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VIP- News - December 2008Meanwhile The Bonnaroo and Langeradomusic festivals have responded to the economiccrisis in the US by employing a familiartactic used by many other retailers byoffering staggered payment plans, what weused to call hire-purchase, on weekend ticketsto the festivals in 2009. It will be interestingto see if other events in both the US andEurope adopt the idea.But whatever happens in 2009 we must takeconfidence from the fact that the live industryis made up by resilient characters, quitecapable of dealing with crises, and I thinknow, perhaps more than in the past, adaptableenough to work together – co-operationmay well be necessary to see us throughthis. Also in down times people need cheeringup, they will still be looking to be entertainedand that’s our product and when andwhere there’s demand there’s business!As far as acts on the road next year thereseems to be no let up in this reformationbusiness, (as the Pope said to Henry VIII) –next year we’ve got Tina, Fleetwood Mac,The Faces (allegedly!), The Kinks, Cliff Richard& The Shadows (!) and now …Blur (isn’tit a bit soon?) and apparently Morrisey andJohnny Marr are speaking again, so anyonewant to put a bet on dates on hold for TheSmiths?So we hope you all have a good and relaxedChristmas holiday and a Happy and if notexactly prosperous – comfortable - NewYear (if anyone is thinking of sending mea Christmas present Euros would probablyfit quite nicely thanks – my pounds appearto have shrunk!) Finally lets all add positivethinking to our New Year Resolutions andplease – continue to let us have your opinionsand your news in 2009.In the meantime, Ladies & Gentlemen – hereis the last News of 2008….T in the Park Ticket ScamAllan McGowan am@vip-booking.comT in the Park organisers have warned fans not to buy tickets from a Hungarian-based website,www.tinthepark2009.com, which falsely claims to have passes for next year’s festival.Colophon ››Promoters DF Concerts emphasise that the site has no ticket allocation and that fans shouldnot under any circumstances give their credit card details, legal action is to be taken againstthe unauthorised Hungarian site.VIP-News is published by:VIP-Booking26 York StreetLondon W1U 6pZManaging Director:Ronni Didriksenrd@vip-booking.comGeneral Manager:Peter Briggspb@vip-booking.comWriter and editorial:Allan McGowanam@vip-booking.comWriter:Manfred Tarimt@vip-booking.comFor advertising enquiries pls. contactPeter Briggs pb@vip-booking.comor +44 870 755 0092Lay-out:Pekaye Graphics, Phuket – Thailandinfo@pekayegraphics.comT in the Park 20092VIP-BOOKING.COM


VIP- News - December 20083VIP-BOOKING.COM


VIP- News - December 2008MIDEM Talent 2009The 43rd MIDEM will again take place atthe Palais des Festivals, Cannes, Francefrom 18-21 January 2009, and will featurethe second edition of MidemTalent.This event will showcase an array of upcomingartists with strong internationalpotential. Around 20 groups or artists coveringpop/rock, electro, folk, world musicand jazz, hailing from every continent, willperform in Cannes in front of an audienceof industry executives and the public.American rock group Blue October; Colombianartist Monica Giraldo, recentlynominated in the “Best New Artist” categoryat the Latin Grammys and SouthAfrican band The Parlotones, crownedBest Rock Group at the 2006 South AfricanMusic Awards, are among the artists dueto perform. They will be joined by JohnShannon (U.S.), Hogni (Faroe Islands),Charlie Winston (U.K.), Ndidi Onukwulu(Canada), Sliimy (France) and MagnusLindgren’s Batucada Jazz (Sweden).Aimed at discovering and developing artists,MidemTalent event offers four days ofconcerts and conferences. It is sponsoredby the world’s leading independent videogame publisher Activision Blizzard Inc.and its Guitar Hero franchise, and by theon-line promotional platform Sonicbids.MidemTalent is organised in associationwith Billboard, Musikwoche, Pangaea/A&RWorldwide and VIP Booking.Line-up so far:ABHIJIT POHANKAR URBAN RAGAS(Big Music - India)ANNE PACEO (Laborie Jazz – France)BLUE OCTOBER (Brando/Universal – U.S.)CHARLIE WINSTON, U.K.(Atmosphériques, France/Real World, U.K.)DAVE STAPLETON QUINTET(Westbury Music – UK)DORANTES (World Music Factory – Spain)FRØY AAGRE (Pling Music – Norway)HJALTALIN (Kimi Rec. – Iceland)HOGNI (Tutl – Faroe Islands)JOHN SHANNON (ObliqSound Inc. – U.S.)MAGNIFICO (ARIH D.O.O - Slovenia)MAGNUS LINDGREN’S BATUCADA JAZZ(Higher Ground - Sweden)MAMAS GUN (Decca Rec. – U.K.)MATTHEW ANDRAE (France Music – USA)MISINTERPROTATO (Jazzhead - Australia)MONICA GIRALDO, Colombia(Wattsup!/Codiscos - USA & Colombie)NDIDI ONUKWULU, Canada(Naïve - France)ROTARY DOWNS (Rookery Records, U.S.)SCOTT MCKEON BAND(Provogue Records – U.K.)SLIIMY (Warner - France)THE GHOST, Faroe Islands(Sunday Best – U.K.)THE PARLOTONES(Sovereign Ent. – South Africa)YODELICE (Mercury - France)For more information on MIDEM andMidemTalent:www.midem.com/midemtalentBlue October plays at Midem 2009Never mind the Bol***ks, Here’s the ILMC!5The annual International Live Music Conferencereturns to The Royal Garden Hotel,London, UK on 13th – 15th March 2009when ILMC 21 will no doubt take a seriouslook at, amongst other things, how the livemusic industry is weathering the worldwide economic crisis. But, as ever with thislong established market-leading event,which takes its fun theming very seriously,all will certainly not be doom and gloom!Having come down from last year’s spacedout mellow hippy trip theme, ILMC 21lurches to the other end of the pop musicspectrum by celebrating all things Punk!In their own words:More raw than a nasty sore throat, moredangerous than running with a pair of scissors,more street credible than a traffic wardenwith toothache. Yes, the ILMC is back– but this time we’ve moved on from beingboring-old-fart hippies. Thirty years onfrom the heyday of punk we’re spitting andbouncing up an’ down and hell-bent on anew wave of anarchy and destruction.ILMC 21 will take place fromMarch 13-15th 2009VIP-BOOKING.COMIt seems that it’s not just ‘Anarchy in the UK’,but anarchy on a global scale. With changingfortunes affecting almost everyone inthe industry the ILMC will be focusing on,amongst other points, the world’s economiccrisis. As well as the usual spread ofpanels, meetings and social events, we willas ever be offering up a multitude of surprises.Further announcements of panelswill be made early in January 2008.ILMC has reached the ripe old age of 21,but rather than leaving home and gettinga sensible job involving a suit, we will bedonning our tartan, safety pins and badlanguage and endeavour to bring you moreof what the delegates enjoy every year.More information:www.ilmc.com


