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Move Concerts partners with Brazil’s DC Set Group

Move Concerts, the largest independent promoter in Latin America, has partnered with DC Set Group, one of Brazil’s leading live entertainment companies, in a deal that sees DC Set partners and co-presidents Dody Sirena and Cicão Chies acquire a stake in Move Concerts Brazil.

The two companies have a history of collaborating on co-promoted tours in Brazil, including Faith No More in 1991 and Shakira in 2018. In the US, Miami-based Move Concerts USA has promoted stateside shows by Brazilian icon Roberto Carlos, who is managed by DC Set Group.

Led by company founder and CEO Phil Rodriguez, Miami-based Move Concerts has offices in Argentina, Brazil, Colombia, Costa Rica, Peru and Puerto Rico. Commenting on the new partnership, Rodriguez says: “I have known Dody Sirena and Cicão Chies for a long time. Over the years we have worked together on some tours in Brazil and have been friends for decades. In 1991, I worked with Dody Sirena on Rock in Rio’s lineup.

“I am thrilled to welcome DC Set to the Move Concerts family”

“I have enormous respect for how they turned their company, DC Set, into a powerhouse that covers artist management, venue management, touring, publishing and esports. I am thrilled to welcome them to the Move Concerts family as they take a stake in Move Concerts Brazil, and look forward to growing our Brazilian operation together.”

Founded in 1979 by Sirena and Chies in Sao Paulo, DC Set Group has promoted numerous international superstars in Brazil, including Michael Jackson, Van Halen, Luciano Pavarotti, Julio Iglesias and Rod Stewart. Move and DC Set will produce concerts and international sporting events initiatives under the Move Concerts Brazil brand.

“The partnership with Move Concerts is the result of many years of partnership, friendship, and respect,” says Sirena. “For the group, it is a privilege to announce this partnership at such an important moment, when major live events are being resumed. There is no doubt that it will be a very successful path.”

 


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Wave of illegal concerts sweeps South America

Thousands of South Americans attended illegal, non-socially distanced concerts and parties over the Easter weekend, with authorities making arrests across the continent as national governments continue to battle the coronavirus with varying degrees of success.

South America remains a hotspot for Covid-19 – with high mortality rates in Brazil, Peru, Chile and Paraguay of particular cause for concern – though the recent unlicensed live events suggest some people are beginning to chafe under ongoing restrictions on indoor gatherings.

In the town of Turuku, in Ecuador’s northern Imbabura province, local government officials, national police and the armed forces shut down an unlicensed music festival, Killary Fest, which would have been attended by an estimated 5,000 people.

Despite dismantling the stage and confiscating much of Killary Fest’s equipment, including speakers, authorities returned on the evening of Friday 2 April to “learn that, despite the warnings, the party was starting”, reports El Comercio. When they again moved to shut down the event, police and soldiers were pelted with sticks and stones by revellers.

The incident follows months of parties, concerts and other unlawful events in Ecuador, reports El Comercio.

In Punta Arenas, the southernmost city in Chile, a local election candidate is being held by police after organising a concert in a former hospital, attended by around 100 people.

Brazilian police continue to target illegal parties, which are being blamed for the surge in Covid-19 cases and deaths

In addition to not seeking permission for the event, Juan Pablo Martinez – who is standing in upcoming city council elections – failed to enforce mandatory social distancing and mask wearing at the clandestine concert, according to prosecutor Rina Blanco.

The show “endangered public health, given the number of people in close contact, and who he invited,” Blanco comments.

A music venue in Morón, near Buenos Aires in Argentina, has been shut down for 30 days after video emerged of cumbia singer Pablo Lescano playing to a non-socially distanced audience.

The event, which many have dubbed “el recital covid” (the Covid concert), was harshly criticised by the mayor of Morón, Lucas Ghi, who says organiser Vaprisana “worship[s] mischief, deception and the violation in rules” – comparing the club unfavourably to the honest businesspeople of the city, who “adhere to the norms and protocols required by the pandemic”.

Brazilian police also continue to target illegal parties, which are being blamed for the surge in Covid-19 cases and deaths in South America’s most populous country.

The most recent brought together around 100 people – half of whom were caught not wearing face masks – in the city of Sao Paolo last weekend. According to local press, the three organisers were arrested, while the venue was fined R$190,000 (€28,000).

 


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Brazilian singer arrested after unlicensed show

A popular Brazilian singer has been arrested after playing an unlicensed, non-socially distanced concert in a school last week.

Samba star Marcelo Pires Vieira, known as Belo (‘Beautiful’), was apprehended by Brazil’s Civil Police yesterday (17 February) following the 12 February show, described by news agency EFE as a “massive concert” at a state school in Parque Uniao, a favela in the north of the city.

