Crossfaded Into The Mainstream

It’s official...Dance music has gone mainstream. Artist like Afrojack, David Guetta are getting insane amounts of radio airplay. Avicii’s ‘Levels’ can be heard in countless commercials and Miami superstar Pitbull is throwing his lyrics onto a sample of 'Nightcrawlers,’  ‘Push The Feeling On!’ There’s no denying that the huge amounts of attention, money and a new generation of fans has pushed this once “underground” genre into the minds of people, nationally and globally.

Fortunately, this isn’t a bad thing. Electronic dance music has become a force to reckon with, in 2012, as popular music artist such as Usher, Nikki Minaj, Rihanna and Madonna have learnt to embrace club music. At the 2012 Grammy Awards, the ceremony featured its first tribute to dance music and was honored with performances from industry heavyweights’ David Guetta and Deadmau5, rappers Chris Brown and Lil Wayne, and The Foo Fighters, highlighting the fusion of genres into one entity.

French DJ David Guetta was one of the first DJs to bridge the gap between electronic music and create a new and improved standard of pop music. His latest two-disc album “Nothing But The Beat,” featured collaborations with some of pop’s biggest stars and peaked at number five on the Billboard 200 album chart in late 2011. True, there are some artist collaborations that have failed (Nikki Minaj’s Pink Friday: Roman Reloaded) and been slammed by industry critics, but, everyone learns through their mistakes. While dance and house music thrived in Europe in the early 2000s, it was only recent that DJs started getting recognition in America.

One can say that DJs are the “new rock stars”! Take DJPeoples for example. They are a company based out of Miami, Florida, and they have worked with some of the biggest names in the retail, corporate, fashion and hospitality industries (D&G, Louis Vuitton, Red Bull, Neimen Marcus, Ritz Carlton, among others). DJPeoples’ team consists of influential music, design and marketing professionals that fuse their creativity along with a side of business, to provide their clients exciting sales-driven campaigns and events worth talking about. Using state-of-the-art equipment and technology, a large network of the coolest and hippest DJs, they provide companies with an exciting and electrifying way to elevate their brands within the DJ world.

It’s a new and exciting twist in the world of entertainment business and DJPeoples has stepped away from traditional marketing techniques to use the power of music to keep customers engaged and entertained, while allowing them to shop and spend. Their DJ services and products include equipment rentals, sound, stage and lighting setup, and also custom designed DJ booths, all of which are tailored around the brand message, event theme and purpose. What you get is an event that is encircled around the company's brand message and leaves the clientele with a lasting impression and a want for more! Don’t believe me?  Try this on for size. David Chiovetti, who is the VP of Marketing for the Guess? Corporation said: “DJPeoples has helped Guess in creating our entire DJ program from the beginning by supplying and running our DJ events and bookings to designing, building and shipping DJ booths to all of our retail locations. There is no company that does what they do. Period.” If you want more information, visit DJPeoples’ website: www.djpeoples.com. 

Barclays Names Jay-Z Director of Brooklyn Arena Firm

 Shawn 'Jay-Z' Carter who recently helped design and debut the new logo and line apparel for the Brooklyn Nets, has been named director of the company that runs Barclay's Center (Brooklyn Arena, LLC). The Barclay's Center will also hold 1 luxury arena suites called the "Vault". The Post says that, "for the suites, they will run for $550,000 each". Jay Z has been a helping hand everywhere. He even stepped in to help choose high-end forks, napkins and champagne that will be served during the events.

The company has set the grand opening for the center for late September. "The new title emerged in papers filed by arena developer Forest Ratner Cos. in its bid to secure a liquor licence for the future home of the Brooklyn Nets", according to the Post. "As one of the seven directors, the rapper and music mogul will attend board meetings and help direct arena senior staff on daily operations". 

