Just a member of the audience

Deal or No Deal: The Pros and Cons of the 360 Degree Deal

2008-04-13T17:43:00.001-07:00

In my last post I discussed the continuing transformation of the music industry and Live Nation's lead in the changing marketplace. Live Nation has sealed the deal with three of the world's most popular artists and they have all signed 360 degree deals. This type of deal allows the company to take a piece of the revenue from all sorts of areas that were previously untouched by record companies. By making a profit in areas other than recorded music, the company can assist artists in areas that have long been forgotten namely artist development. The 360 deal may just be a way to get back to the age when record labels existed to help an artist be heard and allow that artist to grow. Many artists shy away from the 360 deal as it seems overbearing and areas once providing an artist with an income will now become less reliable for the artist. Perhaps such a deal will only work with artists who are already established but the extra funding allotted to the company will allow for the development of new artists. At least that is what should be done with the extra funding. Upon reaching my own conclusion about 360 deals and wanting to spread my hopes for a more artist friendly industry, I decided to once again venture into the blogosphere and find out what my fellow bloggers thought of the 360 degree deal. The first post I came across, "Why 360 Degree Deals Won't Turn the Music Industry Around" is from a blog entitled Indie Music Strategies authored by Martin Johnson a marketer and self proclaimed Music Business Coach. He believes the 360 deal will do little to nothing to help the artist but only mentions new artists. The second post I found, "Rewriting Record Contracts: The 360-Deal" can be found at Depunked! A Music Blog written by ex music industry writer and intern Bridgette Featherstone. She does a great job of showing the immediate reaction to 360 deals which is often disbelief, but digs deeper into the heart of the deal and finds it has some great rewards. I have commented on each blog and provided my comments with links for you below.

"Why 360 Deals Won't Turn the Music Industry Around"
Comment:
First, thank you for your thoughtful and informative post on 360 degree deals. You have demonstrated that such a deal would be detrimental to new artists but how do you think it will affect established artists? The new deals signed between various artists and Live Nation are all 360 deals and surely, seasoned industry veterans such as Madonna, Jay-Z and U2 would not jump into 10-12 year deals blindfolded. I do agree that signing a new artist to a 360 deal could be unfair to the artist but I believe that with the record label relieving the pressure of immediately sending out a mega hit on a platinum album will allow the record label to spend more time on artist development. At least that would be the ideal way for it to work. Unfortunately there are many music industry executives who simply see dollar signs instead of talented human beings. On another note, perhaps new revenue from established artists 360 deals can help fund new artists and some sort of giving back system can be put together. Unfortunately looking at the history of the music industry, I feel it may be a short term fix for the dip in profits rather than a permanent change for the better. Though I am as skeptical as you, I cannot help but hope that the music industry may someday become more artist friendly. It seems to be shifting to the artist's hands anyway. I appreciate your opinion on the matter and it will be interesting to see how long the 360 deal will last or how many artists who do sign a contract will benefit as I feel it can go either way at this point.

"Rewriting Record Contracts: The 360-Deal"
Comment:
Thank you for posting both viewpoints of the 360 deal. I have read so many blogs where authors simply denounce the deal and do not even give the other side a chance and was beginning to lose hope. It is refreshing to find that you see that on the surface it may seem detrimental but deep down the 360 deal can be quite nice for an artist. Also, your post is well organized and extremely informative. The description of how a 360 deal breaks down is quite helpful in explaining the new industry standard. I agree with you that the 360 deal will not only allow but require labels to spend more time and effort on helping an artist become successful. I feel that the 360 deal may be a major turning point for the industry and could perhaps return the business to the days of artist development. What do you think? Do you feel that established artists will fair much better than new artists with a 360 deal or do you feel that such a system may actually level the playing field? I think 360 deals give all levels of artistry a chance to reap the benefits of a major label relationship. Live Nation is picking up huge artists left and right and signing them to 360 deals. Do you think that Live Nation will soon be a major player standardizing the 360 deal, if they haven't already? Bacardi recently signed a 360 deal with Groove Armada. How do you think random companies picking up artists will affect the major labels? Certainly the old ways are soon to be unattractive to artists and the 360 deal will be the only way to go. Also with other companies stepping up to the label plate, labels are urged to be entertainment companies as opposed to simply record labels. The 360 deal may just create a brand new music industry filled with brand new jobs for the next generation. Again, thank you for your well covered post and I hope to follow your blog for future insight.

