Facing the music

While the outlook for the live events production industry remains positive, Middle East-based promoters, event managers and rental companies have voiced concerns about the current challenges facing their businesses. S&S spoke to some of the local industry’s leading lights about their plans to address these and other issues in 2009.

Thomas Ovesen, managing director of the Middle East arm of entertainment production giant AEG Live

What steps, if any, is AEG taking to adapt its business in light of the current economic downturn?

The industry here consists of a mix of large and small operators with different agendas.

I can only speculate as to how other operators will approach the current economic downturn, but from our perspective, we plan to implement a ’buy smart’ philosophy rather than reducing the number of events we do.

While we might face issues with ticket sales and envisage that the high ticket prices will have to come down we should also try to use this situation to get our suppliers back in check and perhaps we can make ends meet that way.

Can you foresee the possibility of promoters pulling resources together and working in collaboration (to an extent) given the challenging circumstances?

I wouldn’t rule out that some smaller operators may align themselves with some of the more established companies, as even the bigger companies will have to look at smaller jobs they may have dismissed in the past as not feasible.

How important are audience numbers in this mix?

Ensuring audience numbers remain high is not a goal in itself, but making a profit is. Therefore, I think we will be more critical when assessing large scale events and artist fees, while smaller events, and in particular a higher frequency of smaller events, could be a good way to offset a couple of bigger more risky events. I’m sure there will be an even longer queue of promoters trying to do business with the few government entities still investing in live music events in the region – safe commission-based business or talent brokerage might be seen as the saviour for some operators that are living on margins.

What type of events do you expect to bring to market in 2009?

In a weakened market more commercial and ‘safe’ events remain the best bet. However, that is pretty much how we have operated up until now, so I think you will see a few operators cutting back on events in general, trying to sell their services to government entities instead of risking their own monies, while others will plan on smaller events than usual. I think AEG will do both, while still promoting some of the iconic top artists that we have touring in other parts of the world.

Do you think the formation of an industry lobby group would help in promoting transparency?

I don’t think we need an industry body to achieve this. However, we could do with a united front when dealing with the local rules and regulations, local legislation or lack of the same and the way our industry, if regulated by the authorities, would allow us to get more organised pricing and quality levels with suppliers and so on.

How do plan to tackle the escalating cost of sourcing and renting equipment?

In the past we have had to live with suppliers charging what they want simply because they can. Now that suppliers will be struggling to maintain their 2007-2008 level of business, it’s time for us as an industry to reverse that trend and force prices down. The suppliers that have maintained their support will of course still benefit from loyal business bookings, but I think a lot of changes will happen regarding key industry suppliers within the sound, lighting and logistical services sector.

What new ventures does AEG plan to invest in this year?

AEG will be buying smart when it comes to events and acquisitions. In regards to staff, we now have a unique opportunity to put together the best possible team and come out of the downturn even stronger than we were before.

Is AEG keen to establish permanent venues in the Middle East?

We do have plans, but as to what we will need to wait and see what materialises and how many of the alleged future venue owners will be able to proceed with their projects. AEG is the leading arena management company globally, so I would be surprised if we were not involved with some form of arena project within the coming few years.

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