE investments are made in the belief that they will lead to a profitable return, rather than any abstract concerns such as great art or a vibrant and diverse live music ecosystem.

Within live music, the margins enabling growth and, thus, higher company valuations are harder to achieve purely via cost management – especially when talent is able to extract a premium – although the process of vertical integration permits the retention of margins across the various operational levels of events: production, promotion, staging, retail, and marketing.

In short, the PE strategy is to increase the volume of events by extending the territorial reach, improving the physical environment where events occur, and by then extracting more from audiences via value-add bundles, packages, and surge-pricing.

“Is the marriage between private equity and live entertainment too big to fail?”

Cause and effect
The consolidation of the live entertainment sector by a diminishing number of ever larger congloms has therefore been both a cause and effect of the influx of new capital.

In particular, within live music, there is a relatively small number of organisations that collectively increasingly dominate the sector. A strategic growth focus of these investment and/or debt-fuelled groups has been to deepen vertical ownership structures whilst broadening international networks.

The resultant opaque aggregation of majority-owned, supply-side-orientated subsidiaries serves to ring-fence these congloms against disruptive entrants with their new business models, emerging technologies, or those seeking the ‘democratisation’ of the sector by placing the consumer first or at least central to their thinking.

The live entertainment sector has long professed its love for the consumer, just so long as they continue to purchase ever-more expensive tickets for events months in advance and with little or no right to refund or exchange.

As a result of the corporatisation of live, it increasingly resembles a monopsony – a form of capitalism where there is a limited number of buyers for talent, venue diaries, event production, etc. – and that concentrated power is then able to set prices to maximise profits while being less subject to competitive constraints. Given that background, is the marriage between private equity and live entertainment too big to fail?

Crisis, what crisis?
Some believe that the PE playbook for wealth generation is faltering, with average buyout performance now on a downward trend.

And after the economic impact of layers of (vertical) consolidation and (horizontal) aggregation, the squeezing of costs, and the surge-pricing of audiences, to whom can PE-owned live music congloms sell as part of their exit strategies? Arguably, only other PE-backed entities have the means to undertake such large-scale acquisitions, and so the concentration of ownership within the sector will inevitably continue.

But hey, it’s only rock & roll.

Tim Chambers is a ticketing advisor, consultant, and non-executive for various live entertainment operators

 


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New legislation could mandate all-in pricing in UK

All-in ticket pricing could be mandated in the UK as part of proposed legislation passed in the House of Lords.

The Digital Markets, Competition and Consumers Bill had its third reading yesterday (26 March), which included an amendment relating to “drip-feeding” of additional ticket fees by Lord Malcolm Offord.

“This amendment… requires a trader to set out in an invitation to purchase the total price of a product including any mandatory fees, taxes and charges that apply to the purchase of a product rather than ‘drip-feeding’ such amounts during the transaction process,” it reads.

The Bill will now be returned to the House of Commons for further debate.

Live Nation was among a number of companies in the US that pledged to adopt “all-in” ticket pricing – which allows fans to see the full ticket price upfront, including fees – last summer.

The Ticketmaster parent enforced all-in pricing “for concerts at the venues and festivals the company operates across the United States” from last September, having advocated for all-in pricing to become law for many years. In 2023, it joined with an industry-wide coalition to promote FAIR Ticketing Reforms.

“Ticketmaster supports legislation that requires all-in pricing across the industry,” Ticketmaster MD Andrew Parsons tells IQ.

“This amendment imposes requirements on secondary tickets sites”

A recent report from consumer body Which? revealed that “bewildering” and “sneaky” additional fees make up 25% of UK gig ticket prices after looking at fees charged by Ticketmaster, See Tickets, AXS, Eventim and Dice.

In response, Ticketmaster told Rolling Stone UK that fees are “typically set by and shared with our clients”, while Eventim said: “All mandatory fees are mentioned on page one of the booking process, and nothing is added that the customer wasn’t made aware of from the start.” Dice said: “Fans see the full price upfront, and there are no nasty surprises at the end.”

A further amendment to the UK Bill, put forward by longtime anti-touting campaigner Lord Tim Clement-Jones, would impact the secondary ticketing market by requiring resale platforms to see proof of purchase when tickets are listed for resale.