The Great Paradigm Shift: More Artists Sign with Live Nation

2008-04-07T00:23:00.000-07:00

In an earlier post, I discussed the rise of Live Nation, the world's largest concert promoter, as CEO Michael Rapino claimed his company would explore other areas of the music business. In the last week, Live Nation's artist development department Artist Nation, has decided to sign a deal with U2, arguably one of the world's most popular rock bands, in addition to their preexisting contract with Madonna. On top of those two, the company is soon sealing the deal with Def Jam CEO and rap superstar Jay-Z. These three contracts would give Live Nation top artists in rap, rock and pop music genres. All three of these contracts are of a new breed called the 360 degree deal. In such a deal, the artist shares revenue not only from recorded music but also touring, merchandise, and other business ventures. Jeff Leeds of The New York Times says, "Like many innovations, these deals were born of desperation". Record labels take a deeper look at the types of ancillary income and have figured out a way to get some of the money for themselves. Many artists make the bulk of their income from these ancillary sources such as touring and merchandise which would make a 360 deal appear rather unappealing. On the other hand, for mega superstars such as those signed to Live Nation, the total revenue is already extremely high that sharing some with the company is not viewed as detrimental. In defense of the company presenting the artist with a 360 deal, it allows the label to take a different approach to selling an artist, as the current model is slowly floundering. This type of deal reassures the company that there will be income from a variety of avenues so immediately producing a hit record will not be an artist's only chance at success. Also, by moving away from the stress of making mega hits, the company can spend more time developing the artist which is something that has been absent from record labels for quite some time. The 360 deal has the potential to save the music industry if it is used properly.

In Live Nation's case, the three artists they have made deals with are already superstars with extremely large and extremely loyal fan bases thus rendering artist development unnecessary. Live Nation's deals require sharing of profits from touring, merchandise, fan club memberships, DVDs, website sales, recorded music and even sponsorship agreements. In return, the company offers the artist a large signing bonus as well as large advances for future albums. Also, the company offers the artist stock options as part of the compensation. This leads to the artist feeling as if they have more of a partnership with the company and will allow the artist to feel more comfortable in a ten to twelve year contract. Though the company shrugs off skepticism of overpaying for its artists, some believe the company could lose money. Naysayers feel that Live Nation will need to overly exploit all possible revenue streams in order to turn a profit. On the other hand, Live Nation could be offering lavish advances and bonuses to the first few deals and change their tactics later in the game. Live Nation has got to create a buzz around Artist Nation before they can start signing anyone other than superstars and in the United States, superstars do not come cheap.

Live Nation's ambitious CEO, Michael Rapino has big ideas for Artist Nation and has come to believe that his company has more expertise in the newly important areas which will be the new revenue streams for music. "I am the biggest enemy of record labels," he has said recently. As Live Nation is a world wide concert promoter owning and/or operating hundreds of venues, arenas and festival sites, the company has preexisting relationships with many corporate sponsors. Live Nation's current sponsors make it easier for the company to find sponsors for their individual artists and perhaps lead to contracts forbidding sponsors from working with other labels or concert promoters. Also, being a concert promoter appears more attractive to artists who understand the importance of touring. Madonna said recently "the paradigm in the music business has shifted and as an artist and a business woman, I have to move with that shift". U2 claims, "We want a closer more direct relationship between the band and its audience and Live Nation has pledged to help us with that". Jay Z has been in and out of various areas of the music business ranging from artist to talent scout to label CEO and has only now found solace in Live Nation's stress on touring as a means of revenue. Jay Z told the NY Times, "In a way I want to operate like an indie band. Play the music on tour instead of relying on radio" He hopes the company can help him do just that. With requests from potential clients for a fresh look at the music business stressing live music and the relationship between performer and audience, who better to lend a helping hand (and seemingly endless amount of money) than the world's largest concert promoter?

