VIP-Magazine August 2012

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WELCOME

E N I Z A G A M P I V E TO TH New Times somewhat unstable ng after a wonderful but We are now back in full swi grey days but great ich gave us both sunny and summer weather wise wh the corner and as ess. Autumn is just around hel ert nev s nce erie exp music organizations within the conditions, ideas and the seasons change, so do the music industry. ma-rates, CEETEP’s nge and progress; new Ge cha on us foc we e issu s In thi m some of our l saga and predictions fro first year, The ticket scanda of the music industry. colleagues on the future es. We at VIP are ences and award ceremoni Autumn also means confer at some of these le as many of you as possib looking forward to seeing a fall filled with for what will hopefully be events. So raise your glass gress. cheering, changes and pro Enjoy reading – and see you

out there!

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THE VIP TEAM vip-booking.com

#3 VIP-MAGAZINE 12/2012 www.vip-booking.com


CONTENTS: VIP-MAGAZINE 12 #2012 05

Brent Grulke of SXSW Dies

06

Tallinn Music Week

10

YOUROPE Creates Standard Terms for European Festival Contracts

12

10 years of CODA Agency

14

The Ticket Scandal

22

Awards

24

New GEMA Rates

28

CEETEP – The Programme Progresses

6

10 22

24

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#4 VIP-MAGAZINE 12/2012 www.vip-booking.com

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Allan McGowan am@vip-booking.com

BRENT GRULKE OF SXSW DIES Brent was an extremely well known figure at many of the European Festival and Conference events – I have personally shared a beer or several with him in several countries on many an occasion and I, like many others, will miss his company.

He is survived by his wife, Kristen, and 6-year-old son, Graham, as well as brothers Brad and Brian. Heartfelt commiserations go out from all of the VIP staff to Brent’s family and his very many o friends.

All at VIP were saddened to hear of the sudden and unexpected

The family has established the Graham Grulke Education Fund.

death of Brent Grulke on the morning of August 13th. The Creative

Contributions can be directed to:

Director of SXSW passed away as a result of a heart attack after

EMG, Inc. 6101 West Courtyard Drive, Suite 2-120, Austin, Texas

undergoing oral surgery. He was 52.

78730. Attn: Brad Grulke

Previously a writer and Records Review Editor for the Austin

Please make donation payable to the Graham Grulke Education

Chronicle, he also worked as a record producer, sound engineer,

Fund.

tour manager and record company executive, working in the Hotellounge presents

marketing division of Spindletop Records in the early 1990s. Grulke worked for the Austin, Texas based event from its beginnings in 1987. He became creative director in 1994 initially building the event’s reputation for booking local and underground and then going on to help create the international reputation that it now commands.

SXSW director and co-founder Roland Swenson, commented, “A lot of Brent’s personality was in SXSW. He was adventurous and knowledgeable and excited about creative people and endeavours. He didn’t like the usual and mundane. He was open-minded enough to know that his taste wasn’t always the most important thing, so he was open to new things.”

Una Johnston, the European representative for SXSW said, “Brent played a really central role in the dynamism of SXSW Music Festival. His background in live music as a sound engineer and tour

le pop on tour FREDDA (FR), FRANÇOIZ BREUT (FR) & LE POP DJ-TEAM 23.11.12 - DE-Karlsruhe, Tollhaus 24.11.12 - CH-Zürich (CH), El Lokal 25.11.12 - CH-Lausanne, Le Bourg 26.11.12 - DE-Freiburg, Cafe Atlantik 27.11.12 - DE-Frankfurt, Zoom 28.11.12 - DE-Köln, Bahnhof Ehrenfeld 29.11.12 - DE-Bremen, MS Treue

SPAIN (US) – Comeback of the year! 21.11.12 - DE-Münster, Gleis 22 22.11.12 - DE-Offenbach, Hafen 2 23.11.12 - FR-Paris, BBMix Festival 24.11.12 - FR-Rouen, Le 106 25.11.12 - FR-Laval, Le 6x4 27.11.12 - FR-Clermont-Ferrand, La Cooperative de May 28.11.12 - FR-Coustellet, La Gare 29.11.12 - IT-Milano, Teatro dal Verme 30.11.12 - CH-Vernier, Paroisse de l‘Epiphanie (church) 01.12.12 - DE-Geislingen, Rätschenmühle

manager meant he understood all the things that musicians need to develop their careers and he created a unique environment at SXSW that was very artist friendly. He also appreciated diversity and expanded the programme for international showcases. We are all heartbroken to have lost him, he was a wonderful colleague, a loyal friend and a champion of good music, no matter where it originated.”

30.11.12 - DE-Leipzig, Werk 2 01.12.12 - DE-Hamburg, Indra 03.12.12 - DE-Berlin, Crystal 04.12.12 - DE-Münster, Gleis 22 05.12.12 - DE-München, Feierwerk 06.12.12 - CH-Schaffhausen, Kammgarn 07.12.12 - DE-Duisburg, Grammatikoff

E-mail: PUMV'OV[LSSV\UNL KL News & all shows on ^^^ MHJLIVVR JVT /V[LSSV\UNL

02.12.12 - DE-Berlin, Heimathafen 03.12.12 - DE-Dresden, Beatpol 04.12.12 - DE-Leipzig, Werk2 05.12.12 - DE-Hamburg, Indra 06.12.12 - BE-Gent, Handelsbeurs 07.12.12 - BE-Hasselt, Cultuurcentrum 09.12.12 - CH-Bern, Dachstock 11.12.12 - CH-Zürich, Rote Fabrik 12.12.12 - AT-Wien, Chelsea 15.12.12 - IT-Torino, Maison Musique 16.12.12 - DE-Heidelberg, Karlstorbhf. 17.12.12 - DE-Köln, Stadtgarten

/6;,336<5., (International concert agency) Burgunderweg 14 DE-66359 Bous Tel: +49 177/27 56 128

/6;,336<5., (Swiss office) Dianaweg 10 CH-3097 Liebefeld Tel: +41 (0)44/586 51 75

*A HAWK AND A HACKSAW *A WINGED VICTORY FOR THE SULLEN *ALCOHOLIC FAITH MISSION *AMATORSKI *AMPLIFIER *BALTHAZAR *BEAR IN HEAVEN *WALLIS BIRD *BLACKMAIL*THE BONY KING OF NOWHERE *BOTANICA *BOXHAMSTERS *FRANÇOIZ BREUT *BUTCHER THE BAR *CASPIAN *THE CHAP *COEUR DE PIRATE *DAAU-DIE ANARCHISTISCHE ABENDUNTERHALTUNG *DEAR READER *DEVOTCHKA *DILLON *DISAPPEARS *MARIANNE DISSARD *DOMINIQUE A *ELEMENT OF CRIME *NILS FRAHM *FREDDA *GIANT GIANT SAND *HANS UNSTERN *HARMFUL *HOUSSE DE RACKET *I HEART SHARKS *IMPLODES *JOHN PARISH *DANIEL JOHNSTON *KARMA TO BURN *LOCH LOMOND *BRIAN LOPEZ *MARDI GRAS BB *WENDY MCNEILL *MINTZKOV *ANAIS MITCHELL *MONOLITHIC *MOVING MOUNTAINS *MURDER *NAVEL *NEUROSIS *PETUR BEN *SCUMBUCKET *SERGIO MENDOZA Y LA ORKESTA *SIN FANG *SPAIN *YANN TIERSEN *EMILY JANE WHITE

#5 VIP-MAGAZINE 12/2012 www.vip-booking.com


TALLINN

MUSIC WEEK

Allan McGowan am@vip-booking.com

This was my second visit to Tallinn and it is more than clear that

to Russia, Latvia and Lithuania. Estonia is the home of Skype and

something is going on in Estonia! This small republic with a

has recently fared better than many countries beset by the ongoing

population of only 1,318,005 people, historically and culturally

ďŹ nancial difďŹ culties.

connected to the nearby Scandinavian countries, and neighbour

#6 VIP-MAGAZINE 12/2012 www.vip-booking.com


The annual showcase festival and music industry conference took place for the fourth time and this year’s figures show a significant advance on 2011. The conference was again opened with a welcome speech from

The close connection to the Nordic countries in terms of geography,

the President of Estonia Toomas Hendrik Ilves. I was extremely

Helsinki is only two hours away by ferry, and increasingly, business,

impressed by his knowledge of music in general and his attitude

was emphasised, by NOMEX, the recently formed umbrella for the

last year and we featured an interview with him in VIP News. This

music export organisations of Denmark, Finland, Iceland, Norway

year’s address was, if anything, even more striking, referring to the

and Sweden, choosing the event to outline its strategy for the first

perhaps recently overlooked connection of rock’n’roll to democracy

time in a speech by MD Anna Hildur Hildibrandsdottir.

and freedom of speech. It is worth taking the time to watch and listen to Pres.Ilves speech which can be accessed in full here: http://

Organiser Helen Sildna commented, “We are happy to see that

www.youtube.com/watch?v=SyMN3hmcoHE

TMW has now a solid place at the annual calendars for our region’s

Ewe Ewe wertt and an nd d th thee ttwo wo o dra dragon o s - ph p oto to by b Rasmu m s Jurkatam

#7 VIP-MAGAZINE 12/2012 www.vip-booking.com


2011

2012

16 stages

27 stages

147 artists from 10 countries

183 artists from 13 countries

123 artists from Estonia

150 artists from Estonia

7.600 festival visitors

11.200 festival visitors

423 delegates – 229 from Estonia

589 delegates – 283 from Estonia

194 international delegates

306 international delegates

52.483 unique hits on the website

61.549 unique hits on the website

from 88 countries

from 110 countries

music industry key players and organizations. If we manage

organised, great people, interested and enthusiastic audiences.

