Touring
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Live music experts are anticipating the antitrust lawsuit brought by the U.S. Department of Justice against Live Nation to take years to resolve, given the wide scope of the claims against the concert giant and the various stakeholders in the live music ecosystem.
“It is going to take a couple of years, at least,” Lee Hepner, senior counsel of anti-monopoly group the American Economic Liberties Project, said at the NIVA 2024 conference in New Orleans on Tuesday (June 4). The conference is put on by the National Independent Venue Association, which formed in 2020 to secure federal funding from the government during the pandemic. The upside, for Hepner and other speakers on the panel called Ticket Tyranny: The Unseen Grip of Market Dominance, is the “massive potential in restructuring the industry.”
Ant Taylor, founder and CEO of ticketing competitor Lyte, agreed on Tuesday saying, “Given how big the scope [of the DOJ lawsuit] is, it is going to be challenging to see it through… What excites me about this moment is the opportunity we have as an ecosystem to look — not just at Live Nation — but to look at the way we do business together and the conditions in which Live Nation has thrived.”
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Specifically, Taylor added, “What’s the business model of ticketing and why, for 40 years, has there been so little innovation around it?”
Ticketmaster has been a dominate force in the ticketing business for decades — its 2010 merger with Live Nation only strengthened its position in the U.S. market. The DOJ lawsuit claims that Live Nation-Ticketmaster has “unlawfully maintained monopolies in several concert promotions and primary ticketing markets and engaged in other exclusionary conduct affecting live concert venues, including arenas and amphitheaters.” A major concern for the DOJ and the group of 30 states that jointly filed the suit on May 23 is Live Nation’s “flywheel model,” which the DOJ describes as a “self-reinforcing business model that captures fees and revenue from concert fans and sponsorship, uses that revenue to lock up artists to exclusive promotion deals, and then uses its powerful cache of live content to sign venues into long term exclusive ticketing deals, thereby starting the cycle all over again.”
Unlike the consent decree that Live Nation has been under since the merger, which was designed to prevent the company from abusing its position, Kevin Erickson, director of Washington D.C.-based nonprofit organization Future of Music Coalition, told the audience that he believes the DOJ lawsuit is focusing on the correct parties impacted by the alleged monopoly: the artists, venues and fans.
“Even with the best intentions, a consent decree is inadequate to address the potential for harm,” Erickson said. “It shifts the enforcement burden onto the people who have the least amount of power. It forces artists and artist representatives and venue folks to monitor for violations of antitrust law.”
Hepner explained that Future of Music Coalition has been collecting such complaints against Live Nation for years and encouraged those in the room to reach out on how to connect with the DOJ with additional complaints as the lawsuit works its way through the justice system.
If the DOJ’s lawsuit is successful and Live Nation is forced to divest Ticketmaster, the panelists expressed hope that without the promoter’s financial backing, competition in ticketing will flourish, allow for innovation and end exclusive ticketing contracts often used by Ticketmaster and other major ticketers.
Panelist Gary Witt, president and CEO of Pabst Theater Group, stressed the importance of eliminating Ticketmaster’s dominance due to growing customer dissatisfaction. “It is not about your experience when the customer comes through the door. It is not about the artist’s experience when they come backstage. It’s about the initial experience of buying a ticket,” Witt said to the audience.
The primary ticketing market has become “a closed market and allows for zero innovation,” Witt said, adding, “We have an industry to save here.”
Jelly Roll is hoping to bring his high-energy stage presence overseas, but he’s overcoming some “legal puzzles” first. The “Need a Favor” superstar sat down with Jon Bon Jovi for a wide ranging Interview Magazine discussion, where he shared that he’s hoping to tour internationally. “It’s funny, America has finally agreed to let me leave […]
4batz is hitting the road soon for his first-ever headlining tour, Thank You, Jada Tour, which he announced Wednesday (June 5). “A n—a finally going on tour. Presale drops tomorrow hit dat link in bio to get early access. See yall on tour,” he wrote on Instagram with two bat emojis. The nine-date jaunt will […]
Ice Spice is hitting the road this summer in support of her debut album. On the heels of revealing Y2K‘s release date, The Bronx native announced the Y2K! World Tour.