Jay-Z is a minor stake holder in the Brooklyn Nets, the former New Jersey franchise, which is set to play its first game in the fall. Jay has been listed as arena director along with Forest City CEO Bruce Ratner, David Berliner, Mary Anne Gilmartin, Christophe Charlier, Irina Pavlova and David Carlock. Irina Pavlova is Nets majority holder Mikhail Prokhorov's right hand woman in the United States. She is also the President of Prokhorov's Onexim Sports & Entertainment Holding USA, Inc.  Irina was also the team's representative at the NBA draft lottery.

The Russian billionaire Mikhail owns 80 percent of the Nets and also has a 45 percent ownership in the arena. "The news of Jay-Z's new title emerged as officials confirmed that they would extend drinking hours at the Barclays for their big spenders", said The Post. 


Source:

http://www.nypost.com/p/news/local/brooklyn/jay_named_director_at_barclays_arena_it5iGkgZ5SYwjPkcQL2YVM?utm_medium=rss

Mogul to Increase Bets on Electronic Music

Robert F. X. Sillerman is a media executive who transformed the live entertainment business in the 90s, by combining concert promoters into the nationwide powerhouse that became Live Nation. Mr. Sillerman has decided to return to the business and plans to invest in the ever-growing electronic music genre. Sources say that Mr. Sillerman is pursuing independent companies that put on dance festivals, DJ parties and events, where crowds range from the hundreds to the thousands. In an interview last Monday, Mr. Sillerman stated that His first acquisition was Disco Productions. This is a Louisiana based company that was founded by rave promoter, Donnie Estopinal. In addition to the deal with Disco Productions, Mr. Sillerman says that he is in negotiations with 50 other companies, out of which, tentative agreements have been set with 15. He declined to disclose any information regarding the terms of the Disco Production agreement, but expects his new company (SFX Entertainment, revived from his old company)To spend $1 billion in acquisitions within a year. He plans to take the company public this summer. The plan for SFX Entertainment is still being formulated, as stated by Mr. Sillerman. This plan involves using the Internet to connect fans of dance music. There is currently a wave of interest in attending concerts that has less to do with the music and more to with the experience attached to it. This is in reference to the immerse appeal of many large scale dance events. Mr. Sillerman's thoughts is that, "the experience of attending an individual event can be perpetuated and made better by connecting the people, not just when they're consuming the entertainment but when they're away from it." Over the past few years, SFX Entertainment spent $1.2 billion to buy dozens of regional promoters and combined into a national organization. In 2000, Clear Channel Communications bought SFX for $4.4 billion. It later turned its concert division into Live Nation, which merged with Ticketmaster in 2010 to form Live Nation Entertainment. Mr. Sillerman's corporate approach to the concert industry has had its disadvantages. Some say that it has led to higher prices for consumers and has created a competitive bidding process, that has made events far riskier to put on. Live Nation has also had its fair share of issues. Since going public in 2005, it has never turned an annual profit. But, Mr. Sillerman said he believed that the basic business strategy behind combining multiple concert companies was sound. Live Nation has also taken an interest in electronic dance music. Last month they purchased a major British promoter, Cream Holdings,and announced last week that it would be putting on a two-night dance event, called Sensation, at the new Barclay's Center in Brooklyn in October. 


 Sources: 


1)  http://www.nytimes.com/2012/06/06/business/media/mogul-to-increase-bets-on-electronic-dance-music.html?_r=2&adxnnl=1&ref=livenationinc&adxnnlx=1339160455-oOXbqapTfzVbOlqpqV5CtA

Expert Views on Business Plans (Part II)

Irving Azoff and Michael Rapino are today's leaders in the live events industry. Together, they have managed to globalize Live Nation Entertainment into the largest concert and event company in the world. Their operations take place in over twenty-six countries around the world, more than $4 billion in revenue and are known for having a formidable list of artist under their belt. After reviewing their perspectives on business plans, it is clear that it is important to make sure all aspects (marketing, financials, operations etc.) need to be in order. As the soon to be owner of a live entertainment company, I have looked at my business plan in its current state and made sure that I have all the appropriate licenses and permits to be able to host concerts and events in India. 