to boost up the artist and knowledge exchange between the

Oh... and the interviewer wasn’t bad either (I wonder who that

neighbouring countries by making it possible for the right people

could have been? Thanks Ed – ED.). Thanks to Helen and all

to meet each other, we have already succeeded, simultaneously

her colleagues for their professionalism, hospitality and sheer

providing a gateway into the market for the whole Europe and

doggedness in getting the Conference/Festival established in such

the world. Just five years ago it was quite rare to see an Estonian

a short time, really impressive. I would definitely go again”.

band play in Finland or Latvia and as rare to see any Latvian bands play in Estonia. Things have changed significantly and suddenly

Mark Meharry, CEO of UK based Music Glue said, “The setting

the whole region is a bigger and more open market place for

was great and the town is picture postcard. The bands that I saw

new talent.”

were not that great, but then I am not the target demographic. I didn’t see many panels except the ones I was on. It was a great

The conference also addressed copyright, music entrepreneurship,

networking event and the people Helen brought in were of a good

and the essential role of a manager. This section included

level. Maybe less vodka would be a good thing!”

entertaining and informative interviews with Ed Bicknell, long time manager of Dire Straits, Brian Ferry and others, and Russian cultural

Dan Panaitescu of he Sziget Office in Budapest was short and to

figure Artemyi ‘Artjom’ Troitsky.

the point, “The best ever. Very well organized, interesting panels, good artists... no complaint...”

It’s only 20 years since Estonia gained independence and delegates were reminded of this by a trip to the KGB Museum (Which I

Following on from TMW the European Talent Exchange Programme

unfortunately missed) in a Hotel opposite the Conference hotel,

announced that a Estonia’s Ewert and the Two Dragons are leading

apparently the door to the office displayed a sign saying, “There’s

the field in this year’s ETEP festival bookings following Eurosonic

nothing behind this door.”

2012, having been confirmed to play at festivals in Finland, Sweden, Belgium, France and Lithuania. The band were the winners of

Undeterred by his injuries from a fall on the ice last year, Martin

the Skype Award at TMW 2011 and since then they have played

Elbourne of The Great Escape and Glastonbury told VIP News,

festivals across Europe and played their first tour in North America.

“I have seen this event develop over the last three years. It was

Manager Toomas Olljum told VIP News, “Helen Sildna and Tallinn

always well organised in a fantastic city, and is now bigger, with

Music Week have played an important role in my development into

more delegates and better bands. As a regional event it can only

an artist manager. I started working with acts a few years before

become more important. Aside from the Great Escape it’s the one

TMW, but the event gave me a networking possibility with key

conference showcase event that I will definitely attend next year.”

international industry players in my hometown. 4 years after its start, my artists are doing well - Ewert and The Two Dragons just

Ed Bicknell commented, “I thoroughly enjoyed it. Extremely well

#8 VIP-MAGAZINE 12/2012 www.vip-booking.com

finished a series of gigs in North America where they played at


E Bicknell and Ed a Helen Sildn na at a Tall allinn inn Mu Music sicc We W ek e

Canadian Music Week and in NYC, and Iiris, Tallinn Music Week

The Skype Award winner 2012 will soon be announced and the

skype ‘Go Change The World’ award winner 2010 just released a

prize of 3500 EUR will go to an artist with the most international

debut album on EMI.”

potential as selected amongst TMW.


Allan McGowan · am@vip-booking.com

YOUROPE CREATES STANDARD TERMS FOR EUROPEAN FESTIVAL CONTRACTS The

European

Festivals

Organisation,

VIP News spoke to Ben Challis:

YOUROPE, having introduced health & safety

Marc Lambelet chaired an interesting session at the ILMC 2012 on this issue with a good

programs with the YES Group (Yourope

What exactly was your role in this

and wellinformed panel - and some of the

Event Safety Group) and addressed the

initiative?

pitfalls of ‘bad’ contracts became clear - not

matter of sustainable festivals with a series

– I was approached by YOUROPE in 2011 to

least when nothing is signed at all. I can

of workshops with the GO Group (Green

advise on a set of standard terms that could

say that in 90% of the cases the use of our

Operations Europe), have now turned their

be eventually used by all of their member

terms, which are festival specific, saves time

attention to the problems of artist contracts

festivals. Christof Huber had already had

and adds clarity and I think many European

and riders.

one meeting in Hamburg in 2011, and we

festivals had the same feeling. To be fair -

then sent out a questionnaire to members

its not usually the agency contract that is

For those who don’t know YOUROPE was

before EuroSonic in Groningen to see what

the problem - it is more and more the artist

founded in November 1998, and now

members’ views were. After a very well

contact riders which have expanded to

represents close to 80 festival members

attended meeting in Groningen and input

cover issues such as cancellation, control

including the most well established festivals

from a number of events, I drafted a set of

of the venue, force majeure and insurance

in Europe. The intentions of the Association

terms that covered areas of concern that all

for example. I have spoken to a number of

and its members are to collaborate and

of the festivals felt needed to be rectified

agents and obviously their first loyalty is to

share best practice to improve the European

- in particular force majeure provisions,

their artiste - and their own contracts - but

festival scene in terms of working conditions,

cancellation, insurance, payment terms, tax,

most can see some benefits. However I have

audience welfare, health and safety and

noise limits, visas, curfews and safety. We

to say some don’t like the idea. That said,

music talent.

then reconsulted members and received

I think that the weather related tragedies

another good response and additional

at Pukklepop and the Indiana State Fair

Over the past year the members have

comments led to the final draft being

are focussing everyone’s minds - not least

conducted workshops at their meetings in

finalised over the ILMC weekend in March

when in appears from some press reports

Groningen and Hamburg, and most recently

after another meeting with members.

that Sugarland are potentially exposed to

in London, to produce a final version of

litigation because of their own contract

standard contract terms applicable to the

Obviously you think this is a good idea,

terms. I hope what these terms provide is a

engagement of artistes and performers for

do you think it will have positive results,

‘win win’ situation in the long term:

all participating YOUROPE member festivals,

and how do you see agents taking to it?

Christof Huber was on holiday when we

as well as a simple booking ple and fair standard book

We introduced similar terms at Glastonbury –W ury

called, and then n went on to Budapest for the

agreement greement

During Dur

in four of our main n 2010 across a ma stages (the

next GO Group p Seminar, but he mailed us to

thee project music lawyer Ben Challis proj allis and an

Pyramid The Stage, The John amid Stage, Th he Other O Joh

agencies say, “We have informed the main agencie

insurance broker James Dodds (Doodson suran

Peel Tent and W West Holts) and extended this est Holts nd ex ed th

received about the standard terms. We have receiv

Entertainment Entertainment)) advised YOUROPE.

new to the Dance Village in 2011. Like the n

some questions and some comments, but

for

smaller

bands.

terms YOUROPE terms, we designed these ter

only a few. We will have to work on these

In the Press Release Christof Huber, General

to be fair, reasonable and appropriate. We

feedbacks within our group and check if we

Secretary of Yourope said “It Y “It was the wish

were receiving many, many riders at a very

have to react.”

from so many members to create such

late stage, often with wholly inappropriate

T Standard Terms for the European festivals. It

and often irrelevant provisions: Often theatre

VIP News contacted a few agents to get

should make life easier for festivals as they

tour or standard arena or stadium tour riders

their views on whether or not a ‘standard’

have standard terms for important topics,

were sent containing provisions that could

contract is viable. Some had not yet seen

rather than a number of contract terms that

never be met by a festival.

it; John Giddings of Solo, who operates

they can’t fulfil.”

#10 VIP-MAGAZINE 12/2012 www.vip-booking.com

both as an Agent and promoter of the Isle

C


s /9! &%34)6!,%. ./27!9 (NORWAY) s -%,4 '%2-!.9 s /0%.!)2 34 '!,,%. (SWITZERLAND) s 35--%2$!93 &%34)6!, (SWITZERLAND) s 7).4%24(52 -53)+&%347/#(%. (SWITZERLAND) s )4!,)! ,/6% 7!6% &%34)6!, )4!,9 s 3:)'%4 (5.'!29 s %8)4 &%34 3%2")! s ).-53)# #2/!4)! Christ Chr istof of Hu uber ub

s "%2'%.&%34 ./27!9 s 3%,%#4/2 0/,!.$

of Wight Festival said, â€œâ€ŚNever read it, in

as he says, “I’m not sure I have formed an

my experience it’s all about trust, all the

opinion as a festival organiser yet.�

contracts in the world don’t mean that you get paid...�

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Eric van Eerdenburg organiser of the Lowlands Festival in the Netherlands

s 2/#+7!6% &%34)6!, '2%%#%

Rob Challice of Coda Agency has read

told us, “We did not use it.I have been

s (%)4%2% &%34)6!,

it and replied, “I have taken a look at the

looking into it and think it’s pretty good

(SWITZERLAND)

‘standard contract’ and have to ask whether

but there are details that need adjustment.

