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Concert Giants Live Nation and AEG Suspend Tours as Virus Spreads Concert Giants Live Nation and AEG Suspend Tours as Virus Spreads
(3 months later)
Live Nation Entertainment and AEG Presents, the corporate behemoths that dominate the concert industry, on Thursday suspended all tour engagements in North America in response to the coronavirus pandemic, according to two people with direct knowledge of the companies’ decisions.Live Nation Entertainment and AEG Presents, the corporate behemoths that dominate the concert industry, on Thursday suspended all tour engagements in North America in response to the coronavirus pandemic, according to two people with direct knowledge of the companies’ decisions.
The move is a major blow for the concert industry, which was already grappling with the cancellation of South by Southwest and the postponement of the Coachella Valley Music and Arts Festival. Live performances, an all-important source of income for artists, superstar and indie alike, in the streaming era, are also the bedrock for crew members, merchandise sellers and a range of others who depend on live music, all of whom are now facing possibly months of lost wages.The move is a major blow for the concert industry, which was already grappling with the cancellation of South by Southwest and the postponement of the Coachella Valley Music and Arts Festival. Live performances, an all-important source of income for artists, superstar and indie alike, in the streaming era, are also the bedrock for crew members, merchandise sellers and a range of others who depend on live music, all of whom are now facing possibly months of lost wages.
Major tours presented by both companies — which include Billie Eilish and Celine Dion — will pause starting this weekend, with a few already in progress to continue on Thursday and Friday. Both companies expect to keep the tours off the road through March, and re-evaluate the situation in April, in the hope of restarting for the lucrative summer season, according to the people, who were not authorized to disclose the companies’ plans.Major tours presented by both companies — which include Billie Eilish and Celine Dion — will pause starting this weekend, with a few already in progress to continue on Thursday and Friday. Both companies expect to keep the tours off the road through March, and re-evaluate the situation in April, in the hope of restarting for the lucrative summer season, according to the people, who were not authorized to disclose the companies’ plans.
Also on Thursday, an industry task force — including Live Nation, AEG Presents and representatives of the major talent agencies — issued a statement that said its members “collectively recommend large-scale events through the end of March be postponed. We continue to support that small scale events follow guidance set by their local government officials.”Also on Thursday, an industry task force — including Live Nation, AEG Presents and representatives of the major talent agencies — issued a statement that said its members “collectively recommend large-scale events through the end of March be postponed. We continue to support that small scale events follow guidance set by their local government officials.”
The task force added that its recommendation for was concerts in the United States and “countries deemed level 3 by the C.D.C.,” which includes much of Europe, but not Britain. But exactly how these changes would take effect remained unclear, including questions about refunds and rescheduled dates.The task force added that its recommendation for was concerts in the United States and “countries deemed level 3 by the C.D.C.,” which includes much of Europe, but not Britain. But exactly how these changes would take effect remained unclear, including questions about refunds and rescheduled dates.
News of Live Nation’s decision to postpone tours was first reported by Billboard.News of Live Nation’s decision to postpone tours was first reported by Billboard.
As the virus spreads, concert promoters, club operators and artists’ managers are contemplating a difficult year that could be full of postponements and cancellations — and with that, the potential for millions or even billions of dollars in lost income. The reach of Live Nation extends to many midsize clubs, like the House of Blues, which it also owns. And its choices may have a ripple effect on even independent venues across the country.As the virus spreads, concert promoters, club operators and artists’ managers are contemplating a difficult year that could be full of postponements and cancellations — and with that, the potential for millions or even billions of dollars in lost income. The reach of Live Nation extends to many midsize clubs, like the House of Blues, which it also owns. And its choices may have a ripple effect on even independent venues across the country.
