Live Nation's Plans To Annoy More People?
from the tone-deaf dept
Last week, we briefly mentioned how sad it was that Ticketmaster/Live Nation's boss Irving Azoff seems so confused into thinking that stronger protectionism really is better for content creators. In that post, I mentioned that last year I spoke with a few top Live Nation execs, who appeared to understand the value of treating customers right, and looking for ways to enable CwF+RtB-style business models. They even talked about using companies like Zappos -- a company which has built up incredibly loyal customers though amazing customer service, even if it means taking a big financial hit itself -- as an example to learn from. I have to admit that I was impressed, but realized the company had a huge negative image to overcome -- and that merging with Ticketmaster wasn't going to help. Still, I thought that it would be quite a story if the company really could embrace that kind of thinking and rebuild its reputation.So far, it doesn't look good. Beyond Azoff's bizarre anti-consumer tweeting, the company's plans seems to be about as tone deaf to consumer concerns as you can imagine. Now, obviously, this is a giant company, and it has Wall Street investment bankers to please, so it has to tell some sort of numbers-based story. But, the story it's telling is basically "we can squeeze more money out of consumers and artists overseas, so we're going to focus on that," which isn't compelling to anyone (artists, fans or investors -- who note that the company hasn't had as much success overseas).
It seems like perhaps there's a tale of two views at Live Nation: one that's actually focused on building out a sustainable business, and the other that appears to have gotten data happy. I'm a big fan of collecting and analyzing as much data as possible, but it's possible to get lost in that data at times, and lose sight of the big picture. So, right now, the data is telling Live Nation that US fans don't want to pay as much, and US artists want a bigger cut. So it wants to focus elsewhere. But, it seems to be forgetting to figure out why that is. Azoff seems to want to blame file sharing, but that's a red herring. Perhaps the company should look at the company's own image and how widely it's hated out there. People pay for Ticketmaster/Live Nation tickets in spite of the company, not because they like the company.
Azoff apparently scolded investors asking him questions about the company's poor performance, blaming them for not "getting the message." This is the same approach the company recently took in trying to explain its ticket fees, saying that the problem was that fans just didn't get what Ticketmaster was doing. Blaming everyone else for just "not getting" you, isn't an approach that's going to win over many people. You need to actually start showing people through actions.
One of the reasons why the company's margins might be so tight in the US is that it has focused on trying to squeeze every last dime out of fans without giving them enough value in return. Zappos isn't the cheapest retailer out there, but people buy from them because they know the experience is worth it. Perhaps Live Nation/Ticketmaster should take a step back from the data and look at ways to actually wow fans and artists with an experience that over-delivers, rather than has them holding their nose every time they have to hand over money. That is, why not focus on actually adding value, rather than looking for every nook and cranny to charge people more.
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Filed Under: concerts, data
Companies: live nation, ticketmaster
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You didn't get over the legal recommended limit of mouse turds & we should be commended for that!
I mean unless you WANT mouse poo...then we have a band for you.
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Data Is Not Information
As the research people involved commented: All the data in the world would simply have told them it wasn't selling. It would never have said a thing about WHY it wasn't selling.
It's pretty clear that Azoff's more interested in data than in customers.
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righteous Indignation
However, I can stop buying tickets for Ticketmaster events and stop paying enormous fees and dealing with horrible customer service. I live in a market that has a lot of events coming through and I usually do not go to them specifically because of Ticketmaster. A concert would be nice but not supporting a company that I loath, so much better.
It is my little way of giving back to the world.
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It might actually be all in the way the price is communicated. If Zappos sold you shoes for $25 + $15 shipping + $4.25 Handling + $2.10 convenience + $1.10 insurance, maybe we would hate them just as much.
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Re:
For this post, I think the AC contradicts himself. LYV and Zappos are both middlemen. Does Zappos make shoes or just sell them? There may be something to the pricing argument though.
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Re: Re:
Ticketmaster sells tickets. Unless you are reselling the tickets, they are not what you are actually trying to pay for -- the concert or event is.
Another difference: Zappos (as far as I know) doesn't try to prevent others from selling shoes to you. TM normally has exclusive contracts with venues and promoters.
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Re:
What Live Nation is able to do, b/c it's so big, is provide economies of scale and bring you concerts at a cheaper price. People are stupid - they don't make money on ticket sales (the dollar amount); most of that goes to the artist. They make money on the stuff you buy at the concert. it is actually to their benefit to sell at a lower price b/c it gets more people in the door (the artist suffers if ticket prices decline).
I just left the promotion business so I don't care anymore (before I'd go a long and say Live nation is the devil). People are just ignorant.
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Re: Re:
Ticketmaster is not even a middleman - it does not sell tickets, it sells a ticket delivery system. If not for TM's restrictive relationship with the promoters and venue, I could get the same product by paying a kid to ride his bike over to the venue and buy my ticket.
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Note to Entrepreneurs: It's Your Fault
http://www.marksonland.com/2010/03/note_to_entrpreneurs_its_your_1.html
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