Signing three superstars from three vitally important popular music genres to 360 deals sure seems like a fantastic idea. Live Nation will control parts of the whole from all sorts of revenue streams from a variety of artists who will likely generate income from all kinds of avenues. Though ten to twelve years is a long time to wait, it will be interesting to see if these superstars are worth their hundred million dollar price tags. Live Nation continues to be at the verge of the great paradigm shift happening in the music industry and if the 360 deal is the savior or the swan song of the industry, Live Nation will be first to salute or shun the new contract.

A Wild Goose Chase: Searching the Web for Concert Industry Connections

2008-03-29T11:18:00.000-07:00

Recently I decided to scour the World Wide Web for substantial music industry sources, especially with a focus on the concert industry. Having been quite successful, I've decided to yet again search the web for ten more equally interesting and informative sources. The first time around, I focused on sources that industry buffs would look to for help but this time I've decided to look for opinions about the music industry, mainly through blogs. Once again using the IMSA and Webby Awards Criteria, I've decided to rate these links below. Of the new links, which I've posted to the right in my link roll, I found some very interesting blogs. The following blogs I found quite interesting and will surely being to follow the posts. Coolfer, Inside Music Media, Rolling Stone Blogs, You License, Moses Avalon and Future of Music are all fantastic blogs covering a wide range of issues in a concise manner. Each of the authors are currently or have been involved with the music industry for many years which seems to give them a leg up on insider's news. All of these blogs are aesthetically pleasing yet not to flashy to distract the reader from the information. Coolfer also posts current job openings which is something I have not seen on many other blogs. Of the blogs, Future Music Blog tends to post more about the technological aspect of the music industry which is very conducive to the concert industry as new technology can change everything in a heartbeat. Also, Moses Avalon has a great blog with current topics as well as a feature called Scam of the Month where he exposes a new music industry scam in hopes of protecting artists. Most interesting is the organization Downhill Battle with an image to the right. Here is a collection of musicians, music lovers, and perhaps members of the industry working to make the industry safer for the artists. The site is both interesting and informative and offers may links to other music industry sites I would have never discovered without this site's help. I also found a couple more industry news sites, namely The Rock and Roll Report and Live Daily, that brought some unknown issues to my knowledge. It is astounding that there are about five or six of these news sites, if not more, and each one is discussing different topics. The music industry is constantly changing and evolving and many people are on the look out. All in all, the web has countless great sources and my search ended well with many new sites and blogs to check out on a regular basis.

Taking the Live Music Experience Home: Concert Industry Goes Digital

2008-03-09T20:31:00.000-07:00

About three years ago, artists began releasing albums on flash drives as labels tried to squeeze the last few cents out of music as a physical product. In theory, a cool idea; however, flash drives are not so cost effective. Then again, with the drop in physical music sales, perhaps it is not a bad idea to manufacture far less physical products to sell. Anyway, is it now 2008, physical music sales have continued to drop drastically but the hard working employees of concert industry related businesses are not worried. Many might say it is because the live music experience can never be replaced. Believing strongly in this mantra, the live music industry has decided to join the digital age and a few artists have begun to record concerts as they are happening and distributing a recording of the concert right after the concert ends and loading it to a USB flash drive selling at about 30 dollars a piece. Some of the drives look like a normal everyday thumb drive with key chain abilities and one company called Aderra has fashioned a USB flash drive wristband (pictured below). The concert attendee can then purchase the flash drive and bring it home, load it up on a computer and listen to the concert again and even share it with friends. Depending on the performance ability of the artists and their popularity along with the makeup of the fan base, the USB flash drive has the potential to create a whole new avenue for artists to promote their music let alone attract more people to the live show (which is extremely important as the artists takes home most of the money generated at a live event).

