An interview with Arthur Fogel, Live Nation - All That Matters 2016

Well thank you, Ralph. It's a pleasure to be here. It's been an exciting number of years since I started in the business and have watched the evolution and development of the global touring business from what was maybe a 15 to 20 country itinerary to become 45 or 50 countries. And certainly this region has started to develop very quickly into a major segment of that global touring footprint now. In earlier years people looked at South America or Eastern Europe when those markets were still in their infancy. Some 20 years later they are now quite well established. Some people say there's a parallel because in Asia, this is still the developing curve, there's still a lot of development to go here in Asia. I think that's fair to say and there are certainly other examples of regions of the world that have developed pretty dramatically in the last 20 or 25 years. I think what is perhaps the common denominator in the development...

Well, it's clearly a very vibrant market. There's so much going on, particularly this week. But I think the region as a whole, certainly for the tours that I've brought through this region, have performed extremely well and have given fans of artists an opportunity to finally see them in their own hometown or home country.

I think that really where we are today, certainly for me, is there's a convergence of a concept of global touring for an artist, but layered onto an incredible global footprint that Live Nation has developed and built in the last 10 years under the direction of our CEO Michael Rapinoe. So it's really that convergence and ultimately the best of both worlds to be able to develop and provide to artists...

I certainly think it's part of how you maximize those revenue streams. You need a consistent flow of shows. I also think it's important to fans of music to be in a position to go to shows on a regular basis. There's a saying that success breeds success, and I think successive shows helps develop a marketplace and excite people about going to shows. It's self-fulfilling.

Five.

Yes. Listen, it's an incredible opportunity and honor to work with a band like U2, and certainly the other artists that you've shown there. I think what's relatable perhaps to people in the room is... as sort of on a parallel path to that as the concept developed for global touring, which really came out of a very simple view: I can be a local base promoter and do one or two shows with you, or I can be a global promoter or producer and do 120 shows with you. My view of where the opportunity was and the business was to go to that, to create an...

Well, I think what really impacted me early in my career was, and perhaps had to do with my... business. There was a structure and a process to how you went about being a promoter. In my view, there were other ways to come at it, but of course that was challenging the system. It wasn't really right or wrong, it was just the opportunity to do something in a different way and how I wanted to approach the business. So there was a challenge to create a formula and, as I said earlier, a springboard into the reality of taking tours on a worldwide basis and the whole notion of setting these things up on a global basis. If you really break it down in terms of what you actually do: you organize the routing, the routing as you call it, of how something should be traveled across many different countries, the marketing, the promoting, the local production, the staff, the local promoters, the production budgets. You've got a reputation for being a very fierce and competitive negotiator, hiring of key personnel and contracting vendors in the different countries. How do you create a formula and a relationship with an artist where there's a true partnership? There are those, as I referred to in that clip earlier, that would prefer that there will always be an us and them approach to the business because it keeps distance and perhaps people think that it protects them in some way. But I look at it exactly the opposite: a true partnership with an artist is something that can only benefit...

Well, listen, I think that there are many different ways to come at touring and shows. I'm not suggesting that there's one approach because there are many. There's a touring mechanism if you will, but then there are those who are interested in exploring how to come at it a different way. Some do and some don't. So it's really a discussion that revolves around how somebody's comfortable coming at the business. For me personally, I've been fortunate that there are a number of artists and managers who believe in that approach. Of course, the whole basis of the business is different from what it used to be where you would tour...

It's an important part of artists' careers now. As a company, we take that responsibility very seriously. It's part of why we felt it was important to invest heavily over the last 10 years of Live Nation to become a true global distributor of live entertainment.

And do you think it's that instinctual feeling that you've learned over the years where you trust your judgment and you say yes? $40 million? In a simplistic way, I trust... particularly in the case of Lady Gaga, performing live is its own art form. Writing music, producing music, there's a lot of talent and creativity that goes into creating music. But then ultimately, that ability to perform it live as a show and to connect in a special way with your fan base, that's ultimately the magic to being a great live performer.

It's just shy of 50,000.

