stopdead
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Post by stopdead on Nov 30, 2007 11:56:52 GMT -5
(Already posted this in another thread, but thought it would make a good thread topic.)
Here's my solution (if I were in charge): Pair DD w/ Live Nation, record one album every two years with a $200,000 recording budget per record and compliment with a world tour. Determine the Duran brand's core demographic (probably women ages 35-50) and focus album distribution/concert promotion where that demographic is most likely to see it (iTunes, Starbucks, oprah.com, etc.). Ten year deal.
Great article in today's Wall Street Journal about Live Nation and the state of the music business. To summarize, Live Nation is looking for more artists to sign deals with (touring, merchandising, albums, etc). In the article, Madonna's manager comments on how "In the past, people would tour to promote their albums; today they put out albums to promote their tours. The pendulum has swung, and Live Nation is at the forefront of touring." DD is no Madonna, but if Live Nation could see value in the Duran brand, there could be a future there.
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Post by mystikwolf83 on Nov 30, 2007 13:23:13 GMT -5
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Post by stopdead on Nov 30, 2007 15:24:42 GMT -5
Timbaland's fees are said to go as high as $500,000 per song, if that puts it into perspective. A $200,000 budget would cover studio and production costs w/ a low-profile producer.
Let's say Timbaland charged that much for all three Duran tracks. Hell, say he charged half that: $250,000 for three tracks. Say production for the rest of the album brought the total to $500,000, which I think is very, very conservative (especially considering the Reportage sessions). I'll be they are double that figure, but for arguments sake we'll make it $500,000. Now, if the album sells 100,000 copies it will generate at least $1 Million is sales. Take out all the expenses (production, distribution, marketing, promotion, etc.) and you're easily in the red. I'm not sure what Sony's break-even number is, but I imagine it is at least 250,000 copies. If the album doesn't hit that mark, the band will likely be paying Sony back via touring revenue.
A deal w/ Live Nation shouldn't hinge on unit count. It should be about touring and merchandise sales. The album could even be limited to digital distribution to keep costs down. But it should also be made available as a "free" download after online ticket purchases (Live Nation is likely going to dump Ticketmaster and sell tickets direct after 2008, according to the Wall Street Journal). This gets the music out there to fans w/o spending big money on album promotion. Duran will make music and people will hear it. Its a win-win for everyone. DD's need to make new music that is heard by the masses is fulfilled, we get to hear the music, and both Live Nation and DD make money via touring and merchandise sales. Sound good?
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Post by andre005 on Nov 30, 2007 15:29:53 GMT -5
DD will recoup those fees during their tour and special apperances!
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Post by Deleted on Nov 30, 2007 17:15:19 GMT -5
Why are you assuming the demographic is women between 35-50?
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stopdead
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Post by stopdead on Nov 30, 2007 17:25:54 GMT -5
Educated guess. If you did a poll on this board asking people for their gender and age, I would bet the majority are women ages 35-50. But let's not throw the baby out w/ the bathwater...that guess was in parenthesis...a more scientific study should be done.
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Post by mystikwolf83 on Nov 30, 2007 17:51:06 GMT -5
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Post by stopdead on Nov 30, 2007 17:58:56 GMT -5
One poll would suffice. Two questions: 1) Male or Female; 2) Age (15-20, 20-25, 25-30, 30-35, etc.). But this is a biased group of people nor would a poll here be considered scientific. Live Nation has plenty of resources for this sort of thing...
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Post by Deleted on Nov 30, 2007 18:01:04 GMT -5
And if you looked at this board you would find males (straight and gay), women below the age of 35 and teenagers on this board who are part of the band's core demographic.
I'm getting really tired of this generalization of who the fans are, where we get our music and what our musical tastes are just based on the fact that some of us are over 35 and listen to Duran Duran.
You honestly think that LiveNation would see 10 years worth of value in Duran Duran? I think that's far too generous.
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Post by stopdead on Nov 30, 2007 18:15:03 GMT -5
@ kelgura
I'm talking about getting more bang for the buck here. When you talk about the diversity of fans in your post above you are talking about multiple demographics, not one demographic. I'm a 27 year old straight guy. I'm a HUGE fan. But I'm not in the band's core demographic ("core" being the key word). That's different than "hard core" which is what you seem to be talking about. Hard core fans are a different animal. We generally buy the music no matter what.
If the majority of DD's audience are in a specific demographic (women ages 35-50 FOR EXAMPLE) that's where the promotion efforts should be focused. More bang for the buck. That's business.
Live Nation is promoting tours by a lot of acts considerably smaller that Duran Duran right now. I just got an email update from them and it includes several acts that I've never even heard of playing in small venues that Duran could easily sell out. Yes, I think there is value in DD for the next 10 years, but it is a most likely a diminishing value and should be treated as such.
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