any agents were consulted in putting this

Yourope at this stage asked not to make any

together? He continued, “It just seems

adjustments.�

s -/.42%58 *!:: &%34)6!, (SWITZERLAND) s 7//$34/#+ &%34)6!,

that this introduces an extra level of work

(POLAND)

that is not needed. We think we do a good

It seems to be a fair point that it artist booking

job on marrying artists requirements with

arrangements for the 2012 season must

s '524%.&%34)6!,

those of festivals.� Rob also thinks that the

in most cases be fairly well advanced, but

(SWITZERLAND)

contract has been circulated too late “ With

according to the Yourope press release the

more consultation perhaps it should be for

following festivals have already conďŹ rmed

2013, not 2012.� Rob Challice also runs

their participation in the new scheme, and

the Summer Sundae Festival in Leicester but

will use the new standard terms for the 2012 festival season:

s 3,/443&*%,,&%34)6!, (NORWAY) s $/'.6),,&%34)6!,%. (NORWAY) s /.% ,/6% &%34)6!, 452+%9

No doubt there will be a lot more discussion on the use – or not – of this ‘standard’ contract and we will of course report on developments. VIP News has seen the contract and those

s $)! $% ,! -53)# 30!). s 0/(/$! &%34)6!, 3,/6!+)!

that haven’t yet and have need to see it will we presume be able to get a copy from Yourope. www.yourope.org

s ')/2.) 35/.!4) )4!,9


Allan McGowan am@vip-booking.com

10 YEARS OF CODA AGENCY What is the actual date of Coda’s 10th

What do you think are the main changes

Anniversary?

to the business and the role of the Agent

– We formed Coda early 2002

since you started up? – The Agent gets more respect these days as

Ro Challice Rob

What was your experience prior to

a result of taking on greater responsibilities.

setting up Coda, and what motivated

It’s no longer enough to just be reactive

you to start your own Company?

when it comes to building acts. We get

– I ran Concert Clinic agency, we merged

involved a lot earlier in artists careers than

with MPI to form Coda, and I’ve always

used to be the case, often taking the lead,

worked for myself.

particularly since artists can no longer rely on advances from labels We assist in creating

London’s CODA Agency recently celebrated

Who else was involved in the start up,

sustainable live careers, which in turn helps

a decade of booking an ever-growing roster

how many people now work at Coda

acts to be self sufficient. This evolution is

of successful live acts and dj’s. In that time

and how many acts do you represent?

something that all of us at Coda have been

Director Rob Challice has become a well-

– The partners are Alex Hardee, Tom

aware of for at least the last five years.

known figure at business gatherings both in

Schroeder, James Whitting, Phil Banfield and

the UK and internationally. VIP-News talked

myself as agents and Financial Controller

You regularly attend and take part in

to him about the past, present and future of

Dave Hallybone. There are over 50 people

a lot of the European conference and

this well-respected Company.

now working at Coda, including 20 Agents

showcase events like Eurosonic and

representing over 400 live acts and djs.

Reeperbahn Campus, do you consider

#12 VIP-MAGAZINE 12/2012 www.vip-booking.com


CODA to be a UK or an international

events that they need to get a UK based agent

so well in business even though we’re all

Company? Also have you taken on

to book UK (only) Whereas we work most

very different. As an agent, establishing Bon

representation of European, or other

effectively if we are working on a European

Iver across Europe as a festival headliner and

international acts that you, or anyone

wide live strategy for an act.

Arena act. Justin Vernon is a really special

else in the Company have seen at these

artist and it’s been great to play a part in his

events, or would you consider doing so?

You also organise and promote the

– I believe that Coda has one of the most

extremely successful Summer Sundae

internationally recognisable rosters around.

Festival in Leicester. When did you start

So how about the next ten years - are

A roster that contains some of the best

the event and do you ever experience

you optimistic? Are there general trends

new live and club acts to appear in the last

any conflicts of interest operating as

in the business that you think could

10 years. I do get a kick out of meeting

both agent and promoter?

become problems?

promoters at these events and them stating

– We started the festival in 2001, before

– I’m very optimistic for the Company and

that they are now hoping to work with this

Coda was formed and it has always operated

our roster. As for the wider business as a

new act that one of our agents have picked

independently from the agency business.

whole I do sometimes wonder where the

up. We are known as an agency that picks

So far there have been no accusations of

next live promoters, agents and fans are

up on great music early and works hard to

conflict of interest. As for booking the event

going to come from. It can’t be easy starting

establish those artists.

sometimes being an Agent yourself helps

as an independent promoter, but putting on

you understand what another Agent is

your own events is probably the best way for

telling you.

somebody to cut their teeth in this business.

I’ve worked with a number of European acts, including Kings of Convenience, Kaizers

unique career development.

For more information on CODA…

Orchestra and Team Me (all from Norway).

Are you happy with Coda’s achievements

Kaizers Orchestra blew me away at Eurosonic

over the last decade, and is there anything

in 2003 and 9 years later they have appointed

that you’re particularly proud of?

me as European agent. Sometimes there is

– I’m very proud of helping establish CODA,

a misconception from bands playing these

and the way that the six partners function

Touring or promoting in Germany ? Utilize the potential of our customers ! Ticketmaster GmbH D-10555 Berlin info@ticketmaster.de

#13 VIP-MAGAZINE 12/2012 www.vip-booking.com


W

Aline Renet

Within the past decade companies such as Seatwave or Viagogo have ‘conquered’ Europe and converted a business model previously widely considered a black

market into a viable business model dealing profitably in the secondary sale of tickets.

The demand for live events has continued to rise, and understandably the ticketing business has benefited from this development. Leading ticketing companies such as Ticketmaster and CTS Eventim became leading players operating and making both high profits from and returns to the value chain of the concert industry within the primary sales market.

But companies active within the so called secondary market for tickets only contribute to a certain and limited extent to this value chain, as in most cases neither concert promoters nor artists receive a share on tickets passed on to buyers at above face value. However observation of the websites of Companies such as Viagogo or Seatwave proves that the profit margins for selling tickets at inflated prices can run up to and sometimes even exceed 500 percent.

For many years several concert promoters tried to fight the secondary ticketing companies, but in most cases failed. Since the

N O I T C LEGAL A T S N I A AG Y R A D N SECO G N I T E TICK

TV-magazine Dispatches on Channel4 aired a report entitled “The Great Ticket Swindle”, the issue of secondary ticketing once again came to the fore in the concert industry. Two journalists that worked undercover at Seatwave and Viagogo revealed the use of business practises that many in the concert industry already suspected. One of the findings of the “Great Ticket Swindle” revealed that the majority of tickets offered on those ticket exchanges are traded by employees of these companies or so called power sellers. Not long ago these ‘power sellers’ would actually have been considered ‘touts’ by more concerned concert promoters or artists.

But the Great Ticket Swindle also revealed that prominent companies such as Live Nation UK or SJM Concerts provided ticket contingents for concerts and tours of artists such Coldplay, Rihanna or Westlife.

However, there are promoters that strictly refuse to work with secondary ticketing websites. In France the concert promoter association Prodiss successfully lobbied for a legal solution against unauthorized secondary ticketing.

Prodiss reported that this new French law implemented on March 12th 2012, aims to “facilitate the organisation of cultural and sports events” creating a new criminal offense (article 31362, French penal code) for the unauthorized ticket resale to sporting, cultural, trade events, and live performances”.

#14 VIP-MAGAZINE 12/2012 www.vip-booking.com

Manfred Tari mt@vip-booking.com


The statute states: “To sell, offer for sale or expose for sale or

third parties, not duly authorised by the organiser of the event.

transfer of ownership, or to provide the means for sale or transfer

The phenomenon of “unauthorized ticket resale” is largely but

of ownership of access rights to a sporting, cultural or trade event

not exclusively attributable to Internet websites, set up for this

or to a live show, habitually and without authorization from the

purpose. Among targets are resale sites, based in France or

promoter, the organizer or the owner of the rights of exploitation

abroad, operating without the agreement of promoters, as well

of this manifestation or event, is punishable by a 15 000 euros fine.

as individuals who habitually engage in the practice of reselling

The penalty is up to 30 000 euros in the event of a repeat offence.

tickets to an event.”

For the purposes of the application of the first subparagraph, any ticket, document, message or code, in all forms or mediums,

VIP News: How did you lobby for this law?

evidencing the right to attend the manifestation or event having

– As there were several prior attempts –five rejected bills in total

been obtained from the producer, organizer or owner of the rights

in the last two years we focused firstly on the timing: we are close

of exploitation, will be considered as access card.”

to the election in France and secondly we got 100 artists to cosign a public statement in Le Monde etc. against the resale of tickets

VIP News spoke to Aline Renet of Prodiss about this legal initiative:

at inflated prices just three days before the vote of the original amendment in order to raise more pressure, helping to secure the

VIP News:

adoption of the bill. Thirdly we mobilized MPs from Parti Socialiste

What does this mean for French concert promoters?

and UMP and additionally worked out a media campaign for

– “The French law now recognizes full control of the tickets for

the last 6 month with two different but combined approaches:

the live performance producers. Event promoters contracts with

One was to raise public concern/awareness, the other one was

the artist’s representative for their appearance, hire venues,

Economic & Financial press, giving them an outlook on who was

determine the face value of tickets and their allocation between

pulling the strings.

the venue box office and ticket agents, and undertake the advertising and marketing of the event. The promoter has the

This means that France now joins Denmark in implementing a legal

sole right to grant ticket distribution to any third party he may

backing for concert promoters, helping promoters and artists to

choose. French law prohibits the resale of tickets to an event by

ban secondary ticketing.