Live Nation depend on marketing to let people know about their concerts that are coming up. They use many distributions channels such as social media, since a majority of people use this to keep in touch and spread news. I have made sure to include this channel in my business plan, as it will be important to inform people about my upcoming shows. Live Nation has a large list of artist under their belt and have done their best to keep them happy. Since hosting concerts and events can be expensive, I have made sure to look at outsourcing (merchandise, application design etc.) to avoid any unnecessary costs. The sectors of my business plan that I find important to the investors reading it are the marketing and financials. Investors would be interested to know wether they will make any return and if a market actually exists. I am confident enough to stand in front of investors and explain why business is worth investing in.  

Image Source:

http://upandrunning.bplans.com/2011/10/03/what-makes-a-successful-business-plan/

Experts' Views on the Value of Business Plans

The two people I am going to talk about today are the driving forces in the live entertainment industry. Irving Azoff and Michael Rapino. During his college years at the University of Illinois, Irving Azoff (born December 13, 1947) began promoting and booking bands. He has also worked as an agent, concert promoter, personal manager, movie producer and CEO of a recording company. He later moved to Los Angeles and joined Geffen Roberts management, where he started work with the Eagles. After David Geffen sold Asylum Records to Warner Music, the management company split and Azoff left with the Eagles as his own client. From 1983 to 1989, Azoff headed MCA Records, and was given a lot of credit for saving the company from bankruptcy. Irving left MCA in 1989 to start Giant Records, which is now a defunct company. As a personal manager he is known for representing artists such as Christina Aguilera, Journey, Jewel, The Eagles, REO Speedwagon, 30 Seconds to Mars and many more. In 2008, Irving became chairman and CEO of Ticketmaster, which is the worlds largest and leading distributor of tickets for live concerts. After the merger with Live Nation, Azoff was made Executive Chairman for Live Nation Entertainment.

Michael Rapino was named CEO for of the newly created Live Nation Entertainment in January 2010. He was instrumental in leading the merger between Ticketmaster and Live Nation, which is now the number one live event company in the world. Prior to the merger, Michael held the position of President and CEO of Live Nation, since August 2005. In a span of five years, under Michael's leadership, the company built its position as the world's largest producer of live concerts in over 26 countries, with revenues exceeding $4 billion. Prior to acquiring his position as CEO of Live Nation, Michael was President and CEO of Clear Channel Music Group, and also had the chance to run the London-based international music division of the company. Earlier in his career, Michael co-founded Core Audience Entertainment, which was a leading concert promoter and entertainment marketing company based in Canada. It was later acquired by SFX in 1999.


When looking at business plans Irving Azoff had this to say, "Since the traditional recorded-music business models have drastically changed, there is truly diminished income derived from recorded music by artists - both current and catalog. It's all about artists and those they empower to execute their business plans" (Irving Azoff: The Billboard Power). Both Irving and Michael have the same views, since both of them work in the same industry. Both parties believe that one has to have goals for a business to be successful. 

Sources:

1) http://www.billboard.biz/bbbiz/record-labels/irving-azoff-the-billboard-power-100-q-a-1006016752.story

2) http://phx.corporate-ir.net/phoenix.zhtml?c=194146&p=irol-govBio&ID=145086

3) http://www.scoopmarketing.com/2012/01/irving-azoff-is-billboards-most-powerful-in-music/

Kanye West Under Fire for New 'Theraflu' Single

Kanye West, the man who creates controversy by simply picking up his smart phone, has walked himself into another pit this time without knowing it. The rapper/entrepreneur is catching flak on two different fronts, since the release of his new single, 'Theraflu', which was a collaboration with the overweight DJ Khaled. The song includes lyrics about Kanye's new flame Kim Kardashian. The lyrics are as follows: "Way too cold, I promise you'll need some Theraflu". Makers of the flu medication have made an exception to his use of their trademark. A company rep had told gossip site TMZ that executives from the company said that, "We in no way endorse or approve of the references or use of the image and likeness of Theraflu in this manner". 