“This amendment imposes requirements on secondary tickets sites regarding proof of purchase, ticket number limits and the provision of information, with the aim of reducing fraud,” continues the Bill.

The requirements are in line with the recommendations made in a 2021 report by the Competition and Markets Authority to tighten laws around online ticket touting, which were rejected by the UK government in May last year.

The British competition regulator proposed stronger rules to deal with illegal activity on non-price-capped secondary ticketing sites. Its guidance also included measures to clamp down on the bulk-buying of tickets as well as the practice of “speculative ticketing”, where sellers list tickets they don’t yet own.

An additional amendment proposed relates to the sale of tickets received by trustees of registered charities

Other suggestions included ensuring platforms are fully responsible for incorrect information about tickets that are listed for sale on their websites, and a new system of licensing for platforms that sell secondary tickets that would enable an authority to act quickly and issue sanctions.

However, then business secretary Kevin Hollinrake said he was “not convinced” by the need for additional legislative changes.

“I am not convinced that the additional costs that would fall on ticket buyers (as regulatory costs would be passed on) are justified by the degree of harm set out in your report,” said the Conservative MP. “This is especially the case when we are already proposing to give the CMA additional administrative powers to protect consumers which the CMA could deploy in the secondary ticketing market.

“However, we propose to keep the position on maximum numbers of ticket resales under review as part of our ongoing monitoring of the legislative landscape in the ticketing market and in the light of technological, enforcement and other market developments.”

Finally, an additional amendment proposed by Lord Colin Moynihan relates to the sale of tickets received by trustees of registered charities.

“Trustees of registered charities who receive tickets as a result of their position as a trustee must not sell those tickets through secondary ticketing facilities for more than face value plus a handling charge,” it says.

A request by the Charity Commission that London’s Royal Albert Hall be referred to a charity tribunal over concerns its trustees – seat owners who control the London venue, but can also profit from selling tickets – had a conflict of interest, was reportedly refused in 2021.

 


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Artists and managers back calls for UK ticket levy

Artists and managers have backed the Music Venue Trust’s (MVT) calls for a compulsory £1 levy on tickets sold for UK live music events above 5,000-cap.

Music Managers Forum vice-chair Kwame Kwaten and Featured Artists Coalition (FAC) CEO David Martin both expressed their support for the proposal during evidence sessions held in parliament today by the Culture, Media and Sport Committee to explore the ongoing crisis in the grassroots music sector.

Back in January, the MVT revealed in its annual report that 2023 was the worst year for UK venue closures since its launch a decade ago, with 125 venues closing their doors – a rate of two per week – and 38% of members reporting a loss.

“The first impact we need to recognise is that is 125 communities that have lost access to live music on their doorstep, and the impact on those communities… is very traumatic,” said Davyd. “In terms of the short term economic impact, those 125 venues will have provided 16% of all the performance opportunities in the UK. About 4,000 jobs have come under threat or have been lost.

“Our proposal in the UK is £1 per ticket for arena and stadium shows that would create a sustainable fund that could be administered by ourselves, by other people concerned for promoters, for artists, and create a fund where everybody can go so they can take risks with their programming and really give artists the first step on the ladder they need.”

A proposed levy could take three forms. A statutory levy imposed by government, an industry-mandated levy on all qualifying shows (which LIVE CEO Jon Collins pointed out might fall afoul of competition law) or a voluntary levy adopted by different artists, venues or promoters.

Industry umbrella trade body LIVE is in the process of establishing a LIVE Trust as a mechanism to distribute funds to the grassroots sector, and while the concept has been lobbied for – and brought to the attention of government – by Music Venue Trust, today’s hearing saw promoters, artists and managers also stake a claim to any potential funds filtering back to the grassroots sector.

“All of my members will tell you one of their biggest concerns, frankly, is the artists cannot afford to tour,” Davyd said. “It’s not just the venues aren’t there to play in, it’s also the venues are standing empty when they could be putting on bands, because bands cannot afford to put on the show.”

“You don’t get to Ed Sheeran playing two shows last year at The O2, unless he played The Bedford in Balham”

Ferocious Management MD Kwame hailed the ticket levy proposal as a “great initiative”.