“It’s kind of an hour-by-hour scenario,” said Michael Dorf, a promoter and the founder of City Winery, an upscale club with locations in seven cities, including New York and Atlanta. Morgan Margolis, the chief executive of Knitting Factory Entertainment, which hosts shows at 11 venues across the country, said in a statement on Thursday that it was “monitoring the situation market by market, venue by venue, and tour by tour.”“It’s kind of an hour-by-hour scenario,” said Michael Dorf, a promoter and the founder of City Winery, an upscale club with locations in seven cities, including New York and Atlanta. Morgan Margolis, the chief executive of Knitting Factory Entertainment, which hosts shows at 11 venues across the country, said in a statement on Thursday that it was “monitoring the situation market by market, venue by venue, and tour by tour.”
Even before the Live Nation cancellation, the damage of the pandemic was severe in the music world, said Allen Kovac, manager of Mötley Crüe, which was set to begin a stadium tour in June. “You have people delaying on-sales for tours, and you have people who are going to postpone tours. It’s chaotic and stressful, from agents and managers to artists, their families and their support teams.”Even before the Live Nation cancellation, the damage of the pandemic was severe in the music world, said Allen Kovac, manager of Mötley Crüe, which was set to begin a stadium tour in June. “You have people delaying on-sales for tours, and you have people who are going to postpone tours. It’s chaotic and stressful, from agents and managers to artists, their families and their support teams.”
The reach of the concert industry is global, with many tours stretching deep into Asia and Latin America; last year, U2 played its first show in India.The reach of the concert industry is global, with many tours stretching deep into Asia and Latin America; last year, U2 played its first show in India.
And the concert industry has grown steadily over the last two decades to become a primary source of income for many artists — a position that has become only more pronounced in the age of streaming, when a hit can catch fire almost instantly around the world but royalty income can still be minuscule.And the concert industry has grown steadily over the last two decades to become a primary source of income for many artists — a position that has become only more pronounced in the age of streaming, when a hit can catch fire almost instantly around the world but royalty income can still be minuscule.
According to a report last year by PricewaterhouseCoopers, the global market for ticket sales and sponsorship for live music was predicted to reach nearly $29 billion in 2020; according to industry practice, the majority of ticket sales go to the performing artists. By comparison, the global market in recorded music was recently estimated to have around $22 billion in sales, with artists’ royalties typically representing a much smaller proportion of the profits.According to a report last year by PricewaterhouseCoopers, the global market for ticket sales and sponsorship for live music was predicted to reach nearly $29 billion in 2020; according to industry practice, the majority of ticket sales go to the performing artists. By comparison, the global market in recorded music was recently estimated to have around $22 billion in sales, with artists’ royalties typically representing a much smaller proportion of the profits.
Until Thursday, the industry had been holding relatively steady. Eilish opened her spring arena tour in Miami on Monday, as planned, and last week fans began registering to buy tickets for Lady Gaga’s latest outing from Live Nation. Among AEG’s big tours is one by Justin Bieber, set to open in May.Until Thursday, the industry had been holding relatively steady. Eilish opened her spring arena tour in Miami on Monday, as planned, and last week fans began registering to buy tickets for Lady Gaga’s latest outing from Live Nation. Among AEG’s big tours is one by Justin Bieber, set to open in May.
Some acts had already begun rethinking their plans. This week, Pearl Jam postponed its coming tour, and Billy Joel delayed two of his Madison Square Garden concerts. On Thursday afternoon, Dan + Shay, the Grammy-winning country duo, issued a statement, from their tour bus parked at their just-canceled show at the Wells Fargo Center in Philadelphia, that they were delaying the remainder of their dates until summer.Some acts had already begun rethinking their plans. This week, Pearl Jam postponed its coming tour, and Billy Joel delayed two of his Madison Square Garden concerts. On Thursday afternoon, Dan + Shay, the Grammy-winning country duo, issued a statement, from their tour bus parked at their just-canceled show at the Wells Fargo Center in Philadelphia, that they were delaying the remainder of their dates until summer.
“These shows mean the world to us, and it was important that they be postponed and not canceled,” the statement said. “We want the shows to be memorable, and not experienced with fear.”“These shows mean the world to us, and it was important that they be postponed and not canceled,” the statement said. “We want the shows to be memorable, and not experienced with fear.”
