AEG
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Veteran touring specialist Rich Schaefer has been officially promoted to president of global touring at AEG Presents. Schaefer takes over the role from Gary Gersh, who announced he would be stepping down last month. In his new role, Schaefer will oversee all aspects of the concert promotion company’s worldwide touring deals, operations and talent relations. […]
Crypto.com Arena in Los Angeles is opening the first ever Coke Studio — a 3,300 square-foot music studio and event space that will feature exclusive branded merchandise and product offerings along with podcast recordings, live performances, artist appearances and more. The Coke Studio is part of a renewed partnership with arena owner AEG, Coca-Cola North […]
L.A. Live’s 7,100-seat venue will no longer be called the Microsoft Theater, officially changing its name to Peacock Theater after NBCUniversal’s premium streaming service as part of a multi-year naming rights agreement with property owner AEG.
The entertainment district’s 40,000 square foot open-air plaza, formerly known as XBOX Plaza, will now be known as Peacock Place. The agreement, brokered by AEG Global Partnerships, establishes Peacock as the exclusive streaming partner of L.A. Live.
The name change comes a year and a half after anchor arena Staples Center changed its name to Crypto.com Arena in a landmark deal valued at $700 million over 20 years.
Kelly Campbell, president of Peacock at NBCUniversal, commented that the agreement brought “all the elements of our brand to life with the millions of fans who visit L.A. Live each year.” Nick Baker, chief operating officer of AEG Global Partnerships, noted the “content within the Peacock platform is ideal for our audiences and the synergies between both organizations around our variety of events is limitless.”
Lee Zeidman, president of Crypto.com Arena, Peacock Theater and L.A. Live, added, “We are looking forward to the opportunity to collaborate with Peacock to create new content and programming to complement our existing roster of amazing concerts, awards shows and special events we are known for at all of our iconic L.A. Live venues.”
With the comprehensive new agreement, Peacock will have an enhanced brand presence across L.A. Live, including significant interior and exterior signage at Peacock Theater, fixed signage at Peacock Place, a branded content studio and customized fan activations and brand integrations throughout select premium locations of the sports and entertainment district.
Peacock will also engage fans via signature digital signage elements, including a brand-new, dedicated LED marquee at the corner of Figueroa and Olympic Blvds., one of downtown L.A.’s busiest intersections. With this new signage, Peacock can highlight its latest content including key series premieres, promotions and special events taking place at L.A. Live over the course of the partnership. Once complete, the largest of the two new signs will measure more than 29 feet high and 56 feet wide. The second will stand at more than 29 feet high and 88 feet wide, providing Peacock with premium exposure to millions of people each year. The signs will connect at the corner, with one facing Figueroa and the other facing Olympic and will remain a permanent fixture at L.A. Live for the length of the partnership.
The country’s two leading concert companies, Live Nation and AEG, are at odds over how Congress should address the future of ticketing after a disagreement over Taylor Swift’s record-breaking The Eras Tour.
Long before the pop star’s Nov. 15 sale dominated the news cycle, where hundreds of thousands of Swift fans experienced service disruptions that kept them from buying the tickets they wanted, the two companies had signed an agreement that many thought might take AEG out of the ticketing business entirely. In 2021, when AEG announced that its facility management division ASM had struck a deal to make Ticketmaster its preferred ticketing partner, many assumed that meant the company was on the way to shutting down its own ticking platform, AXS Tickets.
Instead, ASM’s contract with the Live Nation-owned Ticketmaster would pave the way for an expansion of AEG’s AXS, thanks to a provision in Ticketmaster’s exclusive agreement that granted AEG the right to use AXS to sell tickets to AEG-promoted shows at ASM venues, sources tell Billboard. AEG tours like Kane Brown, Elton John and Luke Combs could opt out of using Ticketmaster when playing ASM-client venues such as Soldier Field in Chicago, U.S. Bank Stadium in Minneapolis and Desert Diamond Arena in Glendale, Ariz., and use AXS instead. This marked the largest carve-out in Ticketmaster’s exclusivity contract to date, potentially allowing hundreds of arenas, stadiums and performing arts centers to use AXS for the first time, like the new Allegiant Stadium in Las Vegas — the highest grossing stadium on Billboard’s 2022 year-end Boxscore chart.
The provision was a sort of double victory for AEG, Live Nation’s leading competitor: The company was able to leverage its control over 350 ASM venues to get those clients large payouts for re-signing with Ticketmaster without forsaking its own ticketing service. AEG officials had also hoped this might mark the beginning of a more open ticketing ecosystem away from the sorts of exclusive deals that have helped Ticketmaster gain such dominance in the space. But less than two years later, AEG and Live Nation find themselves at odds, divided over the handling of Swift’s The Eras Tour.
