{"id":2209,"date":"2009-09-03T16:58:03","date_gmt":"2009-09-04T00:58:03","guid":{"rendered":"http:\/\/lefsetz.com\/wordpress\/?p=2209"},"modified":"2009-09-03T16:58:03","modified_gmt":"2009-09-04T00:58:03","slug":"the-wall-street-journal-scalping-article","status":"publish","type":"post","link":"https:\/\/lefsetz.com\/wordpress\/2009\/09\/03\/the-wall-street-journal-scalping-article\/","title":{"rendered":"The Wall Street Journal Scalping Article"},"content":{"rendered":"<p>Was I surprised?<\/p>\n<p>Yes.<\/p>\n<p>Was I shocked?<\/p>\n<p>No.<\/p>\n<p>My inbox has been filling up with people wondering why I haven&#8217;t written about this.\u00c2\u00a0 I&#8217;m not a retweeting service. Ethan Smith did such a good job, I felt there was nothing left to say.<\/p>\n<p>But so many said I needed to spread the word, that most people were not aware of the article.\u00c2\u00a0 So, I am now putting fingers to keyboard.<\/p>\n<p>I don&#8217;t care which side of the health care debate you&#8217;re on, but I read a fantastic statistical analysis which stated that people are extremely reluctant to change position, to be enlightened.\u00c2\u00a0 When confronted with the new, they&#8217;re afraid to give up the old.<\/p>\n<p>That&#8217;s exactly the same situation we&#8217;ve got in the live touring business.<\/p>\n<p>People are still hanging on to the old days, when music drove the culture, when acts played the Fillmore and tickets weren&#8217;t even five dollars.<\/p>\n<p>Those days are through.<\/p>\n<p>It&#8217;s a business, plain and simple.\u00c2\u00a0 And everybody wants to make money.\u00c2\u00a0 And the way they do this is making you continue to believe that the acts of yore, the ones truly selling tickets, are speaking directly from their hearts to yours, that they&#8217;re lone bohemians reflecting on the world.<\/p>\n<p>What a bunch of hogwash.<\/p>\n<p>The acts are smarter than you.<\/p>\n<p>Do you really think Def Leppard believes it can have another hit?<\/p>\n<p>How about Aerosmith?<\/p>\n<p>How about any of the arena acts of the seventies and eighties?\u00c2\u00a0 Especially in an era where NO ONE can have a hit that big.\u00c2\u00a0 And the new acts dash for cash because they know their fifteen minutes of fame starts expiring as soon as the public learns their name.<\/p>\n<p>In other words, I&#8217;d love to blame Ticketmaster, I&#8217;d love to say if we eliminate Irving Azoff, the problem will go away.\u00c2\u00a0 But the problem is the ACTS!<\/p>\n<p>It&#8217;s kind of like politics&#8230;\u00c2\u00a0 People believe they elect representatives who are beholden to them.\u00c2\u00a0 No, these ultimately elected officials are beholden to special interests known as corporations, who give them the money to get them elected.\u00c2\u00a0 Did you see Bill Moyers on Bill Maher where he stated that Rahm Emanuel is afraid of pissing off the health insurers and bankers because he needs their money to get Obama elected in 2012?<\/p>\n<p>Did you really think that Obama was going to get into office and do the right thing, what was in his heart, like Jimmy Stewart in &quot;Mr. Smith Goes to Washington&quot;?\u00c2\u00a0 Do you really think those Senators railing against health care reform are not taking money from the health insurers?\u00c2\u00a0 So why do you think the problem in the concert industry is Ticketmaster or Live Nation?\u00c2\u00a0 Or even Irving Azoff?<\/p>\n<p>Is Irving trustworthy?\u00c2\u00a0 Does he never double-cross?\u00c2\u00a0 Can you count on his word?\u00c2\u00a0 Don&#8217;t make me laugh.\u00c2\u00a0 But Irving Azoff is the most successful manager of the modern era because his acts love him.\u00c2\u00a0 How often do you hear of an act leaving Irving?\u00c2\u00a0 I can&#8217;t remember one.\u00c2\u00a0 I can remember a couple HE fired.\u00c2\u00a0 But no one leaves, because Irving protects them and makes them a fuck of a lot of money.\u00c2\u00a0 And if you think Irving acts alone, forces his charges to do what he wants, how come the Eagles have no sponsorships?\u00c2\u00a0 Do you think the Fortune 500 isn&#8217;t lining up, salivating at the prospect of going into business with the band?\u00c2\u00a0 It&#8217;s the BAND&#8217;S call!<\/p>\n<p>The original Van Halen hasn&#8217;t made a new album in twenty five years.\u00c2\u00a0 And, albums today don&#8217;t sell squat.\u00c2\u00a0 People only want to hear the oldies.\u00c2\u00a0 And after they&#8217;ve heard them once, how many times do they need to hear them live again?\u00c2\u00a0 So better to take all the money now, while demand is hot.\u00c2\u00a0 But, if you charge $1000 a ticket, you&#8217;re going to get bad press. So what are your options?<\/p>\n<p>The ticket with perks.\u00c2\u00a0 Backstage access, a laminate, photos with a few roadies.\u00c2\u00a0 But that money isn&#8217;t guaranteed, people have to actually fork over five hundred bucks.<\/p>\n<p>What if you get a kickback from Ticketmaster?\u00c2\u00a0 Then Ticketmaster will take the heat!\u00c2\u00a0 Ticketmaster never made an album, Ticketmaster has got exclusive deals with buildings who are getting kickbacks.\u00c2\u00a0 Like defense contractors, they don&#8217;t care how they look to the public, most people don&#8217;t even see what&#8217;s going on.\u00c2\u00a0 And, in the end, a faceless corporation takes the heat.<\/p>\n<p>Do you get it yet?<\/p>\n<p>The acts know what&#8217;s going on!