Chapter 1635: 1635 Tour Company
In the European and American markets, touring is always the most profitable business for singers, not only because album revenue needs to be shared with record stores and record companies, but also because albums are a one-off sale. But tours are different. Tours can not only attract the support of a large number of sponsors, but also a tour can last for several months or even years, traveling to every corner of the world.
In fact, this is the same as a movie. It is very difficult for a film company to make a movie and rely on the box office to make money, unless it is like "Life and Death" that grabs a super high box office at a super low cost, or "Independence Day" Such a super high cost creates a box office that is against the sky, otherwise the box office profit of the film company will not be large. Movie companies rely more on the peripherals after the movie goes offline to make money, among which Disney is the most representative company.
Starting from the rental of video tapes, to the sale of overseas copyrights, to the sale of major TV stations and online broadcasting copyrights, to the peripheral development of toys, school supplies, and daily necessities, to the establishment of theme parks, and even the release of derivative products. After the movie is off the assembly line, Disney's real profits have just begun.
The tour is actually very similar to the peripherals of the movie, because the tour is not just a ticket for a concert. Exclusive concert T-shirts, support light sticks, desk calendars, posters and other peripheral products at the entrance can generate huge profits.
After many singers have stepped down from the peak of their popularity, the reason why their singing career can last for many years is to rely on the power of tours. Guns N’ Roses, Madonna, Mariah Carey, U2, Lady Gaga, etc. During the non-album promotion period, they basically toured various places, and their income was still considerable. The profits earned from an album can often be earned by relying on three or five concerts.
As a simple example, a singer who sells over 10 million albums and becomes the top existence in the long history of music may be able to earn around 10 million to 20 million U.S. dollars; but a national tour consisting of 30 performances , you can earn 30 million or more. There are very few singers who can sell 10 million albums in history; but there are countless singers who can hold 30 consecutive concerts and maintain a certain attendance rate in history.
That's the beauty of touring.
In Europe and the United States where the entire touring market is extremely developed, even singers at the peak of their careers, Bruno Mars, Justin Timberlake, Taylor Swift, Beyonce , Rihanna (Rihanna), Katy-Perry (Katy. Perry), etc. are all on tour all year round, because this is far more profitable than albums, and it also maintains super high popularity and high exposure In addition to being able to get close to the fans, it can be said to serve multiple purposes in one fell swoop.
It can be said that the tour is a shining cash cow.
It is precisely because of this that touring requires a long time and great effort to operate, and ordinary record companies will not get involved in this area, and this is how a formal touring company was born. These touring companies have contracts for scenes and performance venues. The larger the touring company, the more venues they have. They can choose the venue according to the popularity level of the singer, whether it is at the level of 100,000 people, 10,000 people, or At the level of 5,000 people, the attendance rate can be guaranteed to the greatest extent, the excitement of the performance can be promoted, and the effect of the tour can be maximized.
At the same time, the tour company is well aware of all the details of the entire tour process, such as itinerary arrangements, hotel arrangements, fan alienation, ticket cooperation, sponsorship choices, publicity strategies, etc., they are all clear. It's like the distribution department of a movie company, but it's far more complicated than distribution.
Just like the eight major film companies in Hollywood, the five major music companies in the world, and the three major brokerage companies in the United States, the touring company naturally also has the leader, AEG Group (Anschutz. Entertainment. Group) and Live Nation (Live. Nation).
AEG Group is a well-known consortium with a wide range of designs, including shares in the Los Angeles Lakers and Los Angeles Kings hockey teams, and has more than 100 sports and entertainment venues around the world. They have held world tours of the Eagles, Nirvana, Michael Jackson and many other top big names. The two-year world tour of Guns N’ Roses was also organized by AEG—this world tour also witnessed The moment the top rock band was split and replaced by Nirvana.
Live Nation is not a consortium, but a professional touring company. The reason why AEG can become the top is because they have more than 100 venues around the world, but the live country can become the top because of their strong planning ability. If we only talk about the concert venue, the live country cannot compete with AEG. To counteract, their concert venues are concentrated in the United States, with a total of 70, and they have nearly 40 performance venues around the world-but they also include London's Wembley Stadium (Wembley. Stadium) important venue. But the number is still far behind the AEG Group.