“We do support that,” he said. “This whole thing about supporting the level of one person in a show up to 1,000 is absolutely crucial, because you don’t get to Ed Sheeran playing two shows last year at The O2, unless he played The Bedford in Balham, unless he played the Queen of Hoxton with iluvlive promoting. Unless artists and managers are supported from zero to 1,000-people venues, you won’t reach that level.”

Martin said he was open-minded about the idea, which he described as a “relatively complex topic”.

“It would need to be on top of the ticket fee,” he argued. “It can’t be a downward pressure on artists or a voluntary thing, where you have some artists – potentially British artists – saying, ‘Yes, we’re very happy with the levy.’ And then you’ve got foreign artists coming to the UK saying, ‘We’re not prepared to do this.’ It creates an uneven playing field.

“With the right will, government could really help the industry coalesce about how a levy would be collected and distributed.”

But while the FAC was in favour of government intervention in a levy, John Drury, National Arenas Association chair and VP and general manager of OVO Arena Wembley, was less enthusiastic.

“The reality of £1 a ticket for us – given many of our venues are managed on behalf of private landlords, city councils charitable trusts – would be something like a 20% cut in our EBITDA, so it’s not a few grains of sand, it is quite significant,” he pointed out. “Or angle is more that this is a problem for the industry as a whole and it goes right through the live level to artists, managers, agents, promoters, venues and anybody else associated with that system. We’re all very interdependent.”

“The reality of £1 a ticket for us… would be something like a 20% cut in our EBITDA, so it’s not a few grains of sand, it’s quite significant”

Kilimanjaro Live boss and Concert Promoters Association vice chair Stuart Galbraith also spoke in favour of a voluntary levy and cited Enter Shikari’s efforts to donate £1 from their 2024 UK tour to grassroots music venues via the MVT’s Pipeline Investment Fund.

“I think it’s realistic to expect that within the larger music industry, any sort of charge is not going to be absorbed by the industry it will get passed on to the customer,” he said. “If you place it outside the ticket, and if the charitable trust had charitable status, there would be no VAT deduction, there would be no PRS deduction, there would be no venue share and 100% of that money would reach the actual targets.”

The hearings were marked by clear divisions across the various sectors of the business, although all participants agreed that UK government should reduce VAT on concert tickets to something in line with many other European markets, such as the 5.5% rate paid in France. An idea which committee MPs said HM Treasury was highly unlikely to adopt.

On a proposed VAT cut, the position of industry umbrella trade body LIVE was at odds with its members: A blanket 5% VAT rate on tickets has been a principle manifesto point of LIVE for several years, while Drury told MPs that arenas “didn’t need” the rate cut, and Galbraith said a reduction should only be in venues up to 1,000-capacity. Davyd, meanwhile, said that a VAT cut for small venues “still wouldn’t make grassroots venues sustainable”.

“The single biggest change the committee could recommend to make grassroots venues and the ecosystem viable would be that of VAT”

“The VAT cut during a pandemic literally made the difference between us being able to promote shows or not promote shows,” said Galbraith. “The 20% tax burden versus 5% literally meant that we could do 100 more shows that year as we came out of pandemic and we now look at those shows, and they are just not viable. They never reach past the spreadsheet.”

Anna Moulson of the Association of Independent Promoters (AIP) agreed: “Five percent [VAT rate] over lockdown was so welcome with our members because it meant that we could break even which meant we could cover costs and actually make money, which is very surprising on the grassroots level. Some of our members are now turning down grassroots shows in order that they can be below the threshold of having to be VAT registered, so that means less artists will be taken on by promoters and developed by them.”

“We are overrun with people who’ve had a hit on TikTok, desperately now trying to build the grassroots audience that gives them a sustainable career”

In response to a comment that some artists were breaking online and performing at arenas without having toured through grassroots venues, Davyd said there had been a “remarkable turnaround” over the past two to three years.

“We are overrun with people who’ve had a hit on TikTok, desperately now trying to build the grassroots audience that gives them a sustainable career,” he said. “It’s a big thing in our sector for people to now be going out on tour, having jumped forward and then realised, ‘Wait a minute, I don’t have the deep connection with my fans that I get from being in a room with 250 other people.'”

Other topics discussed during the hearing included PRS fees in small venues, with both Moulson and Davyd arguing that much of the fees collected go into a “black box” of unattributed income which is then passed to artists with the most airplay annually. “It’s a reverse Robin Hood effect where income from small venues is going back to the biggest artists”, said Davyd.

