GOLDENVOICEBUSINESSPLAN

Business Plan

By

Shane LewisJR Franks

Blake HughesCaitlyn Cuilik

Tyler Obenshain

Table of Contents

Executive Summary……………………………………………………………………………………………………....2

The Opportunity……………………………………………………………………………………………………2

Goldenvoice Business Plan 1

Description of the Business.…………………………………………………………………………………...2

Competitive Advantage…………………………………………………………………………………………2

Current Status & Requirements……………………………………………………………………………………2

Where the Business Stands Today…………………………………………………………………………..2

What Goldenvoice Needs to Move

Forward…………………………………………………………….3

Target Market……………………………………………………………………………………………………...3

The Business………………………………………………………………………………………………………………...3

The Opportunity…………………………………………………………………………………………………..3

Description of the Business…………………………………………………………………………………...4

Competitive Advantage………………………………………………………………………………………..4

The Management Team………………………………………………………………………………………..4

The Management Team……………………………………………………………………………………………….4

Management Team………………………………………………………………………………………………5

Board of Directors……………………………………………………………………………………………….5

Company Structure, Intellectual Property, Ownership………………………………………………7

Organizational Structure……………………………………………………………………………………....7

Legal Structure…………………………………………………………………………………………………...9

Intellectual Property……………………………………………………………………………………………9

Concerts………………………………………………………………….........................................9

Festivals……………………………………………………………………………………………….9

Industry Analysis……………………………………………………………………………………………………….13

Marketing Plan…………………………………………………………………………………………………………..23

Operations Plan………………………………………………………………………………………………………….29

Financial Plan…………………………………………………………………………………………………………….30

Critical Risk Factors…………………………………………………………………………………………………...31

Appendix…………………………………………………………………………………………………………………….33

Executive Summary_________________________________________________________________________________________________________


The Opportunity

As music concerts and festivals become increasingly popular in America, and especially in California, there exists the need for trusted, high quality music promotion services. Goldenvoice is a California-based music promotion company that provides music lovers with the opportunity to attend and experience several of the highest-quality music festivals and concerts in hundreds of venues and locations in California and other parts of the western United States.

Description of the Business

Unlike other music promotion companies, Goldenvoice is committed to promoting and producing events that showcase musical artists of all genres in a truly unique setting. This includes showcasing both emerging and established artists in some of California’s most well-known and respected music venues, and organizing several annual summer music festivals. By far the largest events organized by Goldenvoice are the Coachella Valley Music and Arts Festival, “one of the largest, most famous, and most profitable music festivals in the United States,” and Firefly, one of America’s fastest growing music festivals.

Competitive Advantage

Goldenvoice has become one of the most influential music promotion companies in Southern California, and its name and brand recognition stretches across America’s music industry. In addition, Goldenvoice has the ability to provide the best experience possible to its customers by working with well-known and established business partners to create memorable performances in California, Alaska, Hawaii, and Nevada.

Current Status & Requirements________________________________________________________________________________________

Where the Business Stands Today

Goldenvoice is currently a subsidiary of Anschutz Entertainment Group (AEG Entertainment) or more importantly AEG Live, the world’s second largest presenter of live music and entertainment arts (after Live Nation). Goldenvoice primarily works within its target market, putting on concerts at well-known California venues such as the El Rey Theatre, Empire Polo Club, Fonda Theater, The Forum, The Glass House, and more. Goldenvoice also promotes and organizes annual music festivals including Coachella, Stagecoach, Firefly, and more. Goldenvoice operates primarily out of the greater California area, including Los Angeles, San Diego, and San Francisco and works with many different emerging and established bands, musical acts, and creative artists from around the world.


With a growing target market that seems to be spending more money paying for the music experience by attending festivals and concerts because money to be spent on purchasing music isn’t used with the online piracy that has increased over the last few years. Music festivals have been at an all-time high, especially when Goldenvoice grossed over $96 million in 3 weekends through the effects of Coachella and Stagecoach at the Empire Polo Club. Music festivals continue to be shown as a growing business grossing high amounts of money from providing these music experiences to vast audiences from across the country.

What Goldenvoice Needs to Move Forward

With the recent addition of Firefly into its roster for live performance festivals, Goldenvoice is capturing another world of music that has caught fan’s eyes over the past few years: the culture of EDM, or electronic dance music. Since Goldenvoice is simply the musical division of AEG Entertainment and already has a list of majorly successful venues, festivals, and musical capabilities and opportunities, Goldenvoice is currently at the top of its game. In order to move forward, Goldenvoice simply needs to maintain its relationships with fans and audiences by offering the music and performances they love, and continuing to make memorable experiences for their customers.

Target Market

With its wide range of music festivals and concerts that appeal to audiences of almost every mainstream genre of music, Goldenvoice Productions has made it their personal mission to bring unique musical experiences to all audiences. Although many of Goldenvoice’s showcased concerts and festivals are located in the state of California (notably Los Angeles), the company has gathered enough prominence over the years by producing successful musical experiences that fans will travel across the country to experience these unique performances.

The Business________________________________________________________________________________________The Opportunity

As music concerts and festivals become increasingly popular in America, and more specifically California, there exists the need for a trusted, high quality music promotion service. Goldenvoice provides music lovers with the opportunity to attend and experience several of the highest-quality music festivals and concerts in hundreds of venues and locations across the country.

Description of the Business


Unlike other music promotion companies, Goldenvoice is committed to promoting and producing events that showcase musical artists of all genres in a truly unique setting. This includes showcasing both emerging and established artists in some of America’s best music venues, and organizing the annual Coachella Valley Music and Arts Festival, “one of the largest, most famous, and most profitable music festivals in the United States,” as well as Firefly, one of America’s fastest growing music festivals.

Competitive Advantage

Goldenvoice has become one of the most influential music promotion companies in Southern California, and its name and brand recognition stretches across America’s music industry. In addition, Goldenvoice has the ability to provide the best experience possible to its customers by working with well-known and established business partners to bring memorable performances to its dedicated audiences.