According to police, the show took place both without authorisation and without any preventative measures to prevent the spread of Covid-19, including mask wearing.

All Carnival events, parties and concerts are banned this year to prevent the spread of Covid-19 in Rio de Janeiro.

The show “could only have taken place with the authorisation of the head of the gang which controls drug trafficking”

In addition to the obvious breaches of coronavirus restrictions, officers suspect the concert, held on the first night of the Rio Carnival, was organised and financed by drug traffickers operating out of the favela (slum) where it took place.

Footage from the concert, filmed by both attendees and news helicopters, was broadcast on Brazilian television, showing a large crowd at the school.

Gustavo de Mello de Castro, head of the Civil Police’s drug commissariat, ordered the arrest of four people, including Belo. According to a police statement, the show “could only have taken place with the authorisation of the head of the gang which controls drug trafficking in the region,” Luiz Moura Bargosa, who is also subject to an arrest warrant.

A statement from Belo’s publicist says the singer was hired by a production company which had promised to fulfil all health and safety protocols and secure permission to hold the event.

 


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Public live cos add nearly $6bn since March crash

The main publicly listed live entertainment companies have added US$5.75 billion – or nearly $1bn a month – to their collective value since the worst of the Covid-19-induced stock-market crash in March, new analysis reveals.

Combining the market capitalisations of Live Nation, CTS Eventim, DEAG, Time for Fun and Eventbrite, as well as a relevant percentage of Vivendi’s business, shows the six companies were worth nearly $6bn more on 21 September than 20 March, in spite of the six-month-and-counting shutdown of nearly all live experiences.

As in previous IQ coverage of live music’s (pre-coronavirus) stock-market performance, Live Nation Entertainment – the world’s biggest live entertainment business – is the biggest mover, growing its market cap by nearly 60% in the period analysed.

Worth $7.29bn on 20 March, with a share price of $33.97, Live Nation (LYV)’s market cap stood at $11.55bn six months later, with most financial analysts confident the concert behemoth will bounce back strongly post-pandemic. As of 9 September, of the 12 firms covering Live Nation stock, seven have assigned it a ‘buy’ rating, one a ‘strong buy’ and one a ‘hold’, with none recommending a ‘sell’.

While the recovery of Live Nation – which has made an estimated $600m in savings this year, believed to include widespread redundancies globally – is impressive, five of the six businesses included have rebounded strongly over the last six months, with only DEAG shares having declined in price as of 21 September.

Berlin-based Deustche Entertainment AG (LOUD), which trades on Frankfurt’s Xetra exchange, had around $11 million (€9.4m) shaved off its market cap after the value of its stocks fell from €3.48 on 20 March to exactly €3 on 21 September. As of the latter date, DEAG’s market capitalisation was €58.9m ($68.9m), down around 14% on €68.3m ($79.9m) six months previous.

Live Nation is the biggest mover, growing its market cap by nearly 60% in the period analysed

Yet DEAG stock, too, is strongly rated by market watchers: analysts’ ratings similarly lean heavily towards a ‘buy’, with even the most pessimistic financial observers giving the company’s stock a price target of €3.50 in the short term (while noting that DEAG should “return to pre-corona levels” by 2022).

Of the other four businesses, another German company, public pan-European concert and ticketing giant CTS Eventim, was the stand-out performer, growing its market cap more than $1bn by adding nearly €10 to its share price.

Compared to 20 March, when its share price was €31.78 and market cap €3.05bn, CTS Eventim (EVD) shares traded at €41.14 six months later, giving the company a market capitalisation of €3.95bn at the time of writing.

Brazil’s Time for Fun/T4F Entertainment (SHOW3) – the largest promoter in South America – has seen its value increase 42%, from R$131m ($23.8m) to R$186.1m ($33.8m), while US-based self-service and club ticketing specialist Eventbrite (EB) is up 61%, growing its market cap from $649.2m to $1.06bn in the same period.

French media conglomerate Vivendi (VIV), meanwhile, has seen its market cap rise from an estimated €20.9bn in March to €26.38bn on 21 September. The company’s Vivendi Village unit – which incorporates its live (Olympia Production, U Live, festivals and venues in France and Africa) and ticketing (See Tickets, Starticket, Paylogic) businesses – accounts for some 0.34% of the business: €26m in revenue, of €7.58bn total, per its H1 2020 report.

Many outside observers agree live music’s recovery will be complete by 2022

While it should be noted the industry is far from back to its pre-Covid-19 value – Live Nation stocks were once worth nearly $75, while Eventim shares hit a high of €60 in January – the rally bodes well for a sector often described as the first to close and last to reopen, and which has been hit particularly hard by the impact of the virus.

