No Who - Clear Channel (SFX) grabs more cash

["Jeff House" <whocasa@hotmail.com>]

http://www.boston.com/dailyglobe2/201/business/Concert_promoter_unveils_ticket_club%2b.shtml

Concert promoter unveils ticket club

Would give members jump on sold-out shows

By Bruce Mohl, Globe Staff, 7/20/2001

The nation's top concert promoter is testing a new online club concept, 
offering music fans in Boston and three other cities a crack at tickets to 
sold-out shows by Madonna and Janet Jackson as well as other promotions in 
return for an annual membership fee of $30.

The club appears to be an attempt by Clear Channel Entertainment, the former 
SFX Entertainment, to squeeze more revenue out of its existing entertainment 
empire by selling a small block of concert tickets to club members willing 
to pay for a chance to buy them.

Club members aren't guaranteed any tickets. Just like the traditional 
ticket-selling process, tickets are sold on a first-come, first-served basis 
and supply is even more limited. But Clear Channel is betting avid 
concertgoers will sign up in droves to gain a ticket-buying edge, giving the 
entertainment giant a direct link to its better customers.

''We think this is great for any fan of music, but it's an especially 
valuable program for the avid concertgoer,'' said Christian Alexander, 
senior vice president and general manager of the club. ''It's similar to an 
airline frequent- flier program that caters to repeat business.''

Gary Bongiovanni, editor of the trade magazine Pollstar, said the club is a 
double-edged sword for concert fans. It gives club members a possible edge 
in landing tickets to hot shows, he said, but it also means fewer overall 
tickets will be available to the general public.

Artist fan clubs have taken a similar approach, offering members early 
access to concert tickets and online interaction with the performer. Clear 
Channel is expanding the fan club concept to the entire universe of artists 
and venues it represents.

Bongiovanni said the concert club concept has had limited success in the 
past, but it's never been tried by a entertainment behemoth such as Clear 
Channel, which owns or operates 135 venues around the country. Locally, it 
operates the Tweeter Center in Mansfield and the FleetBoston Pavilion in 
Boston and books most rock shows at the FleetCenter and other venues.

Clear Channel hasn't yet publicized its new online club, which is called 
It's Better Live/ACCESS. The club was quietly launched last week with 
e-mails to customers who had previously requested concert update 
information. It will be rolled out behind an advertising campaign in about 
three weeks.

The club concept is being tested in Boston, San Francisco, Raleigh, N.C., 
and Houston and is expected to be rolled out to more markets next year. 
Members must sign up online at access.boston.its
betterlive.com.

To entice people to join, Clear Channel is currently offering two free 
tickets to select concerts. The tickets would appear to be worth more than 
the price of membership. One option listed on the club Web site on Wednesday 
was two lawn seats to see Godsmack with the Deftones at the Tweeter Center 
in Mansfield in August. Buying those tickets through Ticketmaster would cost 
$67.80.

Alexander, the club's senior vice president, declined to say how long the 
free-ticket offer will last, adding that other enticements may replace it in 
the future. ''Our overall objective is to invest in long-term relationships 
with customers,'' he said.

In addition to the two free tickets, the club says members will receive 
exclusive two-for-one ticket offers, ticket discounts, seat upgrades, and 
the chance to chat online with artists and other fans.

Under the terms and conditions of membership, Clear Channel says it will use 
information it gathers about members to sell advertising on the club Web 
site and strike promotional deals with third parties. The Web site said a 
possible nonticket promotional offer might be a special room rate for 
members at a hotel.

But one of the biggest draws of the club for consumers would appear to be 
the chance to get tickets to hot concerts or sold-out shows. The club's 
current ''special access offers'' include tickets to the sold-out shows of 
Madonna and Janet Jackson and a two-for-one ticket offer to see Shawn Colvin 
at the FleetBoston Pavilion.

It's unclear how many tickets to the Madonna and Jackson concerts will 
become available. One source said it could be as many as a couple hundred 
tickets to see Jackson, but far fewer for Madonna. The tickets themselves 
are the cheapest available. The club's Web site said the Madonna tickets 
will cost $60, including service and handling charges. The Jackson tickets 
will cost $44.55 each, including service and handling charges.

The Colvin offer is two tickets in the covered pavilion for $45.90, a 
savings of about $42 over buying through Ticketmaster.

Alexander said future ticket offers will involve only a small percentage of 
the overall tickets being sold, but the ticket offering may cross all 
seating price levels.

Larry Moulter, who formerly ran the FleetCenter and follows the 
entertainment industry closely, said Clear Channel's club should allow the 
company to do a better job of marketing to its better customers and to cut 
its advertising costs. He said it will also make club members feel 
appreciated. ''We all believe we're VIPs,'' said Moulter, who said he 
expects many consumers will sign up to gain access to tickets and ticket 
information.

Clear Channel has instituted a number of new ticketing fees recently in a 
bid to boost revenue, including a new $5-per-ticket ''transaction fee'' on 
tickets purchased at the Tweeter Center and Orpheum box offices. Previously, 
no service charges applied to box office purchases.

This story ran on page 1 of the Boston Globe on 7/20/2001.
© Copyright 2001 Globe Newspaper Company.



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