Live recordings have the potential to be of much lower quality than a studio recording. The noise of screaming fans or an off key sing-along can take away from the artist's performance. In the past, a live album would be recorded at a concert but when mastered, a sound engineer could simply overdub rough parts and even lower the sound of the crowd. The USB flash drives would not leave time for the overdubbing process and would have a more raw sound than the traditional live album. The live sound guy who works at the venue or is on tour with the band will now not only need to make the live show sound great but also make sure it will sound just as good on a recording that will be distributed by the end of the show. This could create a need for talented sound engineers and perhaps the engineer would even receive a portion of sales. Regardless of the sound quality, if an artist sounds great live than the USB flash drive would probably sell quite well at the merchandise table. On the other hand, if the artist cannot perform well in a live situation, there is not much a sound engineer can do on the spot to fix that. In that case, the USB flash drive would not sell very well and perhaps even become a negative item to have linked to the artist.

Keeping in mind that many artists sound fantastic live, it is quite possible that a live recording of a concert available directly after the concert could be a great promotional device for the artist's tour. Most importantly, artists involved in the USB flash drive program encourage sharing with friends as well as uploading the files online (which creates another problem discussed later) so others can listen to the recording. If the recording is great and the artist sounds fantastic, the flash drive could help promote the tour to someone who might be on the fence about attending a show in his or her own locale. However, if the recording is not so great, it could push the indecisive consumer right off the fence and into some other artist's concert. On a completely different note, this product may only work for certain types of artists and definitely for artists whom have a well established fan base. Such an item would hardly work in a small and loud bar or club type venue but may work wonders in a larger venue with an artist whose fans have already spent 50 dollars just to get in the show let alone another 20 dollars to park. Thus, this item will be targeted at the average and fortunately for the industry, gullible concert attendee. This is the person that will buy a 50 dollar ticket and spend 20 dollars on parking and upon entering the venue buy overpriced beer and food. At the end of the concert, this same person will stand in an oppressively long line and spend 35 dollars on a t-shirt and 20 dollars on a poster. So, why not sell these people a 35 dollar recording of a concert he or she just saw. If the average concert attendee had a good enough time to spend all that money to begin with, it does not sound so bad to tack on a 'few' extra dollars to make the experience complete.

USB flash drives, especially in the wristband style have a great potential for positively promoting live music. The wristband has a greater potential as it could become a fashion accessory and fans may begin to collect them. The format is stylish, convenient and cool which is something that could spark any concert attendee's interest. It is certainly an item that could start a brand new fad. The price may still be a little high as a 35 dollar t-shirt seems extreme, however, 35 dollar t-shirts do get purchased so it is likely that a 35 dollar wrist band would also be purchased and certainly by someone willing to the fork up the cash for an overpriced t-shirt. On the other hand, perhaps many people will avoid buying the wristbands and just wait to find a free download online. Either way the artist will get the music heard and hopefully provoke more people to attend live shows. USB flash drives present a great opportunity for artists to present their music in a brand new format. Unfortunately, it may only work with certain types of artists (those that are well established) with a specific type of fan base (those that are the average and gullible concert attendee).