On Wednesday (June 5), Ice unwrapped the details on her first global outing, which kicks off in Denmark on July 4. She’ll remain in Europe for a handful of shows and festival dates in Poland, Austria, Belgium, Switzerland, the U.K. and more.
The “Deli” rapper then returns stateside where she’ll begin the North American leg on July 30 in Washington, D.C., with fellow New York City resident and Slizzy CEO Cash Cobain set to perform as her opening act.
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The amphitheater headlining trek will continue with dates in NYC, Boston, Detroit, Toronto, Chicago, Denver, Los Angeles, Dallas, Houston and Atlanta, and wraps up in Miami Beach on Aug. 31.
Pre-sale tickets are currently on sale for Citi cardmembers, while the general public will have their chance starting on Friday (June 7) at 10 a.m. local time. There are also various VIP packages available, and some come with perks that include a meet-and-greet photo op with Ice Spice.
The 24-year-old made it official when she announced this morning that her highly anticipated debut album, Y2K, will be arriving on July 26. “HIIIII >.< Y2K ☆ THE ALBUM WILL BE DROPPING JULY 26TH !!!! pre-save the link in my bio now ;**,” she wrote to social media. In a salute to her NYC roots, Ice Spice also shared the graffiti-filled cover art for the project, which finds the rapper standing outside a subway station next to a fire hydrant, with Y2K spray painted in hot pink on a trash can. Ice Spice unleashed her first EP Like..? in January 2023, which received a deluxe last summer, and ended up peaking at No. 15 on the Billboard 200. Find all of the Y2K! World Tour dates below.
Sturgill Simpson is back with an upcoming new album, new tour — and a new name. Simpson revealed a new persona named Johnny Blue Skies, as well as a new album, Passage Du Desir, which is due July 12 via his own independent label High Top Mountain Records. Explore Explore See latest videos, charts and […]
Singer-songwriter Benson Boone has signed with WME for global representation in all areas. Boone gained popularity with the release of his viral hit “Beautiful Things” in January. The track has been an international hit, reaching No. 1 on the Billboard Global 200 for seven weeks and leading the Billboard Global Excl. U.S. chart for eight […]
Artists at country singer-songwriter Ashley McBryde’s level of popularity can sell $16,000 to $20,000 worth of T-shirts and hoodies when they play 1,500-capacity venues. Layne Weber, director of merchandising and fan engagement for McBryde’s management company, Q Prime, says some venues took a 20% to 25% cut of her merchandise sales during her spring tour — which is standard in the industry but, he says, exorbitant for services rendered at many clubs. “I went to a show the other night and the merch table was next to the bar,” Weber says. “The merch seller was having to compete with the bartender who’s trying to sell the drinks. That was a venue taking 20% of the sales.”
Weber’s complaints, which many artists and their representatives share, are at the center of a long-running live-industry debate over merch percentages. For decades, artists, venues and promoters have haggled behind the scenes over percentages as part of every show contract, but they contend the stakes are now much higher. “Ever since we’ve come back from COVID, the merch numbers have gone through the roof for all genres of music,” says Crom Tidwell, owner of Crom Tidwell Merchandising in Nashville. And with so much money at stake, artists want a larger percentage of their own profits.
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“Bands are getting ripped off,” says Barry Drinkwater, executive chairman of Global Merchandising Services, which handles merch for top metal acts such as Iron Maiden and Guns N’ Roses. He adds that the venue’s cut particularly hurts small acts, which tour on slimmer margins and often operate their own merch tables. “They need the money that gets them food, gets them to the next show,” he says. “Then the promoter wants to charge them 20% of the gross.”
Live Nation has expressed sympathy for this point of view. Last fall, trumpeting an endorsement from Willie Nelson, the world’s biggest concert promoter unveiled its On the Road Again program, which eliminates merch-selling fees for artists at its clubs and provides a per diem of $1,500 in gas and travel cash for artists, among other benefits. Earlier this year, Live Nation president/CEO Michael Rapino told Billboard that the program had “already helped support 3,000 developing artists,” and a statement that Live Nation issued on May 22 said, “We’re incredibly proud of how On the Road Again is supporting thousands of artists and their crews, with 100% merch profits, $1,500 cash nightly for gas and travel costs and more. Developing artists are the future of live music, and we’re proud to keep this program rolling strong.”
