Most new policies transfer financial charges to artists: for example, the company wants to reduce the monetary guarantees promised to artists by 20% before an event. Live Nation also says that if a concert is canceled due to poor ticket sales, it will give artists 25% of the guarantee (as opposed to the 100% that promoters are currently supposed to pay). In addition, if an artist cancels a performance in violation of the agreement, the artist will pay the promoter twice the artist’s fees – a type of penalty that, as Billboard notes, is unheard of in the entertainment industry. live music.
“We are fully aware of the importance of these changes, and we have not made these changes without serious consideration,” wrote Live Nation. The company did not respond to the request for comment.
A source close to the file says Rolling stone that some of the terms detailed in the memo are standard in existing concert contracts before the pandemic, and that the new aspects are part of broader negotiations with the music industry to navigate the post-COVID future when the broadcasts will resume their activities.
Read the full note below.
Memo Live Nation to talent agencies
The global pandemic has changed the world in recent months and with it the dynamics of the music industry. We are going through an unprecedented period and must take adequate account of the evolution of market demand, the exponential increase in certain costs and the overall increase in uncertainty which significantly affects our mission. To move forward, we must make certain changes to our agreements with artists. The main changes for 2021 are described below.
Artist guarantees: Artist guarantees will be adjusted down 20% from 2020 levels.
Ticket prices: Ticket prices are set by the promoter, in its sole discretion, and are subject to change.
Payment terms: Artists will receive a 10% deposit one month before the festival, subject to a signed agreement and compliance with marketing responsibilities. The balance, less the standard deductions for taxes and production costs, will be paid after the performance.
Minimum marketing requirements: All artists will be required to assist in the marketing of the festival through the minimum requirements for publication on social media described in the artist offer.
Streaming Requirements: All artists will be required to allow their performance to be filmed by the festival for use in a live television broadcast, live webcast, on-demand streaming and / or broadcast of live satellite radio.
Invoicing: All decisions regarding “festival invoicing” are at the sole discretion of the promoter.
Merchandise: The buyer will keep 30% of the artist’s merchandise sales and send 70% to the artist within two weeks of the festival.
Airfare and accommodation: These expenses will be borne by the artist.
Sponsorship: The promoter controls all sponsorship of the festival without any restriction, and artists cannot promote brands on stage or in its productions.
Department clause. The violation of a radius clause without the prior written authorization of the festival will result, at the festival’s sole discretion, either in a reduction of the artist’s fees, or the withdrawal of the artist from the event, any pre -event being immediately returned to the festival. .
Insurance: The artist is required to take out his own cancellation insurance because the promoter is not responsible for the artist’s fees in the event of cancellation of the festival due to weather or force majeure.
Cancellation by the artist: If an artist cancels his performance in violation of the agreement, the artist will pay the promoter twice the artist’s fees.
Cancellation due to poor sales. If a show is canceled due to poor ticket sales, the artist will receive 25% of the guarantee.
Force majeure: If the artist’s performance is canceled due to a force majeure event – including a pandemic similar to Covid-19 – the promoter will not pay the artist his fees. The artist is responsible for obtaining any cancellation insurance for his performance.
Incapacity to use the full capacity of the place: if the promoter – due to orders from the place or any government entity – is not authorized to use the full capacity of the place, the promoter can terminate the agreement and the artist will reimburse any money already paid.
We are fully aware of the importance of these changes, and we have not made these changes without serious consideration. We appreciate that you – and all artists – understand the need for us to make these changes in order to allow festival activities to continue not only for the artists and producers, but also for the fans.
Read next: The week when the music stopped