The Management Team

Goldenvoice● Gary Tovar - Founder & Primary Consultant● Paul Tollett - President & Chief Executive Office● Skip Paige - Vice President & Chief Operating Officer● Bonnie Marquez - Director of Marketing● PJ Acerno - Activities Director● Bill Fold - Lead Promoter● Paul Cutler - Graphic Designer

AEG Live● Jay Marciano - Chairman● Paul Tollett - Senior Board Member● Andrew Klein - Senior VP, Global Partnerships ● John Meglen - President, Global Touring● Shawn Trell - Chief Operating Officer● Rick Mueller - President, AEG Live North America

The Management Team

Goldenvoice


Gary Tovar - Founder & Primary ConsultantGary Tovar founded Goldenvoice (originally Golden Voice) in 1981 and is now one of the company’s primary consultants. Tovar established himself as a well-known and respected icon in the music promotion industry by committing himself to the artists he sought to promote, bringing emerging artists into the spotlight and working tirelessly to ensure they were always properly compensated. With his roots in the punk music scene, Tovar has promoted and produced countless unforgettable concerts and other events.1

2

Paul Tollett - President & Chief Executive OfficerPaul Tollett is perhaps one of Southern California’s most successful event promoters. He met Tovar at a Bad Manners concert in Long Beach at age 19 and quickly became involved with Goldenvoice as a promoter and publicist. When Tovar was arrested and jailed for drug trafficking in 1991, he signed over ownership of Goldenvoice to Tollett and Rick Van Santen (who passed away in 2004). In 1999, Tollett founded the Coachella Valley Music & Arts Festival, which has since become the largest and most profitable music festival in America. As President and CEO, Tollett has allowed Goldenvoice 3

to become California’s most influential promoter of live music events. 4

Skip Paige - Vice President & Chief Operating OfficerSkip Paige has worked in the music business for over twenty years. He started his career as an artist manager in LA’s punk music scene, and eventually started working alongside Paul Tollett in 1997. Paige helped Tollett with the organization and management of the first Coachella music festival in 1999, and as Senior Vice President and COO of Goldenvoice, currently oversees the day-to-5

day business activities and operations of the company. 6Paige graduated from the California State Polytechnic University at Pomona in 1990.

1 http://www.ocweekly.com/2011-12-15/music/goldenvoice-gary-tovar-coachella-paul-tollet-gv30/full/

2 http://istrategyconference.com/events/miami-13/speaker/gary-tovar3 http://www.billboard.com/biz/5876663/paul-tollett-the-2014-billboard-power-1004 http://www.palmspringslife.com/Palm-Springs-Life/Coachella-Valley-Vision/October-2014/The-Man-Behind-Coachella/

5 http://www.aegworldwide.com/aegexpo/speakerbios6 http://www.zoominfo.com/p/Skip-Paige/1494078752


Bonnie Marquez - Director of MarketingBonnie Marquez has served as Goldenvoice’s Marketing Director for nine years. She has an extensive background in the country music scene, working with country KZLA Los Angeles in marketing and as a promoter for three years prior to joining Goldenvoice. Tollett hired Marquez in 2006 prior to the first Stagecoach Country Music Festival in 2007, and thanks to her connections in the country music scene, the event showcased country music legends such as Kenny Chesney and Willie Nelson.7

PJ Acerno - Activities DirectorPJ Acerno is the current Activities Director for Goldenvoice, but more specifically Coachella, providing such information for the festival as visitor information, passes, photo galleries, FAQ’s associated with the festival, rules, and directions to the concert venue in the Indio Valley. He has helped innovate such ideas as the S.S. Coachella in 2012, a Goldenvoice-promoted music festival aboard Celebrity Cruise’s Silhouette vessel, which set sail from Ft. Lauderdale, FL towards the Bahamas December 16th-19th with such musical acts that included Pulp, Girl Talk, Sleigh Bells, and many more. 8

Bill Fold - Lead PromoterBill Fold has is one of Goldenvoice’s lead promoters and has been involved with the Coachella Valley Music and Arts festival since its beginnings in 1999. Fold is committed creating memorable, authentic experiences for festival-goers by listening to customer feedback and making improvements to any necessary aspects of concerts and festivals produced by Goldenvoice.

Paul Cutler - Graphic DesignerPaul Cutler, an American producer and guitarist, is the current lead graphic designer at Goldenvoice Productions. He previously performed with Steve Wynn (an established songwriter) in his band, The Dream Syndicate.

AEG Live

Jay Marciano - ChairmanJay Marciano is a long-time member of the AEG executive team and is well-respected within the company. He became Chairman of AEG Live

7 https://books.google.com/books?id=WCkEAAAAMBAJ&pg=PA20&lpg=PA20&dq=bonnie+marquez+goldenvoice&source=bl&ots=O9PCo1fKgB&sig=F3noKjm3w6CQ8PtLOEUg9yAEtlE&hl=en&sa=X&ei=Qwk4VavyBeKHsQSTloGoDg&ved=0CD0Q6AEwBg#v=onepage&q=bonnie%20marquez%20goldenvoice&f=false

8 http://www.billboard.com/biz/articles/news/touring/1483832/backbeat-ss-coachella-with-sleigh-bells-goldenvoices-paul-tollett


after the restructuring of the company’s management in 2013. A “veteran executive in the venue and live entertainment space,” Marciano previously served as the President of Madison Square Garden Entertainment (MSGE) from 2005 to 2011.9

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Paul Tollett - Senior Board MemberIn addition to serving as Goldenvoice’s President and CEO, Paul Tollett plays a critical role in the management of AEG Live as a company board member. He was appointed to the position in late 2013 following the restructuring of AEG Live’s executive management.

Andrew Klein - Senior VP, Global Partnerships As senior vice president of global partnerships at AEG Live, Andrew Klein works to maximize any and all potential and existing sponsorship opportunities at all of AEG’s (and therefore, Goldenvoice’s) music festivals. He also manages AEG’s festival network, “Your Brands Our Fans.”11 Klein graduated with a Bachelor of Arts in Economics at Tulane University in 1991.

