Surviving China concert biz in six easy steps

11/09/2007 10:51 PM, Reuters


With the announcement of Linkin Park's November 18 show at the 25,000-capacity Hongkou Stadium in Shanghai -- reportedly the biggest Chinese concert yet by an international act -- the country continues to open up to Western touring talent.

But industry insiders warn that local ticketing culture is a unique beast that outsiders need to study carefully. As more touring acts contemplate stopovers in China, Billboard presents six things every artist manager and international promoter should know.

1. UNDERSTAND THE HISTORY

Live events in China have been government-controlled since the Communists took power in 1949.

Until recently, "the government would select a state-run or related company to organize an event," says Li Bin, marketing manager at promoter Beijing Gehua Live Nation Entertainment. "If you had connections with the government or that company, you'd get a bunch of tickets for free."

The hangover from that culture means selling tickets to the public can be difficult, while local authorities and others may still expect free ones.

"These days," Li says, "paying for a ticket is like losing face -- it means you're not well connected."

2. GET YOUR TECHNOLOGY RIGHT

"Antiquated" is how Chinese industry insiders describe most domestic ticketing companies' practices.

Traditionally, "there were many small players in the market with limited technology," explains Jonathan Krane, CEO of leading Shanghai-based ticketing/promotion company Emma Ticketmaster, which has brought acts like Eric Clapton and the Rolling Stones to the mainland since its 2004 launch.

"Counterfeit ticketing was a major problem," Krane says. "We saw an opportunity to immediately add a lot of value to the marketplace by putting in advanced ticketing systems with the right access controls."

3. UNDERSTAND GOVERNMENT RULES AND REGULATIONS

Promoters must acquire a Ministry of Culture permit before announcing or advertising a show or selling tickets.

"The time that takes depends on whether the act is foreign or local and if the promoter has a good track record," Krane says. "(And) a first-time promoter will have to find the right government agencies to partner with."

4. BEWARE OF SCALPERS AND FAKERS

China has a major ticket-scalping problem, mainly because some venue operators and government officials demand "huge" numbers of free tickets in exchange for green-lighting events, says Archie Hamilton, CEO of Beijing-based promoter Split Works, which handled Sonic Youth's China shows in April.

"They give the tickets to the huangniu (scalpers) to sell at whatever they can get," Hamilton notes.

Fake tickets proved a major problem at Avril Lavigne's August 15 Qi Zhong Tennis Centre show in Shanghai.

"We turned away many disappointed fans who had purchased fakes, often unknowingly," Emma Ticketmaster marketing director Robb Spitzer says.

5. DON'T BANK ON ADVANCE SALES

"Advance sales are generally not as strong as door sales," Split Works COO Nathaniel Davis says. "There's a walk-up culture; people expect tickets to be available at the door."

"Shows hardly ever sell out in one day," Krane adds, "But we're starting to see people buying earlier." He says walk-up sales compose at least 10%-20% of total ticket sales on average, although big-name acts with money to spend on promotion can sell more advance tickets.

6. GET YOUR PRICING RIGHT

The booking manager at Beijing club M.A.O. Livehouse, known industry-wide only as Fourteenz, cites 150 yuan ($20) as the highest price Chinese fans will pay for an international act at his venue.

"Most of our audience is students," he says, "and 150 yuan for them is not a cheap price."

However, ticket prices for Linkin Park's Shanghai show range from 100 yuan ($13) to 1,600 yuan ($214), and China's new social elite will pay top yuan for VIP tickets to large events. The top price for the Rolling Stones' April 2006 show at the 8,500-capacity Shanghai Grand Stage was 1,800 yuan ($234).

Reuters/Billboard