Posts Tagged ‘Chuck Morris’

“IF I WERE…TIM LEIWEKE”

December 6, 2008

Apologies are becoming way too common in the LiveWorks Newsletter, but I must again say I’m sorry to subscribers for sending an old newsletter to you.  To say I’m frustrated with the situation is the understatement of the century…and if any of you know anything about FeedBurner (the service that sends newsletter subscribers their emails), please let me know.  If there is an upside, as promised, at least you didn’t get the “Recession” email again.  Now on to “If I were…”

It is hard for me to wrap my brain around AEG’s business.  They separate it into AEG and AEG-Live.  AEG invests what amounts to hundreds- of- millions in new venues around the world, while AEG-Live is the concert promotion and live entertainment company built around the acquisition of Concerts West.  With all the money flying around it is hard to say how or if AEG makes any.  Since they are privately owned, AEG doesn’t report their financials, so it is even harder for me to poke my big nose into their shit.  So more than ever, please read the following disclaimer:  The “If I Were…” series is based on not knowing what the day-to-day business realities are for those written about.  Also in many situations, I’m looking at decisions from the past after they have already been played-out (or are in the middle of doing so) so it isn’t necessarily fair to play Monday morning quarterback. Oh well!  Fair or not, I like playing the position, so here are some of the things I would do “If I were…Tim Leiweke”.

· MARKETING – AEG should market itself as if it were a public company.  Meaning, they should start reaching out to consumers as a brand.  This is a real opportunity to differentiate AEG events and venues from everyone else’s.  Market in and to your communities.

· FAN RELATIONS DEPARTMENT – Goldenvoice guys should certainly be a part of this unit (just look at what they’ve done with Stagecoach’s layaway plan).  Although as per above, the whole company should be behind this mission, AEG should have a department whose only job is looking after fans (sports, music, family shows, etc).  With the intelligence they can share with the rest of the company, AEG’s whole culture will move into the role.  Think about what you could implement.

· STOP THE BIDDING WARS – In the live music business, bidding wars do a huge disservice to fans by driving ticket prices up, and thus everything else.  Create a committee to look at each opportunity and make a quick assessment of it.  Adding layers of bureaucracy can sometimes actually speed-up the decision making process since every deal wouldn’t have to pass by Randy Phillips and/or Tim.

· ENERGY/GOOD CITIZEN – The new solar panels at LA’s Staples Center and the PR that went along with it is a great example of what I’m talking about.  Getting ahead of the competition by switching over to clean energy, recycling, conservation programs, etc, will not only save you money both now (through tax breaks and energy savings) and in the future (it is said that “U.S. companies can spend billions now or trillions later”), it will make consumers feel better about doing business with you (this has been proven).  Hire a “Green Czar” that’s responsible for these initiatives.  Build it into AEG’s DNA.  The changes that Wal-Mart found their “associates” have made and continue to make since the company started its greening is amazing (looking for ways to cut down on post-consumer packaging, energy saving ideas, and even eating healthier).

· VENUES – I’m sure this isn’t the first time you have heard that several of your new concert venues and theaters are feeling a little sterile.  I think a better analogy might be a modern AMC multi-plex.  Don’t get me wrong (or anyone else saying this), I appreciate not only the investment you are making into our business, but the thought you put behind building them (production manager’s dream, great sound, etc).   Maybe your architects know something the rest of us don’t on how things will look in the future or how the venues will wear over time, but right now they could use a little more character.

· FREQUENT BUYER PROGRAM – Reward loyalty with a program that gives fans discounts on tickets, early access to the best seats, special merchandise, VIP parking without paying for it, etc.  Give them a membership card with special stamps or stickers for each show, game, or special event they attend.  Consumers can show their friends.  Think of it like the concert T-shirt you wear to school the day after the show to let everyone know you were there.  It will work with sports fans young and old the same way it works for music fans.

· THE DENVER OFFICE – AEG needs more strong local promoter acquisitions like Chuck Morris and the Denver office.  In two-years, Chuck, Brent, Don, and company have not only built two new successful music festivals, they have also managed to give Live Nation a run for their money in a market where LN owns and/or controls several major venues in the market (thus the ability to offer more money in theory).  Coincidentally it was Chuck and team (and Barry Fey as it relates to Coors Amphitheater) that built-up most of those venues.

· THE BENCH – Almost repeating myself from the item above but not really.  For some reason there is a perception that AEG doesn’t have a deep bench.  Not sure that reality matches perception (Tim, Randy, Larry, Paul, John, Chuck, Debra, etc) but it is out there.  Might be time to speak with John Scher in New York, Arny and Jerry in Chicago, and more.

· BUY LIVE NATION – They should be willing to sell it right now at a real discount.  Go directly to those that hold the IOU’s and make an offer to buy the company @ $7 per share.  The stock could fall below $4 this week.  Make your move.  Stockholders like me will be really happy to get out alive and you would end at least one war.

· RESTART DIALOGUE WITH MSG & TICKETMASTER – If buying Live Nation doesn’t work out, how about trying to re-engage conversations with MSG and/or Ticketmaster?  Again, now might be the right time to talk as both Ticketmaster and MSG are on the move and cash is king.