PRS for Music’s Gavin Larkins also outlined that a Tariff LP review was due to begin after the summer with a target date of being concluded by Q2 2025.

While there was consensus that the UK grassroots scene was in dire need of intervention, the precise mechanism for that support remains a divisive topic. With artists and managers also now backing the call for a levy, the findings of today’s hearings – due to be published in April – will likely see a strong recommendation for more support for the grassroots sector from the larger venues and operators in the UK. The recommendation is even more likely given that it would reduce or remove the need for the UK Government to act itself in supporting the grassroots sector.

 


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CTS proposes record dividend after bumper year

After its share price reached an all-time high last week, CTS Eventim has confirmed its 18th record year of revenue since its IPO in 2000.

CTS’ share price, which peaked at a record €78 last week, stands at €75.95 at press time.

As previously announced, the pan-European ticketing and live entertainment giant’s annual revenue was up 22% in 2023, surpassing €2 billion for the first time to reach €2.359bn, while normalised EBITDA increased at 32% to reach €501.4 million.

The company’s board will propose to distribute €137.3m in dividends to shareholders at the firm’s 14 May meeting – the highest dividend in its history. The figure equates to 50% of net income or €1.43 per share (previous year: €1.06 per share).

“These excellent results are proof that live entertainment is once again driving the arts and creative sectors,” says CTS chief Klaus-Peter Schulenberg. “We owe this primarily to the creativity of the artists who delight their fans around the world day in, day out. It is also thanks to the countless promoters who, with their boldness and entrepreneurial spirit, stage events and create unforgettable experiences.

“And last but not least, our team and our technologies ensure that live cultural events can thrive and that everyone involved can make a living from their work. Our platforms and systems are synonymous with performance and reliability – as are the company itself and everyone who works here.”

Ticketing, up 32% to €717.3m, was the main driver thanks to demand for tours by the likes of Taylor Swift, Rammstein, Apache 207, Bruce Springsteen, Coldplay and Paul McCartney.

The German-headquartered firm is projecting a moderate rise in total revenue in 2024

“Economies of scale resulting from the shared use of centralised infrastructure helped to increase the margin,” adds a press release.

CTS partnered with Sony Music Latin Iberia to acquire Chile’s Punto Ticket and Peru’s Teleticket last November. However, the full effect of these acquisitions will only be seen in earnings this year as they have only been included in the scope of consolidation since mid-November.

Meanwhile, revenue from its live entertainment segment rose 19% to €1.677bn in 2023, with a key focus in 2023 being the expansion of its business in North America via its JVs with Mammoth Inc and AG Entertainment Touring. Last December, it also joined forces with US promoter Walter McDonald to establish boutique live entertainment company The Touring Co. in North America.

The German-headquartered firm is projecting a moderate rise in total revenue in 2024 and expects earnings to keep pace with 2023 levels.

In addition, CTS’ venue portfolio, which includes Waldbühne in Berlin, Cologne’s Lanxess Arena and London’s Eventim Apollo, among others, will be expanded at the end of 2025 with the 16,000-cap multi-purpose Arena for Milan in Italy.

 


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DEAG announces management handover

DEAG founder and CEO Peter Schwenkow has announced he is handing over operational management of DEAG to co-CEO Detlef Kornett.

Schwenkow, who will step back to an advisory role at the German-headquartered live entertainment firm, made the announcement today (23 March) during a reception for his 70th birthday held at Wintergarten Varieté in Berlin.

“After 46 years at the helm of the company I founded and in the best of health, I am announcing the long-prepared move to a new role,” said Schwenkow. “From 1 April 2024, I will assume the role of founder and senior advisor at DEAG and hand over responsibility as CEO.

“This step, on my 70th birthday, was planned for a long time and carefully prepared. The captain is leaving the bridge, but not the ship. I will continue to be part of the journey as an advisor to the company and – together with my son Moritz – as a major private shareholder in DEAG, in order to make my contribution to the company’s continued growth in the interests of all shareholders.”

He added: “Since 1978, we have continuously and successfully developed new products and markets with committed, loyal and creative partners and employees, without whom this growth would not have been possible. Today, with over 600 employees in seven countries at 22 locations, DEAG is one of the world’s leading live entertainment companies with continuous annual sales of over €300 million.