John Meglen - President, Global TouringAs co-president and CEO of Concerts West/AEG Live, John Meglen has worked with several huge names in the music industry including Paul McCartney, the Rolling Stones, Pink Floyd, David Bowie, the Beach Boys, and several others throughout a career spanning over three decades.12 He was promoted to AEG Live’s president of global touring in late 2013.

Shawn Trell - Chief Operating OfficerShawn Trell has worked at AEG for over 15 years and was appointed as senior vice president of AEG Live in 2013.

Rick Mueller - President, AEG Live North AmericaRick Mueller is responsible for overseeing the company’s regional offices nationwide.13 He has extensive experience promoting concerts across California, and worked with Goldenvoice and Bill Graham Presents (a promotion company under Live Nation) before the consolidation of the live performance industry.14

Company Structure, Intellectual Property, Ownership

Organizational Structure

9 http://www.billboard.com/biz/articles/news/touring/1178596/msge-president-jay-marciano-resigns-moving-to-aeg-europe10 http://www.sportsbusinessdaily.com/Journal/Issues/2013/03/18/Franchises/AEG-execs.aspx11 www.yourbrandsourfans.com12 http://www.celebrityaccess.com/news/profile.html?id=63213 http://www.pollstar.com/news_article.aspx?ID=80848314 http://www.billboard.com/biz/articles/5123568/40-under-40-rick-mueller


Goldenvoice operates as a small entity and operation. The company was founded by Gary Tovar in 1981 as an independent music promoter, and has been a subsidiary of AEG Live since this transition in 2001. AEG Entertainment is itself a subsidiary of its parent, the Anschutz Corporation, a privately held holding company. Goldenvoice operates primarily towards the California Music & Arts festivals, venues, and music scene in the state of California, booking shows at venues they coordinate with and festivals they put on in the primary cities of Los Angeles, San Diego, and San Francisco.

AEG Live, the nation’s second-biggest concert promotion company15, is a live-entertainment division of Los Angeles-based AEG and is dedicated to all aspects of live contemporary music performance. AEG Live is comprised of touring, festival, exhibition, broadcast, merchandise and special event divisions, fifteen regional offices and owns, operates or exclusively books thirty five state-of-the-art venues. AEG Live is also the largest producer of music festivals in North America from the critically acclaimed Coachella Music & Arts Festival to Stagecoach and the New Orleans Jazz & Heritage Festival. Their most recent innovation to their target market was the purchase of Firefly Music Festival to join forces with Coachella and Red Frog Events in September 2014 to promote and produce the

music festival in the Woodlands at Dover International Speedway in Delaware, MD.16 The graphic, below, presents the scope of AEG Live’s production empire, having 16 regional offices worldwide (13 nationally), owning 35 venues.17

15 http://www.creators.com/lifestylefeatures/books-and-music/pop-talk/goldenvoice-s-coachella-and-stagecoach-festivals-couldn-t-be-more-different-yet-each-is-a-booming-su.html16 http://www.aegworldwide.com/about/companyoverview/companyoverviewhttp://www.billboard.com/articles/business/6251743/coachella-goldenvoice-firefly-red-frog-joint-venture17 http://www.aegworldwide.com/music/regional/regional


http://www.aegworldwide.com/music/regional/regional

Legal Structure

The general legal structure of Goldenvoice Productions comprises that of a limited liability company (LLC). According to the company’s Terms of Use, neither Goldenvoice nor the Anschutz Entertainment Group, Inc. shall be held accountable for any financial losses, damages to intellectual property, and claims of third parties.18 As a subsidiary of AEG Entertainment since 2001, Goldenvoice Productions operates under the control and guidance of its parent company.

Goldenvoice Productions is a subsidiary of AEG Live, a branch of the Anschutz Entertainment Group. AEG Live is committed to “all aspects of live entertainment and multi-media production and is the second largest concert promotion, special event and touring company in the world.”19 AEG Live also consists of numerous touring divisions, each focusing on a specific genre of music. These divisions include Concerts West, The Messina Group, Moore Entertainment Group, and Atlanta Worldwide Touring.

Intellectual Property

Goldenvoice Productions owns all name and brand rights for all live music and arts festivals and related events it produces and promotes.

Music Festivals Owned ● The Coachella Valley Music & Arts Festival● The Stagecoach Country Music Festival● FYF Fest● Firefly Music Festival● Big Barrel Country Music Festival● Hangout Music Fest● Musink● First City Festival● The Hootenanny

18 www.goldenvoice.com/terms/),19 http://web.archive.org/web/20110716064437/http://www.showboxonline.com/market/about.php

Goldenvoice Business Plan

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Concert Venues Owned● Club Nokia - 800 W. Olympic Blvd, Los Angeles, CA 90015 ● El Rey Theatre - 5515 Wilshire Blvd, Los Angeles, CA 90036● Empire Polo Club - 81-800 Avenue 51, Indio, CA 92201● Fonda Theatre - 6126 Hollywood Blvd, Los Angeles, CA 90028● Fox Theatre Pomona - 301 S. Garey Ave, Pomona, CA 91766● John Anson Ford Theatres - 2580 Cahuenga Blvd E, Los Angeles, CA 90068● Shrine Auditorium - 655 W. Jefferson Blvd, Los Angeles, CA 90007● Shrine Expo Hall - 655 W. Jefferson Blvd, Los Angeles, CA 90007● The Forum - 3900 W. Manchester Blvd, Inglewood, CA 90305● The Glass House - 200 W. 2nd St, Pomona, CA 91766● The Mayan - 1038 S. Hill, Los Angeles, CA 90015● The Orpheum Theatre - 842 S. Broadway, Los Angeles, CA 90014● The Regency Ballroom - 1300 Van Ness Ave, San Francisco, CA 94109● The Roxy Theatre - 9009 W. Sunset Blvd, Los Angeles, CA 90069● The Theatre at Ace Hotel - 929 S. Broadway, Los Angeles, CA 90015● The Warfield - 982 Market St, San Francisco, CA 94102


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According to the Guardian as cited on ToneDeaf.com, Coachella is among the highest for music festival admission costs. Comparatively, admission to Coachella costs three times more than admission to Woodstock (price has been adjusted for inflation). Although Coachella has a hefty price for being a music & arts festivals, it offers many unique events and memorable experiences that keeps its audience coming back every year for more.20

20 http://www.tonedeaf.com.au/443988/turns-out-aussie-music-festivals-are-some-of-the-cheapest-in-the-world.htm


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21

This image is from an article posted shortly before the first ever Firefly music festival. It compares the expected draw to the initial draw from the first shows of similar music festivals, particularly Coachella since both festivals are put on by Goldenvoice.