Complaints over merch fees are not limited to clubs, however. At arenas, stadiums and other large venues, in-house concessions staff take over merch sales, and the 20% to 25% cut goes largely to these services. And at least one venue takes an even bigger chunk. Drinkwater says New York’s Madison Square Garden (MSG) charges artists 30% of their merch sales, plus credit card fees. He also notes that percentages can be higher in the United Kingdom. (A representative for the Garden declined to comment.)
Whether artists are handling their own merch tables or relying on in-house staffers, managers say they’re often unsatisfied with the services they get, given the cost.
“I don’t feel they’re worth 25% of the revenue,” says Rick Sales, who manages Slayer, Ghost, Mastodon and others. “It’s not good value for the money spent.”
Venue reps counter that long before fans step into their buildings, they negotiate deals with artists, including merch percentages. Not surprisingly, those with leverage receive favorable terms. “Every live performance is a negotiation,” a concert-business source says. “The band doesn’t like the merch percentage, find somewhere else to play.” Venue consultant Brock Jones, the former GM of Nashville’s Bridgestone Arena, adds: “At the end of the day, venues have got to make money, too — electricity isn’t free, all that space isn’t free. Venues have to recoup those expenses. An 80/20 merch deal is absolutely fair when the venue is selling.”
Tidwell agrees that it’s a different story at arenas, which often are required to staff union employees at fixed salaries. “You’ve got to have a crew to facilitate the sales,” he says. “Somebody has to pay for the help.” But he also contends that artists complaining about high venue percentages in small venues have a point: “What are you doing for your 20%? You’re just providing a lobby and a table.”
Some small venues, still reeling from the pandemic, have expressed concern that Live Nation’s On the Road Again program might pressure them into following suit and giving up a crucial revenue source. “Temporary measures may appear to help artists in the short run but actually can squeeze out independent venues, which provide the lifeblood of many artists on thin margins,” the National Independent Venue Association said in a statement in September.
Arenas and stadiums are where the big merch money is. On her The Eras Tour last year, Taylor Swift made a reported $200 million on T-shirts and other goods sold at shows. In its 2023 financial report, Live Nation claimed “double-digit growth” in merch and concessions at the arenas it owns or operates, such as the Moody Center in Austin. Notably, the On the Road Again program does not apply to large venues. Drinkwater says the standard 20% to 25% cut applies and, like MSG, sometimes venues pass on credit card fees (usually 5%) to the artist. “We try with our artists to beat this down,” he says. “Sometimes we get a reduction if we can do big sales.”
As music consumers increasingly demand sustainable options from businesses across the industry, AEG has struck a partnership that will bring a full-time reusable cup program to Los Angeles’ Crypto.com Arena and Peacock Theater, the company announced Tuesday (June 4). In collaboration with reusable serveware company r.World, which produces reusable items for large-scale gatherings, the venues […]
After a record year for live music in 2023, last month saw two high-profile arena tour cancellations, with Jennifer Lopez calling off her This Is Me…Live Tour and The Black Keys canceling the North American leg of their International Players Tour. On the new Billboard Pop Shop Podcast, Katie & Keith are talking about what […]
On Sept. 13, 2004, Van Halen was the first major music act to perform at the newly inaugurated Coliseo de Puerto Rico José Miguel Agrelot in San Juan. That same year, local and international artists performed at the arena, including Draco Rosa, Daddy Yankee, Juan Luis Guerra, Andrea Bocelli and Korn.
“We wouldn’t have been able to have those shows if we didn’t have El Coliseo,” says ASM Global regional GM Jorge Pérez, who manages the venue. “It was the need we had at that moment in history.”