“Our permanent focus on our customers, artists and guests will continue to be the benchmark of our work in the future.”

“We are sure that – with your continued support – we can look forward to an exciting and prosperous future”

DEAG’s supervisory board paid tribute to Schwenkow for his decades of entrepreneurial work.

“You can be proud of your life’s work,” said supervisory board chair Wolf Gramatke. “And we are sure that – with your continued support – we can look forward to an exciting and prosperous future.”

Kornett, who has been a board member since 2014, was appointed co-CEO alongside Schwenkow last summer. He will be responsible for the firm’s continued growth, together with fellow board members Moritz Schwenkow, Christian Diekmann and David Reinecke, as well as SVPs Stuart Galbraith, Benedikt Alder, Jacqueline Zich and Oliver Hoppe.

Founded in Berlin in 1978, DEAG’s core markets are Germany, Great Britain, Switzerland, Ireland, Denmark and Spain.

Click here to read IQ‘s recent profile of Schwenkow, looking back on his 50 years in the business.

 


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Labour leader pledges to cap ticket resale in UK

Music industry figures in the UK have welcomed Labour leader Sir Keir Starmer’s pledge to introduce new legislation to cap ticket resale if the party wins the next general election.

Speaking today (14 March) at the Labour Creatives Conference in London, Sir Keir said: “We can’t let access to culture be at the mercy of ticket touts who drive up the prices. So a Labour government will cap resale prices so fans can see the acts that they love at a fair price.”

The move would restrict the resale of tickets at more than a small, set percentage above face value, and limit the number of tickets individual resellers can list.

In addition, it would make platforms accountable for the accuracy of information about tickets they list for sale and ensure the Competition and Markets Authority has the powers that it needs to take action against platforms and touts, to protect consumers.

Sir Keir’s speech came just a day after two people were convicted of fraudulently and dishonestly buying and reselling tickets for high-profile concerts by acts including Ed Sheeran as part of a £6.5 million scheme.

A 2022 investigation by ITV News, based on research carried out by campaign group FanFair Alliance (FFA), found that three people were responsible for over two-thirds of UK festival and outdoor event tickets listed by resale platform Viagogo.

“The impact of these policies should be monumentally positive, and help to reset the UK’s live music market for the benefit of artists and their audiences”

Legislation to outlaw ticket touting has been adopted in a number of other countries. However, the UK government last year rejected the recommendations of the British competition regulator to tighten laws around online ticket touting, prompting the FFA, which was established by the Music Managers Forum (MMF) in July 2016, to relaunch its campaigning and advocate for a total ban on ticket resale for profit.

FFA campaign manager Adam Webb describes the announcement as “positive news for music fans”, while managers of acts such as Ed Sheeran, Arctic Monkeys, Nick Cave & The Bad Seeds and Biffy Clyro also applauded the news.

“We have spent years fighting the scourge of online ticket touting and keeping prices fair for fans,” says Stuart Camp of Grumpy Old Management. “The impact of these policies should be monumentally positive, and help to reset the UK’s live music market for the benefit of artists and their audiences.”

“I fully welcome and applaud the commitment from Labour to introduce legislation to reform the broken resale marketplace which has blighted our industry for years,” says Wildlife Entertainment CEO Ian McAndrew. “As a founder member of the FanFair Alliance, we have campaigned for over a decade to encourage change while introducing measures to try and protect fans. The introduction of new legislation will better protect fans from the unscrupulous practices of online touts.”

“ATC has always strived to prevent our artists’ audiences from being exploited by online ticket touts,” adds ATC Management’s Brian Message. “This is often a challenging, time-consuming and difficult process, which is why we helped set up FanFair Alliance and why fresh legislation in this area is now so important. I’m hopeful today marks a real turning point.”

Nostromo Management’s Paul Craig says: “As a music manager, I am delighted with Labour’s initiative to dismantle the secondary ticket market’s grip on live events. This decisive action against online ticket touting should herald a new era where fans can access tickets fairly, and the essence of live music will thrive without the shadow of exploitation.”

“The enforcement of new legislation is the only way to fully clamp down on these rogue traders and the platforms they sell across”

A host of other prominent executives have also spoken out in support of the proposed legislation.