21 http://blogs.delawareonline.com/firefly/2012/07/16/firefly-music-festival-striking-the-right-chord/


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Industry Analysis

The four primary activities of the live music and entertainment promotion industry are as follows: managing venues (for concerts and festivals); organizing logistics for live events; promoting and marketing live events; and booking performers by associating with artists and their management.22 The main services provided by this industry are musical and artistic performances in a live, engaging setting.

The concert and live entertainment promotion industry plays a significant role in America’s entertainment industry as a whole. The purpose of this industry, according to IBIS World, is to “create, manage, and promote live performances and events, ranging from concerts and theater performances to state fairs and air shows.” The industry is currently enjoying a period of high revenue and massive popularity amongst American music listeners. According to Statista, the total annual revenue obtained from concert and event promotion in the United States has grown from $23 billion in 2009 to $25 billion in 2014.23 This exemplifies the importance placed on music and live entertainment in the United States; even during the period in which the economy was declining, the concert and event promotion industry only grew.

22 http://eventbrite-s3.s3.amazonaws.com/marketing/MusicFestivalResearch/EventbriteStudyMusicFestivals8_25_14.pdf?utm_source=academy&utm_medium=pdf&utm_campaign=mfr http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=196023 http://www.statista.com/statistics/296919/revenue-concert-and-event-promotion-in-the-us/


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Despite the claims of many analysts that the market has become saturated, many band managers and promoters argue that there is still plenty of room for growth.24 The demand for tickets remains high - major festivals regularly sell out of tickets within hours of announcing their lineups. In 2014, Eventbrite reported that one in ten Americans attended a music festival within the past year out of all American festival-goers, millennials (aged 17 to 34) represent by far the highest percentage of attendees and therefore represent Goldenvoice’s target market. 25

24 http://www.rollingstone.com/music/news/how-coachella-bonnaroo-and-more-festivals-revamped-the-music-industry-2014051325 http://www.eventbrite.com/academy/music-festivals-trends-2014/).


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Partnering IndustriesThe live music and event promotion industry works closely with numerous supply and demand industries that help stimulate economic growth within all involved parties. Music promotion companies such as Goldenvoice, AEG Live, and Live Nation rely on partnerships with the following supply and demand industries to successfully promote and produce live music entertainment:

Supply Industries● Advertising Agencies: Advertising is an incredibly important tool in the music

industry. The marketing landscape for live concerts and festivals relies heavily on traditional channels including television and radio, as well as through the use of social media outlets (Facebook, Twitter, YouTube, etc.). Word of mouth is also an important advertising tactic that is relatively inexpensive - it only requires the establishment and maintenance of a unique brand (for example, many associate the name ‘Coachella’ with the modern hipster culture and EDM scene). Many concert and festival-goers commit to attending an event without ever viewing an advertisement - they commit because their friends or colleagues trust the company and their established brand.

● Commercial Leasing: Producing and executing a music festival requires designated space to do so. There are various leasing methods that Goldenvoice, AEG Live, Live Nation, and other music promotion companies may choose to utilize. A common approach for hosting annual music festivals is for property owners to temporarily lease the grounds on which the event takes place. Many companies also choose to

26 Image from http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1960


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own, operate, and maintain their own concert venues and festival grounds. For example, in 2012 Goldenvoice purchased 280 acres of land to expand the Coachella festival site.27

● Musical Groups and Artists: Live event promoters work hand-in-hand with artists and their respective management teams to coordinate their presence at live concerts and festivals.

Demand IndustriesThe primary source of demand in this industry comes from concert and festival attendees, as well as the artists and performers and their respective management teams.

Michael Porter’s Five ForcesFor any company in a given industry, a set of forces exist to influence their success (or failure) within their industry. Commonly known as “Porter’s Five Forces,” they analyze levels of competition in an industry and have the power to influence anywhere between 10 to 30 percent of an industry’s profitability. These forces are also industry-specific, meaning an individual company has no control over their existence and potential ramifications. Porter’s Five Forces include the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes, and the threat of established rivalries among existing firms. To ensure Goldenvoice’s continued success in the live music promotion industry, we will analyze each of these forces as they relate to Goldenvoice and its day-to-day operations.

Threat of New EntrantsDespite many claims that the live music industry is not at the point of saturation, it is clear that the process of creating a successful live music promotion company is anything but easy. In the 21st-century dominated by social media, the most important aspect of any company is its brand. Goldenvoice and AEG, as well as other promotion companies including Live Nation and Red Frog Events, have successfully dominated the industry market with a well-known brand. Most people attend Coachella, Firefly, or Stagecoach not because of the performance of any specific artist, but because of the brand and experience associated with the name of the event. Goldenvoice has spent years establishing their brand associated its concerts and festivals, and as a result produces and hosts musical events that are truly unique.

Supplier PowerSupplier power is also a powerful force in Goldenvoice and AEG’s market. Since Goldenvoice coordinates and operates their own festivals and concert events, the distribution of materials for organization and promotional purposes were never really at

27 http://www.hollywoodreporter.com/news/goldenvoice-coachella-304667


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risk. Goldenvoice organizes their concerts and festivals primarily themselves, from booking the venues, to gathering the materials for stages, flyers, and other collaborative needs, including gathering live acts and performances to fill the setlist quota. For example, Perry Tollett, the brother of company president Paul Tollett, runs his own shop in Pomona, California that manufactures numerous supplies for Coachella (including barricades, staging, fencing, etc.)28

Buyer PowerBuyer power is a powerful force in the live music promotion industry that Goldenvoice must be aware of to move forward. Nowadays, people are exposed to a seemingly infinite number of music concerts and festivals across all cultures and genres. To ensure that Goldenvoice maintains its position as the leader of the pack for music festivals and concerts in the United States, it works collectively as an organization to ensure that it provides the best possible product to their concert-hungry customers.