BÜHNEN SONDERKONSTRUKTIONEN EVENT BAU

MEGAFORCE V E R A N S TA LT U N G S T E C H N I K G M B H Jöhlinger Straße 118 D-76356 Weingarten E-Mail: info@megaforce.de

Phone: +49 72 44 / 72 02-0 Fax: +49 72 44 / 72 02-22 Internet: www.megaforce.de


BEN CHALLIS ON SECONDARY TICKETING AT GLASTONBURY AND THE UK It is well known there are promoters that enjoy working with

Would you say that a similar lobby campaign is possible in

secondary ticketing websites. But for those who do not get involved

the UK?

in this kind of ticketing business, the following interview with Ben Challis, general counsel of Glastonbury and music lawyer might pick

– My personal view is that no UK Government has wanted to

up a hint or two, on how to prevent secondary ticketing or simply

do this. The re-sale of Football tickets in England was prohibited

gain a better understanding of the generalities of the practice.

to curb crowd violence. The prohibition on the re-sale of 2012 Olympic tickets is a specific piece of legislation. If you read back

What did you think when you saw the TV report “The Great

through the various debates that have taken place in our Houses

Ticket Swindle”?

of Parliament, the same arguments come up again and again -

– I thought it was interesting and a brilliant expose of some of the

free market policies / consumer freedom to re-sell vs. consumer

less savoury aspects of ticketing. I think it lifted a veil on what some

protection and the right of artistes / promoters to control admission.

in the secondary market had been up to for some time, so perhaps

Is it obnoxious to resell a ticket for a big profit, or a useful market

now we can have a bit more transparency so fans know who is

function? It is never ending! With the Dispatches programme

making what out of inflated ticket prices. If it is the band or the

identifying a number of major promoters who are engaged in re-

promoter making the mark up - so be it - I just think fans have a

selling tickets and the somewhat vague comment from the UK’s

right to know whom they are paying.

Concert Promoters Association - clearly even the live events sector doesn’t have a shared view. If WE cant agree as the live events

What is the policy of Glastonbury Festival when it comes to

industry - why should politicians bother?

secondary ticketing? – The Festival has a registration process, limits on ticket sales

There is one more point - who would actually enforce this sort

and personalised tickets (with a photograph). It is a substantial

of law? It is difficult enough when criminal activity is detected

investment of time, effort and money but seems effective so far.

- I can’t see why this would be high on any politician’s agenda

We are also vigilant to ensure websites such as eBay don’t resell our

unless the groundswell of public opinion pushed it there. And the

tickets, and as we have a number of UK and European Community

music industry now knows from lessons learnt from peertopeer file

Trade Marks we can take legal action when unauthorised vendors

sharing that suing / prosecuting your customers is a VERY bad idea.

purport to have some kind of ‘official’ link with the Festival. Where

And an unenforced / ignored law is a bad law.

necessary, in situations where fraud or criminal activity is suspected, we will involve the Police’s e-crimes branch or Trading Standards.

Do you think the OFT should look into the market of

However it is difficult to protect people against their own stupidity.

secondary ticketing? – I think it should seek to protect consumers, but if it went any

The French promoter organisation Prodiss successfully

wider it would enter the realms of competition regulation, which

lobbied for a law against unauthorized secondary ticketing.

might be very difficult.

#16 VIP-MAGAZINE 12/ 2/2012 12/2012 www.vip-booking g.com www.vip-booking.com

Manfred Tari mt@vip-booking.com


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STEVE ROEST FROM VIAGOGO One might have expected that the following

These core business principles of delivering

get the ticket they paid for or their money

interview would have proved difficult to

every ticket on time for the event were not

back. Therefore, a small number of tickets

obtain but this was not the case. Actually an

questioned or challenged by the programme,

are purchased as “replacements” in the

external PR-Agent of Viagogo even offered

which gives us confidence in the service we

instance a seller fails to deliver. If the tickets

the opportunity for an interview shortly

offer consumers.

are not used they get sold on – sometimes at a profit, sometimes at a discount.

after the first stories about The Great Ticket Swindle went to print.

The report stated that employees of Viagogo offer the vast majority of ticket

If as maintained by the Dispatches

The questions and answers were sent and

offers on the websites of Viagogo.

programme the majority of Viagogo

received by email, supported by a conference

The report even presented evidence

staff members apparently sell tickets

call with Steve Roest, who works as Euro-

of Viagogo employees using various

offered on Viagogo websites, this

pean Sales Director for Viagogo and his PR-

creditcards with different names to

would mean that the Viagogo business

Agent.

purchase multiple tickets offered by

model is actually business-to-consumer.

primary ticket vendors. As such Viagogo

If this is the case the Viagogo claims to

actually

staff present false identities in order to

be a resale platform for “fans to fans”

revealed an inside view on the business

work around per person capped ticket

is actually in contempt of the “Un-

practices of Viagogo. What are your

sales. Will Viagogo continue these kinds

fair Competition Act” as part of UCP-

comments on the programme?

of business methods in the future?

directive (2005/29/EC) by the European

– Viagogo was created to provide people

– The section where Viagogo was accused of

Union. So as such Viagogo is misleading

with a secure place to buy and sell tickets

buying up tickets was misrepresented in the

consumers. Do you maintain the claim

to live events. Before Viagogo, consumers

programme. It is certainly not the case that

that Viagogo is a fan to fan ticket

looking for the most popular tickets often

the tickets on Viagogo are offered by Viagogo

exchange following the Channel 4

had little choice but to take their chances

employees. We have in the past purchased a

airing of the Dispatches TV-report “The

with a shady character outside the venue or

very small number of tickets ourselves. The

Great Ticket Swindle”?

an auction website, with no guarantee they

primary objective in purchasing tickets is to

– Viagogo is an open marketplace and we

get what they paid for.

ensure we have a small number of tickets

allowed anyone to use our platform provided

With Viagogo every ticket on Viagogo is

in reserve for fulfilling our guarantee that

that they deliver the tickets that they sell.

guaranteed – the buyers are guaranteed to

purchasers will receive their tickets in time

This is clear on our website and we have

get the tickets they paid for in time for the

for the event. In the secondary market there

never claimed to be exclusively a fan-to-fan

event. In the rare instance that a problem

are a number of reasons as to why a seller

exchange. While, the overwhelming majority

arises, Viagogo will provide similar or better

may not fulfil their obligation to the buyer.

of sellers are ordinary sports and music fans

tickets, or in the worst case a full refund.

We firmly believe that every customer should

who sell one or two tickets, there are larger

The

Great

#18 VIP-MAGAZINE 12/2012 www.vip-booking.com

Ticket

Swindle

Manfred Tari mt@vip-booking.com


ABOUT THE GREAT TICKET SWINDLE sellers on the platform, including promoters

2012

includes

enforcementt problems would mean that the

and event organisers. anisers.

Germanyy. We are officially endorsed by the Germany.

European

tour,

which

bill would have little effect on the ‘wild west’

organisers of the tour as the place where

of scam websites and street touts, but would

The report furthermore revealed that

fans should go to sell on their spare tickets

unfairly restrict the activity of legitimate

Viagogo received ceived ticket contingents

and to buy tickets once they have sold out at

websites like ours.

from promoters. ers. Which promoters does

the box office.

Viagogo officially cially work with, and what

What’s

most

important

is

providing

are the benefits efits for these promoters

The French promoter association Prodiss

customers with a secure environment, and

selling ticketss on the secondary instead

currently lobbies against the re-sale

the guarantee of getting what they pay

of the primary ry market?

of tickets tickets. Similar political efforts are

for. We’re proud that the problem that for

– Viagogo has publicised many partnerships

going on in the UK, as well in Sweden.

existed before we launched six years ago,

where we work with event organisers

In particular the TV-report “The Great

of thousands of fans every weekend being

to sell certain premium tickets on our

Ticket Swindle” can been seen and used

left disappointed after buying dodgy tickets

marketplace at market prices for example;

as piece of evidence against Viagogo

from sites like eBay, is now almost a thing

Madonna and Roger Waters. However, as

and other ticket resale platforms and

of the past.

a ticket marketplace, our sellers are our

their existing business practises, which

customers, and it is not our place to discuss

not so long ago were considered a

Did Viagogo close its German office last

the details of our contracts publicly. These

“black market” business model. Don’t

summer as a result of the several court

are legitimate business arrangements, but

you fear that politicians or consumer

cases filed against ticket sellers who

like many commercial contracts, the specific

protection organisations will undertake

offered tickets via Viagogo for the Take

details are confidential.

efforts to forbid the resale of tickets as

That concerts in July 2011?

for instance in the case of tickets for

– No, Viagogo has managed its operations

In an advertisement for the Madonna

sport events such as the Olympic Games

from its main office in London since the

concert in Germany in the weekend

in London?

beginning of 2011.

edition

of

tabloid

paper

“Kölner

We

believe

that

legislation

would

Express” on March 3 it says, “To secure

drive the secondary ticket market back

Where

else

does

Viagogo

have

best tickets and selling at Viagogo.de”.

underground with all the consequent safety

subsidiaries in Europe and how many

How is Viagogo involved in the ticketing

and transparency issues that arise from

people does Viagogo currently employ?

for this Madonna show or even the

that. Powerful legislation already exists to

– Viagogo manages its operations from its

entire tour?

outlaw scam websites and fraudulent street

main office in London where it employs

– Viagogo is the official premium and

touting, which already face problems of

around 100 people.

secondary ticketing partner for Madonna’s

effective enforcement. These policing and

#19 VIP-MAGAZINE 12/2012 www.vip-booking.com


ANOTHER EPISODE IN A G A S O G O G A I V E H T manager who went on to Viagogo to find The report was aired on August 14. VIP News

tickets to a concert. He found out that

Earlier this year the UK Channel 4 Dispatches

spoke with Vithner about his discoveries and

Viagogo had tickets for a concert that will

TV-Report “The Great Ticket Swindle”

findings about the business methods that

take place in April and that they had tickets

investigated

accompany so called secondary ticketing,

available for a section (I think it was Section

Viagogo and Seatwave in some detail.

previously considered a black market.

