The Impact of Social Media on
Touring and Live Performance
Doni Tavel
Senior, Management
School of Public and Environmental Affairs
DTavel@umail.iu.edu
Introduction
• Research question:
▫ Whether or not social media has had a significant
impact on touring and live performance.
• Inspiration
▫ Aware Records | A-Squared Management
 Chicago, IL – Summer 2011
 A Rocket To The Moon
 (www.arockettothemoon.net)
Chicago, IL 2012
Manila, Philippines 2012
The Old Model
• Offer:
• Key Resources:
▫ Physical Album
▫ Copyrighted Content
▫ Live Performance
• Revenue:
▫ ALBUMS!
▫ Tours and Concerts
▫ Merchandise
• Customer Segments:
▫ Mass Market
• Customer
Relationships:
▫ None
• Channels:
▫
▫
▫
▫
TV
Radio
Print
Tours
• Key Activities
▫ Marketing &
Promotion of Album
For detailed Music Industry Business Model Analysis: AlexOsterwalder.com
Enter The Digital Age
• Digital Music Explodes
▫ 1994 – MP3 Encoder
 Enabled transfer of songs from CDs to computer
▫ 1999 – Napster
 Introduced peer-to-peer file sharing
▫ 2001 – iTunes
 Brings millions to online marketplace
 New, legal distribution of music
• Result
▫ Digital Piracy
 2001 – 99% of music files available online were unauthorized
(IFPI Music Piracy Report, 2002)
▫ Price of songs trends toward ZERO
▫ Music Discovery and Sharing
The Old Model
• Key Resources:
• Offer:
▫ Copyrighted Content
▫ Live Performance
▫ Physical Album
• Revenue:
• Channels:
▫ ALBUMS!
▫ Tours and Concerts
▫ Merchandise
▫
▫
▫
▫
• Customer Segments:
• Key Activities
▫ Mass Market
• Customer Relationships:
▫ None
TV
Radio
Print
Tours
▫ Marketing & Promotion of
Album
For detailed Music Industry Business Model Analysis: AlexOsterwalder.com
Social Media Explodes
• Social Sites Emerge
▫ 2001 – Ryze.Com
 To help people leverage business networks
▫ 2002 – Friendster.com
 To connect friends-of-friends
▫ 2003 – MySpace (MUSIC!)
• Results
▫
▫
▫
▫
Bands, Fans, Venues, Promoters, etc. connect
Specific place to find and share music you like
The artist-fan relationship is born
23% of time spent online (Nielsen State of the Media Report)
A Shift Occurs
• Offer:
• Key Resources:
▫ Tours and Concerts
▫ Live Performance
▫ Licensing
• Revenue:
• Channels:
▫ Tours and Concerts
▫ Merchandise
• Customer Segments:
▫ Geographic
▫ Interest-Based
▫ Music-Related
• Customer
Relationships:
▫ Social Media
▫
▫
▫
▫
▫
Band Websites
Social Media
Online Radio
Mobile Applications
Tours
• Key Activities
▫ Marketing & Promotion
of BAND
For detailed Music Industry Business Model Analysis: AlexOsterwalder.com
Social Media as an Advantage
• 2 Overarching Opportunities
1. Increased Connectivity
 Fans
 Industry professionals
2. Access to a Global Audience
Increased Connectivity - Fans
• Psychographics > Traditional Demographics
▫ Relating by interest, habit, trend
• Establish Communities
▫ Engage the fan base
• Increased Awareness & Sharing
▫ “90% of consumers surveyed noted that they trust
recommendations from people they know.” (Nielsen,
2009).
▫ “Active adult social networkers are 75% more likely be
heavy spenders on music.”
(Nielsen State of the Media Report, 2011)
Increased Connectivity – Industry
Professionals
• Venues
▫ Venue – Fans, Venue – Bands
▫ Case Study:
 The Roxy, Los Angeles
• Promoters
▫ Social media trends signal demand
▫ Case Study:
 A Rocket To the Moon in Indonesia
• Managers
▫ Social Media trends signal profit
Access to A Global Audience
• No geographic limitations
• Define and target new markets
▫ A Rocket To The Moon
• Local Acts
▫ Difficulty, but still success
Recommended Additional Reading:
Carey Sargent (2009): LOCAL MUSICIANS BUILDING GLOBAL
AUDIENCES, Information, Communication & Society, 12:4, 469-487
Ticketing
• Eventbrite
▫ “To make events as easy to create, find and attend as
possible.”
▫ “Shares” are valued at over $12 per share
• Ticketfly
▫ Independent ticketing and social marketing platform.
▫ Each FB or Twitter share  sale of 3.25 tickets
• Ticketmaster
▫ Ticketing service (largest market share)
▫ Facebook-integrated Social Seating
▫ Facebook share alerts  $5.30 additional ticket
revenue
Artist Discovery, New Tours!
• Mac Miller
▫ No radio rotation
▫ No major label
▫ Discovery & popularity through
YouTube
▫ Sold out tour
• Justin Bieber
▫ Started on YouTube
▫ Sold out Madison Square Garden
in 22 minutes
▫ $83 million in ticket sales revenue
▫ “Beliebers”
Concert-Related Apps
• Ticketmaster Social Seating
• Pandora, Spotify, Online radio
▫ Integrating with ticket sites, social music &
sharing
• ReverbNation
▫ “PROMOTE IT for Shows” feature
• SongKick
▫ Users attend 70% more shows
▫ To encourage more sharing, and more attendance
Conclusion
• Advantages
▫ Increased Connectivity
▫ Global Audience
• New Resource for
▫ Venues
▫ Promoters
▫ Managers
• Ticketing
▫ The numbers are up!
▫ Sharing  profits
• Artist Discovery
▫ No Major label necessary
▫ HUGE successful tours
• Just getting easier!
▫ Concert related software
▫ Increased Social Media Use
• Hugely significant impact on
touring and live performance.
Thank You!
• Questions?