VIP- News - December 2008Green Issues - Recession May Cause DistractionsAllan McGowan am@vip-booking.comGreen initiatives for the live music industry continued to attract attentionthroughout 2008 and great strides have been made in theeducation of both those working in the industry and audiences.But as I was made aware at last week’s Julie’s Bicycle (The not forprofit company established to find ways to reduce the UK musicindustry’s greenhouse gas emissions – www.juliesbicycle.com)Christmas gathering in London efforts will have to be redoubledto keep the Green Agenda to the fore during a time when individualsand companies become distracted by the preoccupationsof the downturn in the world economy.The financial crisis will pass, but global climate changes continueto happen, and they are some of the biggest threats to the world.UN’s climate experts recommend immediate action if the mostserious consequences of human emission of greenhouse gassesare to be avoided.Climate Focus at Roskilde Festival ‘09The 2009 Roskilde Festival’s ‘Green Footsteps’initiative intends to put the focuson climate changes calling for a unitedapproach towards climate change agreement.The festival’s campaign intends to showhow the festival can shoulder its part ofthe responsibility to solve the potential climatecatastrophe. Naturally, festivalgoersare invited to be part of the campaign totake Green Footsteps in the right directionand to join in sending a message to theworld that there is no time to waste withregards to obtaining a globally sustainableclimate.It appears that there are still way too manypeople who do not take the climate issueseriously nor recognise that we all play anactive role in the climate changes. Danishnewspaper Politiken carried an article statingthat 40 % of the Danish population stilldo not believe in the greenhouse effect.Roskilde Festival wants to deal with this.The Festival’s own Green Footsteps to reducethe greenhouse gas-emitting activitieswill include: The instigation of a CO 2account, making it possible to calculatethe emission from Roskilde Festival; In theenergy sector, the festival will go over thepossibility of buying windmill power andgetting generators running on vegetableoil instead of diesel; working on recyclingas much garbage as possible so that incinerationof waste and the following CO 2emission is reduced.Odeon is the festival’s ‘green’ stage, lowenergystage lighting is used, and an ‘LEDcarpet’ functions as a big screen. Powerwill be produced with renewable technology– by generators running on biomassfuel, vegetable oil, solar cells andwindmill(s).The Audience will be motivated to bepart of it all and to economize on CO 2 totake part in the climate battle. They willbe encouraged to see that it is an advantageto save the environment. As thanksfor their environmentally friendly actions– e.g. using public transport or turningoff stand-by power at home – the festivalwill let the participating audience membersreserve a spot at the camping area,thus securing an advantageous spot evenbefore the camping area opens. Thesefestivalgoers will be part of the festival’sClimate Community – a camping quarterprimarily running on CO 2 -neutral energy.The energy will come from sources suchas energy-producing bicycles and dittodance floors.Green Footsteps is a step in the right direction– a step that we all have to take tostop the global climate changes from runningout of control.Roskilde Festival introduce ‘Green Footsteps’7VIP-BOOKING.COM


?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ??????? ?????????????????? ??? ?????????? ???? ?????????????????????????????????????????????????????????????????????????????????????????????? ?????? ???????? ??????????????????????????????????????????????????????? ?? ???????? ??????? ?? ???????? ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ??????? ?????? ???? ???? ????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ??? ????? ???? ????????? ????? ????? ??????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ›› ?????????›› ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ??????????????????????? ???? ???? ???? ??????????????? ????????? ????????????? ??????? ????? ???? ????????????? ???? ??????????? ???? ????????????????? ????????????????????? ?????????????????????? ???????????????????????????? ??????? ????? ??????? ??? ?????? ?????? ????????? ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???? ???????? ???? ????????????????????? ???????? ???????????? ???????? ???????? ???????? ??????? ???? ??????? ????????????????????????????????????????????????? ????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????VIP- News - December 2008In Dialogue with Karsten JahnkeManfred Tari mt@vip-booking.comVIP-News asked Karsten Jahnke about hisopinion of Record Companies earningmoney from concerts, the recession andthe difference between corporate or ownerdriven concert businesses.VIP-News: How was the concert business2008?Karsten Jahnke: Pretty good, thank you.VIP-News: You have been in the businessfor so many years now. What has changedin recent years?Jahnke: You cannot help but worry aboutthe big trust companies getting more andmore powerVIP-News: Do you see many differencesin working with corporate or stand alonecompanies?having the opportunity of ‘playing’ withmoney that is actually not their own. Obviouslythis kind of distorts the whole financialsystem behind our business.VIP-News: There are many record companiesthese days aiming to participate in thelive music income of their artists. What isyour point of view on this one?Jahnke: Well, good luck to them.Karsten JahnkeJahnke: Well, in stand-alone companieslike mine we have to actually make andearn money so we have to calculate prettyhard to compete. On the other hand weknow our business from the inside out andcan offer the best possible promotion pluswe can put our companies reputation (inmy case, even my own name) behind thework we do. With the corporate companiesit’s a whole different ballpark: To getan impressive roster together, these companieshave a lot more money they canthrow into the pit to raise their chancesof actually getting an act they want. Theydo not necessarily have to make moneyon the spot as we do, so it’s a bit like themVIP-News: Do you believe that they deserveto take a share out of the concert businessearnings of their artists?Jahnke: I can see their point when it comesto establishing an act from scratch thesedays, but I doubt this will work with any establishedact. And by the way sooner or laterthey will find themselves in the same biddingwar as everybody else if the newly establishedact becomes hot news and successfulbecause of that. The list of artists whose livecareers I’ve built up from the very beginningis long - I’ve had contracts with all of them- but as we all know: If you really want, youcan get out of any contract you like.Having the right tools for the job is often the key to success. Through our ongoing communication with key LiveEntertainment Industry Professionals, we have developed a range of services to meet the demands of agents, promoters,talent buyers, venue bookers etc. It’s no coincidence that we are now considered to be the No. 1 informationprovider for this thriving industry.??