Additionally, the live music industry welcomed two newly public businesses – MSG Entertainment, spun off from the Madison Square Garden Company, and Warner Music Live/Umbrella Artists owner Warner Music Group, which floated in April and June, respectively – in the same period, and which would likely have pushed the $5.75bn figure even higher were those companies trading in March.

With so-called second lockdowns looming in many territories, it remains unclear how global markets will perform in the months ahead, as well as the effects, positive or otherwise, any volatility will have on live music stocks.

One thing, however, many outside observers seem to agree on is that live music’s recovery will be complete by 2022.

As IQ revealed earlier this month, financial consulting firm PricewaterhouseCoopers (PwC) is predicting a complete recovery by 2022, with the value of the live music market (public and private) set to reach $29.3bn – over $300m more than 2019’s $28.97bn – that year, while investment bank Goldman Sachs is similarly bullish, with its head of European media research, Lisa Yang, also heralding a return to normal in 2022.

Read PwC’s live music growth predictions here:

Live music down 64% this year – but will rebound in 2021


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T4F sells stock-car biz to focus on music

Time for Fun (T4F Entertainment) has sold its shareholdings in Vicar Sports Promotions, the promoter of Brazil’s popular Stock Car and Stock Car Light racing series, to focus on its core live music business.

Sao Paulo-based T4F is South America’s leading live entertainment company, promoting shows and festivals and running venues in Brazil and Argentina. It has been in control of the Nascar-inspired Stock Car series since 2006.

The sale of Vicar, to Veloci Investments, is “aligned to the company’s strategic planning in order to increase its efforts to the promotion of major music festivals and live concerts, as well as family events and theatre”, according to T4F’s CFO, André Pinheiro Veloso. T4F’s festivals include Lollapalooza Brazil and Popload Festival.

The proceeds will reinforce Time for Fun’s cash position, he adds.

Similarly to other public live entertainment businesses, T4F saw its turnover decline 98% in the second quarter of 2020 as touring ground to a halt.

 


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Cash reserves intact as T4F revenue falls 98%

Time for Fun (T4F), South America’s largest live entertainment company, saw its turnover decline by 98% in the second quarter of 2020, its latest earnings release reveals.

Brazil-based T4F, which trades on Sao Paulo’s B3 stock exchange, reported revenue of R$2.6 million (US$475,425) in Q2 2020 – down from R$132.4m (US$24.2m) in the same period in 2019. For the half-year ending 31 June 2020, the figure is R$35.1m (US$6.4m), a decrease on 86% on H1 2019’s R$253m (US$46.2m).

In losing 98% of its revenue in Q2 2020, T4F is in good company: US-based Live Nation, the world’s biggest live entertainment firm, experienced the same decline in the same period.

Profit figures were even more bleak, with earnings before interest, taxes, depreciation and amortisation (ebitda) falling 585.5%, leaving T4F with a Q2 loss of R$15.5m (-US$2.8m).

Cost-cutting measures have delivered a 36% reduction in expenses

However, the company – which promotes concerts, festivals and theatrical shows, and sells tickets as Tickets 4 Fun – can take comfort in the fact that 50 events, worth 327,000 tickets, have been rescheduled for when large-scale shows are allowed again, while previously announced cost-cutting measures have delivered a 36% reduction in expenses compared to 2019.

This “cash maintenance” plan, it says, means the group has lost a comparatively low R$4.6m (R$1.7m net) compared to Q1 2020.

Its cash reserves as of the end of June were $217.9m ($39.8m) gross and $57.2m ($10.4m) net.

The full Q2 2020 financial report is available from the Time 4 Fun website.

 


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T4F directors quit as part of cost-cutting measures

Time for Fun (T4F), South America’s largest live entertainment company, is proposing to shrink its board of directors as part of ongoing cost-cutting measures in response to the coronavirus.

T4F, headquartered in Sao Paulo, Brazil, has already accepted the resignations of three directors – Luciano Nogueira Neto, Maurizio de Franciscis and Guilherme Affonso Ferreira – and further proposes to reduce the size of the board at its next shareholders’ meeting on 22 July, according to a market notice issued by the B3-listed company on Monday (22 June).

Fernando Luiz Alterio, vice-president of the board, will continue to fill in as interim chairman until the appointment of a new chair, the company adds.

A programme of cost-cutting was originally implemented at T4F in March, shortly after the postponement of its flagship festival, Lollapalooza Brazil.

Last month, in its Q1 earnings report (which showed initial Covid-19-related losses of R$5.1 million (US$986,200), the promoter outlined further money-saving measures, including a 30% reduction in staff numbers (compared to March), two-month lay-offs for 17% of remaining staff, and the suspension of contracts with suppliers.