Live Country is currently the largest touring company in the world. They have professional teams all over the world—even have begun to set foot in the Asian market. They have planned for U2, Madonna, Frank Sinatra, Pearl Jam and many other singers Big concert tour. And their greatest achievement is that they once promoted the feat of the Beatles to come to the United States.
At present, Live Kingdom and AEG Group together can monopolize more than 80% of the international performance market, and they are well-deserved industry leaders. The former has expertise and experience, while the latter has funds and venues. Each has its own advantages and disadvantages. It is really difficult to tell the winner.
When the "Road to Glory" tour debuted two years ago, the tour company in charge of Glory to Death was not either of these two strong companies. However, the company responsible for formulating the tour plan signed a lease agreement with AEG Group and borrowed a large number of AEG Group's The venue, providing a tour venue for Glory to Death. Like Madison Square Garden.
However, this time Glory to Death is clearly of a different level. Only when EMI released its voice in the industry, a group of touring companies flocked to it. The two giants of the scene, Nationland and AEG Group, did not show any weakness, and immediately started negotiating with EMI , It was noisy for a while.
Everyone knows clearly that this is a global tour that will last for half a year. The tour cities will be at least 50, the number of performances will be more than 100, and the profit will be at least 50 million. The most conservative bottom-line estimate, many people in the industry believe that with the momentum of Hugo and Glory to Death, it is not a big problem for the tour profit to cross the 100 million threshold.
Therefore, every touring company is eager to get this project, and the sponsors behind them are already waving checks and ready to send money to their door at any time. An agreement was reached at once.
However, after Scene Kingdom and AEG Group announced their entry into the competition, other touring companies knew that their chances were slim. After all, the strengths of the two were almost irresistible. These two top companies can shoulder such a grand show.
Sure enough, after three days of intensive and detailed discussions, EMI Records confirmed that they will finally decide on one company between Scene Nation and AEG Group to be in charge of this global tour of Glory to Death. But as everyone knows, the live country is more professional and can provide a more valuable tour plan for Glory to Death; AEG Group is more confident, and they can provide Glory to Death with a better performance venue.
After discussing with Roger Faxon, he also discussed with other members of Die Glory, and after asking everyone's opinions, he came to Hugo, hoping to find a plan that was most suitable for Die Glory. Because Henry knows that this tour is very important for Glory to Death; it is also true for Hugo.
"The plan, yes, the plan, I have read it." After Henry's reminder, Hugo finally came to his senses. His enthusiasm for the tour is unprecedentedly high, because this time the world tour is Hugo's watering for the rock seeds The good opportunity of fertilization is also the only way for him to realize his dream.
In fact, Glory to Death had already started preparing for the tour long before the official announcement of the tour. To be precise, they have been preparing for this tour since the trip to the outdoor recording studio in the first half of the year. Now that everything is ready, the only thing we need to do is to choose a touring company and put it into operation immediately, and the tour can officially go on the road.
Hugo had one more problem, though.
"Are you sure the plan is not wrong?" Hugo frowned slightly, showing a puzzled expression, but now Henry and Joseph showed doubts, and they didn't understand what Hugo said. Out of nowhere, Hugo had to explain, "I looked at the amount of the tour, AEG Group offered 20 million dollars to sign this tour? They're crazy!"
It's just that it's just a contract to represent Glory to Death for a tour, and the profits and sponsorship dividends of the subsequent tour will still be given to Glory to Death. The agreed contract money is 20 million, and it is the amount of two albums within three years.
Of course, the signing of EMI Records is now considered by everyone to be a decision worth 100 million U.S. dollars, which proves Roger's wisdom at the beginning. But the AEG Group paid such a high amount just for the tour of Glory to Death—just this time, it is unreasonable! Rich people are really willful.
However, even the country on the scene offered a signing bonus of 10 million US dollars. Although it is not as good as the AEG Group, it also exceeds the 10 million US dollars that Michael Jackson signed with the AEG Group not long ago for "History". U.S. dollars——Michael's "historical tour" cooperated with AEG Group and opened in Prague on September 6. This tour will last for nearly two years and will be held in two parts. It is the biggest concert ever.
When Hugo saw the signing bonus offered by the two touring companies, his first reaction was that the plan was wrong, because the figure was too incredible.
Seeing Hugo's surprised expression, Henry's mouth slightly drew a smile, and his eyes shone with light, showing his good mood, "There is nothing wrong with the contract, they are not crazy, and the numbers are all right. "