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Entertainment Marketing

I’m sorry Mr. Rapino… but you are no Zappos

Did you see this in Billboard?

http://www.billboard.biz/bbbiz/content_display/industry/e3i1a3369487512024d6614c2a662ac7443

Michael Rapino, the CEO of Live Nation said, “We think by using Ticketmaster’s platform and our concert platform, we can become the Zappos or Amazon of the concert business, versus what we are today.”

While I do hope this is true and appreciate the lofty goal, I’m reluctant to stand up and cheer or believe the hype. I’m sure it sounds great to investors, but the reality is something else.

Here is why.

1) YOU ONLY GET ONE CHANCE TO MAKE A FIRST IMPRESSION: Both Live Nation (previously through Clear Channel) and Ticketmaster have spent DECADES pissing off their customers. Both companies have international reputations as the worst customer service in the music business. They have trained people through years of horrible experiences, bad servicing and lame communication to be ignored. It is very hard to turn that around in concert goers minds. Will the combination of the two really change that?

2) BIG BUSINESS IN A SMALL BUSINESS WORLD:
Have you ever noticed that really great restaurants begin to slide in servicing when the owner is no longer there day in and day out? The best customer experiences come through strict attention to detail by smart people who care… who really care. Live Nation and TM are absentee for most of their business. They manage things from afar, count the money and rely on middle management to take care of the details. The best venues and festivals in the world are independently owned by promoters and companies who are there day in and day out.

3) PEOPLE DON’T CARE: This is a hard one for Ticketmaster and Live Nation to get. They think that they have brands which people care about. They don’t. People care about 2 things. The artist and the experience. If they have an attachment to a venue it is because of having had an outstanding experience in the past. In fact, it could be argued that both brands have negative brand impressions. Can they change that?

Zappos and Amazon built their business models on customer service… from the ground up, from the beginning. Customer service has been a corner stone from the beginning. Unfortunately for LN and TM, it is very hard to back pedal into great customer service when your reputation is already shot.

But of course as a fan, I do appreciate the effort.

- David DeVore, CEO

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