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????VIP-Booking.comVIP-Booking.com is now the most widely used onlineinformation service for the European Live EntertainmentIndustry with subscribers in over 25 countries. Using the latesttechnology and state of the art tools, the service provides indepthinformation streamlining the day-to-day operations ofindustry professionals, saving both time and money.The VIP-BookThe ultimate print directory for the EuropeanEntertainment Industry, packedwith contacts and easy to use. An essentialreference book for every officeproviding basic contact informationand a solid overview.VIP-NewsWritten by our highly merited journalists, AllanMcGowan and Manfred Tari, with over 50years of experience between them in the EntertainmentIndustry, VIP-News brings the latestnews and views directly to your computerkeeping you up to date at all times.VIP-BOOKING.COM THE VIP-BOOK VIP-NEWS8VIP-BOOKING.COM


VIP- News - December 2008VIP-News: When it comes to the recessionthere are serious concerns in the businessthat high price shows won’t sell as theyused to do. Do you agree with this?»It will take until next yearuntil the recession that is ineverybody’s minds now arrivesin real life and is fully felt,so we’ll have to watch that«- Karsten JahnkeJahnke: Yes and no. It will take until nextyear until the recession that is in everybody’sminds now arrives in real life and isfully felt, so we’ll have to watch that. Butdespite this culture and arts have alwayshad high times in troubled times. Maybenot the over-expensive shows, but I haveno fear for the casual live music business.As long as a band is really good and doesn’tlose its ground, there will be people wantingto see them.VIP-News: Are you happy with the backingand considerations of the political andadministrational bodies for the concertindustry?Jahnke: For Hamburg locally, yes. We havea established a great relationship work wiseover the last couple of years, especiallytheir support for our Reeperbahn Festivalis excellent. On the national level we’re farfrom being quite there yet to be honest.VIP-News: What are your expectations regardingdevelopments in the concert businessin the near future?Jahnke: Well, it’ll stay thrilling, won’t it?With so many new developments on thecards you’ll have to watch every step prettycarefully.VIP-News: What is on your agenda for2009?Jahnke: Quite a lot, actually: We’re beginningthe planning for our fourth Reeperbahnfestival, which we’re about to showcaseinternationally at the Eurosonic andSXSW Festivals in 2009 for the first time;we´re about to set up a sequel to lastyears highly successful Open Air Festivalin Uelzen (smaller northern town in lowerSaxony) in August; I’m further establishingmy own little concert series for newyoung and exciting contemporary jazzartists called Jazz2day, our beloved StadtparkOpen Air season is about to takemore and more shape - plus lots of otherthings we cannot talk about openly at themoment.Live Initiatives in SpainAllan McGowan am@vip-booking.comThe general financial crisis, and local authorityopposition to live venues aggravated bythe recent closure of several Madrid venuesfollowing the widely publicised death ofan 18-year-old youth following his violentejection from a well-known city centre discotheque,have made things very difficultfor live music in Spain.Hopefully, two live music initiatives for smallvenues will help new talent and strengthenthe live music circuit, in both the Spanishcapital Madrid and the country as a whole.From December 2 until 21, 19 concerts haveand will be staged in 19 different Madridvenues of up to 300-capacity. Libertad 8,Barco, Galileo Galilei, La Sala Live!, Clamores,La Frontera (Villalba ), Colonial NorteReciclaje (Guadarrama), Sol, Siroco, La Bocadel Lobo, Jimmy Jazz, Cardamom, BúhoReal, Hebe, Joaquín Sabina -TAF (Móstoles),Wurlitzer Ballroom and Cafe La Palma.The event, called ‘Alternativas En Concierto’and now in its fourth year, sees emergingartists support better-known stars, manyhaving begun their careers playing in thesesame venues and now with gold discs totheir names. The initiative has been organisedby Madrid’s 45-venue La NocheEn Vivo, the AiE artists and interpreters association,the Agedi collection society, andfinanced in part by the Madrid regionalgovernment.La Noche En Vivo VP Angel Viejo, who hasrun Madrid’s Galileo Galilei club for the past26 years, told Billboard Biz that in 1985 thecity had some 112 small venues, but thatthe 45 existing members still stage some10,000 concerts per year.Spanish/French Co-Operation:Also, Acces, Spain’s national association ofconcert halls, and its French counterpart,La Fédurok, continue to develop an accordsigned in late October at the 20th Mercatde la Musica Viva in Vic near Barcelona, inthe presence of representatives of boththe Spanish and French culture ministries,aimed at sharing experiences to strengthenlive music and venues, and bringing awarenessof their cultural and business value tolocal and regional administrations. In attendancewere regional live music associationsfrom Catalonia (Asacc), Galicia (Clubtura),Andalucia (Cosa), Basque Country (KulturaLive), and Castilla y León (Old Castile).The accord aims to encourage small-venuelive music either side of their commonborder. Acces communication directorArmando Ruah says Acces is interested inlearning from the La Fédurok’s experience,as “France is one of the pioneer countries indefence of its popular music and the recognitionof its own culture.”Libertad 89VIP-BOOKING.COM


