Chapter 1635 1635 Touring Company
In the European and American markets, tours are always the most profitable deal for singers, not only because the revenue of the album needs to be divided with record stores and record companies, but also because albums are a one-time deal. However, tours are different. Tours can not only attract the support of a large number of sponsors, but also a tour can last for months or even years, traveling all corners of the world.
In fact, this is the same as a movie. It is very difficult for a film company to make money by relying on box office. Unless it is a "speed of life and death" to plunder the super high box office at an ultra-low cost, or create a huge box office at an ultra-high cost like "Independence Day", the box office profit of the film company is not large. Film companies rely more on the surrounding areas after the movie is offline, among which Disney is the most representative company.
From the start of videotape rental, to the sale of copyrights overseas, to the sale of copyrights for major TV stations, online screenings, 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 was launched, Disney's real profits have just begun.
Tour is actually very similar to movies around, because tours are not just tickets to a concert. Exclusive T-shirts, cheering sticks, desk calendars, posters and other peripheral products at the door can generate huge profits.
After many singers reached the peak of popularity, their singing careers lasted for many years was because they relied on the power of tours. Guns and Roses, Madonna, Mariah Carey, U2 Band, Lady Gaga, etc. During the non-album promotion period, they basically started touring in various places, and their income was still very considerable. They often earned the profits of an album with three or five concerts.
To give a simple example, a singer's sales volume exceeding 10 million for an album, becoming the top presence in the long history of music, and may earn about 10 million to 20 million US dollars; but a tour of the United States composed of 30 performances can earn 30 million or even more. There are very few singers who can sell 10 million albums in history; but there are countless singers who can hold 30 concerts in a row and maintain a certain attendance rate in history.
This is the charm of the tour.
In Europe and the United States, where the entire tour market is extremely developed, even singers at the peak of their careers, Bruno Mars, Justin Timberlake, Taylor Swift, Beyonce, Rihanna, Katy Perry, etc., are all on tours all year round, because this is far more profitable than albums, and it is also a way to maintain super high popularity and super high exposure, and can also get close to fans. It can be said that it kills the numbers.
It can be said that the tour is a golden money tree.
It is precisely because of this that the tour takes a long time and is very hard to operate. Generally, record companies will not get involved in this area, so formal tour companies have contracts. These tour companies have scenes and performance venues. The larger the tour companies, the more venues they have. They can choose the venue according to the singer's popularity level. Whether it is a level of 100,000, or 10,000, or 5,000, to maximize the attendance rate, promote the excitement of the performance, and maximize the effect of the tour.
At the same time, the tour company is well aware of all the details of the entire tour process, the itinerary, hotel arrangements, fans' alienation, ticket cooperation, sponsorship choices, publicity strategies, etc. They are all clear about it. This is like the distribution department of a film company, but it is far more complicated than distribution.
Just like Hollywood's eight film companies, the world's five music companies, and the three major brokerage companies in the United States, the tour companies naturally have leaders, aeg group (anschutz.entertainment.g meat) and live country (live.nation).
Aeg Group is a well-known consortium with a wide range of design content, including the Los Angeles Lakers and the Los Angeles Kings Hockey Team, which has more than 100 sports and entertainment venues around the world. They have held world tours such as Eagles, Nirvana, Michael Jackson, etc. The two-year-long world tour was also hosted by Aeg. This world tour also witnessed the internal split of this top rock band and the moment it was replaced by Nirvana.
The live country is not a consortium, but a professional tour 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 capabilities. If we only talk about the concert venues, the live country cannot compete with Aeg. Their concert venues are concentrated in the United States, with 70, and there are nearly 40 performance venues around the world, but they also include important venues such as Wembley Stadium in London. However, the number is still far behind the Aeg Group.
The live country is currently the world's largest tour company. They have professional teams all over the world and have even begun to enter the Asian market. They have successively planned large-scale tours for many singers such as U2 band, Madonna, Frank Sinatra, and Pearl Sauce. Their greatest achievement is that they once promoted the Beatles to the United States behind their backs.
At present, the two companies, the Scene Country and Aeg Group, can monopolize more than 80% of the international performance market, and are well-deserved industry leaders. The former has professionalism and experience, while the latter has funds and venues, and each has its own advantages and disadvantages, so it is really difficult to decide the outcome.
When the "Road of Glory" tour was grandly launched two years ago, the tour company responsible for Glory to Death was not any of these two strongest ones. However, the company responsible for the planning of the tour signed a lease agreement with Aeg Group and borrowed a large number of venues under Aeg Group to provide a tour venue for Glory to Death. For example, Madison Garden Plaza.
However, this time, Glory's level was obviously different. Only in the industry did EDA Records make a splash, a group of tour companies flocked to the scene, and the two giants of the Aeg Group were not showing any weakness. Then they started negotiations with EDA Records, which was noisy for a while.
Everyone knows clearly that this is a global tour that will last for half a year. There will be at least fifty tour cities, more than one hundred performances, and at the same time, the profit will be at least fifty million. This is the most conservative and lowest bottom line estimate. Many industry insiders believe that with the current momentum of Hugo and Honor to death, there is no big problem for the tour profit to cross the threshold of 100 million.
When Hugo saw the signing fee offered by two tour companies, his first reaction was that this plan was wrong because the number was too incredible.
Chapter completed!