{"id":470,"date":"2006-07-06T16:12:03","date_gmt":"2006-07-07T00:12:03","guid":{"rendered":"http:\/\/lefsetz.com\/wordpress\/index.php\/archives\/2006\/07\/06\/the-news\/"},"modified":"2006-07-06T16:12:03","modified_gmt":"2006-07-07T00:12:03","slug":"the-news","status":"publish","type":"post","link":"https:\/\/lefsetz.com\/wordpress\/2006\/07\/06\/the-news\/","title":{"rendered":"The News"},"content":{"rendered":"

LIVE NATION\/HOB<\/strong><\/p>\n

HOB wanted out.\u00c2\u00a0 At a much higher price, but out nonetheless.<\/p>\n

We can talk about the fuck-ups in HOB’s history, Isaac Tigrett’s overspending a la Erich von Stroheim and the failed (or far ahead of its time) filming of acts for new media distribution, but that’s all in the past.\u00c2\u00a0 Now we’re left with two big players and a bunch of renegades.<\/p>\n

Never fuck with the likes of John Scher and Jon Stoll.\u00c2\u00a0 How do you think they survived this long to begin with?\u00c2\u00a0 Concert promotion is an historically scary business, where it was always cash, not checks, and enough drugs and guns to make 50 Cent feel at home.\u00c2\u00a0 If you could make it there, you could make it ANYWHERE!<\/p>\n

But, Live Nation has deep pockets.\u00c2\u00a0 And AEG even DEEPER pockets.\u00c2\u00a0 God, in a bidding\/pricing war I’d bet on AEG, for concerts are not Anschutz’s only business, by FAR!<\/p>\n

But this is a sad day in the history of the music business.\u00c2\u00a0 Concerts are not like records.\u00c2\u00a0 The Internet revolution, despite the RIAA hype, is good for music.\u00c2\u00a0 For it allows ANYBODY in.\u00c2\u00a0 ANYBODY can get distribution.\u00c2\u00a0 The Net is INFINITE!<\/p>\n

But there are not an infinite number of concert venues available.<\/p>\n

Live Nation now owns the shed business.\u00c2\u00a0 AEG will tell you those buildings, that whole PARADIGM, is passe.\u00c2\u00a0 We do know that the buildings are aging and require capital investment.\u00c2\u00a0 And that not everything sells out outdoors anymore.\u00c2\u00a0 It’s not quite the special event it once was.\u00c2\u00a0 As evidenced by the reduced schedules these venues now sport.\u00c2\u00a0 But, it’s all about distribution baby.\u00c2\u00a0 And if you control ALL of the sheds, you’re a king in the eye of the agents and managers.\u00c2\u00a0 Not everybody wants to play indoors.\u00c2\u00a0 Not during the summer.\u00c2\u00a0 Not when there might not be a comparable indoor building with such variable sizing options (yes, never forget the lawn, which can be empty for some events and no money is lost and be FULL for others and revenue can climb ever higher).<\/p>\n

A lot of the buildings are still open venues.\u00c2\u00a0 But can anybody really get in?\u00c2\u00a0 What are the barriers to entry?<\/p>\n

God, Live Nation can afford to lose on some shows to win on others.\u00c2\u00a0 Can an independent?\u00c2\u00a0 At these prices?\u00c2\u00a0 Can new twentysomethings get in?\u00c2\u00a0 Not unless they’ve got a VERY rich daddy.<\/p>\n

This merger is bad for everybody but Live Nation and HOB.\u00c2\u00a0 The fewer customers you have for your acts, the lower the ultimate price you’re going to get.\u00c2\u00a0 As for concertgoers, let us count the ways in which ticket prices will go up.\u00c2\u00a0 Acquisition costs of buildings.\u00c2\u00a0 Stock performance.\u00c2\u00a0 It goes on and on.<\/p>\n

Blame Robert Sillerman.<\/p>\n

And Wall Street.\u00c2\u00a0 Not only the downtown denizens who invested in SFX, but the financial people running up Live Nation’s stock today.\u00c2\u00a0 WHY?\u00c2\u00a0 Is there something I don’t know?\u00c2\u00a0 Are there a new Beatles and Stones on the horizon?\u00c2\u00a0 Are there suddenly another hundred million people in America?<\/p>\n

Radio consolidation, allowed by the government, killed the medium for music.<\/p>\n

Concert promotion consolidation has yielded no benefit for the consumer, only losses.\u00c2\u00a0 But unlike with radio, the fan has got no alternatives.\u00c2\u00a0 A kid can’t erect a concert venue on the skills he picked up surfing the Internet.<\/p>\n

\n

Big Promoter of Concerts to Acquire House of Blues<\/a><\/p>\n<\/blockquote>\n

BILLBOARD\/R&R<\/strong><\/p>\n

Trying to build an irrelevant monopoly.<\/p>\n

This kind of information belongs on the Web.\u00c2\u00a0 And, with Net distribution, you no longer need SoundScan.<\/p>\n

Two dinosaurs pairing up for the ride to hell.\u00c2\u00a0 GOOD RIDDANCE!<\/p>\n

\n

Billboard buying rival publication Radio & Records<\/a><\/p>\n<\/blockquote>\n

UNIVERSAL VARIABLE PRICING<\/strong><\/p>\n

A non-story.<\/p>\n

Don’t blame Universal.\u00c2\u00a0 They’re just milking their cash cow, discs, before the business implodes.<\/p>\n

Sure, charge more for first line product.\u00c2\u00a0 The business ALWAYS\u00c2\u00a0 had this wrong.\u00c2\u00a0 Shit, the hottest CONCERT acts are not the cheapest.<\/p>\n