E). But when he checked their internal ticket

It was revealed that it was the case that

Isn’t the unauthorized resale of tickets

staffmembers

in Denmark forbidden by law?

the

business

practices

of

system he could see, that they hadn’t sold

of

Viagogo,

which

had

any tickets for this section of the Hall.

previously portrayed itself as a ticket

– Yes - According to Danish law it is illegal to

Then he bought one of these section Etick-

exchange where fans could sell tickets to

“offer a ticket for sale at a higher price then

ets on Viagogo’s website - a couple of hours

fans, were actually buying and selling tickets

the original”

later someone went into the website of the concert hall and bought a section E-ticket.

via the company website. Now another TV-report has revealed how a Viagogo-

What have been the main results and

An hour later the music manager received

staff member is buying and selling tickets

findings of your report?

his Eticket from Viagogo. But the ticket had

applying a surcharge to consumers typical

After our research we could prove, that some

been manipulated in Photoshop. One of the

for ticket exchanges.

of the tickets on Viagogo are put up for

tickets was sold by the concert hall to the

sale on Viagogo as a secondary ticket, even

buyer. The other one was received by the

The Danish journalist Jens Vithner working

before the primary ticket is bought. Then we

music manager from Viagogo. It was the

for the consumer magazine “Kontant”

found out, that the ticket we bought was

same ticket (Same ID and same row and

presented by the public station DR1,

being manipulated, before it was sent to the

seat) but the name had been changed. The

has unearthed even more details about

buyer. The customer’s name and the price

ticket the music manager received has the

how Viagogo goes about its business.

were removed. When we made a search on

name Sjors on it and the price was missing

The report entitled “Snedige billethajer”

the buyer’s name, Hugo Schaper, we found

- The original had the name Hugo Schaper

(cunning ticket tout – Ed.) revealed that,

out, that he wasn’t just an unlucky fan, who

and the price on it.

“…the territorial manger of Viagogo in The

couldn’t get to the concert, but the national

Netherlands is a major seller on Viagogo.”

manager of Viagogo.

THEN, if you google Hugo Schaper, it shows, that he is listed on Facebook and Linked In,

In the announcement for the show Vithner declared that the manager “puts tickets for

How did you become aware of the

as the national manager of Viagogo in The

sale on Viagogo before he has bought the

involvement of this Viagogo Executive

Netherlands. That’s how we found him.

real ticket and that he disguises that he is

buying and selling tickets for concerts

a Viagogo employee selling on the site, by

and events in Denmark?

You

removing his name and the price from the

The Danish Broadcasting Company has

promoters and ticketing providers for

ticket using Photoshop.”

a Concert Hall; we allied with its music

the report, did they give any estimates

#20 VIP-MAGAZINE 12/2012 www.vip-booking.com

interviewed

Danish

concert

Manfred Tari mt@vip-booking.com


The Danish TV--Repo ortt “Ko ontant ta ant” reveals more deta eta tails ta ilss ab bout ou Vi Viaagogo ogo g

Kå Kår K ååre Quist uis uis ist, t, Kon K tan Ko an nt and n Hug Hug ugo Schaaper pe eer

KET TOUT

CUNNING TIC

legal in Denmark. Our lawyers will now look – I’m not actually sure what the penalty for

into it, and then we have to see, what will

of the numbers or the share of tickets

reselling is in Denmark - but not as much as in

happen next’.

sold via Viagogo for popular events?

France. The problem is, that when the sale is

– We spoke with the two large ticket

through Viagogo, who has their main office

Did you obtain any other reactions from

providers in Denmark, and one of them

in London (Possibly not any longer – Ed.) and

consumer protection or governmental

tracked down that Hugo Schaper bought

the server in Switzerland, the Danish Police

organisations or even media after the

more than 700 tickets for Danish events

and authority can’t do anything about it.

broadcast of the report? – We had a comment from the Danish

from their website. They don’t now how many of their tickets are sold on Viagogo,

You mentioned that Google Denmark

consumer council, who wants the access to

but they think its thousands.

stopped Viagogo advertisements after

Viagogo to be shut down, as we in Denmark

your report has been screened. Did

have done with Pirate Bay and some betting

The French promoter association Prodiss

Google provide you with a statement

companies. Some of the political parties

lobbied successfully for a law against

on the case?

support that view.

the unauthorized resale of tickets. The

We had a statement from Peter Friis CEO of

law foresees penalties of about 15.000

Google Norden in our late news at 21.00,

The report includes statements in English

Euros in the first case, 30.000 Euro in case

which declared, ‘We are now suspending

by the national manager of Viagogo and

of repetition. Would you say, it needs a

the advertisements, to look at their methods.

a spokesperson for Viagogo. For further

similar degree of penalty in Denmark

But at the same time we will give them the

information please check: http://www.

too, in order to prevent secondary ticket

possibility to document, that what they do is

dr.dk/tv/se/kontant/kontant-16#!/

platforms continuing their business?

Ticket from “Billetlugen”

the left the original ticket Two tickets for the same seat, at removed. of the purchaser and price has been

Ticket from “Viagogo”

issued by the promoter, right the

ticket from Viagogo where name

#21 VIP-MAGAZINE 12/2012 www.vip-booking.com


Allan McGowan am@vip-booking.com

AWARDS If things in many areas of the music business are looking a little down, don’t let it get to you, there’s nothing like the occasional Awards Ceremony to make industry players feel recognized, making it all worthwhile, and cheering everyone up - here are the plans for three of these events…

FESTIVAL AWARDS 2012 reassess where we could go from there. there We The UK Festival Awards ceremony and UK

concluded that the only way is up and set

Festival Conference will both take place at

about taking things to even greater heights

London’s historic Roundhouse this year for its

in 2012. Upgrading the Conference venue to

ninth edition to gather the nation’s festival-

the Roundhouse was one such step. Over the

industry under one roof in the wake of an

coming weeks we will be announcing further

eventful and challenging year for the sector.

exciting developments, underlining the fact that 2012 is set to be another landmark year

The winners, decided by a combination of

for Festival Awards.”

public and industry vote, will be revealed and presented with their awards at the

Tickets for both events are being handled by

gala ceremony on the evening of Monday

Eventbrite, and are available to order now

3rd December, featuring a big-name host,

from: festivalawards.eventbrite.com.

night of the Eurosonic Noorderslag showcase festival and conference on Wednesday 9th

gourmet dinner, live entertainment and a notoriously lively after - show party.

Steve Ste vee Jen nner n

Chris McCormick, Festival Awards co-founder

January, 2013. Tickets are available now, with

and sponsorship director comments: “We are

early-bird discounts available, here:

Festivals wishing to take part in this year’s

delighted to welcome Eventbrite on-board as

https://webshop.bumacultuur.net/en/

awards can register online now at

a major sponsor this year. As one of the most

arrangements/esns2013.xhtml

www.festivalawards.com/apply

progressive forces in the reformatted ticketing landscape, we believe they have a lot to offer

Festival Awards Ltd, the company that

Festival Awards Ltd announces Eventbrite

to the festival market in the UK and beyond,

produces the UK and European Festival

partnership.

and it’s a pleasure to be working with them.”

Awards as well as the UK Festival Conference, has confirmed that UK-based Mondiale

During the day of the awards show, the UK

Marion

Gamel,

VP

comments:

Marketing

EMEA,

“Eventbrite

Publishing has recently purchased a majority

Festival Conference will be held in the main

Eventbrite

is

stake of the organisation. Original founders

auditorium of the venue, featuring a key-note

delighted to be sponsoring the UK Festival

Steve Jenner and Chris McCormick will

speaker and a programme of senior-level

Awards 2012. We are also very happy to be

retain prominent operational positions going

panelists discussing the key challenges and

handling the ticketing of this event, that will

forward, with existing shareholders James

opportunities facing the industry at this time.

be a celebration of the outstanding creativity

Drury and Justin Madgwick also remaining on

and variety of festivals in the UK.”

the restructured board.

“After achieving a long-held dream of staging

As previously announced, overseas sister

For more information:

the Festival Awards at The Roundhouse last

event The European Festival Awards will

Steve Jenner – steve@festivalawards.com

year, we had to take stock and seriously

return to Groningen, Holland, on the opening

Ben Chadwick – b.chadwick@mondiale.co.uk

Steve Jenner, Festival Awards co-founder says:

#22 VIP-MAGAZINE 12/2012 www.vip-booking.com


ARTIST AND MANAGER AWARDS LAUNCHED

– SPOTIFY HEADLINE SPONSOR Pink Floyd’s Nick Mason, co-chair of The

7th at Adidas Underground in London. Last

troxy.co.uk) on November 27th.

Featured Artist’s Coalition (FAC) and Jon

year’s successful inaugural event was held

Last year’s winners were Ed Sheeran, Giant

Webster, CEO of the Music Managers Forum

at the Roundhouse but the FAC and MMF

Men Management, Adele, Jho Oakley,

(MMF) announced the launch of the 2012

are joining the move to east London by

Martin Mills, John Glover, Massive Attack and

Artist and Managers Awards on August

holding this year’s event at the Troxy (www.

the artists and managers from Everybody’s.

