ALTHOUGH IT will make little difference to the price of a ticket, some in the industry are worried the forthcoming VAT rise to 20 per cent will hit at a time when the effects of the economic downturn are still biting.

On a £50 ticket the increase will be 89p, 44p on a £25 ticket and just 18p on a £10 ticket.

National promoter Danny Betesh of Manchester-based Kennedy Street Enterprises says the hike is “not welcome”.

(see the full story in Issue 126)

Belfast venues in administration

THE COMPANY behind Belfast The Limelight (cap. 500), Spring and Airbrake (600), Auntie Annie’s (200) and Katy Daly’s (175) insists it will be business as usual at the venues, despite calling in administrators.

John Hansen of accountancy firm KPMG says he is working with CDC Leisure MD David Neely to ensure the company’s venues continue to trade, while a resolution is found.

(see the full story in Issue 126)

Freebutt faces closure over noise complaint

A VENUE which hosted early performances by Razorlight, Yeah Yeah Yeahs, The Libertines, Gossip and Bat For Lashes is battling closure over noise complaints.

In a last-ditch attempt to prevent the enforcement of a noise abatement order, owners of Brighton’s 150-capacity The Freebutt have launched a petition, which gathered over 4,300 signatures within days.

(see the full story in Issue 126)

Summit returns with awards

REVAMPED CONFERENCE sessions, networking opportunities that include a Thames riverboat cruise, and the launch of the Live Music Business Awards are all features of the fourth LIVE UK Summit, set for 6-7 October.

The awards event will cover around 20 categories, ranging from Best Venue Teamwork, Promoter of the Year and Best Media Campaign, to Agent of the Year, Breaking the Mould (live show innovation) and Best Record Company Partner.

The winners will be selected through votes cast by groups of carefully selected professionals with direct experience in the respective categories, supplemented by open voting online.

“As the live industry seems to be weathering the economic downturn, with a combination of caution and its usual enthusiasm for making things happen, we decided to shake up the whole event, with new production, set changes and the launch of the awards,” says The Summit’s executive producer Steve Parker.

Conference panels will include a return of last year’s favourite, Masters Of The Universe, along with Base Camp Breakout, focussing on entry level business,
Mass Movement – are the fans being looked after?, Fields of Gold – how will festivals fare in 2011, and Points of Sale, which will review changes in the world of ticketing.
   
The Summit takes place on 6-7 October at the Radisson Blu Portman Hotel in London’s West End, with the inaugural Live Music Business Awards held there on the second night.

 Registration costs £315 + VAT, with an early-bird rate of £235 + VAT available until 31 July 2010. More information at www.liveuksummit.com and www.livemusicawards.co.uk

(see the full story in Issue 126)

Fabric says 'no change' after sale

LONDON NIGHTCLUB Fabric has been sold to a consortium headed by one of the venue’s original investors, Gary Kilbey.

The 1,510-capacity club in Farringdon was put up for sale in May after its parent company, Fabric 591, went into administration, seemingly as a result of financial collapse of its other club, Matter (2,600), located in The O2 complex (see LIVE UK, issue 125).

(see the full story in Issue 126)

HMV profits up to £74.2m

HMV GROUP saw a 17.7 per cent increase in pre-tax profit to £74.2 million for the year to April 2010, on revenue which grew by 3.1 per cent to just over £2 billion, according to financial results.

The company formed a live music division in January, following the £46m acquisition of multi-faceted MAMA Group. It also has a ticketing operation.

(see the full story in Issue 126)

Live Music Bill activists pressure government

THE GOVERNMENT is being urged to introduce the Live Music Bill proposed by Lib Dem peer Tim Clement-Jones under the last parliament (see LIVE UK, issue 114).

The Incorporated Society of Musicians (ISM) says the Bill would help the government fulfil its goal to “cut red tape to encourage the performance of more live music”, as laid out in its publication The Coalition: Our Programme For Government.

(see the full story in Issue 126)

Caution guides Edge programme

ALTHOUGH THE Edge Festival will comprise more concerts than last year, most of them will be in the smaller capacity venues, as promoter DF Concerts plays safe in the current economic climate.

The Edinburgh event will see 54 concerts take place across eight venues throughout August, in tandem with the city’s world-renownbed arts festival. Last year it featured 40 acts.

(see the full story in Issue 126)

SMG secures its MENA future

MANCHESTER EVENING News Arena (cap. 21,000) will remain under the operation of SMG Europe for the next 25 years, following a management lease signed with the new owners.  

In June, property and investment company Development Securities acquired the Victoria Exchange complex, which includes the arena, in a deal worth £62.2 million.