And sell the old stuff as cheap as you can.\u00c2\u00a0 Stores have been clamoring for lower price points.<\/p>\n

And hell, leave a middle ground for shit you’re not quite sure where to place.\u00c2\u00a0 Stuff new, but not so in demand.<\/p>\n

But don’t make it about costs.\u00c2\u00a0 The packaging costs are negligible relative to the price of the ultimate product.<\/p>\n

But the disc is dead.\u00c2\u00a0 Video extras.\u00c2\u00a0 Higher sound quality.\u00c2\u00a0 It’s irrelevant.\u00c2\u00a0 We’re on an inexorable death march.<\/p>\n

\n

CD format gets a "reboot" from Universal Music<\/a><\/p>\n<\/blockquote>\n

XM\/SIRIUS<\/strong><\/p>\n

Panero is history.\u00c2\u00a0 There were rumors of this when I was in the building, since the stock price tanked so much under his watch, but now with these new subscriber numbers, it’s gonna be official.\u00c2\u00a0 WHO’S STEERING THIS SHIP?<\/p>\n

Sirius has terrible coverage.\u00c2\u00a0 The signal drops out constantly.\u00c2\u00a0 It has worse radio products.\u00c2\u00a0 Yet it’s got all the buzz.\u00c2\u00a0 And it’s going to ride this buzz to victory.<\/p>\n

Mel talking about a merger?\u00c2\u00a0 Hell, there are two different technologies!\u00c2\u00a0 This isn’t Warner and EMI.\u00c2\u00a0 But why does HE get all the ink, why does HE look in control and XM saying nothing looks like the secondary player even though it’s the leader?<\/p>\n

XM blames their shitty numbers on lack of new products and soft retail.\u00c2\u00a0 Obvious hogwash, since, as stated above, Sirius has much worse radios and the theoretically soft retail marketplace didn’t hurt them.<\/p>\n

Sirius has the one thing XM lacks.\u00c2\u00a0 Marketing.\u00c2\u00a0 The marketing is SO bad at XM you’d swear a teenager is running the operation.<\/p>\n

What does XM stand for?<\/p>\n

We know what Sirius stands for.\u00c2\u00a0 Howard Stern and celebrities.<\/p>\n

XM stands for…baseball.<\/p>\n

XM has a REVOLUTIONARY music programming concept.\u00c2\u00a0 Of truly changing the marketplace.\u00c2\u00a0 By not insulting the listener.\u00c2\u00a0 By making broad swaths of music available for listening.\u00c2\u00a0 Does anybody know this?<\/p>\n

And despite the jive jocks and endless repetition on so many music channels Sirius is LIGHT YEARS better than terrestrial.\u00c2\u00a0 And some of the stations are actually quite deep and good.<\/p>\n

So why buy XM?\u00c2\u00a0 Doesn’t everybody want to be a winner?<\/p>\n

Who buys a Creative Zen instead of an iPod?\u00c2\u00a0 The same kind of person who buys XM instead of Sirius.\u00c2\u00a0 An iconoclast.<\/p>\n

Who do we give credit to?\u00c2\u00a0 Scott Greenstein who wooed all the talent, even though he overpaid for it?\u00c2\u00a0 Or Mel, who gave the operation a recognizable figurehead?<\/p>\n

This isn’t rocket science.\u00c2\u00a0 Yet XM has failed completely.\u00c2\u00a0 And then tried to compete by IMITATING Sirius.\u00c2\u00a0 Bringing in Jon Zellner to tighten playlists.\u00c2\u00a0 Hiring a non-appearing Oprah.<\/p>\n

When it comes to entertainment, the fundamentals come last.\u00c2\u00a0 You make your money at the end.\u00c2\u00a0 First and foremost it’s about creating something exciting, something that draws eyeballs, something that’s HOT!\u00c2\u00a0 Look at Paris Hilton.\u00c2\u00a0 There’s truly nothing there, it’s not like she’s even that great looking, yet she laughed all the way to the bank.\u00c2\u00a0 Because she realized it’s about buzz and perception.<\/p>\n

Sirius has got the buzz.\u00c2\u00a0 Sirius is perceived to be better than XM.\u00c2\u00a0 XM will be in a death spiral unless they SPEND money instead of trying to get to profitability, telling their story.<\/p>\n

But it may be too late.<\/p>\n

Supposedly it was all about car installations.\u00c2\u00a0 But ask a potential satellite radio consumer.\u00c2\u00a0 Does he understand business or does he want to go see the lame "Superman" movie to appear hip?<\/p>\n

Panero came from cable infrastructure.\u00c2\u00a0 Mel understands sizzle, at least more than Panero.\u00c2\u00a0 It’s no contest.\u00c2\u00a0 Someone with a profile has to come into XM and try to save it.\u00c2\u00a0 But the D.C. company is already looking like an also-ran.<\/p>\n

\n

Sirius Continues Run, Outperforms XM<\/a><\/p>\n<\/blockquote>\n

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LIVE NATION\/HOB HOB wanted out.\u00c2\u00a0 At a much higher price, but out nonetheless. We can talk about the fuck-ups in HOB’s history, Isaac Tigrett’s overspending a la Erich von Stroheim and the failed (or far ahead of its time) filming of acts for new media distribution, but that’s all in the past.\u00c2\u00a0 Now we’re left […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","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-470","post","type-post","status-publish","format-standard","hentry","category-music-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p96vPs-7A","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/470","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/comments?post=470"}],"version-history":[{"count":0,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/470\/revisions"}],"wp:attachment":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/media?parent=470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/categories?post=470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/tags?post=470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}