Mariela Vallines, executive director of the Puerto Rico Convention Center District Authority, which owns the building and contracts with ASM to operate it, notes that over the past 20 years, the coliseum “has become a cultural hub for the island, bringing people together to celebrate music and sports as the host of world-class events and entertainment. The venue has contributed significantly to Puerto Rico’s economy, generating revenue for local businesses and providing employment opportunities on the island.”
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What’s more, she adds, “it has helped to position Puerto Rico as a premium entertainment destination attracting both local and international audiences that have surpassed 10 million visitors over the last two decades.”
Prior to El Coliseo’s construction, the Caribbean island hosted sporting and entertainment events primarily at two locations: Coliseum Roberto Clemente Walker and Hiram Bithorn Stadium. Still, a high-end venue was needed “to be competitive in tourism” because “we couldn’t only survive on leisure, travel and regular tourism,” Pérez says.
Since its inception 20 years ago, “El Choli,” as it is popularly called by locals, has become known both locally and internationally and the ultimate “dream arena” to perform at for many artists.
“The first goal of any artist, musician or DJ is to play in an arena that big,” says Puerto Rican artist Jay Wheeler, who made his Choli debut in 2022 with four sold-out shows. “It’s like winning a Grammy. Every artist from Puerto Rico will always have the goal of doing something in the coliseum.”
Ángela Aguilar, who graced the venue’s stage at the 2023 Premios Juventud.
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A wave of urban acts has not only received a seal of approval at the venue but also achieved milestones. Daddy Yankee, with his 2019 Con Calma Pal’ Choli shows, grossed $7 million, and Wisin y Yandel grossed $6.2 million with their 2018 string of concerts, according to Billboard Boxscore. The latter act holds the record for most sellouts, with 105,000 tickets sold across eight shows.
El Coliseo was No. 24 on Billboard’s 2023 year-end Top Venues global chart (in the 15,001-plus-capacity category), and it ranked fourth in the Latin/Spanish-language market venue after Miami’s Kaseya Center, Madrid’s WiZink Center and Movistar Arena in Santiago, Chile.
Pérez recently spoke with Billboard about the past, present and future of the venue.
What void did El Coliseo fill when it was built 20 years ago?
The government noticed that there was a need to have a world-class arena. The building we had before was Coliseo Roberto Clemente Walker, which opened in 1973 and where concerts and sporting events were held in the 1980s and 1990s. We also have the Hiram Bithorn Stadium built in 1962. With that came the construction of the Convention Center, which was inaugurated one year after El Coliseo. But the vision was that we needed world-class venues to be competitive in tourism.
We couldn’t only survive on leisure, travel and regular tourism. We needed to provoke groups, meetings, conventions that would have economic movement. To complement that, the government really understood that we needed a top destination. So that’s kind of the history behind it.
There was a lot of criticism at the beginning, even when construction started. But when we look back, it was a very smart decision, considering the exposure Puerto Rico has had in the entertainment industry and how it has opened doors for our artists. When we look back, it was a visionary idea with positive results.
Coliseo de Puerto Rico José Miguel Agrelot is managed by ASM Global’s Jorge Pérez.
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What’s the story behind the venue being named after comedian José Miguel Agrelot?
There were a lot of names and ideas out there. In January 2004, José Miguel Agrelot — who was a comedian, radio/TV host, actor, producer and visionary — passed away. So his name came to the top of the list and it was approved.
One of his most famous TV characters was Don Cholito, which he played during the “Encabulla y Vuelve y Tira” segment on El Show del Medio Día (The Midday Show) in the late ’70s and early ’80s. “Encabulla y Vuelve y Tira” referenced the stringing of a wooden spinning top [a yo-yo] — in other words, to do it again and keep trying. That became an analogy of persistence and optimism of the day-to-day challenges that Puerto Ricans had at the time.
While promoting “The Night of Revenge,” one of the first boxing matches that took place at El Coliseo — where Miguel Cotto won the junior welterweight championship — sports commentator Elliott Castro was the first to say: “Let’s go watch boxing at El Choliseo.” Ever since, everyone knows the building by that nickname, El Choli.
Don Cholito provided optimism, a contagious smile and a vibrant personality — and that character was precisely about persistence and overcoming hard times. Those are some strong characteristics and traits that we have in Puerto Rico. Don Cholito’s spirit lives in every corner of El Coliseo.