Jon Collins, CEO of trade body LIVE, says: “We welcome Labour’s commitment to clamp down on ticket touting to ensure more tickets end up in the hands of fans and not bots.”

Annabella Coldrick, MMF chief executive, says: “We welcome greatly that the Labour Party has announced this policy and look forward to seeing it come into legislation.”

Stuart Galbraith, CEO of Kilimanjaro Live and co-founder of LIVE, says: “Alongside other FanFair supporters, Kilimanjaro has called for these kinds of consumer-friendly policies for years. As a company, we work incredibly hard to stop our events being hijacked by online ticket touts, but the enforcement of new legislation is the only way to fully clamp down on these rogue traders and the platforms they sell across.”

Gareth Griffiths, director partnerships & sponsorship, Virgin Media O2, says: “O2 has been part of the FanFair Alliance since 2017 with the aim of protecting our customers from online touts during our exclusive Priority Tickets presales.

“We’ve seen the secondary market swamped with over-inflated, sky-high ticket resale prices for years, with no benefit for artists or their fans. Legislation would be a crucial step forward and through our continued work with FanFair Alliance we’re pleased to see this issue getting the attention and action it deserves.”

Meanwhile, a spokesperson for Viagogo expressed caution, saying there is “significant evidence” to show that resale restrictions force fans “to unverified sites and social media, exposing them to a high risk of fraud without any protection”.

“We see this as an opportunity to underscore the effectiveness of today’s regulatory framework of the resale marketplace, which has been shaped by years of government review and oversight,” adds the spokesperson. “A safe, secure and transparent environment for UK consumers has been established.

“We protect consumer’s rights to buy and sell tickets in a secure, regulated marketplace. On Viagogo, payment is contingent on the buyer successfully entering the event, and every transaction is guaranteed, ensuring buyers either gain entry or receive a refund.

“We believe that a comprehensive conversation, focused on practical and effective regulation across the entire ticketing industry, is in the best interest of consumers.”

 


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UK ticket touts convicted in ‘landmark’ £6.5m case

Two people have been convicted of fraudulently and dishonestly buying and reselling tickets for high-profile concerts by acts including Ed Sheeran.

Mark Woods, 60, and Lynda Chenery, 51, both from Dickleburgh in Norfolk, were unanimously found guilty of fraudulent trading offences today (13 March) at Leeds Crown Court. Maria Chenery-Woods, 54, and Paul Douglas, 56, entered guilty pleas earlier in the process.

The four defendants ran multi-million-pound limited company TQ Tickets, which they used to purchase hundreds of tickets for events and concerts by the likes of Lady Gaga, Gary Barlow, Liam Gallagher, Paul Weller and Little Mix, before reselling them, often at hugely inflated prices.

The trial heard the firm sold tickets worth more than £6.5 million (€7.6m) over the course of two-and-a-half years.

An investigation led by National Trading Standards’ eCrime Team found that the defendants used several dishonest and fraudulent tactics to purchase multiple tickets from primary ticket sites, circumventing the platforms’ automated systems to block multiple purchases.

“I hope this prosecution supports progress towards a step-change in the secondary ticketing market”

The defendants then used false identities to resell the tickets – in some cases at 500% more than face value – on secondary ticketing websites.

The court heard they also engaged in fraudulent trading by “spec selling” – listing tickets for sale on secondary ticketing websites that they had not purchased and did not own. Where ticket purchases could not be met, the defendants tried to make it appear that tickets had been sent by giving fake postal trackers and sending empty or torn envelopes.

“This is a landmark case for National Trading Standards and I hope this prosecution supports progress towards a step-change in the secondary ticketing market, making it easier and safer for consumers buying tickets in the future,” says Lord Michael Bichard, chair of National Trading Standards.

Stuart Galbraith, CEO of promoter Kilimanjaro Live, which co-promoted Ed Sheeran’s 2018 UK Tour, was one of the witnesses in the case, and describes the verdict as “good news for live music fans, who are too often ripped off and exploited by greedy ticket touts”.

“We welcome today’s prosecution and the strong message it sends to greedy ticket touts looking to exploit genuine live music fans,” says Galbraith.

“We want to keep ticket prices accessible for as many people as possible and hope to get everyone a good seat at a fair price”

Statements were also read out at the trial by Sheeran’s manager Stuart Camp of Grumpy Old Management.