VIP- News - December 2008Resistant to Recession?Manfred Tari mt@vip-booking.comExponents of the concert business mostlyappear unimpressed by the economic crisis.But if we take a look at the event marketthe situation differs: The sector thatearns its money with the organisation ofcompany parties and business galas is sufferinga lot of cancellations. Moreover theactual economic models seem to confirmthe conclusion that it will take a long whileuntil ‘Business as usual’ returns.In the champions league of the live musicindustry, the tour and concert business,the core business seems to be still goingstrong. Thorsten Seif of Buback Konzerte,responsible for well known German actslike Deichkind und Jan Delay comments:“For the concert business the economic crisiswill not have immediate consequences.Especially if you try to budget the concertscarefully and keep them on a good valuelevel as we do.”The opinion of Klaus Maack from ContourMusic, who is organiser of the SummerjamFestival and tour agent of Beenie Man andAnthony B., is similar. He thinks that theeconomic crisis has only little influenceon the concert business because he estimates“that the people will spare money byavoiding big expenditures but not concertsand tickets if they are on a reasonable pricelevel.”Klaus MaackRalf Scheffler, chief of the venue Batschkappin the finance metropolis Frankfurt, answersthe question of how the crisis willaffect his daily business as follows: “In noway, I hope. We still don’t know yet if this crisisreally will come or if it is just hysteria. I’ma little bit sceptical as to whether it is just amedia hype.”»Strange to say but small eventsor events in the rock and popsegment are yet not affected«- Berhard LewkowiczBernhard Lewkowicz is executive directorof the regional presenter ConcertteamNRW. He appreciates the situation in theevent market is more critical: “It is generallythe case in the event market that you canhardly say exactly why an event works wellor not, so you just can assume.” But Lewkowiczadds: “What I can clearly say is thatfamily events like ‘Bob the Builder’ or ‘Käpt´nBlaubär’ which normally attract two adultsand two kids from the middle class with onlylittle money for spare time activities, are sufferinga lot from the actual development.Strange to say but small events or eventsin the rock and pop segment are yet not affected.”All respondents are of the opinion that negotiationswith bankers regarding financingthese days are no fun. Seif remarks:“This is definitely the case, we are a companyand we don’t even have an overdraft limitand we won’t get it these days anyway.”Maack is sceptical, too: “My situation is quitecomfortable because I’ve been running a festivalfor 24 years and we have results and experienceddata. But for new projects I think itwill be very difficult to get any credits.”“Of course I have experienced that.” Lewkowiczagrees. The long time Toten Hosenagent comes to the point: “Every segment ofour business that is affected by the monetarysector like pre-financing a show, overdraftcredits or what ever has big problems. Thebankers are keeping their wallets closed.”Scheffler states bluntly: “My banker hasn´tgiven me money before and he won’t giveme any now. Common sense would say ‘O.K.let’s be sensible and finance the mediumsized business’, but the reaction of the financesector at the moment is ‘We keep ourmoney and in the best case, do nothing’. Butthey can’t do that in the long term because ifthey do they won’t earn money.”10VIP-BOOKING.COM


VIP- News - December 2008register early!pay less!MIDEM® is a registered trademark of Reed MIDEM – All rights reserved.Speaking this yearJim Balsillieco-CEO,research in Motion (RIM):BlackBerry (Canada)André de RaaffCEO,imagem Music(The Netherlands)Let the music talkAmit KapurCOO,Myspace (USA)Jay MarcianoPresident,Madison square gardenentertainment (USA)Let MideM do the businessIn these challenging times, your priority is to seize businessopportunities. Whether it is to do deals, network or learnfrom the best industry specialists, MIDEM offers you thisopportunity on a global scale.This January around 9000 professionals from 90 countrieswill come together to find new talent and do deals. Be one ofthem! Over four days you can meet the key players from theworld’s music community and let the music talk.Iain WattCo-Manager of MIKA& Managing Director,Machine Management (UK)the earlier you register, the less you pay!register now at www.midem.com or take a stand andshow your product to the world.tel: 44 (0) 20 7528 0086email: javier.lopez@reedmidem.comMiDeM: 18 - 21 January 2009 • MidemNet : 17 - 18 January 2009 • palais des Festivals, Cannes, FranceThe world’s music community11vip_booking_2_va.indd 1 18/11/08 12:34:11VIP-BOOKING.COM


VIP- News - December 2008CTS handleEuro-Ticketing forVan GoghExhibitionManfred Tari mt@vip-booking.comCTS Eventim announced that itwill provide European wide ticketingfor the art exhibition ‘VanGogh and the Colours of theNight’. The exhibition will takeplace in the Van Gogh Museum inAmsterdam and will run from the13th of February until 7th of June.The show itself is presented in collaborationwith the MoMA (Museumof Modern Arts) in New Yorkwhere the exhibition is on showuntil January 9 and is expected todraw at least 800.000 visitors ofwhich two thirds are expected tocome from abroad.CTS offers the tickets via theirwebsite www.eventim.com andtheir network partner. The arrangementfurthermore foreseesthe usage of a ‘print at home’ servicethat is compatible with thescanner system of the Van GoghMuseum as well as hotline andbox office service provided byCTS Eventim.DEAG Release Business Reportfor the 3rd QuarterManfred Tari mt@vip-booking.comIn the first 9 months of the business year2008 DEAG gained a turnover of 80. 8million Euros , but declared a good willimpairment of 5 million Euros due tothe “increasing pressure on margins inthe international Rock/Pop business”and amended currency exchange rates.Therefore the net loss of DEAG is 5.2 millionEuro. Nevertheless DEAG expectsto gain a revenue of about 110 millionEuros for the entire business year . Thecompany furthermore announced a costcutting program of its administrative expensesand “a more performance basedexecutive board remuneration.”Within the last 52 weeks the DEAG Sharehas dropped by about 80 percent. VIP-News spoke to DEAG CEO Peter Schwenkowabout the current situation of thecompany and the financial market ingeneral.VIP-News: Could you please commenton the current situation regarding shareprice development.Schwenkow: It’s the same for Live Nation,Ticketmaster or any entertainmentcompany listed on the stock exchange.We find ourselves in a gigantic crisis inthe condition of the financial marketand so it has nothing to do with the actualcondition of the company. Look atshares such as those of Daimler Benz orCommerzbank.VIP-News: To what extent in terms offinancing and investments is your companyaffected by the credit crunch?»I think that we are facingan enourmous economic crisis,which will become even moredramatic than weimagine today«- Peter SchwenkowSchwenkow: At the moment in no way.In comparison to other suppliers wehave very low commitments. We havetwo financial partners: One is DresdnerAnschutz Mezzanine Invest and theother is the