(see the full story in Issue 126)

Uni opens to public concerts

THE UNIVERSITY of Glamorgan Union in Pontypridd will be open to the general public for the first time, when it unveils a new £6 million building on 20 September.

The move comes following the lifting of a licensing restriction, which previously meant the two-room venue (cap. 800 and 600) could only sell tickets to the university’s 20,000 students.

(see the full story in Issue 126)

NEC plans NIA revamp

HAVING SPENT £29 million refurbishing its 14,000-capacity LG Arena, Birmingham venue owner the NEC Group is considering a similar process for its NIA (cap. 13,000).

The company has launched a feasibility study, with the initial aim of developing a concept design and appointing an architect.

(see the full story in Issue 126)

Manager's forum appoints new board

THE MUSIC Managers Forum (MMF) has appointed a new board following the organisation’s revamp last year (see LIVE UK, issue 110).

(see the full story in Issue 126)

Grand designs for Goodwood festival

RENOWNED DESIGNERS Wayne and Gerardine Hemingway have partnered with Lord March, owner of the Goodwood Estate, to launch a new festival on 13-15 August.

The 20,000-capacity Vintage at Goodwood will feature contemporary music, fashion, art, design and culture from the 1940s to the 1980s, via a main stage and club areas celebrating “five decades of British cool”.

(For full story, see Issue 126)

£4m of changes for MAMA's Institute

TWO YEARS and over £4 million of refurbishment work come to fruition on 17 September when Birmingham’s HMV Institute, formerly The Sanctuary, opens.

Owned by HMV through MAMA Group, the venue’s main auditorium will have a capacity of 1,500, while The Library (cap. 600) has a separate entrance so it can operate independently. The building has a further two club rooms and a VIP bar.

(For full story, see Issue 126)

Seaside open-air venue reopens

FOLLOWING 24 years of closure and hailed as the largest such venue in Europe, Scarborough Open Air Theatre re-opened for concerts, following a major £3.5 million redevelopment funded by the council.

The 6,500-capacity venue is the largest operating open air theatre in Europe and is being managed by Apollo Resorts and Leisure.

(For full story, see Issue 126)

New owner to up Fibbers capacity

YORK VENUE Fibbers is to undergo a major refurbishment after being bought from HMV-owned MAMA Group by Tokyo Industries.

The venue, formerly part of the Barfly network, will remain open during the work, which will see capacity increased from 280 to 350 and a new sound system installed.

(For full story, see Issue 126)

Fees review sparks fears of rate rises

PRS For Music’s review of performance royalty rates could have wide-reaching implications for the live sector, so what is being proposed, and how might it impact the business in troubled economic times? James Drury reports

A REVIEW by PRS For Music of the rates it charges the contemporary live music sector – its first for 20 years – has prompted widespread consternation among venues and promoters.

With a VAT hike already set for January 2011, an increase in performance royalties could force up ticket prices even higher, at a time when sales are softening and tough economic times lie ahead.

A 21–page review document has been issued by the not-for-profit organisation and a consultation period runs until 12 September.

The Concert Promoters Association (CPA) is remaining tight-lipped on the matter for now, but it is understood to have lined-up a meeting with PRS to express its concerns.

Many promoter members LIVE UK approached were reluctant to discuss the issue before an official CPA statement, but privately said any increase would be most unwelcome.

In the words of one, “It’s the consumer who will suffer, because it’ll increase ticket prices.”

The consultation covers a proposal to overhaul the payment, called Tariff LP (Light and Popular).

Rather than the present system where a flat fee (three per cent of ticket income) applies to all events, PRS is recommending a progressive charge based on capacity.

The proposal is based on the fact that income streams for the live industry have diversified from largely just ticket sales, to sponsorship, merchandise, refreshments, parking, VIP packages and (suggests PRS), in a handful of cases, a share of the resale market.

In 1988 when the tariff was last set, ticket income was pretty much all the revenue available to a promoter. So PRS maintains that the songwriter, whose material was being performed during the show – either as recorded product or live – was therefore benefitting from three per cent of all the income.

Now, proffers PRS, the overall income from live events has grown, leaving ticket receipts making up a smaller share, albeit still the largest slice.

“There have been major changes in the live market since we last reviewed this tariff, so it’s appropriate to examine how it’s structured,” says PRS commercial director Debbie Mulloy.

“Tariff LP is very simple and does not reflect the complexities of the live market as it currently stands.”

The review aims to discover whether the three per cent rate is regarded as fair, and if ticket income is still the correct base from which to take that charge.

(See issue 126 for the full feature)

(For full story, see Issue 126)