 


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Brazil’s ECAD advances performance royalties

Considered one of the most important sources of income for the Brazilian music industry, and especially for singers and composers, the collection of public performance royalties is seriously affected by the consequences of the coronavirus pandemic. According to ECAD, (Central Collection and Distribution Office), the sector may lose R$140 million (US$26.6m) over the next few months.

In an interview with Veja magazine, the agency’s executive superintendent, Isabel Amorim, affirmed that the damage caused by the postponement of events will cause irreparable damage. “It is income that will never be recovered again,” she declared.

According to ECAD, the only temporary relief for the sector will be generated from radio, TV stations and the digital platforms. “This source of payment has never been more important, as almost all other sources of income for artists have been compromised.” In 2019, the agency distributed approximately $986.5 million to 383,000 composers in Brazil.

According to ECAD, 6,600 concerts and events were registered each month for March, April and May 2019, equivalent to the average collection of $11.3 million in performance fees.

With shows and events cancelled around the country, an emergency plan has been approved by ECAD (Central Collection and Distribution Office) and the seven national associations (Abramus, Amar, Assim, Sbacem, Sicam, Socinpro and UBC) to support composers and artists.

Those with an average annual income between $12,000 and $36,000 will receive an advance of $900

The amount of $14 million will be advanced to almost 22,000 Brazilian composers, musicians and interpreters who have had an average annual income between $500 and $36,000 over the past three years (2017, 2018 and 2019).

Copyright holders with an average annual income between $500 and $12,000 over the past three years will receive an advance of $600 divided into three instalments, with $200 paid in April and the remainder in May and June.

Those with an average annual income between $12,000 and $36,000 over the past three years will receive an advance of $900, of which $300 will be paid in April and the rest in May and June.

The amounts advanced will be discounted later, 60 days after the end of the state of public emergency is announced, and in up to 12 equal monthly instalments.

In 2019, R$986.5 million was distributed to more than 383,000 composers, musicians, interpreters, publishers, record companies and music associations. This was an increase of 17% in the number of beneficiaries compared to 2018. 65% was allocated to local Brazilian repertoire. In January of 2020, ECAD distributed a total of R$131.7 million and benefited 69,000 composers, artists and other copyright holders.

 


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Brazilian promoters to offer credit for shows

The Brazilian association of event promoters Abrape (Associação Brasileira de promotores de eventos) has welcomed new measures allowing promoters to offer credit to events that are rescheduled or cancelled due to the Covid-19 pandemic.

The Brazilian government joins those in countries including Germany, Austria and Poland to introduce a voucher scheme for event organisers.

Under the conduct adjustment agreement, reached between Abrape, the national consumer secretariat of the Ministry of Justice (Senacon), the national association of consumer prosecutors (Mpcon) and the federal district attorney’s office, promoters will not be obliged to refund the customer, provided they ensure a rescheduled date for the event or offer credit or discount for use in the purchase of other services.

If an event is cancelled outright and the promoter is unable to offer credit, a refund must be provided to the customer within six months of the cancellation announcement. However, the promoter can keep up to 20% of the ticket price “to reduce any unrecoverable expenses”.

“The initiative aims to guarantee consumers’ rights, without disregarding the effects caused by cancellations of events and shows in the country”

Promoters are given a range of options to offer customers in the case of postponed events. Ticketholders may use the ticket for the rescheduled date, transfer it to a third party, exchange it for another event by the same promoter (not paying a price difference if it is up to 10%), or request credit to use on another of the promoter’s event within 12 months.

According to the agreement, promoters must have dates for rescheduled shows within six months of the pandemic ending, with all postponed events to happen within a year of its end. They must also ensure the rescheduled event contains “the same main attraction” as the original and, if replaced, that it be by others “of the same musical style and status”.

A ticketholder may only request a refund for a postponed show if they can prove that they cannot attend the new date.

“The initiative aims to guarantee consumers’ rights, without disregarding the effects caused by cancellations of events and shows in the country,” says Abrape president Doreni Caramori.

 


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Brazilian fireman serenades streets of Rio

A local fireman is bringing music back to the Brazilian city of Rio de Janeiro, giving trumpet recitals from atop a 50 metre cherry picker in different areas of the city.

For the past few weeks, Elielson Silva has been putting on solo concerts for his fellow citizens in quarantine, all while maintaining social distancing rules.

Donning his fireman’s suit, Silva has recited Brazilian classics such as ‘Cidade Maravilhosa’, ‘Samba do Avião’ and ‘Aquarela do Brasil’, as well as the national anthem, around Rio, including in front of the famous tourist spots Copacabana beach and Sugar Loaf Mountain.

“Everyone is suffering due to the pandemic,” Silva told the Associated Press. “I am trying to boost the moral of the Rio population and alleviate some of sadness of these times we are living in.”

“Bringing these people some music, from above, has been important for me as a musician and for the city.”

 


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