Substitutes and Complements There are several complementary products associated with Goldenvoice’s live concerts and festivals which help to boost the company’s profitability and exposure in the industry. For festival culture in itself can be considered one of the company’s complementary assets: prior to attendance, festival-goers usually spend large amounts of money and time buying all the necessary materials for attending festivals such as Coachella and Firefly. While parts of this culture are not in accordance with federal law (e.g. illicit drug substances and the underage consumption of alcoholic beverages), Goldenvoice openly supports legal efforts by the consumer to enhance their experience at festivals and concerts. Coachella, for example, is widely associated with the return of hippie culture, and several fashion and clothing industries maintain sizeable fashion lines that meet the needs of festival attendees. Transportation to and from festivals are a complementary service, and Goldenvoice should consider pursuing partnerships with charter bus companies and airlines to make the commuting experience easier for its customers.

To attend any event produced by Goldenvoice (festival or concert), the consumer must commit to making a considerable monetary investment. As such, there are many different entertainment options that the consumer can commit to instead. Consumers could decide to substitute attending a concert or music festival with attending a sporting event, taking a vacation, seeing a movie, purchasing a new TV or phone, or a variety of several other options. Thanks to Goldenvoice’s established brand, there will continuously be a select group that the company can depend on to keep coming back. However, it should be the primary focus of the company to continue enhancing the live musical and artistic experience to draw in more concert and festival attendees.

28 http://ieweekly.com/2012/04/feature-stories/history-of-coachella/


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Rivalry Among Existing FirmsThere is undoubtedly much rivalry within the music festival industry. However, the Coachella Valley Music and Arts Festival - the prize of Goldenvoice’s arsenal - out-grossed even the closest competing music festival, Mysteryland, by over $30,000,000 in 2014, connoting the festival’s (and therefore, the company’s) domination of the music festival industry at large.29 In 2014, Goldenvoice made an attempt to lessen this force by sanctioning a partnership with Red Frog Events to produce the Firefly Music Festival.30 This is one such move that offers Goldenvoice the opportunity to minimize the threat of Porter’s Five Forces, and signifies the company’s willingness to expand in the face of a fruitful prospect.

In the table, below, this information can be visually displayed:

Low Medium High

Threat of New Entrants

♪

Substitutes and Complements

♪

SupplierPower

♪

BuyerPower

♪

Rivalry ofExisting Firms

♪

29 http://www.statista.com/statistics/306095/highest-grossing-festivals-worldwide/30 http://aegworldwide.com/about/newsdetail/12235#.VTv1hSFViko


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Competitor AnalysisIn order to understand Goldenvoice’s position within the industry, a proper analysis of the company’s primary competitors is required. Five leading companies in the live event promotion industry are listed below.

Goldenvoice/AEG Live

Live Nation Planetary Group

Insomniac Events

AC Entertainment

C3 Presents

Company Base Los Angeles, CA

Beverly Hills, CA

Los Angeles, CA; Boston, MA

Los Angeles, CA

Knoxville, TN Austin, TX

Area Served Greater California are (Los Angeles, San Diego, San Francisco)

Worldwide Worldwide United States; nationwide

US Southeast; nationwide

Austin, TX; nationwide

Unique Features & Services

Partnership networks with Red Frog Entertainment & FYF31

A live events company focused predominately on concert promotion.32

That targets college radio, AAA, non-commercial, and commercial-specialty shows.

Founded companies to help strengthen EDM scene (EDMBiz Conference, etc.)

creating, producing, booking, and marketing first-class live entertainment experiences - from festivals and concerts to all types of special events

Specializes in marketing and artist management, as well as concert promotion33

Notable Festivals

Coachella; Firefly; Stagecoach

Bonnarroo; Lollapalooza; +more

South By Southwest; Joshua Tree +more

Electric Daisy Carnival, Beyond Wonderland

Bonnaroo, ForecastleGentlemen of the RoadBig Ears Way HomeSloss

Austin City Limits,Lollapalooza, Big Day Out,

Notable Venues

The Roxy; The Forum; Glasshouse, and more

ALL House of Blues, +more

The LA Sports Arena & Exposition Park, San Manuel Ampitheatre & Campgrounds, Nevada

Las Vegas Motor Speedway35

The Orange Peel, Track 29, Bijou Theatre36

Stubbs BBQ,Emo’sLa Zona Rosa,37

31 http://www.goldenvoice.com/festivals/)32 http://en.wikipedia.org/wiki/Live_Nation_%28events_promoter%2933 http://www.c3presents.com/experiential/)


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County Fairgrounds34

Brand Name Recognition

Highly recognized

Highly recognized

Moderate recognition

Low Recognition

Moderately recognized

Highly recognized

Access to Distribution Channels

High High Medium Medium Medium Medium

34 http://www.planetarygroup.com/guide-indie-music-festivals-summer-2015/summer-2015-guide-california-music-festivals35 http://www.bassfeedsthesoul.com/new-insomniac-locations/)The Whittier Narrows Recreation Area, San Manuel Amphitheater(https://www.musicfestivalcentral.com/the-scene/insomniac-announces-new-venues-for-several-festivals/)36 http://en.wikipedia.org/wiki/AC_Entertainment#Venues37 http://en.wikipedia.org/wiki/C3_Presents


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Live NationAlthough Live Nation is currently the nation’s top live entertainment promoter, it is still considered an even competitor with AEG Live and Goldenvoice. As seen in the graphics below (re-created in color from the original source), Live Nation events constitute about 70% of total industry activity.38 Live Nation clearly represents a powerful force within the industry.