· BRANDS – We in live entertainment are just not getting it right when it comes to working with brands.  AEG has a great sales team (I’m sure, never met them as I have the Live Nation team, who are also very good) for their building’s naming rights etc, but need to do even more to work across their multiple platforms (venues, local concerts, tours, sports).  It is time to breath new life into our business.  I bet there are some very smart marketing and branding types who are feeling rather concerned about their Detroit jobs these days.  Sunny California probably looks pretty good right about…now.  Bet they would work for less with a big upside too.

That should be enough to keep Tim and company going for a while.  Again, please know that just as with Michael Rapino, I don’t know the realities of Tim Leiweke’s job.  These are just ideas I would work towards knowing what I know, “If I were… Tim Leiweke”.

Talk with you soon,

Jim

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Top 10 Ways to Make Your Festival Successful

November 27, 2008

Last week I had the honor of moderating the “Festival Panel” at the Billboard Touring Conference in New York.  I hadn’t really wanted to do these type of things since starting the Aspen Live Conference (Dec. 11-13 @ St. Regis, Aspen http://www.aspenlive.net), but when Ray from Billboard emailed me the list of panelist, it was an easy yes.  After all, we are talking about the best and most successful music festival producers in North America.

The panel; Chris Shields from Festival Productions (New Orleans Jazz and Heritage Festival, Newport Folk Festival, Playboy Jazz Festival, etc),  Charlie Jones from C3 Presents (Austin City Limits Festival, Lollapalooza, etc), Tony Conway from Buddy Lee Attractions (CMA Festival, Nashville…formerly Fan Fair), Chuck Morris from AEG-Live, Rocky Mountains (Mile High Festival, Rothbury), and Ashley Capps of AC Entertainment (Bonnaroo, Vagoose) really are the best at what they do.  Our Canadian representative got sick and was unable to…well represent.  The basic question that we were dealing with was the health of the festival business in North America.  Is there room to grow?  Are there enough headliners to go around and still have each festival keep its identity?  The easy answer to all is yes.

Tony Conway pointed out that the CMA Festival actually raised their ticket prices this year and are at this point well ahead of last year’s sales to date, without announcing a line-up (the event takes place in the spring).  On a call prior to our panel, Charlie Jones talked about how the Austin City Limits audience “must be trained or something”.  The fact is they are…trained to expect that the event will be well run, with great music and food, clean port-a-johns, plenty of places to get a bottle of water that doesn’t cost $4, amazing transportation system, and a friendly staff.  The ACL and CMA audiences are trained to expect quality and value.

Based on my notes from our panel, here is what the experts had to say…at least on that day is the TOP 10 THINGS YOU CAN DO TO MAKE YOUR FESTIVAL SUCCESSFUL!!!

1)      Know Your Market There is so much that goes into a festival’s workings, that without knowing about traffic patterns, neighbors, law enforcement, political issues, competition, and a whole host of other issues, you are setting your festival up to fail.  Chuck Morris pointed out that artists that aren’t big around the country can draw in Colorado.  One reason being radio station KBCO in Boulder.

2)     Community Relations – Each of our panelists at the Billboard Touring Conference had at least one story of how building relationships with community and business leaders, neighborhood associations, law enforcement, fire and rescue, parks & recreation officials, health department, and others gave them some kind of advantage.  Whether it was bidding on a new project, going into a new city, or getting into trouble and needing help, there is no substitute for being a good citizen.

3)     Over Deliver – Especially in year one, it is important to over deliver for your consumers and talent.  Even if it means the difference between breaking even and losing money, spend the extra to WOW the audience.  It keeps them coming back…”trains them”.

4)     Price – Price is very much tied to knowing your market, but for some reason, festival pricing is much more sensitive than regular live entertainment pricing.  Your customers really want to feel they are getting their money’s worth since there is an assumption that what ever they are going to see will be watered down (music act will play a shorter set without their production, food festivals will give you smaller portions than the restaurant would, etc).

5)     Transportation & Housing – This really should be 2 if not 4 separate departments of your festival team.  Certainly if you going to have 2 departments you need to separate responsibilities between those that handle transportation or housing for artists and crew and those that will get the audience from place to place.  Housing is a place not to be overlooked.  Every try to get a hotel in a city where there is a large festival?  Good luck!

6)     Booking Talent – The strong message here is that anyone can book a really big headliner; it is the whole package that makes a festival. Remember, a festival is more than a line-up it is about passion.

7)     Camping vs. “City” Festivals – Our panel all believed that the growth in North America would be more in the non-camping festival model (ACL, Jazz Fest, CMA Fest, etc).  With that said, Rothbury only started-up last year in Michigan and it is a camping festival.

8)     Food & Beverage – Every producer will tell you about the part that food and beverage play in the overall feel of your festival.  With festivals like New Orleans Jazz & Heritage and Austin City Limits, the food has become almost as much of a draw as the music.  Also price was a big topic.  Some people just have a problem with $4.50 for water.

9)     Technology Is Your Friend – Use technology whenever and wherever possible to make your fan’s experience more enjoyable.  Things like an event schedule that consumers can customize to plan their day at your festival have become necessity.

10)  Build a Model – All of our panel’s festival producers pointed out that once you had a model that worked, you could reproduce that model in other cities and with other festivals.  The key here is experience.

If there was an 11, it would have to be staying out of trying to do a festival if you have no experience.  Better to partner with someone like those listed above who already have their “models”, and can make things run smoothly for you.  Going in head first without learning to swim can make all of us drown.

Talk to you soon,

Jim