The Impact of Social Media on Touring and Live Performance Doni Tavel Senior, Management School of Public and Environmental Affairs

Introduction Research question: ▫Whether or not social media has had a significant impact on touring and live performance. Inspiration ▫Aware Records | A-Squared Management  Chicago, IL – Summer 2011  A Rocket To The Moon  (

Chicago, IL 2012

Manila, Philippines 2012

The Old Model Offer: ▫ Physical Album Revenue: ▫ALBUMS! ▫Tours and Concerts ▫Merchandise Customer Segments : ▫Mass Market Customer Relationships : ▫None Key Resources: ▫Copyrighted Content ▫Live Performance Channels: ▫TV ▫Radio ▫Print ▫Tours Key Activities ▫Marketing & Promotion of Album For detailed Music Industry Business Model Analysis: AlexOsterwalder.com

Enter The Digital Age Digital Music Explodes ▫1994 – MP3 Encoder  Enabled transfer of songs from CDs to computer ▫1999 – Napster  Introduced peer-to-peer file sharing ▫2001 – iTunes  Brings millions to online marketplace  New, legal distribution of music Result ▫Digital Piracy  2001 – 99% of music files available online were unauthorized (IFPI Music Piracy Report, 2002) ▫Price of songs trends toward ZERO ▫Music Discovery and Sharing

The Old Model Offer: ▫ Physical Album Revenue: ▫ALBUMS! ▫Tours and Concerts ▫Merchandise Customer Segments: ▫Mass Market Customer Relationships: ▫None Key Resources: ▫Copyrighted Content ▫Live Performance Channels: ▫TV ▫Radio ▫Print ▫Tours Key Activities ▫Marketing & Promotion of Album For detailed Music Industry Business Model Analysis: AlexOsterwalder.com

Social Media Explodes Social Sites Emerge ▫2001 – Ryze.Com  To help people leverage business networks ▫2002 – Friendster.com  To connect friends-of-friends ▫2003 – MySpace (MUSIC!) Results ▫Bands, Fans, Venues, Promoters, etc. connect ▫Specific place to find and share music you like ▫The artist-fan relationship is born ▫23% of time spent online (Nielsen State of the Media Report)

A Shift Occurs Offer: ▫Tours and Concerts Revenue: ▫Tours and Concerts ▫Merchandise Customer Segments : ▫Geographic ▫Interest-Based ▫Music-Related Customer Relationships : ▫Social Media Key Resources: ▫Live Performance ▫Licensing Channels: ▫Band Websites ▫Social Media ▫Online Radio ▫Mobile Applications ▫Tours Key Activities ▫Marketing & Promotion of BAND For detailed Music Industry Business Model Analysis: AlexOsterwalder.com

Social Media as an Advantage 2 Overarching Opportunities 1. Increased Connectivity  Fans  Industry professionals 2. Access to a Global Audience

Increased Connectivity - Fans Psychographics > Traditional Demographics ▫Relating by interest, habit, trend Establish Communities ▫Engage the fan base Increased Awareness & Sharing ▫“90% of consumers surveyed noted that they trust recommendations from people they know.” (Nielsen, 2009). ▫“Active adult social networkers are 75% more likely be heavy spenders on music.” (Nielsen State of the Media Report, 2011)

Increased Connectivity – Industry Professionals Venues ▫Venue – Fans, Venue – Bands ▫Case Study:  The Roxy, Los Angeles Promoters ▫Social media trends signal demand ▫Case Study:  A Rocket To the Moon in Indonesia Managers ▫Social Media trends signal profit

Access to A Global Audience No geographic limitations Define and target new markets ▫A Rocket To The Moon Local Acts ▫Difficulty, but still success Recommended Additional Reading: Carey Sargent (2009): LOCAL MUSICIANS BUILDING GLOBAL AUDIENCES, Information, Communication & Society, 12:4,

Ticketing Eventbrite ▫“To make events as easy to create, find and attend as possible.” ▫“Shares” are valued at over $12 per share Ticketfly ▫Independent ticketing and social marketing platform. ▫Each FB or Twitter share  sale of 3.25 tickets Ticketmaster ▫Ticketing service (largest market share) ▫Facebook-integrated Social Seating ▫Facebook share alerts  $5.30 additional ticket revenue

Artist Discovery, New Tours! Mac Miller ▫No radio rotation ▫No major label ▫Discovery & popularity through YouTube ▫Sold out tour Justin Bieber ▫Started on YouTube ▫Sold out Madison Square Garden in 22 minutes ▫$83 million in ticket sales revenue ▫“Beliebers”

Concert-Related Apps Ticketmaster Social Seating Pandora, Spotify, Online radio ▫Integrating with ticket sites, social music & sharing ReverbNation ▫“PROMOTE IT for Shows” feature SongKick ▫Users attend 70% more shows ▫To encourage more sharing, and more attendance

Conclusion Advantages ▫Increased Connectivity ▫Global Audience New Resource for ▫Venues ▫Promoters ▫Managers Ticketing ▫The numbers are up! ▫Sharing  profits Artist Discovery ▫No Major label necessary ▫HUGE successful tours Just getting easier! ▫Concert related software ▫Increased Social Media Use Hugely significant impact on touring and live performance.

Thank You! Questions?