“We want to keep ticket prices accessible for as many people as possible and hope to get everyone a good seat at a fair price,” says Camp following the verdict. “Today’s prosecution will help protect music fans and sets an important precedent in the live entertainment industry that I hope will be celebrated by live music fans.”

Chenery-Woods is Woods’ wife and Chenery sister, while Douglas is Chenery’s ex-husband. All four defendants will be sentenced at a later date.

The hearing is the latest in a series of prosecutions against ticket touts led by investigators at the National Trading Standards eCrime Team, which have resulted in prosecutions, jail terms and millions of pounds in proceeds of crime returned to the exchequer.

 


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Event tickets remain ‘priority expense’ – report

The appetite for live entertainment in the UK and Ireland remains strong despite the cost-of-living crisis and the threat of recession, according to a new report.

Ticketing marketplace Tixel and entertainment marketing agency Bolster joined forces to produce the newly published Big Ticket Items report into Ticketing State of Play 2024, which offers a deep dive into how ticket buyers are spending.

The study tackles ticketing trends, the impact of fandom and FOMO and the aftermath of the pandemic, as well as expectations around flexibility, last-minute purchasing and event genres.

It also offers insights and commentary from specialists such as Association of Independent Festivals CEO John Rostron, Black Deer Festival co-founder Gill Tee, El Dorado festival director Kate Osler, Ticketsellers & Eventree CEO Phil Hayes and Wild Paths director Benjamin Street.

“The challenge lies more internally with increasing production costs, not decreased consumer spending”

“Despite rising ticket prices, consumer spending on events remains buoyant,” says Hayes. “The challenge lies more internally with increasing production costs, not decreased consumer spending.”

Among the report’s findings are that three-quarters of event goers are attending more, or the same amount of events as last year, with live entertainment and events remaining a priority expense for almost half (48%) of attendees. Furthermore, a third of respondents suggest it is a similar priority to other expenses, with Gen Z scoring highest in this regard.

Fandom is the dominating driving force for ticket purchases for almost 80% of respondents, while over two-thirds say they are more likely to make a purchase if there is an option to re-sell later.

Festivalgoers were shown to be more likely to attend a festival that has a real sense of community, in addition to the lineup being a high motivator. The full report is available here.

 


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Fans can ‘pay with their blood’ for Wacken show

German heavy metal festival Wacken Open Air is offering a novel form of payment for its pre-festival showcase, encouraging fans to “pay with your blood”.

From next Monday (11 March), individuals who donate blood to Essen University Hospital will receive free admission to the festival’s warm-up show. The gig, set for one day after World Blood Donor Day, will take place at the Turock nightclub in Essen, Germany.

“The goal of the World Blood Donor Day campaign on June 14th is to fill the empty blood banks, recruit new donors and ultimately save lives,” organisers said in a press release.

‘Fill empty blood banks, recruit new donors, and ultimately save lives’

This preliminary gig will showcase three acts — Celeste, Downfall of Gaia and Friisk — in an evening ‘dedicated to the extreme varieties of metal’.

The four-day festival has encouraged blood donation for over a decade, offering a free t-shirt in exchange for six recorded donations on the official W:O:A blood donor passport.

The 33rd edition of the metal festival, set for 31 July through 4 August, will be led by Scorpions, Korn and Amon Amarth.

Additional performers include Blind Guardian, In Extremo and Axel Rudi Pell. This year’s instalment sold out in record time, with fans snagging all 85,000 tickets in four-and-a-half hours.

Fans looking to pay for the warm-up show the conventional way can find tickets at Eventim and Metaltix.

 


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LN’s Berchtold: ‘Artists are developing faster’

Live Nation president/CFO Joe Berchtold tackled issues around ticketing, breaking artists and the company’s “hyperlocal” touring strategy in a new interview.

Berchtold told the Morgan Stanley’s Technology, Media & Telecom Conference in San Francisco on 5 March that the live sector was “a global latent demand business”.

Explaining that social media platforms had changed the game “so that fans everywhere are discovering and hearing the same music at the same time”, he added. “Ninety percent of fans are saying that when they discover somebody on social media, it makes them more interested in going to see them live.

“So, we now have seven billion people who are interested in Beyoncé and then, on the supply side, you have artists touring more broadly, with more shows on a given tour than we had in the past.