38 https://www.federalregister.gov/articles/2010/06/29/2010-15686/united-states-et-al-v-ticketmaster-entertainment-inc-et-al-public-comments-and-response-on-proposed


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The Planetary GroupThe Planetary Group is primarily an artist development firm focused on tailoring campaigns based around a specific artist’s goals, targeting the most beneficial outlets for the release of any content from that artist. They specialize in radio and online promotions, targeting college radios, AAA, non-commercial and commercial-specialty shows to reach out to their fans as well as social media platforms to gather online publicity for various emerging and established artists they are representing. In comparison to groups like Goldenvoice, The Planetary Group focuses on artist development and promotional sources while still holding their foothold in the festival-goer audience, offering informational material for various festivals, whether new or established such as SXSW. The Planetary Group utilizes these festivals to promote artists or musical groups and help put them on the radar.

Insomniac Events“Insomniac produces some of the most innovative, immersive music festivals and events in the world. Enhanced by state-of-the-art lighting, pyrotechnics and sound design, large-scale art installations, theatrical performers and next-generation special effects, these events captivate the senses and inspire a unique level of fan interaction. The quality of the experience is the company’s top priority.”39 This statement is a reflection of the company’s position amongst Goldenvoice and other competitors as an EDM steamroller. Electric Daisy Carnival (EDC Las Vegas), the largest festival under the Insomniac Events banner, demands keen scrutiny - certainly to be considered a direct competitor to Goldenvoice - due to its actualization of over 400,000 attendees during the 3-day event in June 2014 (same source). Although Goldenvoice produces festivals that blanket all genres while Insomniac has always been primarily focused on EDM, Goldenvoice’s Firefly and Hangout festivals are fighting for the same niche. Currently, the two festivals combined do not equate to half of Electric Daisy Carnival.

AC EntertainmentThe Bonnaroo Music & Arts Festival by AC Entertainment is the largest competitive advantage that AC Entertainment possesses. The festival closely rivals Goldenvoice’s Coachella; both are touted as all-genre music and arts festivals. Bonnaroo currently gathers 80,000 fans a year to its Tennessee festival grounds,40 a number immensely eclipsed by Coachella’s nearly 600,000. Regardless of its size, Bonnaroo has been increasingly growing in size since its inception in 2002, perhaps because of its peaceful operations that seemingly join the fans into a musical community all of their own.41 This familial atmosphere may be their largest competitive advantage over the Goldenvoice equivalent.

39 http://www.insomniac.com/about-us40 http://acentertainment.com/41 http://www.bonnaroo.com/census


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C3 PresentsWhat sets C3 Presents apart from the other competitors in this analysis are their international perspective (e.g., Lollapalooza USA, Lollapalooza Berlin, Lollapalooza Brazil, etc.) and the company’s broad spectrum of operations (marketing, artist management and concert promotion.42 Luckily for Goldenvoice, C3 Presents produces festivals that are geographically distanced from the Goldenvoice cove of California venues (minus Firefly, Hangout and Big Barrel), centering themselves mainly in the Midwest. Even so, there could be a growing competitive spark between the two as we see an overwhelming majority of festival goers begin to accept the idea of destination festivals, where they are willing to travel extreme distances for these kinds of experiences.43

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Marketing PlanGoldenvoice’s primary product is the live music experience. Goldenvoice Productions currently produces nine music festivals: the Coachella Valley Music and Arts Festival, the Stagecoach Festival, FYF Fest, Firefly Music Festival, Big Barrel Country Music Festival, Hangout Music Festival, Musink, First City Festival, and The Hootenanny - all of which entail their own unique brand and target marketing. These music festivals collectively target festival-goers of all genres, although multiple festivals, such as Big Barrel, the Hootenanny and notably Stagecoach, have a more limited target market promoting the country or “rockabilly”/roots genres. Coachella is fervently marketed as a blanket festival for all genres, toting a lineup of indie-rock, electronica and contemporary style artists.

Regardless of each of these festivals’ differences, Goldenvoice incorporates incredibly successful marketing tactics to showcase the uniqueness of their brand. Being a California-based company, Goldenvoice markets the scenic beauty of its live festival events. Four out of Goldenvoice’s nine festivals offer on-site camping accommodations on scenic land, supporting a “great escape” mentality that makes the destination-festival so profitable for the company.44 In its attempts to showcase the actual experience of its festivals, Goldenvoice partners with social media services including Snapchat (an independent company) and YouTube (owned by Google) to employ various marketing measures before, during, and after each event. For example, users can view live YouTube feeds and Snapchat “stories” throughout the duration of the Coachella Valley Music & Arts Festival. This is a brilliant move that allows potential future festival-goers to experience Goldenvoice’s unique brand without ever leaving their home. Once people have seen these live feeds, they can communicate their experience via word-of-mouth or social media outlets. Goldenvoice

42 http://www.c3presents.com/experiential/.43 http://www.travelguard.com/newsroom/tgupdate-march-2014-trends-traveling-for-festivals-and-events/.44 http://www.creators.com/lifestylefeatures/books-and-music/pop-talk/goldenvoice-s-coachella-and-stagecoach-festivals-couldn-t-be-more-different-yet-each-is-a-booming-su.html


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festival employees also encourage festival-goers to post their pictures and videos on social media, thereby strengthening the company’s image and brand at each festival and concert event. These guerilla marketing tactics serves Goldenvoice and AEG Live well by allowing the masses to essentially market the company and its services for them.