\u00c2\u00a0 They want the money.\u00c2\u00a0 Which pales in comparison to what Wall Street bankers make. And they assuage their guilt with the knowledge that their fans would take the gig at the evil hedge fund if only they could get it!<\/p>\n<p>The public remembers a golden era.\u00c2\u00a0 With a social contract between band and fan.\u00c2\u00a0 For a few bucks, you&#8217;d escape into an alternative universe where teachers and bosses don&#8217;t matter.\u00c2\u00a0 But look at Jon Bon Jovi, isn&#8217;t he constantly hobnobbing with politicians and celebrities?\u00c2\u00a0 He doesn&#8217;t care about you.\u00c2\u00a0 He just wants your money.<\/p>\n<p>The future&#8217;s got nothing to do with Ticketmaster, Live Nation or Irving Azoff.\u00c2\u00a0 It&#8217;s got to do with the music.\u00c2\u00a0 Tech is twenty times more interesting than music.\u00c2\u00a0 It&#8217;s a wild west where after a ton of hard work young entrepreneurs can leave their mark and suddenly make millions.\u00c2\u00a0 Like music was decades ago.\u00c2\u00a0 Now, with record companies AND Live Nation publicly owned, do you really think they give a shit about the music?<\/p>\n<p>As for the old acts&#8230;\u00c2\u00a0 They&#8217;ll sing the hit one more time, but you&#8217;ve got to pay for it.\u00c2\u00a0 Do you think all these bands that hate each other get back together for the music???<\/p>\n<p>Change is possible.\u00c2\u00a0 New acts and new managers who are about music first could break through.\u00c2\u00a0 But it&#8217;s harder than ever to break through, and you&#8217;ve got to be BETTER than Van Halen, and that&#8217;s tough.\u00c2\u00a0 Are you willing to practice every day for hours?\u00c2\u00a0 Give up your regular life?\u00c2\u00a0 John Mayer did, and he&#8217;s successful.\u00c2\u00a0 How many others?<\/p>\n<p>Metallica gets tickets in the hands of fans.\u00c2\u00a0 It is possible.<\/p>\n<p>But there are so many institutionalized problems.\u00c2\u00a0 We&#8217;ve got multiple layers of pre-sales, fan clubs, AmEx, promoter, venue&#8230;the odds of a regular person getting a good ticket are almost nil.\u00c2\u00a0 It&#8217;s not a good situation.\u00c2\u00a0 Which is why concertgoing is an occasional event, no longer a once a week, never mind once a month or multiple times per year, event.\u00c2\u00a0 The average Live Nation patron goes to a show fewer than twice a year!<\/p>\n<p>So I&#8217;m not shocked.\u00c2\u00a0 This business jumped the shark years ago.\u00c2\u00a0 Don&#8217;t be outraged.\u00c2\u00a0 Either work for change, which can only come from great music, not great business ideas, or overpay to get a good ticket to the one show you want to see per year.<\/p>\n<p>The merger isn&#8217;t the problem&#8230;\u00c2\u00a0 Acts LOVE Live Nation and Ticketmaster!\u00c2\u00a0 Who else is going to pay them all that money?\u00c2\u00a0 And take the heat for their being greedy bastards to boot!<\/p>\n<p>As for new and developing acts&#8230;\u00c2\u00a0 There is no problem.\u00c2\u00a0 Tickets are cheap and plentiful.\u00c2\u00a0 Furthermore, we&#8217;re building few stars.\u00c2\u00a0 Because the public doesn&#8217;t perceive music to be as culturally important as their iPhone.<\/p>\n<p>We&#8217;re never going back to the past.\u00c2\u00a0 We can go to paperless ticketing, we can eliminate service charges, but both are not happening, certainly not the latter, BECAUSE THE ACTS DON&#8217;T WANT THEM!<\/p>\n<p>Think about that.<\/p>\n<p>Mick Jagger doesn&#8217;t want to play your sterile baseball stadium.\u00c2\u00a0 He just wants you to think that this is your final chance to see the Stones, so he can get your money.\u00c2\u00a0 Cold, but true.<\/p>\n<blockquote style=\"margin-right: 0px;\" dir=\"ltr\">\n<div style=\"margin-left: 40px;\"><a href=\"http:\/\/online.wsj.com\/article\/SB123672740386088613.html\">Concert Tickets Get Set Aside, Marked Up by Artists, Managers<\/a><\/p>\n<p>Read this too: <a title=\"Pssst! Want a Ticket? Hey, I\u00e2\u20ac\u2122m Legit. Really.\" target=\"_blank\" href=\"http:\/\/www.nytimes.com\/2009\/08\/30\/arts\/music\/30sisa.html\">Pssst! Want a Ticket? Hey, I\u00e2\u20ac\u2122m Legit. Really.<\/a><\/div>\n<\/blockquote>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>Was I surprised? Yes. Was I shocked? No. My inbox has been filling up with people wondering why I haven&#8217;t written about this.\u00c2\u00a0 I&#8217;m not a retweeting service. Ethan Smith did such a good job, I felt there was nothing left to say. But so many said I needed to spread the word, that most [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[],"class_list":["post-2209","post","type-post","status-publish","format-standard","hentry","category-music-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p96vPs-zD","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/2209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/comments?post=2209"}],"version-history":[{"count":1,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/2209\/revisions"}],"predecessor-version":[{"id":2210,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/2209\/revisions\/2210"}],"wp:attachment":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/media?parent=2209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/categories?post=2209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/tags?post=2209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}