“There’s a billion people out there who we think over the next several years have the opportunity to be going to concerts and are not all going today. They absolutely are out there.”

Berchtold referenced certain acts ascending to arena and stadium level faster than ever before, pointing to Bad Bunny and Karol G as examples.

“A lot of that opportunity in Europe is focusing on where can we add those music-oriented arenas… and use that to help drive the business”

“They need to now make their income on the roadm but we’re also seeing a phenomenon where artists are developing faster,” he said. “I think in part because of the social media and the discovery, they’re able to find their tribe, they’re able to find their people and enough of a critical mass in more markets where you move from being a club act to an amphitheatre or arena act much faster.

“So every year what’s going on is you have the existing pool of artists continuing to tour, but then you’re adding more in on top of that. So you’ve got a great increasing supply, massive latent demand and affordable luxury.

Berchtold went on to break down the firm’s “hyperlocal strategy” that has borne fruit in the United States.

“It is recognising that you may not go from San Francisco down to the South Bay to go to a concert here because it’s going to take you an hour and a half,” he said. “You’re not going to do that, so we can play down in San Jose and play in San Francisco. You can play in LA, San Diego and Orange County. These are different markets. In Europe, it’s the same. We’re a little earlier days in terms of the hyperlocal, but the US has the benefit of this incredible arena infrastructure.

“When we talk about how we continue to grow, that’s where the Venue Nation side of it comes in. Where can we find markets that don’t have an arena [or] the hospitality that fans today want, so can’t gross what an artist needs to gross. A lot of that opportunity in Europe is focusing on where can we add those music-oriented arenas… and use that to help drive the business over the next several years.”

“It’s easier to buy in ‘A’ asset and turn it into an ‘A+’ than to buy a ‘C’ asset and convince yourself you’re going to turn it into an ‘A'”

Asked about Live Nation’s 2021 acquisition of Latin America’s largest promoter Ocesa, Berchtold described the deal as a “home run”.

“It’s easier to buy in ‘A’ asset and turn it into an ‘A+’ than to buy a ‘C’ asset and convince yourself you’re going to turn it into an ‘A’,” he said. “It’s a world class management team. which matters a lot. And it is delivered on everything we thought. We’re helping deliver more shows and they’re growing their business.”

He continued: “Sometimes it’s better to have a little luck. We closed that acquisition right as Latin music globally, particularly in the US, was taking off. Being able to work with that management team and drive a lot of regional music from Mexico into the US and so we talk long about Bad Bunny and Karol G and Peso Pluma, all these artists who are now selling out arenas and stadiums.”

On the heels of Live Nation’s EVP corporate and regulatory affairs Dan Wall penning a lengthy blog post debunking arguments that the company was responsible for high ticket prices, Berchtold also spoke out in its defence.

“Two-thirds of tickets are under $100,” he said. “A third of our tickets are under $50.”

“We’re not going to solve the problem that 20 million people want two million Beyoncé tickets”

He added: “It is a fascinating industry right from a semi-academic standpoint, because ticketing is so ubiquitous in all of our lives yet, as we’ve learned over the past year or so, it’s massively misunderstood in terms of how it operates,” he said. “Forget about the math behind the numbers, just the basic decision-making of who does what and who decides what.”

While describing Ticketmaster as “the most effective concert selling platform that exists”, Berchtold conceded that evidence from the past couple of years indicated there needed to be an increased focus on the fan experience.

“We’re not going to solve the problem that 20 million people want two million Beyoncé tickets,” he said. “If she has 150m social followers and two million tickets, a lot of people are going to be disappointed in the middle. But there are things from a technology standpoint [and] from a communication standpoint, that can be done better, I think have got better over the past year, but we continue to have a long ways that we need to go.”

In closing, Berchtold addressed the ongoing antitrust investigation into Live Nation and Ticketmaster by the DoJ.

“We’re fully giving them everything they asked for and they’ll define the timetable,” he said. “Meanwhile, we’ll continue to run a great business. Again, I’ll say it over and over, our strategy, our culture, is to super-serve the artists. I don’t think we have anything to be ashamed of with having that as a strategy.

“I think that our structural behaviour is positive for the industry. Big is bad today, but I feel very good about how we are as a company trying to operate what we’re trying to do and what our opportunities are going forward.”

 


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