Crowdsourcing Concerts — the Future of Live Music?
New submitter roryed writes "Performer Jonathan Coulton, famous among some geeks for 'Code Monkey' and writing Portal's 'Still Alive' wrote on his blog, 'Salt Lake City, the last ticket link for the Nov/Dec tour, has finally gone up. The reason for the delay was that we were working on the details of this experimental ticketing thing called Bring the Gig.' Bring the Gig is a new form of crowdsourcing, much like a Kickstarter for concerts. The idea is to have fans put up the money to bring bands to their city by buying premium tickets. If the goal is met and the band is booked, general box office tickets are sold. If the show sells enough at the box office, or sells out, the original premium ticket holders get a full refund and keep their ticket, effectively seeing the show they helped bring for free. Coulton also writes, 'Could be a disaster! Exciting! Honestly I have no idea if this is going to work, but as you know, I am a scientist. I like to watch what happens.'"
I am no economist, but there are some serious flaws with this economic model. Also it smells like a pyramid scheme.
Get a web developer
I'm not optimistic on this working for say an arena or stadium concert, only the club circuit. Event promotion has a lot more than just selling tickets and bringing in a band. You have to advertise the act to sell the premium seats. If the show does not go on, the advertising money is gone. And it's difficult to get any kind of event liability insurance with a calendar date of "maybe" or an expected crowd of "it all depends."
You never expect irony, do you?
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The fact that people pay money for the possibility of getting to see a show for free sure sounds like a game of chance. I hope they've cleared this with all the buzzkilling lawyers who know the laws about what is and isn't gambling.
Jonathan Coulton may be bourgeois priggish fool.
For a couple of years in Brazil. It seems to be working. http://www.queremos.com.br/
It sounds like groupon for concerts. That means it is going to fail!
This model has worked REMARKABLY well in Rio de Janeiro. It's called Queremos!, and has managed to bring several bands that wouldn't come to the city otherwise. Their pricing model is precisely as explained in the summary, and so far all the gigs were completely sold and the first-comers received their money back. There is, however, some details to their practice that one has to note before trying this elsewhere:
1) Queremos allows other companies to buy up to 50% (IIRC) of those special tickets, so that they may distribute those tickets as part of promotions or similar.
2) Queremos allows fans to buy more than one special ticket but, seeing as that ticket is not a physical ticket, but rather a name on a list, transfering a ticket to someone is something you have to request to the promoters. This looks burdensome, but also protects the promoters from smart people trying to resell those special tickets at a profit.
3) The fact that the special-ticket holders are interested in a full house gig (because of the money coming back to them), they are going to help spreading the word of the gig a lot. You HAVE to capitalize on this - specially in the age of social media.
In the push to make themselves more & more "family friendly" concert venues have sucked all the fun out of going to rock concerts.
The last big concert I went to was like a fucking mini police state.
I dont care WHO comes to town, I'll never go to another big-name concert ever again.
Crowdsourcing ________, the future of ________?
Please fill in as appropriate...
This band has tried a few experiments with corwdfunding gigs and blogged about it:
"We launched a gig funding (gigstarter) site a few months back called OneCityPerSecond.com. The idea was to see if we could get some concerts pre-financed to reduce the financial risk of touring.
After one successful campaign for a solo gig in Gothenburg, Sweden, and two concerts with the full band in Zaragoza, Spain, which were indirect consequences of setting up the website, we decided to try and organise a tour in Germany.
The campaign itself was not really that successful but it did help us communicate the fact that we were ready and willing to play some shows, which resulted in some of our friends and fans providing us with some assistance.
Here’s a tour diary and some details on the financial and organisational side of things."
http://uniformmotion.tumblr.com/post/25854284157/tour-report-how-we-earned-minimum-wage-as-musicians
This crowdfunding model already is at Mexico. It's called Bandtastic.
https://twitter.com/bandtastic
Main site seems in maintenance mode > http://bandtastic.me/
Because the biggest return you can get is a refund on your ticket purchase, it's not an "investment". If you could get back more if the event was a big success, it would be a public offering of a security. There are some short form public offering arrangements available under SEC rules, but you still have to file a basic offering statement and financial statements.
"Crowdfunding" schemes have to be careful of this. If the pitch is that you can make money, it's a securities offering. If the pitch is that you get a product if some funding threshold is reached, the Mail Order Rule applies and there has to be a refund, without your asking for it, if the product isn't delivered by the stated date, or 30 days if not stated. If the pitch is that you're donating as a charity, the laws about charity frauds apply.
In the early days of the Internet, many small companies were fined under the Mail Order Rule because they had online ordering that didn't stop taking orders even though the manufacturing and delivery end of the business couldn't keep up. (Now, everybody with a clue has the shopping cart system hooked to inventory control, so the order isn't accepted unless it can be filled.) Companies don't get to hold onto the money until they get around to filling the order. They can beg the customer for more time, but must, by default, refund if they don't hear from the customer.
I'm all for this, especially living in a 2nd-class city (when it comes to concerts). But just as important as getting artists to play here is removing Ticketmaster from the equation. Could this mean the ticket price is what you pay, no more hidden service fees, etc.? No more monopoly by one ticket service? I won't get my hopes up... surely TM will just buy them if they show any sign of doing well.
I can see it working in places where populations are pretty concentrated but in the US I'm not quite so sure. I guess it seems like it could work if you only planned on doing a few periodic shows now and then but I'm not seeing how you work an entire tour like this.
What if the goal isn't met? Do I get a full refund, or will I be charged a "service fee?"
Will I get a refund at all?
What if the show doesn't "sell enough at the box office?" Does the band cancel the show? Do I get my money back?
From the FAQ:
OK, that's... that's actually kinda cool. Especially the "exclusive show" part.
Conclusion: I like this idea; maybe now we can get some half decent shows in the podunk, BFE, third-largest-city-in-the-state where I happen to reside.
An enigma, wrapped in a riddle, shrouded in bacon and cheese
I believe "crowdsourcing" is quickly overtaking "the cloud" as the new and cool buzzphrase.
sudo make me a sandwich
Doesn't this produce the wrong incentives? If a person can purchase "advance tickets" and the possible outcomes are:
If the show doesn't happen, you get a refund
If the show happens you get a refund and a free ticket
Wouldn't this just result in thousands of people purchasing "advance tickets"? Seems like that would be useless as an indicator of whether there is enough real demand to make the show cost-effective.
as someone who's toured as well as booked and coordinated tours, I can tell you this idea might have some serious flaws. Most bands book tours very carefully, minimizing transportation (expense) from one city to the next. If nights in certain cities fail to bring enough pre-sales and get cancelled, shows in cities en route, or possibly the entire tour could be in jeopardy.
I've gone to quite a few concerts in the last several years, but the most I've ever had the people at the entrance do is ask to glance into my purse, and that only happened once. The most likely difference is that I'm not into the current hits, which means most of the concerts can be held at smaller, more relaxed venues.
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