Why does the venue play an important role in the career of a Puerto Rican artist?
First, it’s their hometown. We’re considered “The Cathedral of Reggaetón,” and for artists of that genre especially it’s important to play at El Coliseo because it’s like a big test for them. We’ve had the top urbano acts perform here. It’s a key venue, and it [marks] a point in each artist’s career of when they performed here, how well they did and how that impacts their careers moving forward.
Why has it become important for artists from other countries?
You have people [in Puerto Rico] who love and really appreciate live entertainment and can identify a good show. The energy here is amazing. We have an educated and knowledgeable crowd. When the crowd at El Coliseo accepts you as an artist, you know you’re en route to doing good things. That goes back to our culture — how we’re raised, how from a very small age we’re listening to music — we know what a top production is. When an artist gets onstage and feels that energy and acceptance, it fills them with confidence in what they’re doing and producing is special.
Daddy Yankee
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Do Puerto Rican acts get preference in dates?
Not really. We manage our calendar very responsibly, and it’s on a first come, first served basis. I work directly with management or agencies or local promoters to try to find the best fit for dates.
What would you say has been the most logistically complicated concert?
It must be the World’s Hottest Tour. Bad Bunny wanted to break the attendance record, and to do so, they put a very small stage on the south side and put all the production [overhead]. From one point of El Coliseo to the other, all the sound and lighting was on [the ceiling] — that’s not normal. Usually, our stages are large, but they wanted to maximize the audience size. I hear that Bad Bunny’s show now with the Most Wanted Tour is also very complex.
What economic impact does the venue have on the island?
The entertainment and event industry is huge in Puerto Rico and creates 30,000 jobs. It creates $2 billion, and almost $400 million of it goes to the government in the form of sales, tax and other revenue they receive from activities that we host in our buildings. It’s a big chunk of the local economy.
We look at it as an important part of our economic ecosystem. We create a lot of entertainment tourism; people travel from different parts to see a show here. About 15% of tickets purchased at the venue come from a ZIP code not in Puerto Rico. Our vision is to keep promoting Puerto Rico as a premier entertainment and tourism destination. We have a social responsibility to help our community.
In terms of business opportunities that we can bring, the exposure Puerto Rico has gotten through El Coliseo and through the artists that act on our stage has helped put the country on the map. People are realizing that this is a top-notch venue.
Aventura
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How many people work an event at the venue?
On average at a sold-out event — from events staff to security to housekeeping to operation — we can have close to 400 to 500 staff, not considering the production staff on the artist’s side. We have 26 corporate suites; we have our food concessions. At an end stage, which is the most common setup, we fit 15,000 people, and basically, that’s the average staff that we must [have to] make sure everything moves smoothly.
El Coliseo is now also hosting televised awards shows.
The first one we hosted was the Billboard Latin Music Awards back in 2010, and we resumed in 2020 with Premios Tú Música Urbano. We’ve also hosted Univision’s Premios Juventud in 2022 and 2023. Awards shows are very particular because they take up a lot of time. The setup for one of these shows can be seven to 10 days prior to the show. It’s very complex production, and overall, it takes up a chunk of almost two to three weeks.
After the first awards show we hosted in 2010, looking and finding a three-week period that was not booked became a challenge for us. But when we started again, we realized it was a great showcase for the destination. Premios Juventud, for example, had great ratings and exposed us to an international audience.
What do you envision for El Coliseo 20 years from now?
We are already state of the art, but hopefully, we’ll have a new and larger Coliseo. Even though we maintain the venue in optimal condition, we really focus on keeping this building [able] to comply with all the production riders and high-quality shows that we’ve had.
But the truth is, 20 more years is a long time — and I think that in that time frame, we should be transitioning to a new Coliseo. There has been conversations about building a new stadium in Puerto Rico, too, but I see us transitioning to stay relevant and continue producing results. This was designed as a sports arena, but looking into the future, I’m thinking of a new building with a larger capacity and that’s more entertainment-related.
This story originally appeared in the June 1, 2024, issue of Billboard.