The following awards will be the subject of nomination over the next 2 months

"REAKTHOUGH !RTIST s &IRST 2UNG -ANAGER s !RTIST OF THE 9EAR s -ANAGER OF THE 9EAR These following are in the gift of the FAC and MMF Boards and will be announced in the next few weeks )NDUSTRY #HAMPION s 4HE 0IONEER !WARD s 4HE 0ETER 'RANT !WARD FOR -ANAGEMENT s !RTIST S !RTISTS

FAC Co-Chair Sandie Shaw said “Last year’s

whose Chief Content Officer Ken Parks

and fans to be closer together and to access

event was a great celebration of the artist and

announced that the service had reached the 4

music in more legitimate ways.”

manager community and we look forward to

million subscriber landmark at a conference in

an even bigger and better bash this year.”

London last week.

More information can be obtained from www.amawards.org or from the FAC and

The Awards will be sponsored by fast growing

MMF Chairman Brian Message commented

MMF offices (info@thefac.org and info@

music

“We are constantly exploring ways for artists

themmf.net)

service

Spotify

(www.spotify.com)

Artist and Mana n ger g Award ge ard ds 2011 0

#23 VIP-MAGAZINE 10/2012 12/2012 www.vip-booking.com


Manfred Tari mt@vip-booking.com

NEW GEMA RATES FOR MUSIC CLUBS AND DISCOTHEQUES Following the German copyright collection

far pays 22.389,67 Euro per year. From 2013

transparency. This petition gained more than

society

onwards such a venue will supposedly pay

107.000 signatures and as such qualified

131.000 Euros annually.

to be taken on by the petition commission.

GEMA

introducing

significant

rises in the rates for performing rights on concerts last year, the society has now

But until now, the Parliamentary Members

announced, among others, a new scheme

These examples were given at a press

of the petition commission have not made

for rates for playing recorded music in bars,

conference by VDMK, an association that

a decision.

music clubs and discotheques. Besides the

also

usage of recorded music, the new scheme

promoters and clubs in Munich such as

Also it is interesting to be note that promoter

also foresees revamped rates for live

Target Concerts and United Promoters AG.

associations such as the BDV or the VDKD

represents

most

relevant

concert

performances with musicians in restaurants, piano bars and other locations.

did not ally with the BMV in taking joint While previous negotiations with BMV have

measures against the latest attempt by

failed, GEMA has announced an appeal to

GEMA do increase royalty payments from

The new rates system is intended to

the arbitration court at the German Office

the live music business.

become effective in January 2013 and

for Patents and Brands (DPMA) for clearance

has caused an outcry from those who will

of the new rates. The ar

However the BMV might benefit from the

be affected. The “Bundesvereinigung der

bitration court is known for being very

political rise of the Pirate Party in Germany.

Musikveranstalter”, (BMV - Association for

GEMAfriendly and so it is no big surprise that

Since the party recently obtained 7.3 percent

Music Promoters) commented on the new

Georg Oeller, a GEMA board member who is

of the votes in the March province election in

rates schemes insisting that, “GEMA has lost

also know for being a hardliner is quoted in

the Saarland, established parties in Germany

its sense of proportion.” The Association of

a press release as saying: “We are convinced

are rethinking their copyright policies. As

Culture Promoters in Munich (VDMK) even

that going ahead with the new rate scheme

elsewhere, the Pirate Party expressly calls

published on its website a calculator that

is the right direction and looking forward

for a reform of copyright laws. Nevertheless,

evaluates what promoters are supposed to

positively to the outcome of the arbitration

this development probably won’t harm the

pay for their events in the future. According

case.”

traditionally

to this calculator the future looks great for composers and rights holders, but definitely

Meanwhile the promoter Matthias Rauh

not good for promoters.

of Giga Event launched an online appeal petition at openpetition.de, presumed to

Various calculations reveal that even for

be the petition commission of the German

smaller clubs the new rates easily rise by

Government. The petition has already

about 500 percent. For instance a music club

gained more than 43.000 signatures but

of 80 square meters, open three days a week

unfortunately never will be accepted by

charging 5 Euro entrance fees currently pays

the petition commission as the website

a yearly flat fee of 3417,71 Euro. According

openpetition.de isn’t the official website.

to the new scheme the annual fee charged by GEMA would increase to 11.700 Euros.

In May 2009 the promoter Monika Bestle

For bigger locations the new rates go up

of

even more drastically. A big discotheque

successfully filed an official petition against

with 1.200 square meters, open 2 days a

GEMA regarding the unfair distribution

week charging an entrance fee of 7 Euro so

of royalties, a lack of democracy and

#24 VIP-MAGAZINE 12/2012 www.vip-booking.com

good

relationship

between

GEMA and the arbitration court at the

the

Kulturwerkstatt

in

Sonthofen

DPMA for some time…


Bruno Kramm

Commissioner for Copyright at the Pirate Party Germany Actually Bruno Kramm is a long time

tariffs massively while not giving any rebate

some artist with the same name and quickly

musician and owner of the dark wave label

for smaller performances. Even performances

send an invoice. On the other hand as an

Danse Macabre. But aside from his music

free of admission are inflated. Club culture

artist, I wait forever for my GEMA royalties. It

business activities Kramm has been active in

in metropolitan areas are deprived as they

took so long for the VUT to get independent

politics for a long time. Before he joined the

start to perform much later than in smaller

labels a tariff, which can compete with big

Pirate Party, he was on the copyright steering

cities. They also pay exorbitantly higher fees

industries. When it comes to our own shows

committee of the Green Party but left this

up 300% on the old tariff. As club culture is

and tour booking it is horrifically complicated

party as didn’t agree with the agenda of his

hard enough to schedule for success these

to arrange all the paperwork to get at least

party colleagues.

tariffs will put the small businesses at much

a small share of what we pay for our own

higher risk. This is the way to suppress cul-

live repertoires. GEMA still believes that most

VIP News asked Kramm about his point of

ture in times of a global culture industries

listed music is so called standard repertoire,

view and his experience with the copyright

downturn. Gema puts chains on to the

which commands a higher multiplicator in

collection society Gema and the copyright

organizers and imposes sanctions for the

the royalties. Therefore our own alternative

agenda of the Pirate Party in Germany.

smallest mistakes.

songs will never have a chance to get the fair and real royalties since the PRO system tariff

What is your point of view on GEMA’s

GEMA already appealed the arbitration

new proposed tariff scheme for music

court at the German office for patents

promoters?

and brands (DPMA). This court is known

Since the Pirate Party won 7.3 percent

– Wrong Tariff - Wrong Timing. I wonder

for being very GEMA friendly. How

of the votes in March for the province

how a corporation like GEMA, equipped with

would you comment if the court once

election in the Saarland, established

a large strategy department causes so big

again comes to a decision on the new

parties

harm for its own public image by releasing

rates that are only in favour of GEMA?

copyright policies. The Party expressly

this tariff file while the public debate is fired

– It would be further proof that the patent

calls for a reform of copyright laws,

up concerning copyrights. There are many

court is not the right place for conciliating

could you please explain what kind of

reasonable proposals for changes in tariff

perceptual copyright agreements. It will

copyright policy it is aiming for?

structures - starting from small events to

create another complicated climate for

– When it comes to Urheberrecht (A copyright

welfare and public performances of small

urgent structural reformations, which are

term, but very distinct from US copyright) we

artists with their own repertoire, but GEMA

so much, needed for artists and the modern

want to accompany the paradigm shift into

takes the big cut. Making the difference for

informational society.

informational society by putting the creator

recorded music in MP3s and higher tariffs for

is dismissed.

in

Germany

rethink

their

and the user on a priority level and cutting

regular CDs shows how little GEMA respects

You are yourself a musician and a label

out some more of the privileges of industry

transformational music styles which tend to

owner. What is your experience with

and lobby. We need to rethink the protection

use computer driven systems like Ableton

GEMA?

periods of TRIPS into a reasonable level of

Live and others for creative and spontaneous

– Still the old routine for mechanical

max 20 years after death. Those 70 years

performances.

payments: When it comes to licencing

just help law trolls and publishers. Modern

repertoire from GEMA they are so quick in

society runs today so fast in rearranging and

Do you think the new rates are

sending their invoices. The GEMA legislative

recreating styles and art. Those long limits

appropriate?

conjecture stresses us a lot when it comes

would obstruct the development of societal

– From all points of view GEMA is blowing up

to GEMA free repertoire, as they always find

participation. Bill Gates reference, “We are

#25 VIP-MAGAZINE 12/2012 www.vip-booking.com


Manfred Tari mt@vip-booking.com

sitting on shoulders of giants” is not only a

discuss in depth the necessary reforms of

– This is one of the problems. Through the

term for technology; it is about all human

copyright corporations and contract law for

Urheberrecht GEMA holds an institutional

creation. The far more intensively discussed

artists and also the need of more support for

level as an economic association with many

demand of our copyright reformation is the

artistry and culture. Culture is the essence

direct links into the political system. This

uncommercial legal exchange and copy of

of our society - simple economisation is not

makes it too hard to change it as it is still

immaterial goods and files for the private

the ongoing solution; culture better follows

an association, which is driven by members.

field. We do not accept that evaluation

utilitarianism.