Room for Expansion: The Concert Industry On The Web

2008-03-02T19:37:00.000-08:00

One would think that with an industry as illustrious and ever changing as that of live music, the world wide web would be littered with web sites and blogs discussing every possible aspect. Through my extensive internet travels and much to my chagrin, I find that there are not as many wonderful sources as I previously expected. The internet is not without such sources, though I think there is much room for expansion on the subject of not only the live music industry but the live entertainment industry as a whole. As far as blogs, it seems as if not too many people have strong opinions on what is going on in the business other than how well or badly an artist performed recently. Now, do not think that the information super highway is completely absent of sources as there are some informative sites as well as opinionated blogs on the subject that I have chosen based on the Webby Awards and IMSA criteria and I have taken it upon myself to list ten of the most worthy of my findings in my link roll located in the right sidebar. First on the list, a primary source for music industry news for both the public and industry execs, Billboard.biz, is full of current events and stories about various topics in the music industry. Containing everything from videos and polls to articles and archives, Billboard.biz is a very interactive yet informative source. Next up is a link to the Concert Industry Consortium which is an annual event that brings together all kinds of people involved in the concert industry. At the conference announcements concerning industry change are revealed as well as predictions for the future of the business. Though the site is rather bare, the keynote address is often very informative though updated only annually. There are a couple links to other interesting websites as well. It does not contain much other information though and perhaps it could be more helpful by adding a forum where visitors can discuss topics raised at the conference. Following CIC is Digital Music News. Here there is up to date news on digital music. Though the live music industry seems to have little to do with digital music, perhaps concert may begin to stream digitally and this site will be a great source for information on such an occasion. The site also offers links to other blogs as well as a calendar of important conferences and other events. Encore, the weekly performance industry magazine, functions much like Billboard.biz, this site offers current industry news but is not updated as frequently as other sites. On the main page, visitors have access to various news topics from festivals to legal to international news. There are also Billboard album charts and a calendar of industry events. It seems to lean a bit more toward the industry executive as opposed to the general public which can be both good and bad. Encore is on par with Pollstar, but slightly less known. A great source for current music industry news is Forbes' music business section as it has current news. However, the website only features articles in the magazine and is very broad covering all aspect of music business in addition to concert industry news. Though it may not be very interactive, there is often articles covering topics that are not heavily covered elsewhere. Recently, I was turned on to Hits Daily Double, which many people in the industry turn to for up to the minute news. This site is updated several times a day and covers a wide range of topics. The site reads a bit like a newspaper with various sections and even a weekly comic. Unlike the previous sites which deal mainly with industry news, I came across the Live Music Blog. Though this blog focuses more on concert reviews, I found a concert industry archive section which had some interesting insight into the industry. It has not been updated in some time, but can be useful for finding old news that could be currently relevant. The Live Music Blog is a great example of many of the other blogs having to do with live music. Many bloggers focus on reviews of concerts as opposed to industry news. Hopefully, I can help fill in the gap using my own blog. There are many magazines about the music industry, including Billboard which I mentioned earlier and also Music Connection, which again, like Billboard has a corresponding web site. The site is very user friendly and saturated with all kinds of information from band interviews to club reviews to industry news. Unknown to me previously, NPR has a music news section as well which updates the site with one or two headlines daily. Often NPR is discussing a topic I have heard little about and does a good job of shedding light on a wide variety of topics. There is also a link to NPR approved blogs which can sometimes be interesting and informative reads, though the blogs tend to be music reviews such as Pitchfork or Obscure Sound. Lastly is my personal favorite resource, Pollstar(pictured at right). Including everything from concert industry news to artist availability to a comprehensive list of all current tours in North America, Pollstar is cohesive in its coverage of the concert industry. It is also the go to place for many industry executives ala the professionals edition of the site, PollstarPro. Covering a great deal of topics all centered around the live music industry, this website is an outstanding source for information. Although I have scoured the world wide web for various sources of information concerning the concert industry and have listed ten solid links, I feel there is much more that I have yet to find however difficult it may be. However, there is infinite space for more relevant and informative sites and blogs concerning the concert industry and with the current changes happening in the music industry and the shift from record labels to concert promoters perhaps the information super highway will soon witness a traffic jam of live music industry web sites and blogs.

Coachella 2008: Will Jack Johnson prevent people from attending?

2008-02-20T00:38:00.000-08:00

Coachella 2008 seems to be a hot topic this year. I might consider myself a Coachella enthusiast. Coachella could quite possibly be the best music festival in the United States. In fact, I might venture to say Coachella is what the most recent Woodstock festival was trying to be. Coachella generally has a relatively obscure lineup with a few major headliners but even then the headliners are relatively obscure unless of course the band is launching a reunion via Coachella. This year, one artist seems to be getting everyone's panties in a twist and that artist is Jack Johnson. Jack Johnson is a relatively popular Top 40 artist. Born and raised in Hawaii, you can generally find his tunes streaming through soft rock stations nationwide. For some reason, many people have decided that Jack Johnson is not good enough for Coachella, what ever that might mean. Personally I may have also been shocked when I first saw the lineup but then again, it's Coachella, it is not supposed to make sense. Also, I recently found out about Jack Johnson's environmental activism which in turn made me kind of want the guy at Coachella. In fact, I might even say I was happy that Jack Johnson is supposedly polluting the spirit of Coachella when in fact, he could be trying to spread the good for solar power. Jack Johnson is one of the few if any whom records his albums in a solar powered studio, which Johnson had built. If that is not being active in preserving the environment from a musician's perspective, I do not quite know what is. Naturally, I wanted to know what others had to say about the Coachella lineup, so I ventured out into the blogosphere to find some answers. First I stumbled across a blog by a student at UCLA Radio. Here a student rants about the lineup in an article called "Coachella 2008: Utopia or Jack Johnson-ed?" The writer is quite clearly disappointed in the lineup especially due to Jack Johnson. The second blog I found entitled "Coachella? Meh." can be found in a Washington Post blog. This writer is also disappointed with the lineup.