Well, it does, but ultimately it comes down to the popularity of the artist, and that comes in various ways. As I said, the ability to... it's a very special thing. I think those that master it are the ones that end up, certainly in terms of longevity, doing it over and over again in arenas or stadiums. We've all seen over the years those that sort of come and go, but we also have the ability to enjoy those that are sustained for a very long time. There's a reason: great songs, great music, and then it's a great performance and connection with an audience.

Well, I am, but I have to say, somebody once asked me exactly what it is that I do. And my answer was... I think part of the magic of being successful in business is knowing what your strengths and weaknesses are. I've never tried to fool myself or anybody else that I can pluck out the true up-and-coming superstars of the future. But I will say in a general sense that it is absolutely cyclical. Every I don't know, ten years, everyone's going, 'Oh my God, it's doomsday. There are no acts that are coming up.' And then all of a sudden, Ed Sheeran, Katy Perry, Lady Gaga, Drake... Less of a great talent that has really exploded into legitimate concert headlining acts in the last ten years. So rather than sit there and worry about when Paul McCartney's not going to tour anymore, or the Stones aren't going to tour anymore, there's this whole new set of headliners that has come up. I think that tends to be the cycle we live through in the business.

Well, she's interesting. She had not played many parts of the world, many cities, many regions since 2001. We've done five world tours. She's Madonna. She is the biggest female act in the world. I don't think there's any question that over a very long period of time she's remained a tremendous force. I would say that she has incredible instincts, has always had incredible instincts through her career, and has an incredible... concert. I've learned a lot from her as a promoter because she has great instincts on how to create attention.

Well, I think the great artists all have that sensibility in some way and want to create the best show possible for their fans. I do think... go to see young acts who... the truth is, if you want to just hear somebody play their songs, there are a lot better ways to experience that. But the ability to create a show and a connection with an audience that drives them to return again and pay high ticket prices to go see them, that's how you create a 25, 30, 35-year career. It's a very special thing. It's something that you have to take very seriously and want to deliver on.

I think it's a region with tremendous potential but also some serious challenges. From my experience, probably the most challenging aspect has been the ability to move very large productions in any kind of economical, efficient, and logistically challenging way to approach moving from show to show. That's been a challenge. But I do think that in the artist world, in the artists' business world, there is much more awareness about the potential in this marketplace. What ultimately an artist wants to do is perform for their fans, maybe in a profitable way. That is the endgame. I think as this region continues to develop and hopefully new... There's development. Obviously China has its own interesting challenges. Certain kinds of talent can't necessarily appear there. But new markets coming forth like the Philippines. Katy Perry was recently successful in that part of the world. Katy Perry with her pop hits has big appeal. In general, you'd be looking at places like the Philippines, Malaysia, Singapore, Hong Kong. Those are part of your thinking?

Well, yes. As a company, we look at this region as a number of distinct and potentially successful markets for... this region. That's what people are going to see over time. In a country like India, just as an example, 1.4 billion people, but facilities are not so good. A lot of complex logistical problems. You can't just say, 'Let's go do Mumbai' or 'Let's go do Delhi.' It doesn't work that way because you're coming in with a very sophisticated production that requires real professionalism. Not to say that there aren't professionals there, but there isn't necessarily the expertise or the experience like you would have found in major European centers or across the United States, or for example even in Singapore which is very sophisticated as a market.

Successful and creatively it was fantastic. Musically it was amazing. They did the whole show together, each other's songs. It was really incredible. But going back to the Police, it wasn't quite that simple because I had raised the possibility. I started working with Sting in 2001 or 2002, and I raised the possibility of a Police reunion on several occasions and was dismissed. So it certainly wasn't as simple as making the suggestion and he and the other two agreeing. But eventually... it was closure. There were so many people... when you think about it, the Police were together for seven or eight years and made all that great music and had all those hits, but then they were gone. So it was great that it could happen and that people would get the opportunity to see it once more.

With her fans, those elements that I discussed earlier. She has just incredible instincts as an artist and a performer. It's been a real pleasure and an honor to be involved with this tour. I hope it keeps going and who knows where it'll end up.

My pleasure. Thank you.