A transformation of the live experience
Audience-free concerts may be on the horizon.
There seems to be a light at the end of the pandemic-stricken concert tunnel.
As reported by several publications, Michael Rapino, president and CEO of Live Nation Entertainment, during a first quarter earnings call with shareholders on Thursday, indicated that his company is gearing up for concert ticket sales “in the third and fourth quarters for 2021 at full scale.”
While it seems unlikely that any further ticketed venue concerts will be held in the remainder of 2020, Rapino said Live Nation may roll out some live music alternatives sooner than later that range from audiencefree shows and drive-in performances to reduced-capacity shows.
“Over the next six months, we’ll be starting slow and small, focusing on the basics and testing regionally,” Rapino announced. “But whether it’s in Arkansas or (another) state that is safe, secure and politically fine to proceed in, we’re going to dabble in fan-less concerts with broadcasts and reducedcapacity shows because we can make the math work.”
Rapino, who says that Live Nation has $1.7 billion (U.S.) in untapped liquidity to get through the year without any corporate financial stress, notes that the reduced-capacity shows could be held “outdoors in a theatre on a large stadium floor, where there’s enough room to be safe.”
Canada Live Music Association president and CEO Erin Benjamin welcomed the news, but issued a warning.
“Any live music activity is awesome, and I have no doubt that any live music companies in the world would be responding to protocols laid out by public health,” Benjamin told the Star during a phone interview.
“And if they’re acting in accordance with that, I say, ‘bring it on — amazing!’ The world needs live music right now. We need to be able to get out and see shows in whatever way we can.
“It shows great leadership in trying to innovate and find ways to bring artists and fans together.” Benjamin, whose Ottawabased organization represents numerous stakeholders involved in the live music industry, said that the business in
Canada annually contributes $3.5 billion to the GDP.
However, the industry has been devastated due to its government-enforced shutdown.
“There’s zero live revenue from music right now and thousands of layoffs, so the live music industry is definitely a shadow of its former self,” Benjamin said.
Even if the live concert industry restarts later this year, it will be a while before it gets back on its feet.
“I think we’re going to have to redefine our definition of the term ‘bounce back,’ ” Benjamin said. “With our sector and a number of others, there’s no “bouncing back” within a matter of months.
“We’re looking at a much longer time frame than anyone would have hoped.”
Benjamin points out that aside from artists, agents and promoters currently cut off from their livelihood due to COVID-19 precautions, there is a “broader ecology” to consider.
“The whole landscape of live music just doesn’t include venues and artists; it includes production companies, sound, lights, staging, catering — you name it. “The number of goods and services that are provided in the live music food chain are endless, not to mention the domino effect that live music economics have on additional businesses and sectors. So, the time frame here is really, really hard to comprehend at this point.”
Throw in closed geographical borders and other aspects of tourism — airlines, accommodation, restaurants, conferences — and the puzzle is a much bigger quandary than it seems on the surface.
Benjamin says the silver lining is that, while international acts may be either pre-empted from headlining Canadian venues due to continuing travel restrictions, domestic acts will benefit from their absence.
“The border is a big question mark, for sure,” said Benjamin. “I think Canadian artists will be front and centre for a long time and I think that’s amazing.”
Benjamin said the “huge volume of live music currently being shared with the public,” through online streaming is another positive.
“Artists are sharing their amazing music with more people than ever!” she said. “So, I think people are recognizing the importance of live music in their lives more now than perhaps at any other time in history.
“I think that when we are able to gather again in larger numbers, I hope that value will be so deeply instilled in all of us — and that we recognize our intrinsic need as social creatures to engage directly with live music in a space with other human beings because we need it for our mental health.”
But before that occurs, Benjamin said there needs to be a rollout plan that needs to be approved by health officials — and warns that reopening venues at partial capacity could leave them financially vulnerable.
“We’re anticipating that venues of various sizes will be able to open should they be able to respond to emerging protocol around social distancing and hygiene, etc.
“It will be up to individual companies and organizations to establish if they are able to respond at all because the business model doesn’t necessarily jive with less capacity.”
Benjamin speculated that financial restrictions would still apply if venues were allowed to slowly reopen, leading to questions of viability.
“For example, if we could only sell tickets at 25 per cent capacity to a venue that would normally sell out at 100 per cent capacity to accommodate social distancing and a variety of measures, is that sustainable?
“And if you can only sell a house at 25 per cent capacity, what are you going to have to charge for those tickets? You’re looking at possibly having to increase prices in a climate where people aren’t comfortable gathering in the first place. If you’re going to do everything you can in order to make people feel safe, are they going to be able to afford to come?”
Assuming the answers to both those questions are affirmative, what might the concert experience for willing patrons look like moving forward?
Benjamin speculates that there will be safe distance seating implemented wherever possible, which may include “the removal of seats and the creation of extra aisles at softseater venues.”
She also expects thermal checks for people entering a venue and — in lieu of lining up in a queue to get into the venue, “maybe you get a text message when it’s your turn to enter.”
Benjamin says that there will probably be “hypervigilant” washroom and wipe down protocols in place to ensure further cleanliness, and she also figures that food available at the venue will be “pre-wrapped” and every effort will be made to make transactions and environments contact-free.
She insists that any actions taken by the Canadian concert music industry to reopen venues and resume performances will be in the interest of individual health and safety.
“The live music industry will respond accordingly to public health — and at no point will any of us ever deviate from public health protocols and regulations as they’re being received,” Benjamin said. “It’s critical that we do our part as the live music industry.”
As for potential changes in the way business is conducted, Live Nation’s Rapino said during the call that at least through 2020 and 2021, the financial risk involved in promoting a concert will no longer be exclusively borne by the promoter.
“While we don’t want to get into the what and how of the deals, we absolutely are getting great latitude from the artists and agents to look at the traditional business of high guarantees and all of our risk, and to help share that risk, going into ’20 and ’21, to get the shows back on the road and help us absorb it, and not take all of the (financial burden) of refunds, sales, sponsorship, food, beverages and unknowns for the next 6-12 months,” Rapin o explained. “They’re helping to share some of that risk to help us get back and scale fast, and not worry about losing money on the show.”
While international acts may have to stay away for a period, domestic acts will benefit from their absence