Coachella 2008: Utopia or Jack Johnson-ed?

Comment: I agree with you that Coachella is indeed what dreams are made of. I might say Coachella is the perfect music festival. When I first heard about the Coachella lineup, I too was annoyed by Jack Johnson's inclusion. When setting him next to all the other artists it hardly made sense. However, being a Coachella enthusiast, I decided I would deal with Jack Johnson. Not only would I deal with Jack Johnson, but I would find a reason to accept him. Not that I want to pester you, but perhaps I may convince you to rethink your decision and attend Coachella this year. Yes Jack Johnson is playing, but surely there will be at least four other bands to check out during his set and plenty of art with which to interact. Coachella is more than just the lineup. It resides in a giant polo field with five stages and numerous interactive art exhibits. The crowd is almost always friendly no mater who is involved which you note that hipsters, metal heads and more can congregate to enjoy the music. Perhaps most importantly, Coachella is a fantastic place to find out about new music. Never mind checking out every single MySpace link, see a new band live. Surely an opinion can change based on live performance. I will absolutely agree that $270 is a bit steep but when you think of where all the money is being split up it makes sense. Coachella may be expensive but it is also the cleanest and most sanitary music festival. Portable toilets are constantly cleaned and trash strewn across the festival grounds is almost non existent. Also, the fields that Coachella spans leave plenty of room for people to be and not be watching or listening to music. Perhaps to change you mind about Jack Johnson, I can open your eyes to his environmental activism. Many people do not know that he has built a solar powered recording studio and regularly records there. Yes Jack Johnson may be a little mainstream, but he is on our side and he doing something positive to make change. He may not be your favorite artist, but perhaps you can at least respect him.

Coachella? Meh.

Comment: As you are from the east coast I agree that perhaps this year's Coachella is not worth your travel considering the slough of wonderful festival headed your way. At first, I was suspicious of Jack Johnson, but I am a Coachella enthusiast and attend the festival for much more than the few headlining acts. You did mention all the east coast festivals coming up this year and I would like to point out that Coachella potentially had last draft pick as far as Goldenvoice starting All Point's West this year. Surely, the concert promoter would like people to travel out east to visit the first of their east coast festival. Naturally they would littler the birth of the east coast festival with significantly more attractive bands. On the note of Jack Johnson, you as well as many other people have denounced Goldenvoice for their choice. However, there is more to Jack Johnson than meets the eye. He is, in fact, quite an environmental activist. One many even call him "green". Jack Johnson has built a solar powered recording studio where he regularly records his music. This is certainly a step in the right direction and perhaps enough of a step to land a spot at Coachella. What is so bad about his music anyway? It will be a nice way to relax in the desert after a long and hot day of running between stages. Regardless of Jack Johnson, Coachella exists for many more reasons than the headlining bands and surely you will take that into account when choosing whether or not to attend. Although, many of the same acts are playing one or more of the festivals that will be closer to your home and perhaps Coachella really is not worth the drive. As far as I am concerned, I will be there and hopefully enjoying every minute.

The End of an Era: Live Nation Unlikely to Renegotiate a Deal with Ticketmaster

2008-02-10T20:27:00.000-08:00

Anyone who has attended a concert in the last ten years probably bought tickets to the event from Ticketmaster, which has more or less monopolized the web based ticket-purchasing business. The average person probably could not even name another ticketing website. However, the time soon comes to reevaluate the way Ticketmaster has been mistreating its customers. The ever so unpleasant convenience charge will be a woe of the past. Ticketmaster's long term contract to sell concert tickets for Live Nation is to come to an end December of this year. January 1, 2009 will mark the first day of Live Nation's freedom to revive the concert industry. In light of the loss of Live Nation, Ticketmaster has designed various side operations known as secondary ticket sellers. These companies buy numerous seats just as an event goes on sale and then resells the seats for three to six times face value. With the termination of the contract, Live Nation has a chance to turn the souring industry around.

