Through a memorandum aimed at agencies around the world, Live nation, the second largest concert promoter in the world, has unveiled the new conditions necessary to work with them after the COVID-19 pandemic.
Among the new rules imposed by the promoter, the bands will have to lower their costs by an average of 20%, in addition to adding some unprecedented points within the industry, such as the fact that if a band cancels for reasons beyond the control of the promoter, it must pay double your original payment. Obviously, the bands are not happy at all.
“Somos plenamente conscientes de la importancia de estos cambios, y no hicimos estos cambios sin una serie consideración previa.”said a company representative.
You will then be able to fully read the memo sent by Live Nation.
“La pandemia global ha cambiado el mundo en los últimos meses y con ello la dinámica de la industria musical. Estamos en tiempos sin precedentes y debemos explicar adecuadamente el cambio en la demanda del mercado, el aumento exponencial de ciertos costos y el aumento general de la incertidumbre que afecta materialmente nuestra misión. Para que podamos avanzar, debemos hacer ciertos cambios en nuestros acuerdos con los artistas. Los principales cambios para 2021 se describen a continuación.”
Guarantee for the artist: Artist warranties will be downwardly adjusted by 20% based on 2020 levels.
Ticket prices: Ticket prices will be established by the promoter at its sole discretion and are subject to change.
Payment conditions: Performers will receive a deposit from the 10% one month before the festival, all subject to an executed agreement and fulfillment of marketing responsibilities. The remaining balance, less standard deductions for taxes and production costs, will be paid after the concert.
Minimum marketing requirements: It is mandatory for all artists to help market the festival through the minimum requirements for publication on social networks described in the contract.
Streaming: All artists will be required to allow their performance to be filmed by the festival for use in a live broadcast via television, internet, satellite radio or on-demand event.
Billing: All decisions related to “facturación del festival” are at the sole discretion of the developer.
Commodity: The promoter will retain the 30% from the artist's merchandise sales and send the remaining 70% to the artist within two weeks of the event.
Flights and accommodation: These expenses will be the responsibility of the artist.
Sponsorships: The promoter will control all sponsorship at the festival without restrictions and artists may not promote brands on stage or in their productions.
Violation of this clause without the prior written permission of the promoter will result in a reduction in the artist fee or removal of the artist from the event, with any pre-event deposits returned to the festival immediately.
Insurance: The artist must have their own cancellation insurance, as the promoter will not be responsible for the artist's payment in case of cancellation of the festival due to bad weather or force majeure.
Cancellation by the artist: If an artist cancels their performance in breach of the agreement, the artist will pay the promoter twice their official fee.
Cancellation due to bad sales: If a concert is canceled due to low ticket sales, the artist will receive only 25% of their original payment.
Force Majeure: If the artist's performance is canceled due to a force majeure event, including a Covid-19-like pandemic, the promoter will not pay the artist any percentage of their fee. The artist is responsible for obtaining his own insurance for these cases.
Inability to use the full capacity of the place: If the developer, either on orders from the venue or from any government entity, is not allowed to use the full capacity of the venue, the developer can terminate the agreement and the artist will refund any amount previously paid.