Commerzbank and we havea very good relationship with both ofthem. I can very well imagine that wewill look for acquisitions again in thecoming year and we definitely havethe resources to do this. My opinion isthat the only winners will be those thatstabilize their resources for the nextsix or twelve months and learn to runa leaner operation than at present. Wehave started this process very early andannounced two weeks ago that we areundertaking a good will amortization.This step has also been well receivedwithin the financial community. I thinkthat we are facing an enourmous economiccrisis, which will become evenmore dramatic than we imagine today.Please take a look at the fact that thethree big American automobile companieshave requested $15 billion just tokeep them alive until Barack Obama´sinauguration on January 20. In referenceto this I think a company must bevery lean and aggressive today to in orderto survive.VIP-News: What about the fact that theDEAG has increased its long-term debtsfrom 5.6 to 9 million Euros?Peter Schwenkow - CEO DEAGSchwenkow: Yes, through this we financedacquisition of Raymond GubbayLtd., which is from our point of view abrilliant acquisition.12VIP-BOOKING.COM


VIP- News - December 2008VIP-News: But at the same time it is statedthat within the financial results 1 MillionEuros is specifically a result of interestpaid.Schwenkow: Yes, but that is consequential.When I buy something I have to pay higherrates and have bigger bonds. I think thatRaymond Gubbay Ltd is a superb acquisitionsuch as the one in Good News whichis one of the best investments we have evermade. They make their business exclusivelyin in the fourth and first quarter.VIP-News: What will happen to Good Newswhen André Béchir steps down as MD?Schwenkow: At the moment he has a contractuntil the end of 2009, which will certainlybe extended. Béchir is Good Newsand Good News is Béchir! André wantedto have a four-day working week to havemore time for himself after spending morethan 30 years in the business. He wants todo more private things and that is a wish wetotally understand. In order to accommodatethat we have to supplement the team,but besides that Béchir will always stand forGood News and that is very good.VIP-News: I assume that your competitorshave put you under pressure this year in thelight of Waldbühne and the ticketing dealwith the O2 Arena?Schwenkow: The Waldbühne is a greatloss even though the venue hasn’t mademoney in the last years. Although it is nota financial loss for us it is bitter for us becauseWaldbühne was part of the identy ofDEAG as the venue was the first deal we didin 1981.VIP-News: DEAG built up the reputation ofthe Waldbühne and undertook a lot of effortsto run the arena…Schwenkow: Of course it hurts us, but in myopinion every breakup is also the chance fora new start. Nevertheless we have a jointventure with Anschutz Entertainment forthe O2 Arena and we will present concerts atWaldbühne in the future as well. I think wealready started the pre-ticket sales for thefirst events last week. There is a saying thatthe death toll is counted after the battle, sowe have to analyse the situation very gradually.Over a three-year run it is quite a challengeto guarantee a mortgage of 750.000Euros per year, that’s quite something!VIP-News: Yes, that’s right, but you haveto admit that CTS Eventim is certainly in agood condition today and can thereforeeasily afford to take this on…Schwenkow: I can’t say anything againstthat...VIP-News: There are rumours that CTS isalso interested in moving into the classicmusic market which is a domain of DEAG.Schwenkow: First of all: I think 95% of thestars in classical music have long-term contractswith us. Secondly: I don’t see anyCTS activity in the classical segment so far,with this in mind I can´t comment. The onlyexception is Juan Diego Florés for whomMarek Lieberberg is responsible because ofprivate passion, that’s it!The Edge Offer New Live Music FundManfred Tari mt@vip-booking.comThe British venture capital company TheEdge Performance VCT PLC have announcedanother live music investmentfund. The new fund aims to raise £10 millionand aims to invest in ‘Blue-Chip Artists’.The Edge, which has already issued C- andD-Shares for their existing investment baskets,declared that it will issue a new shareentitled as E-Share.The minimum investment is £5,000 andis linked with an incentive program thatmeans that every subscriber who signs beforethe first of January will receive a bonusof 30 additional E-Share for every1.000 E-Shares, then before 1st of February 20, anduntil the 1st of March 10 E-Shares. Holdersof C- and D-Shares who apply for this offeralso receive another bonus of about 20 additionalE-Shares for the purchase of every1000 E-Shares.In the press release Alasdair George, Directorof Edge Investment Managementconcludes, “The live music and events sectorcontinues to attract strong demand withworld class individual performers and groupsselling out within minutes of tickets becomingavailable. As the industry leader we anticipategood deal flow and that we will continueto have a pick of first class investmentopportunities.”He goes on to explain the investment targetsof Edge PerformanceVCT: “Since theestablishment of Edge our performance hasoutstripped those targets set out by the Boardby some considerable margin. [A total returnper Ordinary share of 87p is anticipated, fora net cost of investment of 60p, versus a targetedreturn of 75p] While the economy andstock markets are unsettled, Edge has offeredboth capital security and dividend flow.”David Glick the founder of the Edge Groupfounder is quoted as saying: “No sector isrecession-proof, but we believe the impactof the current downturn on live music will bea flight to value. Acts who set ticket prices atthe appropriate level will continue to do well.We believe our market-leading position asan investor, our unrivalled team of executivetalent and our established relationships withmarket-leading promoters will stand us ingood stead.”According to the Edge, the company invested2008 in concerts of ‘blue-chip names’such as Bon Jovi, Primal Scream, Kanye West.The term Blue Chip itself is a well know termwithin the financial community and means- well, maybe in these days probably meant- financial heavy weights.13VIP-BOOKING.COM