Also on Thursday, Gov. Andrew Cuomo of New York announced a ban on gatherings of more than 500 people, and a 50 percent reduction in occupancy for those with under 500. For venue owners, the calculus of keeping patrons, artists and employees safe while getting the staff paid was already torturous. “The revenue we make is from food and beverage sales,” said Dorf, of City Winery, which was due to reopen in its new Manhattan location on April 1. “If we give up the month of April, we have no revenue.”Also on Thursday, Gov. Andrew Cuomo of New York announced a ban on gatherings of more than 500 people, and a 50 percent reduction in occupancy for those with under 500. For venue owners, the calculus of keeping patrons, artists and employees safe while getting the staff paid was already torturous. “The revenue we make is from food and beverage sales,” said Dorf, of City Winery, which was due to reopen in its new Manhattan location on April 1. “If we give up the month of April, we have no revenue.”
“We’re trying to be correct global citizens and at the same time, we’ve got to think a little bit about all the mouths that we’re feeding,” he added.“We’re trying to be correct global citizens and at the same time, we’ve got to think a little bit about all the mouths that we’re feeding,” he added.
The economic ripple effect is likely to spread not only to venue operators and talent agents but to an array of people who work on everything from lighting and sound crews to merchandisers and people who work in food service and at hotels.The economic ripple effect is likely to spread not only to venue operators and talent agents but to an array of people who work on everything from lighting and sound crews to merchandisers and people who work in food service and at hotels.
“This is totally crippling to our industry and to all the people who depend on it as a way of life,” said Jackson Gallagher, who works on lighting for concert tours.“This is totally crippling to our industry and to all the people who depend on it as a way of life,” said Jackson Gallagher, who works on lighting for concert tours.
For artists and their managers, waking up each day to reports of rapidly growing numbers of coronavirus infections has fed a frustrating uncertainty, said Jonathan Daniel of the management company Crush Music. Green Day, Fall Out Boy and Weezer, which are all represented by Crush, are also planning a stadium tour together this year — and have already canceled dates in Asia.For artists and their managers, waking up each day to reports of rapidly growing numbers of coronavirus infections has fed a frustrating uncertainty, said Jonathan Daniel of the management company Crush Music. Green Day, Fall Out Boy and Weezer, which are all represented by Crush, are also planning a stadium tour together this year — and have already canceled dates in Asia.
“Usually in real-life events, you are in a reactive position,” Mr. Daniel said. “If there is a hurricane, you postpone shows; it’s after the fact. This is a proactive position, which is part of why there is so much uncertainty about it all.”“Usually in real-life events, you are in a reactive position,” Mr. Daniel said. “If there is a hurricane, you postpone shows; it’s after the fact. This is a proactive position, which is part of why there is so much uncertainty about it all.”
For artists and their teams, the postponement of Coachella is about more than just reshuffling dates. Coachella, which is promoted by Goldenvoice, a division of AEG Presents, holds a special position in the touring market as a tastemaker, and is closely watched in the industry for its bookings, its fashions, its hashtags.For artists and their teams, the postponement of Coachella is about more than just reshuffling dates. Coachella, which is promoted by Goldenvoice, a division of AEG Presents, holds a special position in the touring market as a tastemaker, and is closely watched in the industry for its bookings, its fashions, its hashtags.
Updated June 12, 2020
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
It also represents a vital marketing opportunity for artists, who often book their tours around Coachella and rely on its halo of buzz to sell tickets elsewhere. Even the festival’s live video stream is a powerful form of media promotion; its 2018 edition drew a reported 41 million viewers in more than 200 countries.It also represents a vital marketing opportunity for artists, who often book their tours around Coachella and rely on its halo of buzz to sell tickets elsewhere. Even the festival’s live video stream is a powerful form of media promotion; its 2018 edition drew a reported 41 million viewers in more than 200 countries.
