News

Oct 20, 2023

The Show Must Go On… Privately: The Post

By Seth Yudof For artists, the live entertainment industry has always been a bit of a high-wire act, but since the pandemic, it’s become more like juggling flaming torches on a unicycle, while covered

By Seth Yudof

For artists, the live entertainment industry has always been a bit of a high-wire act, but since the pandemic, it’s become more like juggling flaming torches on a unicycle, while covered in gasoline.

Advance ticket sales used to be the crystal ball of the concert world. Now, they’re more like a Magic 8-Ball that keeps saying “Ask again later.” Concertgoers are hesitant, fearing COVID-related cancellations, years of unreliable flight schedules, and family illnesses that can derail entire trips.

Add to that the new policies from Ticketmaster and other ticket companies that withhold refunds if a canceled show is rescheduled, and you have a perfect storm scaring potential attendees away from purchasing far in advance. These hesitations don’t just affect artists and promoters; they also lead to higher ticket prices as the industry tries to compensate for lower advance sales.

For those that don’t know, artists generally operate under a dual-revenue model: a fixed upfront payment, known as a “guarantee,” which is then supplemented by additional earnings from ticket sales, or the “backend.” While the guarantees have largely remained the same since before the pandemic, the costs of touring have skyrocketed, making the backend not just a bonus but a necessity for financial viability.

But with lower turnouts and less predictable ticket sales, the backend has become less secure. As Steve Vai aptly put it, “You’re lucky if you break even” post-pandemic. With gas prices soaring and corporations tightening their belts, artists and promoters are left grappling with a financial puzzle that’s harder to solve.

Tour buses sat idle through the shutdown, and drivers found other gigs. It wasn’t easy to get the gears turning again, and I remember how heartbreaking it was to hear that my friends Living Colour’s tour was derailed by bus repair and driver issues.

Coinciding with the pandemic, but not caused by it, are changes in privacy regulations — particularly in Apple’s iOS and on Facebook — that have made targeted marketing both harder and more expensive. This adds another layer of complexity to an already challenging landscape. These marketing challenges also mean that the average concertgoer may miss out on shows they’d actually want to attend, as targeted advertising becomes less effective.

But there’s a promising encore: private and corporate gigs. Private bookings might not be the typical rockstar way of life, but they won’t leave the artist’s accountant singing the blues. The costs are more predictable, and the revenue can be substantial. There are wildly successful artists all over the world that the general public has never heard of because they focus exclusively on this private market.

Gaining real success with private gigs can take some modification to the artist’s performance to make it simpler and cleaner for corporate eyeballs. It’s about making the show accessible and enjoyable for a different kind of audience, without losing the essence of what makes the artist unique.

The live entertainment industry may feel like it’s stuck in an endless loop of challenges, but private gigs offer a fresh tune. They provide a viable alternative to the traditional touring model, allowing artists to continue doing what they love without the financial strain.

The Rolling Stone Culture Council is an invitation-only community for Influencers, Innovators and Creatives. Do I qualify?

And it’s not just artists who are adapting to this new landscape; the industry itself is undergoing a seismic shift. Anyone keeping an eye on industry news would have noticed the musical chairs of major agencies like CAA, APA, ICM and Paradigm, all of which have been part of mergers. Established agencies are consolidating, while veteran agents are branching out to form new independent entities.

This industry shake-up has led even seasoned professionals like myself to reevaluate our strategies. After years of concentrating primarily on publicly ticketed shows, I’ve channeled a significant amount of energy into launching a new agency that specializes almost exclusively in booking entertainment for private events.

This isn’t a random pivot; it’s a calculated response to the same market forces that are causing larger agencies to restructure. In a time when the old ways of doing business are proving less effective, diversifying into private events isn’t just smart—it’s essential.

So, what’s the takeaway for business leaders and artists eyeing the private event market? Here are some nuggets of wisdom I’ve gleaned from my own journey:

1. Know your audience. Private events often have a different demographic than public shows. Tailor your performance or offerings to meet the specific needs and tastes of your audience.

2. Quality over quantity. Unlike mass events, private gigs often prioritize the quality of the experience over the number of attendees. Invest in high-quality production—even if it’s on a smaller scale—and have a strong plan or script for the performance so that you know you can leave a lasting impression.

3. Networking is key. Use your existing contacts to break into the private event space. Word of mouth is incredibly powerful here. We brought in Rolling Stone’s 1992 “Band of the Year,” Arrested Development, for a private event and discovered that frontman Speech Thomas is (true to his name!) an excellent speaker who we now often push to clients. In this case, I was the one who “got networked with,” so to speak, but the sentiment still stands.

4. Be flexible. The private event space is diverse, ranging from corporate gigs to intimate gatherings. Being adaptable in your offerings can open doors to various opportunities. We did an enormous show with Gwen Stefani for a car company, but she is a true pro and made it clear that she would also do a corporate event on a tiny stage that would only fit one musician.

5. Redefine success. In the private event space, success doesn’t always mean a large, raucous crowd. Sometimes it’s about connecting deeply with a small audience or providing an experience that’s memorable yet professional, especially when attendees are in a corporate setting where they may not feel comfortable letting loose.

Do more than just survive the seismic shifts in the live entertainment industry; thrive by developing a secondary line of revenue that is independent of ticket buyers and insecure promoters, offering a stable foundation while the traditional ticketed show industry continues to find its way back.