VIP- News - December 2008TICKETINGAllan McGowan am@vip-booking.comWithout doubt all sectors of Ticketing havebeen the biggest area of discussion in thelive industry throughout 2008. Particularly,the vexed question of the legitimacyof secondary ticketing has been hotlydebated, by government, in conference,on-line, in print, and of course privately.This Newsletter has of course regularlyreported on developments, so in this lastissue of the year we turned to an expertobserver for a summing up of this evercontentioustopic. UK Lawyer Ben Challishad already compiled an overview of developmentsfor his excellent Music LawUpdates (see link at end of article), whichhe has adapted for VIP-News. Althoughthis concentrates mainly on the UK Marketit is relevant to the secondary practice inall main markets.Ben specialises in entertainment law, actsas General Counsel for 3A Entertainments,one of the UK’s leading concert promoters,and for the Glastonbury Festival for whichhe is also Executive Producer for television,managing the Festival’s broadcastand other media rights. He regularly writesarticles and other material on music businessand intellectual property law, contributesto books and is a regular conferencespeaker in particular on the live music industry.Ben sits as a magistrate in Cumbria,England and is a Visiting Professor in law atBuckinghamshire New University.Ben ChallisWhere Next in the Fight against Ticket Touts?In January 2008 The House of CommonsCulture, Media and Sport Select Committee,chaired by MP John Whittingdale,criticised eBay’s practices in allowing theauction of charity event tickets (such asLive 8) and called for the estimated £1 billionticketing industry to clean up its act.Event promoters have repeatedly urgedMPs to recommend a change in the law tomake ticket touting illegal, claiming thosewho sold tickets at grossly inflated pricesoften deprived grassroots fans of the opportunityto see their favourite bands orsports team or collaborate with criminalgangs – and promoters have tied the issueto dodgy websites selling non-existenttickets.Recently legitimate online ticketing agenciescalled on the UK government toclampdown on rogue online sites after aspate of cases involving bogus tickets andhigh profile examples of consumers beingripped off - including Reading Festival tickets,the Led Zeppelin reunion, and showsby Bruce Springsteen and the Kings ofLeon amongst others. The Association ofSecondary Ticket Agents called for a ‘kite- mark’ (a recognised industry stamp of approval)scheme to reassure consumers butpromoter Harvey Goldsmith said “there is ahuge criminal element involved in this business- they send hundreds of people out tobuy tickets, then have a cache of tickets theysell for as much as they can”.Promoter Harvey GoldsmithRegulation AttemptsThe UK government is already working withthe Society of Ticket Agents and Retailersto draw up a new code of conduct in an attemptto soft-touch regulate ticketing. Butthe Select Committee cited recent pollsthat showed many consumers saw touts asa ‘godsend’ to fans who were desperate toobtain tickets for oversubscribed events, orwho wanted to sell on tickets they could nolonger use. At present, buying and sellingsecond-hand tickets is not illegal, exceptfor football games in England and Wales.Under the 1994 Criminal Justice and PublicOrder Act, now extended by the Football(Offences and Disorder) Act 1999 andViolent Crime Reduction Act 2006 any fanselling or offering to sell, without authority,a ticket for a ‘designated football match’ inany public place faces a fine of up to £5,000.The law was introduced after the Taylor reportinto the Hillsborough disaster. Its aimwas to crack down on touts, and keep opposingfans segregated.David MacLean, then a Home Office minister,indicated that the law was not intendedto trap the fan seeking to get rid of an unwantedmatch ticket (although it does andcan be seen as particularly criminalising forthose with innocent intentions). The Guidancefor the 2006 Act, which extends thelegislation to internet sites, makes it clearthat the legislation is in place to preservepublic order rather than for commercialconsiderations. Similar legislation will beintroduced for the 2012 London OlympicGames, prohibiting the re-sale of tickets.The 2010 Glasgow Commonwealth Gameswill also have similar provisions although14VIP-BOOKING.COM


VIP- News - December 2008there may a distinction to protect fans resellingtickets at face value.The re-sale of other event tickets might be‘immoral’ to some and indeed is usuallyin breach of the terms and conditions laiddown by the event organiser - but it is notcurrently a criminal offence in the UK. Theuse of terms and conditions can give promotersa legal tool to prevent the re-sale oftickets but such terms have to be reasonableand certain in the UK when appliedto consumers (under the Unfair ContractsTerms Act 1977) and in the only test casethis writer is aware of, the Australian FederalCourt found against the promoters ofthe Big Day Out, Creative Festival Entertainment,who included a term prohibiting resale,as it was found to be misleading underthe Australian Trade Practices Act 1974. Infact one solution to touting that has beenput forward is the ‘Queensland Solution’,an Australian concept that allows fans toresale tickets up to 10% over face value.A Long Term DebateThe debate on whether or not to criminaliseticket touting is hardly new. In 1989this exchange took place in the House ofCommons between conservative MP TheresaGorman and Home Office ministerJohn Patten:Mrs. Gorman “Will my hon. Friend agree thatticket touting is a form of brokerage betweena willing seller and a willing buyer - that it isno more reprehensible when it takes placeon a pavement than when it takes place inone of our City exchanges, that brokers arerisk-takers and that everyone is jealous ofthem when they make a profit but nobodyhas sympathy for them when they make aloss?”.Mr. Patten: “I do not want to get into ideologicaltrouble with my hon. Friend, but Iagree with her that nobody is compelled totake part in the process, that the person whoraises the price of a ticket to sell it on the streetdoes not defraud the person who originallyset the ticket price and that the person whopays the price is not unaware of the difference.I believe that it is pretty obnoxious andthat it is extraordinary the prices people areprepared to pay, but it is a lawful activity”.A similar debate took place in the Houseof Lords in 1990 with Baroness Gardnersaying “the way that the system works nowit is not a free market. It is being taken overto too large an extent by a criminal element.Big money has become involved. Ifthere were some system whereby peoplewere licensed to sell tickets they wouldstill be making a profit. It could still be anopen market with tickets freely sold. Butwe would not have tickets being sold andresold for so many times their value” andcalling for legislation on ticket toutingwhich would include local authoritylicensing. In response Lord Monsoncompared ticket touting with the City ofLondon saying “always