Page 18 - Issue 1289 password

Near Truths

DOES ANYTHING ELSE MATTER?: With cases multiplying, panic for response to the crisis while providing a safe (or safer) concert expe-
churned up on the news and socials, the market highly volatile, runs on rience? Could a VR component or some other added value persuade
toilet paper at Costco and civilians donning surgical masks, it’s official: fans to pay for a remote viewing experience? Could the participation
COVID-19 is the issue of our time. After a wave of festival and concert of a few major tech sponsors make this a viable alternative amid dicey
postponements, Live Nation and AEG have pressed pause on their conditions? One thing’s for sure: Whoever takes the initiative to devel-
whole schedules, all major labels are closing their offices in New York, op this option first is the likeliest to win, as it’s highly unlikely consumers
L.A. and London and will enforce telecommuting, and U.S. municipali- will pony up for multiple PPV festival packages.
ties follow the rest of the world in entering lockdown mode. For the In any case, we are likely due for at least several months of seri-
foreseeable future, though, the biz will be working from home. ous disruption (a situation not helped by a grossly incompetent and
The decisions by L.A., Seattle, San Francisco and the entire state cynical federal response).
of Oregon to ban large gatherings (and a similar proposed ban for
all of California, if enacted) will take the concert business out at the LEVELING THE PLAYING FIELD: Once upon a time, success in hip-
knees. Managers, agents and artists are still waiting to learn how hop culture appeared to be the province of a couple of majors and
widespread the impact of the pandemic will be on the fundamen- forward-looking indies. Now the secret sauce appears to have been
tals not only of the concert business but all of their business. Every bottled: Every major label has a boiler room filled with 20 or so kids
major and tour and festival is vulnerable to government sanctions. doing analytics and jostling for real estate on DSPs and socials. All of
The Trump administration’s chaotic, gaslighting response—and the majors have taken pages out of the innovators’ playbook and seen
Trump’s own botched speech—have sent pundits scrambling for mega-success in turning analytics into streaming hits. Look at how suc-
a term to capture this scandal: Coronagate? MAGAvirus? Online, cessful Interscope and Atlantic have been in this lane, and how Ron
Trump himself has earned the sobriquet “The Infection.” Perry’s Columbia is now moving the needle with new acts.
With the NBA and NHL already putting their seasons on hold, In addition, Empire has pivoted from distribution to label as the
the NCAA Tournament kiboshed and the pending Major League majors compete with them for the next big thing. Meanwhile, Sony’s
Baseball season in doubt, we could see crowds north of 1m per day indie-label structure has been aggressive in dealmaking, its recent pact
disappearing from venues. Wonderers are wondering what shoes with Bad Bunny continues the company’s strong foothold in the Latin
will drop next. market (with a commanding 47% marketshare).
Artists and promoters alike stand to lose substantial sums; bands No other major has developed a pipe like Steve Barnett’s Caro-
will have to pay out-of-pocket for production costs, including crews, line—overseen by Jacqueline Saturn—which gives them dealmaking
while promoters lose revenue that would have offset the tens of mil- flexibility as a distributor or quasi-distributor by upcharging for label
lions for salaries, rent, building leases, real-estate taxes and more that services. Quality Control, the hottest indie label in the biz, and 10K’s
is part of their fixed overhead. indie success show how the model can be so effective.
Meanwhile, it’s said that talks are underway in some circles to find Def Jam once led the field with hip-hop. But as the form grew in
creative ways to deliver the festival experience virtually. Could a mas- stature and then exploded with streaming, the label was surpassed
sive pay-per-view event provide access to the performances in a man- by the competition. Everyone who’s anyone has been panning for the
ner consistent with public-health concerns, while generating revenues same gold in the same waters. Will Jeff Harleston be able to navigate
instead of refunds? Could this be a new-model Live Aid, raising funds this conundrum and come up with a plan to make Def Jam matter

MICHAEL RAPINO SIR LUCIAN GRAINGE ROB STRINGER STEVE COOPER

18 HITS March 16, 2020