Over the years since Live Nation split from Clear Channel it has earned the coveted position as North America's largest concert promoter, not to mention its stock has more than doubled. The company has already shaken up the music industry by signing a deal with Madonna. With such a position in the live music industry, ticket sales for Live Nation events make up about 15 percent of Ticketmaster's overall revenues. The loss of Live Nation has the potential to cause a severe blow to Ticketmaster's billion dollar business. Ticketmaster is known for its obscene service and convenience charges that generally raise ticket prices 25-35 percent. Michael Rapino, Cheif Executive Officer of Live Nation, feels Ticketmaster's reputation has prevented people from attending concerts. "Seventy percent of people didn't go to a concert last year, and even the average concert fan only attends about two shows a year," Rapino noted. The key to explanding the concert industry is less expensive concert tickets. However, there is more to this than just lowering ticket prices and taking a cut of Ticketmaster's monopoly. Rapino is looking to revolutionize the concert industry and the role his company plays in the growing industry. "When a fan buys a ticket, we learn an enormous amount about them: What bands they like, where they live, how much they are willing to spend," Rapino said. "Someday, a fan will be sitting in a bar and his cellphone will text message 'Sonic Youth are playing tonight. Do you want to go?' He'll buy his ticket over the phone and walk to the concert." One of the main problems with the music industry is its lack to grasp new technology. Rapino realizes the importance of understanding the consumer. In fact, in a brilliant marketing move, he chooses to focus on consumer wants and needs. According to Live Nation executive and operator of the Electric Factory, Larry Magid claims, "You have to be more responsive to fans nowadays."

With the music industry slowly sinking into a bottomless pit as payback for overcharging fans for recorded music over the years, Ticketmaster might want to reconsider its profit making strategy. Of course the company needs to generate a revenue, but if another company can generously reduce ticket prices, Ticketmaster might be in for a rough ride. However, Live Nation could be in for a rougher ride. By the end of last year, Live Nation stock had plummeted by 43 percent. Wall Street is worried by Rapino's bold moves. While supporting ventures into other profit areas, perhaps some of the deals may be overly ambitious. There is even some talk that Live Nation over payed for the Madonna contract priced somwhere around 110 million dollars. In an article at Ticket News, Brian Thompson and Alfred Branch, Jr. state, "While the move to take over its own ticketing from Ticketmaster will no doubt help Live Nation improve its profitability by cutting out the middle man, there are certainly costs associated with building a ticketing operation". They go on to discuss the necessity of offices, investors and an entire team devoted to the ticketing department which currently do not exist at Live Nation. Live Nation has entered a ten year agreement with CTS Eventim, the largest European ticketing company based in Germany. The deal will allow Live Nation to utilize the Eventim ticketing platform which is arguably the most technologically advanced ticketing system in the world. According to Jane Cohen and Bob Grossweiner at Ticket News, "The new ticketing platform will allow Live Nation to control customer data, to create enhanced ticket-based concert products and to capitalize on expanded distribution channels and sponsorship opportunities." Rapino has found himself a company that will help him achieve his new profit goals. Though his moves may be bold it seems he has a clear path set for his company. Rapino goes on to explain the technological advancement of the Eventim ticketing system as well as how Live Nation hopes to use the concert ticket as a means of bring artists closer to the fans.

Regardless, the end of Live Nation's contract with Ticketmaster marks the end of an era in the live music industry but also leaves room for less expensive concert tickets and more satisfied concert goers. As the hackneyed strategy of concert as promotional tool for recorded album deteriorates, the live music industry will be the means of the paradigm shift. Soon the recorded album will switch places with the live show and become the promotional tool for the concert experience. As quickly as the CD sunk to the bottom, the concert experience will rise to the top of music industry revenue. Simple as it may be to illegally download mp3s, watching a YouTube video of a concert could never replace the experience of being a member of the audience.