As the United States is currently transpiring through one of the most disruptive social and political periods since the ‘70s, and as revenue from music downloads continues to plummet, the culture of music festivals is thriving. As Goldenvoice’s target market is primarily the millennial generation - the same group that will be affected the most by these social and political issues - it is critical that the company incorporates this notion into its marketing mix. Goldenvoice caters to the causes fueling the festival lifestyle, incorporating such causes as climate change and the war on drugs into the very fabric of the experience. As cannabis culture in the United States is thriving, the name of the company in itself serves as an excellent marketing tactic - Gary Tovar, Goldenvoice founder, has made it well-known that he chose the name after encountering the “golden voice” cannabis strain.45

Goldenvoice maintains a prominent presence throughout all social media outlets. The company has its own Facebook page where fans have the ability to sign up for email newsletters, receive weekly concert announcements as well as presale ticket passwords which can be found on their Facebook page.46 Through Facebook outreach alone, Goldenvoice is able to garner 15 percent of its ticket sales at a $0.36 conversion rate.47 The company’s Facebook marketing is extremely efficient, as Goldenvoice has reportedly seen a 363 times return on investment since it began using social media advertising. Alex Avayzian, a digital marketing strategist, comments on the effectiveness of the process: “Facebook Ads allow us to efficiently reach people who are highly relevant to our marketing objectives - fans who want to buy. With conversion pixels, we can better understand the impact of our ad investments on ticket sales for tours, festivals and regional concerts.”*

Tickets for festivals produced by Goldenvoice are tiered, offering general admission tickets, a VIP version, and an upgraded VIP version, such as the Coachella Valley Music and Arts Festival’s “Lake Eldorado” tickets, which sold in packages from $2350-$5200 in 2015, as compared to VIP tickets for $899 and general admission tickets for $375 (https://www.coachella.com/festival-passes/). Goldenvoice festivals offer many other “options” in addition to ticket purchases that are festival-dependent, such as airport-to-venue shuttles, parking, camping, and food vouchers. Stagecoach, Goldenvoice’s country showcase and second-largest festival, uses a three-tiered ticket system as well that offers

45 http://www.theguardian.com/music/2014/apr/11/coachella-goldenvoice-gary-tovar-counterculture-marijuana-legalisation-hippies46 https://www.facebook.com/goldenvoice47 https://www.facebook.com/business/success/goldenvoice


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seats increasingly closer to the stage. To increase the marketability of the event, the Stagecoach festival offers a layaway payment plan which permits a 20 percent down payment upon ticket purchase with five remaining payments of 16 percent automatically deducted at the first of each consecutive month48 - one of many reasons Goldenvoice has been so successful with this festival. In 2015, Stagecoach will have an aggregate attendance of 225,000 as compared to its 2014 attendance of 198,000 (an 18 percent increase).49

Every Goldenvoice festival has multiple sponsors that support the company and their events, and help to keep ticket prices as low as possible.50 Goldenvoice sponsors are needed for the obvious monetary circumstance, but are also involved to reflect the likeness of each festival and associated draw. For instance, Musink’s sponsorship docket includes Rockstar Energy Drink, The Famous Stars and Straps clothing line and Nocturnal Tattoo Ink for the people and genre of bands that categorize and attend the festival.51 This can be juxtaposed with Coachella, being more fashioned based, which incorporates H&M, Sephora and American Express on their sponsor docket.52

48 http://www.stagecoachfestival.com/passes/49 http://www.latimes.com/entertainment/music/posts/la-et-ms-stagecoach-country-music-festival-tim-mcgraw-20150425-story.html50 http://www.creators.com/lifestylefeatures/books-and-music/pop-talk/goldenvoice-s-coachella-and-stagecoach-festivals-couldn-t-be-more-different-yet-each-is-a-booming-su.html51 http://musink.org/event-info/sponsors/,52 https://www.coachella.com/festival-info/sponsors/.


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The chart below offers research gathered by IEG, LLC. 2014. Although the current market may not definitively reflect these numbers, based on the sponsorship that Goldenvoice has garnered from large companies, the company and its festivals are currently affiliated with all but two of the nine major sponsors below - Red Bull GMBH and Ford Motor Co - but included the three most active companies in their sponsorship arsenal: Anheuser-Busch, PepsiCo, Inc. and Coca-Cola Co. This adds quite a lot of credibility to their means of exposure, relation to respective and prospective ticket-purchasers and sets Goldenvoice’s festival productions to a very high standard with an incredible level of monetary support. After all, 2014 saw $1.34 billion in music festival/tour sponsorship.53

53 http://www.sponsorship.com/IEGSR/2014/03/03/Music-Sponsorship-Spending-To-Total-$1-34-Billion.aspx#.U01ytvldXnh


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In order to create a visual representation of the diverse markets that each festival targets, a table has been devised, below. The table depicts factors such as genre, acts, associated culture(s) and ticket pricing for Coachella, Stagecoach, FYF, Firefly and Big Barrel, to allow consideration of the draw (hence, marketing procedures needed for the target market and implication of target’s interests).

Coachella Stagecoach FYF Firefly Big Barrel

Genre All; Indie-Rock, Electronic, Hip-Hop

Country Punk, Garage Rock, Progressive Rock*la times

Rock, Electronic

Country

Location Empire Polo Club, Coachella Valley; Indio, California

Empire Polo Club, Coachella Valley; Indio, California

LA Sports Arena and Exposition Center; Los Angeles, California

The Woodlands of Dover Intl. Speedway; Dover, Delaware

The Woodlands of Dover Intl. Speedway; Dover, Delaware

Duration 6 days (Fri-Sun; 2 consecutive weekends) - April

3 days (Fri-Sun) – April; after Coachella

2 days (Sat, Sun) – August

4 days (Thurs-Sun) - June

3 days (Fri-Sun) – May

Notable Acts Drake, Paul McCartney, Kanye West, Madonna, Red Hot Chili Peppers

Brad Paisley, Jason Aldean, George Strait, the Eagles, Taylor Swift

The Strokes, The Blood Brothers, MGMT, Yeah Yeah Yeah’s

Jack White, The Killers, Lupe Fiasco, The Avett Bros.