Unfortunately the weight, division and vote

rights disproportionately harm privacy in

is not balanced, therefore, drastic changes

the net; this means classical systems like P2P

In a current position paper you request a

are almost impossible. Therefore we want to

sharing and copying. We need to find as we

significant reform of GEMA. In May 2009 a

change the Urheberrecht. We want to check

did already for the CDR and the music tape a

petition filed by the promoter Monika Bestle

GEMAs actions for their compatibility with

kind of compensation for the culture balance

at the petition commission of the German

Basic Law, Associational Law, and start this

but this is something that does not need the

government also appealed for significant

reformation with simplification, transparency

lobby. It needs to be a direct agreement

amendments at GEMA. So far the petition

and the change of collection procedures and

inside the human society between creator

commission has not come to a conclusion.

tariffs, to finally make the GEMA what it

and user. We are still discussion about

However, could it be the case that in the

should be: An association for all artists.

various ideas from cultural flat rates to micro

case of GEMA, politicians may have no legal

payments and crowd funding systems. In

opportunities to intervene on the internal

For further information please check

contrast to many other parties, we also

settings of the copyright collection society?

Twitter: @brunogertkramm

AN EASY GAME FOR GEMA The German copyright collection society Gema has again made moves to increase its revenue from the live entertainment market sector of the music business.

gross income on tickets and an additional

events per years, a recently launched Gema

fee of 0.42 percent on other income sources

online calculator is not. This only shows the

such as sponsoring or advertisement.

rates for events lasting 5 hours and only includes factors allowing for entrance fees

This recent tariff increase applies to the

and the size of the room. All these results

usage of recorded music in discotheques,

merely indicate that from next year on Gema

gastronomic and other events such as street

wishes to receive 10 percent of the gross

fairs or carnival events.

income.

As reported in the previous issue, the new

Results evaluated via the Gema online

tariff scheme foresees significant increases

calculator are misleading, as this application

Gema substantially increased the rates

for events that last longer than 5 hours. In

only evaluates the lowest of the new basic

for performance rights in Germany in

certain case the new rates increase by more

rates. Gema does not even mention or give

2010. In February 2011 the two concert

than 400% for some events and in some

any notification on the particular website

industry

cases will even see a hike of a 1000 percent

that the new proposed rate will see events

on previous rates.

lasting longer than 5 hours attracting

organisations

VDKV

(Verband

deutscher Konzertdirektionen) and the BDV (Bundesverband

Veranstaltungswirtschaft)

another 50 percent for each additional 3

agreed to a proposal made by the arbitration

The VDMK, the association for culture

hours. Meanwhile the collection society has

court of DPMD – (The Brands and Patents

promoters in Munich launched an online

issued press releases, again only coming

Office) for a new tariff scheme for concerts

calculator on their website, evaluating

up with examples that indicate that Gema

that implemented gradually rising rates until

rates based on the new tariff scheme ef-

would only charge a 10 percent share on

2014. The rates for concerts staged for

fective from January 2013 onwards. While

the ticket gross, making no mention the “5

audiences of up to 2.000 visitors will rise to 5

the calculations of the VDMK are accurate,

hours trap” revealed by studying the newly

percent of the gross income; for events with

including as they do parameters such as the

proposed tariff.

more than 15.000 up to 7.65 percent of the

duration of time for an event and number of

#26 VIP-MAGAZINE 12/2012 www.vip-booking.com


Consumer

watchdogs

would

consider

their newly elected president Ulrich Weber,

The BDT have also announced the launch of

such misleading information as seriously

urging music clubs and discotheques to come

joint action with DEHOGA (the association

questionable, however potential opponents

together to appeal the new Gema rates,

of hotels and gastronomy in Germany)

make it very easy for Gema.

neither of the concert industry associations

regarding the Gema tariff proposal, but no

VDKV or the BDV have officially expressed

concrete information on a specific campaign

While the BDT (Association of Discotheques)

concerns that these new rates might also

or actions has yet been released.

recently announced a call for solidarity by

affect music clubs that also hosts concerts.

DIRK BEYER ON BEHALF OF VDMK ON THE NEW GEMA RATES VIPNews approached the VDMK (Association

Some

of

your

members

are

also

of Culture Promoters in Munich) regarding

members of the BDV or VDKD. Is your

the new Gema rates for the usage of

Association in contact with these two

recorded music in Discotheques and music

organisations?

events featuring covers bands. Dierk Beyer

– So far we are not in contact with the

responded on behalf of the association.

VDKD. There is a contact via DEHOGA to the

Beyer emphasized in his reply that the

Association of Music Promoters who have

members of the VDMK worked voluntarily

already issued a press release.

for the association. GEMA has already appealed to the GEMA has announced a round table

arbitration court at the German office

discussion with members of VDMK. Do

for patents and brands (DPMA). This

you expect that this discussion could

court is known for being very GEMA

lead to GEMA reconsidering their pro-

friendly. Do you already know what

posed tariff scheme?

kind of legal measures promoters have

– The meeting of the VDMK and GEMA took

in order to oppose a court decision that

place on the 24th of April. As you might have

may favour GEMA?

expected, the VDMK firstly put forward its

– Our lawyer has familiarized himself with all

Do you expect any kind of political

arguments to make clear that the proposed

the necessary implications, with tremendous

support from parties or institutions that

Dierk Die ierk Bey B er e

rates are not appropriate in any way and cannot

support from experts. A recommendation

would help promoters to reach a better

form a basis for negotiations. However there

by the arbitration court that would lead to

agreement with GEMA?

has been no indication from GEMA that there

significant higher rates won’t be accepted

– So far we have received support for the

would be any re-think regarding the tariffs.

and all other legal opportunities will be

campaign against the tariff reform from

taken into consideration.

the Pirate Party and the city council group of the CSU in Munich. However, we expect

Is the VDMK collaborating with any other organisations or associations that

Has the VDMK considered other options

the support of all parties represented in the

oppose the new GEMA rates?

to block GEMA’s attempt to increase

German parliament since the new rates are

– The VDMK supports “http://www.kultur-

tariffs so drastically?

arbitrary, unfair and very threatening for our

retten.de” and supplied an online calculator

– Of course, all options to avoid these

business.

according to the new rates. On April 25

charges have been considered. What kind of royalty payments do

a board member of VDMK joined the Clubmeeting Summit 2012 in Hamburg,

Do you know anything about the forces

you consider as being appropriate and

to report on the work opposing the new

at work in the background at GEMA that

bearable for promoters?

tariffs and to exchange experiences. This

are responsible for this tariff proposal?

– The existing rates were reasonable for bars,

networking is just beginning, but will be

– Unfortunately no, we would be grateful for

clubs and discos and established market

consistently pursued.

any information!

presence.

#27 VIP-MAGAZINE 12/2012 www.vip-booking.com


Allan McGowan am@vip-booking.com

As many of you know ETEP (European Talent Exchange Program)

financial support have developed a scheme for the circulation of

was introduced in 2003 to facilitate one of the main goals of

CEE artists and repertoire in Central and Eastern Europe at the

Eurosonic Noorderslag, the exchange and support of new European

festivals and in the media, together with a total of 13 festivals in

music in Europe. Each year ETEP brings together the leading

the CEE region and selected CEE media partners. This is known as

European festivals, radio and other media at Eurosonic Noorderslag

CEETEP.

and encourages them to ‘exchange’ a selection of artists. Since the start of the ETEP program in 2003 a total of 1359 shows by

Over the summer months there have been two sets of meetings

459 European artists were presented at the 60 ETEP festivals (2003

aimed at progressing the aims and intentions of the Programme.

– 2011). The current figures for ETEP in 2012 are 259 confirmed shows by 95 European artists from 20 different countries, a new

The first was hosted by EXIT, during this year’s Festival on July 13/14,

record in the ETEP history!

with Ruud Berends of Eurosonic and ETEP overseeing, and yours truly moderating the discussions, bringing together managers,

Now a sub-programme of ETEP is in operation, Eurosonic

artists and other artist representatives from the various countries in

Noorderslag and co-organisers Sziget and Exit Festivals with EU

the region. Day 1 was devoted to introducing all those attending

CEETEP FESTIVALS:

CEETEP MEDIA:

Coke Live Music Festival – Poland: Podoha – Slovakia: Rock

MR2-Petofi Radio – Hungary: KOMMPOT Communication

For People – Czechia, Taksirat – R. Macedonia: T-Mobile

– Hungary: Neston – Hungary: Antenna 5 Radio –

Inmusic Festival – Croatia: Woodstock Festival – Poland:

Macedonia: On.net – Macedonia: Radio Channel 103

B’estfest – Romania: Exit Festival – Serbia: Wilsonic Festival

– Macedonia: Antyradio – Poland: Polskie Radio Trójka –

– Slovakia: Sziget – Hungary: Heineken Open’er Festival

Poland: Polskie Radio Czwórka – Poland: Gazeta Wyborcza

– Poland: Positivus Festival – Latvia: Spirit Of Burgas –

– Poland: Radio Wave – Czech Republic: Full Moon

Bulgaria.

Magazine – Czech Republic: Radio 101 – Latvia: Metropotam Portal – Romania: Radio Belgrade 1 – Serbia: Darik Radio – Bulgaria: 24 hours newspaper – Bulgaria: Nacional – Croatia: Croatian Radio – Croatia: Radio FM – Slovakia: Týzden - Slovakia.