providing that theyare acting within the law, the touts fulfilthe useful, indeed Thatcherite, function ofbringing supply into line with demand... Ina sense touts can be compared with jobbersin the City of London ... Surely the solutionis to let the initial price of the ticket reflectthe demand just as the price of old masters,Impressionists or first, second, third, fourthor fifth growth clarets reflect the ebb andflow of demand, and let a due proportionof the additional profits made by increasingthe prices be paid over to the Treasuryin corporation tax to the benefit of the restof us ... Therefore if one wishes to eliminatethe unsavoury type of ticket tout one mustencourage the promoters to get their pricesright in the first place”.Industry Self RegulationWhilst free markets are perhaps nowseen as the main cause of the currentglobal economic downturn, ticket toutingwasn’t banned in 1994 and thereseems little chance it will be now or inthe near future. Select Committee chairJohn Whittingdale criticised companiesand individuals selling second-hand ticketsfor popular events but stopped shortof recommending a change in the law,15VIP-BOOKING.COM


VIP- News - December 2008each weekend in a criminal act because alaw aimed at ticket touts can trap ordinarysupporters. It is a familiar scene outsideevery football ground, or in nearby streetsand bars. A supporter, let down by a friendwho unexpectedly cannot attend a game,makes contact with someone looking for aspare ticket. they complete their seeminglyinnocent transaction and proceed contentedlyto the match. But in the eyes of the law,their exchange amounts to illegal touting.The offence is committed even if - as generallyhappens - the ticket has changed handsbetween followers of the same club andat face value”. I for one wouldn’t want todifferentiate between the fan who needsto sell a ticket and ‘any reasonable offersecures’ and the fan out to make a profitwho advertises a ticket as ‘highest offersecures’.A Telegraph survey of police forces with Premiershipclubs in their areas back in 1996 revealedstark differences in the way the policedeal with the re-sale of football tickets. A fanarriving at Southampton’s ground, the Dell,looking to dispose of a ticket would probablybe successful - police are unlikely to takeaction unless he offers it to a rival supporter.However, someone attempting the sameexercise outside the away end at Leeds orBradford could expect to be arrested andcharged. Remember here the police are primarilyconcerned with maintaining publicorder - something that couldn’t be levelledat music events - and even here there havebeen unintended and sometimes harshconsequences for fans just wanting to passon unwanted tickets - as well as empty seatsat games - when there are willing fans wantingto see the game.Another possible unintended consequenceis the potential cost to promoters(and fans) here. With the Associationof Chief Police Officers (ACPO) wanting tonow charge for policing large scale events,promoters will also then have to ‘pay’ topolice touting and would have to pass onthe cost to fans (or the artist) – otherwisethey would be paying to arrest their owncustomers! I am not sure that making there-sale of tickets a criminal offence wouldhelp event organisers remove tickets frombeing resold on eBay and other onlinesites. Whilst two recent French court decisionsheld that eBay was liable for damagesafter allowing the auction of counterfeitgoods, the internet site’s ‘mere conduit’defence proved successful in a US federalcourt when accused of allowing trademark infringement.Next?So where to next in the fight against touts?Some events like Glastonbury have introducedcomplex registration systems to tryand eliminate touting and enable real fansto buy tickets; certainly well written termsand conditions prohibiting re-sale mightprove valuable in the future but the effectivenessof these have yet to be testedin a British civil court and the Glastonburysystem is not fool proof - and indeed waspartially abandoned in the run up to the2008 Festival when Glastonbury almostdidn’t sell out.The Resale Rights Society has been set upby the Music Managers Forum with thesupport of the MCPS-PRS Alliance with therole of (attempting) to regulate the secondaryticket market and impose a levy on ticketsre-sold on sites like Viagogo and Seatwave.The RRS has two primary aims: first,to ensure music fans are protected fromunscrupulous or bogus resellers throughthe introduction of a ‘kite-mark’ schemefor ticketing sites; second to ensure thatartists and the live music industry sharein the proceeds of resold tickets. But theremust be inherent difficulties here: Whilstthe MCPS-PRS Alliance can legally collectroyalties for its own members because ofthe statutory provisions of copyright law,tickets have no such ‘protection’. Otherideas are more pragmatic. There are thefan’s own ticket exchange sites like Scarlet-Mist where tickets can be swapped at facevalue and indeed the Concert PromotersAssociation recently talked of setting uptheir own similar scheme. Some artists, likeMadonna, have embraced secondary ticketingas a solution to the ‘problem’ of toutingand secondary ticketing, appointingan ‘official’ premium and secondary ticketingpartner. But will any of these schemesreally put an end to touting?Recent headlines from world of footballsuch as “touts net huge profit on illegalcup final tickets” suggest not: WhilstFootball League spokesman John Naglemight well say “Re-selling match tickets is acriminal offence and where tickets are madeavailable for purchase this year action willbe taken” the fact remains that there are veryfew prosecutions of any nature and the problemis compounded because “almost all thesites are based abroad, making it harder forthe authorities to bring prosecutions.”New Thinking Versus Legislation?As the live industry (as well as the leisuresector) still comes to terms with the negativefallout from the 2003 Licensing Act,is more government legislation whichmay not even be effective really whatthe live sector needs? In the 2004-2005football season just 146 individuals werearrested for touting football tickets andin the 2005 - 2006 season just 99 – and inboth seasons just fourteen club groundswere affected. In 2006 eight premiershipgrounds had arrests - with 11 at Chelsea’shome ground, 10 at Arsenal, 7 at Liverpooland just 2 at Manchester United.The majority of Premiership clubs hadno arrests and these included TottenhamHotspur, Fulham, West Ham, Everton,Blackburn and Manchester City. Only sixChampionship clubs had arrests (withthe highest being just 2 at Preston NorthEnd). There were no arrests in Divisions1 and 2.Football fans say that they “doubted thatthe highly lucrative practice would everbe stamped out” and Toby Brown, editorof Chelsea fans’ online forum CFC.net,said “For every site you close down fivewill spring up”. Perhaps in the digital agethe issue of touting is one which promot-17VIP-BOOKING.COM