AEG is now refusing to join a coalition of music companies supporting Live Nation’s Fair Ticketing campaign, a piece of proposed anti-scalper legislation born out of the bot attack on Ticketmaster’s Nov. 15 presale for Swift’s tour. While Universal Music Group, Red Light Management, Irving and Jeffrey Azoff, and all four major talent agencies are backing the FAIR Ticketing reforms to ban scalping practices like “speculative” ticket selling and mandating all-in pricing across all ticketing marketplaces nationally, AEG has been taking a different approach to what they see as some of ticketing’s biggest problems. Sources tell Billboard that AEG executives have been quietly lobbying the Department of Justice to investigate Ticketmaster’s use of exclusive ticketing contracts to lock up the ticket market as a possible violation of its consent decree governing its merger with Live Nation in 2010. AEG leadership is also lobbying politicians to include restrictions on such exclusive ticketing practices in new legislation that could be introduced as soon as this week.
Sources say Live Nation executives have been careful not to engage with AEG publicly about its exclusivity agreements. Privately, they have accused AEG of trying to have it both ways, accepting the money that comes with exclusive ticketing contracts, while trying to expand AXS ticketing beyond the ASM deal into all NFL stadiums ticketed by Ticketmaster.
“This is a bad look for them,” one source at Ticketmaster tells Billboard.
Since Live Nation merged with Ticketmaster in 2010 and AEG launched its own ticketing platform in 2012, both companies have found they can earn more from the concerts they promote if they also control the ticketing, collecting more fees for themselves, while keeping data generated by the concert in house. The additional revenue for a promoter like AEG could be substantial, especially for an artist like Swift, who sold a total of 2.4 million tickets for The Eras Tour.
With Swift’s tour, sources say AXS was expecting to handle some of the ticketing under the ASM-Ticketmaster provision, since AEG was a co-promoter with partner Messina Touring Group. ASM managed five stadiums, representing 12 shows on the 52-date trek, and sources say AXS officials were hoping its ties to the tour could lead to it getting some, if not all of the tour. Except that Ticketmaster executives said their exclusive contracts with more than a dozen NFL teams (and the venues they own) superseded AXS’ claim. Under that reading of the deal, two of the 12 ASM dates — a pair of concerts at State Farm Stadium in Glendale, Ariz. — would be ticketed by SeatGeek under its exclusive deal with the Arizona Cardinals. Making matters worse, two of ASM’s management clients decided to partner with Ticketmaster for the sale.
Down to just five shows at two stadiums, AEG dropped the matter. According to a source, AEG executives have since spoken with the Department of Justice, encouraging them to look at Live Nation and Ticketmaster’s use of exclusive contracts as anti-competitive.
Relations only worsened in the days following The Eras Tour presale. After the fiasco, Live Nation chairman Greg Maffei appeared on CNBC to defend Ticketmaster and cited the company’s arrangement with AEG in response to claims of monopolistic behavior. “AEG, who is the promoter for Taylor Swift, chose to use us because, in reality, we are the largest and most effective ticket seller in the world,” he said. “Even our competitors want to come on our platform.” AEG leadership was quick to respond with a statement, saying the promoter had no choice but to use Ticketmaster. “Ticketmaster’s exclusive deals with the vast majority of venues on The Eras Tour required us to ticket through their system,” an AEG spokesperson said. “We didn’t have a choice.”
AEG hopes its private lobbying of politicians and anti-trust officials will lead to regulatory change that could include abolishing exclusive ticketing contracts in the United States and ultimately move toward an industry more similar to Europe, where promoters generally don’t sign exclusive ticketing deals and work with multiple partners to sell tickets.
Despite the disagreement, the ASM-Ticketmaster deal remains in place, and AEG officials have had success convincing buildings like the Greek Theater in Los Angeles and the Quicken Home Arena in Cleveland to avoid exclusive ticketing agreements and remain open to multiple systems.
Live Nation and AEG declined to comment for this story.
Maybe Live Nation chairman Greg Maffei’s statement that Taylor Swift and promoter AEG “chose” to work with Ticketmaster for her calamitous onsale earlier this week should have come with an asterisk.
On Thursday (Nov. 17), Maffei attempted to correct criticisms about Ticketmaster and its owner Live Nation operating as a monopoly by pointing out that Swift’s 2023 Eras Tour “is not actually a Live Nation promoted concert” but rather “promoted by one of our largest competitors.”
Maffei — who is also the president of Live Nation’s largest shareholder Liberty Media — continued: “AEG who is the promoter for Taylor Swift, chose to use us because, in reality, we are the largest and most effective ticket seller in the world. Even our competitors want to come on our platform.”
The thing is, AEG says it’s essentially forced to work with Ticketmaster because of the stranglehold it has over the touring business. “Ticketmaster’s exclusive deals with the vast majority of venues on the Eras tour required us to ticket through their system,” an AEG spokesperson told Billboard in a statement. “We didn’t have a choice.”