At the same time rapper Kanye West has managed to start a fire with PETA (People for the Ethical Treatment of Animals) with another lyric, which says, "Someone tell PETA my mink is draggin' on the floor". A spokesperson told the Wall Street Journal that, "What's draggin' on the floor is Kanye's reputation as a man with no empathy for animals or humans beings. He's a great musician but doesn't seem to have the fashion sense to design anything more than caveman costumes". 


According to MTV, the sampled track was originally intended for the overweight Miami DJ Khaled, but was more or less claimed by Kanye, after hearing the beat. This didn't seem to bother Khaled, who has promised another collaboration with Kanye West on his upcoming LP "Kiss the Ring". The DJ told MTV   News that, "When we get together, we just making some amazing music".


In other news, Kanye and longtime friend Kim Kardashian, another controversy-seeking star, like West himself have been spotted on several public outings recently and their friends have confirmed that both the superstars are dating.













Sources:


1) http://www.mtv.com/news/articles/1682617/kanye-west-theraflu-dj-khaled.jhtml


2) http://www.soundspike.com/story/4192/kanye-west-under-fire-on-two-fronts-for-new-theraflu-single/

Eventbrite Turns iPads into Event Ticketing Terminals

Eventbrite is a self-servicing ticketing platform that allows people to create and share their events with others, wherever they may be. On March 21, 2012, in San Francisco, the company announced the release of 'At The Door Card Reader', which allows for credit card payments to be collected securely for any kind of event, using 'At The Door' iPad application. The card reader makes it easy and fast to collect payments and print tickets, offering Eventbrite users a complete on site sales solution and convenience to the attendees of the event. This is the company's first piece of hardware and when used with the application (At The Door), offers a full box office solution. 

The reader can be used to accept credit card payments to events of all sizes, merchandise, VIP packages and much more. The credit card reader can be purchased on the company's online store, (Brite Store) for free. Organizers will purchase a reader for $10 and this amount, will be automatically reimbursed in the purchaser's Eventbrite account. Prior to the launch, the card reader was tested successfully at many high profile events such as Meatopia, The Orange County BBQ Festival and the IFPDA Print Faire. This reader will be a part of the mobile box office solution for the anticipated Governors Ball Music Festival, which will be taking place on Roosevelt Island, June 23-24, in New York City.

In addition to the apps ability to accept credit card payments, Eventbrite also offers wireless printing capabilities for printing receipts and event tickets. It also makes it easier for the event organizer to keep track of important data from on-site sales. The app provides a full comprehensive picture of sales from both on-site and online at Eventbrite's website. This makes it easier to view the behaviors and preferences of the people who attend, as well as the ability to keep in touch with them.  Eventbrite's CEO and Co-Founder Kevin Harts had this to say, "At The Door transforms an off-the-shelf iPad into a paradigm-shifting tool for managing sales and events. We're essentially taking the devices that are proliferating among consumers and transforming them into perfectly-tailored tools for event organizers, at no cost, and with greater impact than anything previously available" (Parry, 2012). 

Other features of the app include:

• Optimized checkout flow, allowing the application to process more than 400 transactions per hour.
• The reader connects to the 30-pin adapter (instead of the headphone jack), meaning 'At The Door Card Reader' gets a good read every time, removing the need to swipe the card again and again.
• The use of wireless integration with the Star TSP143 printer for tickets and attendee's receipts.
• Cash drawer reconciliation within the application.
• Encryption on the reader, allowing for safe transactions and total protection on the iPad.

Sources: 

1. http://eventindustrynews.co.uk/blog/2012/03/21/eventbrite-turns-ipads-into-event-ticketing-terminals/
2. http://blogs.wsj.com/digits/2012/03/20/ticket-exchange-eventbrite-to-launch-credit-card-reader/

Related Link:

1. http://blogs.wsj.com/digits/2012/03/20/ticket-exchange-eventbrite-to-launch-credit-card-reader/