“We launched the last Lorde album at Coachella,” Mr. Daniel said. “We set up our entire plan around that festival.”“We launched the last Lorde album at Coachella,” Mr. Daniel said. “We set up our entire plan around that festival.”
One consideration is insurance coverage. Promoters and many artists typically buy policies that cover cancellations caused by things like inclement weather or an illness that affects an artist’s ability to appear. Communicable disease is less commonly covered. But by mid-January, once coronavirus was recognized as a serious risk to public events, insurers began to exclude Covid-19 from most new policies, said Peter Tempkins, the managing director of entertainment for HUB International Limited, a global insurance brokerage.One consideration is insurance coverage. Promoters and many artists typically buy policies that cover cancellations caused by things like inclement weather or an illness that affects an artist’s ability to appear. Communicable disease is less commonly covered. But by mid-January, once coronavirus was recognized as a serious risk to public events, insurers began to exclude Covid-19 from most new policies, said Peter Tempkins, the managing director of entertainment for HUB International Limited, a global insurance brokerage.
“Everybody now knows about Covid-19 and so they want to buy coverage,” Mr. Tempkins said. “But you can’t — it’s too late.”“Everybody now knows about Covid-19 and so they want to buy coverage,” Mr. Tempkins said. “But you can’t — it’s too late.”
After South by Southwest was canceled, its organizers announced that they did not have insurance coverage for coronavirus, and this week the festival laid off about one-third of its full-time employees.After South by Southwest was canceled, its organizers announced that they did not have insurance coverage for coronavirus, and this week the festival laid off about one-third of its full-time employees.
A lack of coverage for coronavirus may lead more artists and promoters to postpone events rather than cancel them outright, according to artist managers and industry executives. But that could lead to a pileup of tours in search of new dates in the fall or even next year. And even if new dates are found, it may mean empty arenas and theaters in the short term — which could translate into lost revenue and wages for venues and workers.A lack of coverage for coronavirus may lead more artists and promoters to postpone events rather than cancel them outright, according to artist managers and industry executives. But that could lead to a pileup of tours in search of new dates in the fall or even next year. And even if new dates are found, it may mean empty arenas and theaters in the short term — which could translate into lost revenue and wages for venues and workers.
Bob Bailey, the chief underwriting officer for ProSight Specialty Insurance, said that one result of the coronavirus could be more scrutiny of — and higher insurance rates for — large outdoor live events, like music festivals, where crowds may be harder to contain and control than inside a building.Bob Bailey, the chief underwriting officer for ProSight Specialty Insurance, said that one result of the coronavirus could be more scrutiny of — and higher insurance rates for — large outdoor live events, like music festivals, where crowds may be harder to contain and control than inside a building.
“For the people who attend them, you may be signing a waiver,” Mr. Bailey said. “Like if you go to a motor sports event, you say, ‘I am attending this event, but I understand that there may be a limit to how much can you protect my safety.’”“For the people who attend them, you may be signing a waiver,” Mr. Bailey said. “Like if you go to a motor sports event, you say, ‘I am attending this event, but I understand that there may be a limit to how much can you protect my safety.’”
If concert revenue declines, another question is who would be hurt the most. Top artists, who have a variety of income streams available to them, may be best able to weather any storm. But the impact could be felt broadly through the complex economic chain that supports the concert business, said Jerry Mickelson of JAM Productions, an independent promoter in Chicago.If concert revenue declines, another question is who would be hurt the most. Top artists, who have a variety of income streams available to them, may be best able to weather any storm. But the impact could be felt broadly through the complex economic chain that supports the concert business, said Jerry Mickelson of JAM Productions, an independent promoter in Chicago.
Mr. Mickelson summed up the effect on companies like his.Mr. Mickelson summed up the effect on companies like his.
“Live Nation and AEG have the financial ability to withstand the loss of income by postponing their concerts,” he said. “Other smaller independent promoters might not be as fortunate.”“Live Nation and AEG have the financial ability to withstand the loss of income by postponing their concerts,” he said. “Other smaller independent promoters might not be as fortunate.”