VIP- News - December 2008ers, artists and fans will just have to live with - whether face to face or incyberspace.The digital age has led to significant challenges for the music industry. Therecorded music sector, particularly in the USA, has provoked hostile criticismand public ridicule for brining civil and criminal actions against musicfans – and for each illegal download the record labels get paid nothing. Foreach legitimate ticket sold on eBay the promoter has at least been paid thevalue they set for the ticket. If promoters and artists are concerned aboutthe number of tickets reaching the secondary market then they shouldimplement systems to control this – or embrace secondary ticketing. Ifpromoters and artists are concerned about tours selling tickets at vastlyinflated prices then they should look at pricing structures – the live sectoralready has sponsors tickets and hospitality tickets – Live 8 had a very visiblegolden circle for the privileged not-so-few – and at the moment it isthe travel industry who have set the standard in flexible pricing balancingsupply with demand. We don’t need new laws. We need new ideas.Ben Challis is a lawyer and edits www.musiclawupdates.com.He is a visiting professor in law at Buckinghamshire New University.Referenceshttp://www.homeoffice.gov.uk/documents/VCRA-football-guidance.pdf?view=Binaryhttp://www.publications.parliament.uk/pa/cm198889/cmhansrd/1989-05-11/Orals-2.htmlhttp://hansard.millbanksystems.com/lords/1990/apr/18/ticket-toutshttp://www.urban75.org/football/tickets.html(Article by Colin Randall Daily Telegraph 1996)Crackdown urged on rip-off web ticket toutsThe Observer 23 December 2007Pressure grows on the online touts dream ticketThe Observer Media 6th January 2008Whose Ticket? (Petri Lunden)IQ Issue 15 2007 p13eBay International AG v Creative Festival Entertainment Pty Limited at http://www.craddock.com.au/Document/eBay-Scores-Partial-Win-in-Big-Ticket-Case.aspx and in Legal News (Ben Challis)IQ Issue 18 2008 p10Virtual Festival’s fan survey (European Festival Report)IQ Issue 20 2008http://www.nytimes.com/2008/07/15/technology/15ebay.html?em&ex=1216267200&en=4dcc0c8323ecf63b&ei=5087%0Ahttp://www.thisislondon.co.uk/standard/article-23437322-details/Touts+net+huge+profit+on+illegal+cup+final+tickets/article.doStatistics on Football-Related Arrests and Banning Ordershttp://www.homeoffice.gov.uk/documents/football-arrests-0506?view=BinaryGreenfield S, Osbourne G & Roberts S Contradictions Within The CriminalisationOf Ticket Touting: What Should Be The Role Of The Law?http://webjcli.ncl.ac.uk/2008/issue3/greenfield3.htmlWhich? Survey reported in Live UK Issue 1-2 p8Court Closes rip-off ticket website companies Live UK issue 99 p4artist avails ››Steve WinwoodTerritory: Europe, Australia & AsiaPeriod: January - February 2009Agency: Helter SkelterAgent: Peter NashPhone: +44 207 376 8501E-mail: gnasher@helterskelter.co.ukHomepage: www.stevewinwood.comAlvin Youngblood HartTerritory: EuropePeriod: March 2009, Summer 2009Agency: Kultopolis GmbHAgent: Markus SollnerPhone: +49 6861 939980E-mail: booking@kultopolis.comHomepage: www.kultopolis.comBarclay James Harvest feat. Les HolroydTerritory: WorldwidePeriod: Summer 2009Agency: Kultoplis GmbhAgent: Markus SollnerPhone: +49 6861 939980E-mail: booking@kultopolis.comHomepage: www.kultopolis.comBobby CaldwellTerritory: EuropePeriod: May - July 2009Agency: H.O.T.BAgent: Mark van den BurghPhone: +31 20 470 9474E-mail: mark@hotb.tvHomepage: www.hotb.tvScooterTerritory: WorldwidePeriod: By requestAgency: Boese & Friends GbRAgent: Maik BoesePhone: +49 40 736 775 610E-mail: boese@boeseandfriends.comHomepage: www.boeseandfriends.comEddie & The Robbers feat. Eddie JordanTerritory: WorldwidePeriod: 2009Agency: Incredible Artists LtdAgent: Anita WatsonPhone: +44 7768 848119E-mail: anita@incredibleartists.co.ukHomepage: www.incredibleartists.co.ukMore Artist avails on:www.vip-booking.comPost your Artist avails on:www.vip-booking.com18VIP-BOOKING.COM


VIP- News - December 2008Member presentation ››In this section we offer members of VIP-Booking.com some space to present their company to VIP-News readers.If you would also like to present your company please contact Peter Briggs at pb@vip-booking.comUnited Stage ArtistUnited Stage Artist is an independent company within theSwedish music industry. Our main activities are to exclusivelyrepresent record-artists as tour agents and tour producers. Thecompany represents close to 100 artists today. (enclosure: roster)History/ United Stage was set in 1984. When Managing Director,Anders Larsson, founded the company in Malmö it hada very strong regional influence but has over the years becomeone of the two leading companies in the Swedish market. In1991 United Stage established a minor office in Stockholm andin 1996 the whole operation was moved to the capital. Duringthe autumn of 1997 a rival company, Siljemark Production AB,was incorporated within the company. Activity/United StageArtist is a service company catering for the artist, its client. Thisservice is divided into two parts, consulting and administrationIt´s very important with co-ordination in the market, negotiationsand agreements. New Adventures/ Recently, the companyestablished a department that will act as a concert promotersfor public shows, an activity that is not limited to the performancesof the artists represented by United Stage. It includes awider range of entertainment arrangements, without artistic orgeographical limits. Along with the development of the concertpromotion department, the company will increase its activitiesin the growing market of corporate events Best Regards! UnitedStage ArtistAbout Our CompanyVIP-Booking’s core product is the Internet’s oldest and largest databasefor the European Live Entertainment Industry www.vip-booking.comdeveloped as a tool for industry professionals. Since it’slaunch in the year 2000, we have consistently offered our subscribersthe very best in database services and now boast subscribers inover 30 countries.Today VIP-Booking offers a range of tools for the industry – includingVIP-News, VIP-Booking, VIP-Book and VIP-Contract.Please visit vip-booking.com for further information.Your comments and suggestions are always appreciated.®vip-booking.com19VIP-BOOKING.COMVIP-BOOKING.COM | 26 York Street | UK - London W1U 6pZ | Phone +44 870 755 0092 | Fax +44 870 622 1953 | e-mail: vip@vip-booking.comVIP-BOOKING.COM