#28 VIP-MAGAZINE 12/2012 www.vip-booking.com


THE PROGRAMME PROGRESSES and then the presentation and analysis of common problems,

Michal Ocovan

followed by general analysis and discussion. Points covered were:

– promoter and manager of Got Blue Balls in Slovakia said:

each country’s local situation; the supply or lack of adequate venues,

It was a pleasure to meet everyone at Exit Festival. It was an

artist fees – or lack of. The situation regarding national promoters;

unexpected experience that opened our eyes more in the field of

physical releases; airplay; labels; Authors Right organizations etc.

promotion, networking and booking. I was very excited by the

the aim was to provide an overview of the situation which over the

meetings and talking with everyone involved with CEETEP. It was

next four years CEETEP may be able to help with.

very interesting and we hope that we can arrange something with other artists. We are still in contact with them and we are looking

After an evening of dinner, drinks and all that the Festival had to

for possibilities to bring them to our country and also to play with

offer, Day 2 applied itself to Solutions and Direction, addressing just

our band Got Blue Balls. Firstly the opportunity to play at Waves

how the various markets could improve their situation, and how

of Vienna festival is very good for us. We have played festivals in

working together and involving others, such as Author’s Rights

the Czech and Slovak republics and just now it is an opportunity

Associations, Media, both Governmental and independent Cultural

to take our music across borders. We hope that everything will be

Organisations etc, could aid the development and the growth of

good and people will like our music. I hope to see everyone again at

the industry in the region.

some other festivals, and meetings and if CEETEP needs to arrange something in future please we would be happy to help.

Guest speakers over the two days included the highly experienced

www.vagaboond.com

Estonian promoter Juri Makarov who talked of the days when his country was part of the Soviet Union and how music and music

Ruth Koleva – artist from Bulgaria:

festivals contributed to independence. Toomas Olljum , manager of

In my opinion, the meeting went really well. It was amazing to

the Ewert & The Two Dragons, talked of his more recent experience

hear Lazslo and Juri’s stories. It was great that we all had the

in Estonia, breaking his act into Western territories with the

chance to meet up and see the common things and the differences

assistance of Estonian Music Week and ETEP. The third speaker was

in our music industries. To me personally, it was enlightening to

Laszlo Hegedus of Multi Media in Budapest, Hungary, operational

hear in which fields the other countries in the region are better

again after a non-competition periods after selling his Company to

developed than in my own country. I took notes. I am working

Live Nation, who enthralled the room detailing his experiences as

on trying to make some major changes. I work as a performer,

a promoter, manager, record company, in several countries in the

producer and manager for my band. I am based in Bulgaria and in

region over nearly forty years.

the Netherlands. http://facebook.com/music.ruth

VIP News asked some of those attending for their reactions:

http://ruth.bg/en

#29 VIP-MAGAZINE 12/2012 www.vip-booking.com


M hal Mic ha Ocova Ocova vaan, Go Got G ott Bl o Blue ue eB Ba Bal aalllss

Ruth Rut Ru h Kole Kole leeva, leva, va ar artis t t

Dana Glavan manager of Suie Paparude – Romania For me, it was a great opportunity to meet people in the region to

Fruzsina Szé zép p, Sziget et Fe Festi st val

CEETEP RESULTS

learn about their markets and to share my experience. I thank the team for being such beautiful hosts. Our meeting was a great start

On August 9, 2012, Eurosonic Noorderslag announced the

for what we all hope to achieve in the region. Thank you to for

initial CEETEP results in Groningen, with the following

being such a great moderator of the discussion and for bringing

statement:

us your experience and your lovely British accent in a ‘sea’ full of

Eurosonic Noorderslag and co-organisers Sziget Festival and Exit

eastern accent speakers. (I suppose I should have edited that bit

Festival are proud to announce the current results of the first year

out – but why turn down such a nice compliment! – Ed.)

of the CEETEP program. CEETEP was developed to stimulate the circulation of CEE acts and repertoire in Central Eastern Europe at

I know that once I chose to work with the band, Suie Paparude

the CEETEP festivals and in the media. CEETEP is a sub-program of

www.suiiepaparude.com Facebook.com/suiepaparude) as a band

ETEP, the European Talent Exchange Program. By working together

manager I automatically assumed that I couldn’t fail. Things just

the organisers will help CEE acts perform across borders within

cannot go wrong when I am responsible for their careers. Most

Central Eastern Europe and, via shows at Eurosonic Noorderslag

probably this is the worst nightmare that a band manager can

in the Netherlands, throughout the whole of Europe and beyond.

have: fail to promote a talented artist. There are so many good and

As announced today, August 9th at the special CEETEP press

talented artists with access to people that don’t manage to break

conference at The Sziget Festival with Fruzsina Szep from Sziget

the borders, to make their music popular due to bad managers or

Festival, Ivan Milivojev from Exit festival and Peter Smidt from

due to the negligence of some promoters.

Eurosonic Noorderslag, the results for year 1 so far are: 24 confirmed shows by 16 European artists from 9 different countries.

In Romania, unfortunately, things like this happen quite often and

A great and promising start for the CEETEP program. The 3 CEE

I do not want to be part of it and fail. The CEETEP EXIT meeting

acts with the most bookings at the 13 CEETEP festivals will receive

opened some doors for us. Discussing various topics one conclusion

an invitation to play at Eurosonic Noorderslag 2013.

was coming to everybody’s mind: no matter from where you are, you need to work a lot and fight for what you believe in.

Fruzsina Szep from Sziget festival “The only thing I can say is that all the energy we invested in

We are famous in Romania, being the first electronic music band,

building up the CEETEP project in the past years together with

but the CEETEP meeting and all the lovely people that I met there

many Central and Eastern European colleagues and with Eurosonic

show me that is not enough to stay in your own country. We need

Noordeslag was 100% worth all the time and energy. We are

to spread our music abroad. What is CEETEP doing? Putting us

building cultural bridges and the first real foundations were laid

together with the right people, helping us to talk to each other;

down this year. And we aim to grow from building bridges to

sharing others experience and finally helping us not fail our artists

building a ‘cultural highway’ for our artists in the CEE region and

and their hard work. CEETEP can be the best support that we might

between now and 2015, we hope to have all roads open for art-

have…… we need to stay in touch!

ists to tour freely. I honestly believe in that goal, and this profes-

#30 VIP-MAGAZINE 12/2012 www.vip-booking.com


Peter Pet er Sm miidt m dt, Eu Euros osoni onic Noo oo d oor der de e sla er s g

EXI X T Festi XI est ees ssttiv iiva vvaal hosted h CEEE CE CEE ETTEP TE EP EP meeti tiing g

sional and artistic cooperation and exchange is the true sign we are

the media attention we believe all acts made a good start in new

heading towards this already. I’m happy, honoured and proud to

countries and expanded their markets. And success is not only to

belong to the CEETEP family.”

be seen in countries within CEETEP. Several CEETEP acts are already booked at Waves Vienna in Austria. We are looking forward to the

Peter Smidt from Eurosonic Noorderslag:

presence of the most booked CEETEP acts at Eurosonic Noorderslag

“We are very happy that with 24 festival shows from 16 acts at

in January.”

13 festivals the first year of CEETEP made a strong start. Given

CEETEP ARTISTS 2012 Band:

Country:

Suggested by:

Band:

Country:

Suggested by:

Astro’n’out

Latvia

Positivus Festival

Les Elephants Bizarres

Romania

B’estfest

B-Complex

Slovakia

Pohoda

Luka Belani

Croatia

INmusic Festival

Bernays Propaganda

R. Macedonia

Taksirat Festival

Monika Brodka

Poland

Coke Live Music Festival

Cocotte Minute

Czech Republic

Rock For People

Petrol

Serbia

Exit Festival

Concrete Sun

Serbia

Exit Festival

Pipes and Pints

Czech Republic

Rock For People

Dekadens

Romania

B’estfest

Popa Sapka

Romania

B’estfest

Dreddup

Serbia

Exit Festival

Puding Pani Elvisovey

Slovakia

Pohoda

Dubioza Kolektiv

Bosnia and Herzegovina

Taksirat Festival

Ruth Koleva

Bulgaria

Spirit of Burgas

Enej

Poland

Woodstock Festival Poland

S.a.r.s.

Serbia

Taksirat Festival

Gooral

Poland

Coke Live Music Festival

S3ngs

Croatia

INmusic Festival

Got Blue Balls

Slovakia

Pohoda

Smallman

Bulgaria

Spirit of Burgas

Gravity Co.

Bulgaria

Spirit of Burgas

Söndörgo

Hungary

Sziget

Grimus

Romania

B’estfest

Suie Paparude

Romania

B’estfest

Hype!

Serbia

Exit Festival

Superhiks

R. Macedonia

Taksirat Festival

Instrumenti

Latvia

Positivus Festival

Tata Bojs

Czech Republic

Rock For People

Intim Torna Illegál

Hungary

Sziget

The Orange Strips

Croatia

INmusic Festival

Jelonek

Poland

Woodstock Festival Poland

The Uniques

Slovakia

Wilsonic Festival

Kamp!

Poland

Heineken Open’er Festival

Tichá Dohoda

Czech Republic

Rock For People

Kerekes Band

Hungary

Sziget

Triana Park

Latvia

Positivus Festival

Killo Killo Banda

Serbia

Exit Festival

Turbo

Hungary

Sziget

Kiril Dzajkovski

R. Macedonia

Taksirat Festival

Vypsana Fixa

Czech Republic

Rock For People

Kottarashki

Bulgaria

Spirit of Burgas

Wickeda

Bulgaria

Spirit of Burgas

L.Stadt

Poland

Heineken Open’er Festival

#31 VIP-MAGAZINE 12/2012 www.vip-booking.com



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