The debacle centers around Swift’s presale Tuesday for her Eras Tour, which initially crashed shortly after launch as 14 million fans and billions of bots flooded the site, causing service disruptions. The ticket crash caught the attention of Capitol Hill. Rep. Alexandria Ocasio-Cortez and Sen. Amy Klobuchar, both of whom criticized the outage at Ticketmaster and doubled down on claims that the Live Nation-owned ticketing service was a monopoly. The Justice Department is now reportedly investigating Live Nation, though the investigation reportedly pre-dated the Swift debacle.
AEG and Live Nation have a complicated relationship built around intense competition and steady cooperation going back decades. While AEG’s facility group relies on Live Nation for programming, AEG Presents, the company’s concert promotion wing, competes directly against Live Nation’s global touring team and has its own preferred ticketing system, AXS.
While AEG Presents prefers to use AXS, their partner in the Eras Tour, Louis Messina (Messina Touring Group is a 50-50 joint venture between AEG and Messina), is basically agnostic when it comes to ticketing systems — he will work with any ticketing company, based on where the show takes place. In North America, that means working with Ticketmaster, which is especially dominant in the NFL as it provides tickets to 27 of the NFL’s 32 teams. By choosing to stage her show in NFL stadiums – really, in choosing to tour stadiums in the U.S. — Swift and her partners at AEG and Messina Touring Group are effectively forced to use Ticketmaster due to its supremacy in North America.
In that sense, Maffei’s argument that AEG chose to work with Ticketmaster is misleading, but it would also be inaccurate to describe Swift or AEG’s relationship with Ticketmaster as one built upon coercion. Historically, it’s been more mutually beneficial.
AEG’s venue management company ASM Global — formed following the merger of AEG Facilities and SMG in 2019 to become the biggest such company in the country — expanded its partnership with Live Nation in 2021, allowing the use of Ticketmaster for any of the shows the promoter brings to ASM’s 300 clients. In this arrangement, both sides win, since AEG relies on Live Nation to bring content to its buildings and grants the company incentives to entice shows to their facilities.
Swift has worked very closely with Ticketmaster over the years — for her Reputation stadium tour, the COVID-19-canceled Lovers Fest and now the Eras Tour, building an entire fan verification and Taylor Swift-branded ticketing platform together. While Swift might have preferred to have had more options to sell tickets to her fans, she did partner with the company in a way that few artists have in the past.
Perhaps Ticketmaster and Swift will mend their relationship once they start counting how much money they made together. Or maybe, they’re never, ever, ever, ever getting back together.
Less than a year after the final coronavirus restrictions were dropped on concert capacity and attendance, the country’s largest two concert promoters are forecasting record sales in 2023 across a broad swath of building categories and genres. Although another promoter says he’s concerned the future is not nearly as bright for new acts.
Live Nation’s chair for global touring, Arthur Fogel, says his company has seen “absolutely no diminishment in sales” since the full-scale return of concerts and believes there is still significant growth opportunity for the company’s top-line touring acts to command record grosses.
Likewise, AEG Presents president for North America Rick Mueller says that ticket sales for shows already on sale in 2023 indicate record revenue and attendance at every capacity level in the concert space, “from [13,000-capacity] Forest Hills Stadium in Queens, N.Y., to the [500-capacity] Roxy in Los Angeles. We’re going to make a little more next year and work a lot harder for it,” he says, predicting that staffing and supply chain shortages will remain substantial challenges.
“I used to think oversaturation was the biggest threat to the industry, but I no longer believe that bears out,” Mueller adds. His counterpart at Live Nation, Fogel, agrees, noting that less than 1% of events promoted by Live Nation were canceled in 2022.
Neither executive believes economic headwinds from prolonged inflation will significantly diminish sales or lead to a short-term rollback on prices for big-ticket tours, like Bruce Springsteen’s 2023 Live Nation run. “The level of spending around the show hasn’t changed,” says Fogel.
He also says that the top 20 stadium and arena tours “at any given time” are now more diverse than ever, representing multiple genres across multiple demographics. For example, Bad Bunny’s El Último Tour del Mundo tour is the highest-grossing Latin outing in Billboard Boxscore history.
Independent promoter Jim Cressman, founder and owner of Canada’s Invictus Entertainment, says that Live Nation and AEG’s bullish outlook for 2023 is good news for the concert business but worries there’s not enough entry points for new fans or new bands.
“The added expenses that artists have because of inflation and rising energy costs make the economics very difficult for developing acts,” he says, echoing the complaints of indie managers. Cressman recommends that these artists connect early with sponsors to underwrite their tours. “Before the pandemic, sponsors provided a nice income bump,” he says. “Now, they’re critical to covering your costs.”