Competing in a Crowded Marketplace was addressed by Luis Ruiz, Phoenix Convention Center, moderator; Allan Vella, Fox Theatre, Atlanta; Paul Beutel, The Long Center, Austin; Michael Riley, Majestic and Empire Theaters, San Antonio; Aaron Zimmerman, Tobin Center, San Antonio; and Leslee Stewart, Paramount Theatre, Oakland. (VT Photo)
REPORTING FROM SAN ANTONIO, TEXAS — Increasing competition forces venues to creatively differentiate themselves. Some approaches taken by performing arts centers executives include presenting shows outside their own four walls, creating pop-up venues to compete with the amphitheaters seasonally, touting permanent seats over flat floors as a plus and emphasizing new, not 100 years old, as a bonus.
Historic theaters are benefitting right now from a nostalgic revival, both because of artists relishing the experience and patrons cherishing the memories conjured up when attending events in them, but there is still a lot to be said for the bells and whistles of something new.
A diverse panel of experts discussed the issue of competition during PAMC here March 5-9. The conference was attended by 319 members and sponsors, down slightly from 338 last year. The 25th edition of the Performing Arts Managers Conference will be held in Chicago in February 2017, where it all started.
Produced by the International Association of Venue Managers, the confab also presented an opportunity for association officers to update members on IAVM affairs following the departure of President and CEO Vicki Hawarden last month. Steve Flamm was named interim president at that time but has since accepted a new opportunity and will be leaving at the end of this month.
In addition, Jason Judy has accepted a new position as regional marketing director for Gensler, the architecture firm based in Chicago. He said he is particularly interested in their urban planning and city development arm. “Creating powerful spaces; I love that aspect of it,” said the current director of creative services for IAVM, who will be leaving in April.
Judy has been with IAVM for four years and, before that, was with Meeting Professionals International.
Leslee Stewart, Paramount Theatre, Oakland, and program chair for PAMC; Mark Mettes, Herberger Theater, Phoenix, and IAVM 1st Vice Chair; and Karen Totaro, IAVM Chair and manager of the Atlantic City (N.J.) Convention Center for Spectra. (VT Photo)
Karen Totaro, IAVM chairman and GM of the Atlantic City Convention Center for Spectra Management Services, said the IAVM board has hired Mark Gnatovic of SearchWide to find a new CEO for the 5,000-member association. The board was to give him a profile and job description by the end of the week. Totaro did not know if that person would be experienced in venue or association management or both, but it needs to be a visonary.
The timeline is not set, but the goal is to have a new CEO on board by IAVM’s VenueConnect annual convention and trade show in Minneapolis in July.
Meanwhile, they intend to hire an “executive liaison” who can sign contracts and checks and oversee the existing staff. There is no plan to replace any other open position until a new CEO is on board, Totaro said.
With the conclusion of PAMC, the staff will concentrate on the upcoming VenueConnect, under the director of meeting planner Bill Jenkins.
KEEPING AHEAD OF THE COMPETITION
Allan Vella, Fox Theatre, Atlanta, has begun co-presenting shows outside his venue but in the Atlanta area to increase revenues. The Fox participates 50/50 up and down and works with upstarts, established promoters not yet ready for the 4,000-seat Fox and even its own “competition.”
Vella was joined by Paul Beutel, The Long Center, Austin; Michael Riley, Majestic Theater and Empire Theater, San Antonio; Leslee Stewart, Paramount Theatre, Oakland, Calif.; and Aaron Zimmerman, Tobin Center, San Antonio, on a panel titled “Competing for Acts in Your Crowded Marketplace.
There are 11 active venues in a market of six miilion people, Vella said of Atlanta. “So we started presenting outside our room.” He will also co-present with that competition, noting Cobb Energy Center as a prime example. “We’re combining our assets,” Vella said. “We don’t compete. We depend on each other.”
Paul Beutel created a pop-up amphitheater, Skyline Theatre, outside his venue to compete with the proliferation of venues, sheds and festivals in Austin. It seats 6,000 people on the Lawn and is only open in the summer.
Stewart’s competition grew exponentially when the 3,000-capacity Fox Theater two blocks away from her Paramount was restored. Thankfully, they went for a flat floor to draw club acts with a limited ticket price. But one of her primary promoters, Another Planet Entertainment, bought the venue and it became a first-choice play for APE.
Live Nation then restored Nob Hill Masonic Theatre to be similar to the Fox. “Bingo, I’m the ex-wife,” Stewart lamented. “The landscape changed. Now, I cannot rely on concerts. We’re a nonprofit with no subsidy.”
Her option was to look at more corporate business and weddings to fill between the arts presented. However, she did score a major concert last month. Prince played two shows on Feb. 28. She also emphasizes her big differentiator – permanent seats.
“We can all have the rug pulled out from under us. Think about it in advance,” she advised.
Tobin Center opened in September 2014. It’s main competition is Austin, an hour up the street. Zimmerman’s message to promoters is that if it’s not an arena, if it’s a small hall, Austin is a separate media market. He has to fight the perception created by the large venue marketing.
He also likes to emphasize that the Tobin Center is “brand new and not 100 years old. We have an amazing video wall outside and a convertible floor so we can go from 1,750 to 2,100 seats or do flat floor GA. Some acts want a GA floor.”
Vella also differentiates by pointing to the Fox’ crack marketing and social and group sales departments and a database that is effective and efficient. “I tell promoters we’re a problem solver, a go-to venue.”
Everyone promoted “creative offers,” but Zimmerman’s stood out. He actually swapped dates with another venue to the benefit of all parties. “Play nice. Be friendly with everyone,” Zimmeran advised.
Riley also copromotes with his symphony, taking some risk. They worked with the symphony on a movie series, sharing 50 percent of the risk but giving 70 percent of the upside to the arts group. The goal is to help the resident companies.
All of the panelists concurred there is a new element to competition today, prevalent in the past 18-24 months, is VIP tickets. The lists are from artists and promoters and gets bigger and bigger. “Fifty percent of the big shows want a VIP lift for the first four rows,” Riley said, and he gets it. It’s the deals that come after a show is confirmed that impact the bottom line.
“The average VIP list does not drop to the bottom line as shared revenue,” Zimmerman noted, “so we automatically charge could price on the first four rows.”
The attractiveness of VIP tickets is as much experiential as location based. The meet and greet and special opportunities are what people want to pay for, but that also costs in customer service. Some suggested adding a service charge if there is a ticket price lift.
Zimmerman tacks on a $750 charge for a meet and greet in his Green Room. “Sometimes I get it,” he said.
It’s about building relationships with promoters, competitors and peers. Putting Happy Birthday on the Paramount’s marquee to an agent helped secure a Van Morrison date. Sending a promoter a voodoo doll full of pins with the message that “we were able to get the spell taken off our building” worked for another.
“Be memorable,” Vella said.
Interviewed for this story: Karen Totaro, (609) 449-2012; Jason Judy, (972) 538-1006; Allan Vella, (404) 881-2100; Michael Riley, (210) 226-5700; Leslee Stewart, (510) 893-2300; Aaron Zimmerman, (210) 212-0905; Paul Beutel, (512) 457-5106