2. Chapter 17 Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

3. Start Thinking... 1. Does venue size affect promoter responsibilities? 2. Which provides the bigger revenue, concert performances or merchandising? Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

4. Chapter Goals Gain an understanding of venue contracts and performance rights responsibilities Learn how ticketing works Discover the role merchandising plays at live concerts Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

5. Venue Contracts Venue operators take a hard line in negotiations due to lack of clout post-event Venues offer a limited spectrum of stage-related equipment and staff- supplied technical service  it is difficult to fulfill all equipment requests  portable on-stage equipment can get damaged or disappear Venue fees: fixed price rentals, percentage of box office, or a combination Contracts demand an artist cannot play near the hosting facility for a specified time period Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

6. Venue Contracts Performance Rights in Concerts A public performance of a copyrighted song triggers a fee usually collected by a PRO Venues are responsible for securing the performance rights license The promoter and not the venue may be responsible for paying the PRO The fee is typically a small slice of gross ticket revenue  the fee is due even if the performing artist is the sole composer of the performed works Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

7. Seven Types of Concert Venues Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

8. Ticketing Purchasing  fans typically purchase tickets online  ticket prices vary based on several factors  fan customs vary by city Terms  deadwood  paper the house  scale the house Secondary markets Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

9. Licensed Music Merchandise Innovations  more than T-shirts + posters  now leading fashion brands + fragrances Merchandise contracts  royalties  360 deals  If an advance was paid, the artist doesn’t get further pay until royalties exceed the upfront pay Artist merchandise at concerts Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

10. Venue Trade Association International Association of Venue Managers  www.iaam.org  helps industry professionals navigate the venue field Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

11. For Further Thought... 1. What are the advantages and disadvantages of securing a larger or smaller venue? 2. Should artists handle their own merch, cutting out the middleman? Why? Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners