Arena Management 2009

The IAAM-presented panel set the tone for the rest of the conference with its main topics: How the nation’s economic meltdown could impact the industry and ways to keep live entertainment a viable and affordable outlet.

As moderator Kim Bedier of Comcast Arena At Everett Center directed the discussion, co-moderator Brenda Tinnen of Sprint Center roamed the audience with a mic.

Ticketmaster Entertainment’s Mike McGee said it’s too early to determine the recession’s impact on the industry but important to note its effect on the airlines, the auto industry and banks.

“I think all of us are looking at the difference between needs and wants and what we need to do. The traditional ways of conducting business are going to be re-examined and we’ll get out of the model of one-size-fits-all,” McGee said. “I would look at how the economy will impact issues such as naming rights, premium seating and advertising.

“All of that is derivative of how we, as operators, are going to func-tion to make buildings operate as best as we can.” Global Spec-trum’s Peter Luukko agreed about the uncer-tainty but still sees an upside.

“I think at this point it’s not how much money can you make [but] can you make money?” Luukko said. “If you look at the eco-nomy right now, I think it’s the first time in reality that everything is price-sensitive.

“The good news for all of us in entertainment is that [although] we’re not recession proof, people are going to want to be entertained. We just have to adjust to the times.”

ArenaNetwork’s Jim McCue added that the success of tours such as “Walking With Dinosaurs” and “Gymnastic Superstars” shows the resiliency of the industry despite the ravaged economy.

The evolution of ticketing from a service to a marketing tool was discussed in addition to partnering sports with entertainment for different events.

“We’re doing a lot of cross-marketing. Our season ticket holders have the ability to buy concert tickets, so we market to them,” Luukko said. “I think we’ve got to use every resource that we have and that’s where the database marketing comes in.”

Eric Bresler of AEG Facilities agreed that creative marketing is key as well as ensuring the fans feel rewarded from start to finish at an event.

“From the arena perspective, we need to take the opportunities that all the venues have for a specific show and treat it like the biggest show you have coming to the venue,” Bresler said.

The discussion turned to the advan-tage of using flexible ticketing and how that technology helps venue staff increase the odds of hosting successful events.

“There was a time when the box office manager was responsible for scheduling staff to work the window and balancing the show at the end of the night. They’re now inventory experts,” Live Nation’s Mark Campana said. “They have an uncanny ability to take the temperature between 10 minutes and 12 minutes of the onsale as to how the sale is progress-ing in comparison to other artists.

“Flexing is critical to our ability to maximize our earnings and protect our downside. We need to become inventory experts and know how to work those systems.”

Bedier then brought up a familiar subject of debate – the secondary ticket market and how it’s reportedly making more money per concert ticket sold than the promoter putting on the event.

William Morris Agency’s Peter Grosslight said solving that issue is an ongoing process.

“The revenue derived from our artists’ events goes into the ecosystem … the artist, the promoter and the venue,” he said. “To accept that anyone else is profiting from those tickets. We’re trying to do everything that we can to prevent that.

“We need the cooperation of the buildings and the promoters in order to make that happen.”

- Reported by Tina Amendola, Pollstar
- Photos by Jason Squires