Blake Shelton, Chris Young, Loretta Lynn, Carrie Underwood, Kacey Musgraves

Associated Culture(s)

Visual Arts – installation art and sculpture, Fashion, Environmentalism

Honky-tonk Comedy Craft Beer, Nature

Tailgate, BBQ

Attendance* ~579,000 (2014) ~198,000 (2014)

~40,000 (2014)

~65,000 (2014)* (Philadelphia. cbslocal.com)

~25,000 (2014)

Camping Yes Yes No Yes Yes

Families No Yes No No Yes

Ticket Price $375-5200 x x $299- $99-499


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2000

Hangout Musink First City Hootenanny

Genre Rock, Indie, Hip-Hop, EDM

Pop-Rock, Punk-Rock, Alternative

Pop-Rock, Rock, Indie Southern Rock, Alternative, Punk Rock

Location 101 E. Beach Blvd.; Gulf Shores, Alabama

The Orange Country Fair and Exposition Center; Costa Mesa, California

Monterey County Fair and Event Center; Monterey, California

Oak Canyon Ranch; Silverado Canyon, California

Duration 3 days (Fri-Sun) – May

3 days (Fri-Sun) – March

2 days (Sat, Sun) - August

1 day (July) – Currently TBD

Notable Acts

The Avett Bros., Foo Fighters, Dave Matthews Band, Outkast, The Killers, Tom Petty

Bad religion, Pennywise, Tiger Army, Alkaline Trio, Against Me!, The Used

Beck, Tokyo Police Club, Midlake

Social Distortion, The Wheeler Brothers, Old 97’s, Rancid

Associated Culture(s)

Beach, Coastal Tattoo, Punk Sustainability; Zero waste initiative

Car Club, Punk

Attendance*

~40,000 (2014) ~11,000 (2014) (msopr.com)

~9,000 (2014) (montereyherald.com)

N/A

Camping No No No No

Families No No No No

Ticket Price

$249-1599 $40-130 $79.75-289.50 N/A

*Aggregate attendanceAll information can be found at goldenvoice.com/festivals/ unless specified


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Operations Plan

Methods of Production & Delivery of ServicesAs a live event promoter, Goldenvoice makes its available through the following outlets:

1. Concert tickets for events within company-owned venues are sold via Goldenvoice’s website:54

Visitors to Goldenvoice’s website can easily search for their desired concert by clicking the “Shows” link at the head of the website. From there, they can scroll through an incredibly long list detailing every Goldenvoice concert and event from the current day to far in the future (more events automatically load once the user has scrolled all the way to the bottom of the page). Visitors can also customize their search for a particular event by querying by city and by date.

When the user finds an event they want to attend, they can select “Buy Tickets” which navigates them to a screen showing available seats and ticket prices. This may be on Goldenvoice’s website or a separate ticket provider entity, such as TicketFly or AXS. Additionally, they can select “RSVP via Facebook” to automatically create the concert as an event on their Facebook profile (this doubles as a marketing tool that allows Facebook friends to see the event on social media).

Depending on the venue, users can select tickets based on price and seating choice (general admission versus luxury/VIP options). There are also options to recommend the event via Facebook and Twitter, and further details about the event are also given. Once satisfied with their ticket preference, users can proceed to purchase them via their ticket provider. Once the attendees arrive at the concert, they present their tickets at the door as well as a valid ID (if applicable to the event).

2. Goldenvoice maintains unique websites for each of its festivals, where consumers can purchase tickets and learn more information about the eventEach of Goldenvoice’s nine major music festivals maintains an official website where prospective attendees (and any other interested audiences) can learn everything they need to know about the event - from how to purchase tickets, to viewing live coverage of performances, to learning about the history and impact of the event itself. For example,

54 www.goldenvoice.com/#/


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Coachella’s website lists the each of its event lineups, from the most recent 2015 event to its beginnings in 1999.

For attendees new to the music festival scene, these websites provide in-depth explanations for everything they need to know about how to properly experience the event. These explanations include 1) performance lineups and set times; 2) how to commute to and from the event; 3) maps of the festival grounds; 4) a description of the festival culture and available activities for attendants; and 5) options for on-site and off-site camping. Goldenvoice is committed to ensuring that their festivals are easily understood and accessible insofar as possible.

How Goldenvoice promotes for its eventsMany of the day-to-day operations within the company are carried out in an informal, out-of-office setting. Quite often, individual promoters within the company will travel to meet with proposed artists and their management to organize their live performance at concerts and festivals produced by Goldenvoice. Employees regularly travel to numerous promotional and marketing events to meet with sponsors, suppliers, and other clientele.

Financial Plan

Financially, Goldenvoice is growing at a steady rate, thanks to the increasing popularity of its concerts and festivals among the masses. 55

Large music festivals such as Coachella and Stagecoach get their income from sponsorship, ticket sales, and retail (items like programs for sales and their respective advertising campaigns). According Louise Oliver on quora.com the expenditure includes largely paying the artists to play the festivals, along with staffing the event, production and operations including technical support, infrastructure, catering, insurance and administration. Marketing, which includes print, broadcast, and digital media, distribution, advertising, street teams and promotional print, also adds to the expenses of the festival. According to Kate Franco’s article in The Desert Sun, in 2014 Goldenvoice decided to split Coachella into two identical weekends. The risk ended up being a huge success with the festival grossing over $78 million, which is the most the event has ever earned. The weekend following this huge success, Goldenvoice put on their country music festival Stagecoach, which earned

55 http://www.quora.com/What-is-the-budget-breakdown-of-a-major-music-festival-such-as-Coachella-Electronic-Daisy-Carnival-EDC-Lollapalooza-etc http://www.desertsun.com/story/life/entertainment/music/coachella/2014/07/08/coachella-music-festival-breaks-revenue-record/12388681/


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$18,615,000. The total gross earnings for these three weekends combined totaled $96,947,000.

Andrew Klein, the Senior VP at Goldenvoice & Global Partnerships coordinates YourBrandsOurFans alongside not only Coachella, but all other Goldenvoice-organized festivals and musical concerts to customize each program or musical experience to meet any company’s needs that wish to have their brand sponsored at the concerts. Brand advertising offered for these companies include (but are not limited to) 1.) On-site sales sampling, 2.) Interactive Displays, 3.) Ticket Promotions, 4.) Hospitality, 5.) Inclusion into Festival Advertising, whether print, radio, or on social media, 6.) Cause Marketing, 7.) Custom Content, 8.) Retail Driving Promotions, and more. 56

At the time of Gary Tovar’s leaving Goldenvoice due to legal problems in 1991, the company was facing a financial crisis - lots of outstanding debts had to be paid. However, after the company merged with AEG Entertainment in 2001 and the explosive growth in popularity of the Coachella Music and Arts Festival as a result, Goldenvoice has steadily increased their financial output, giving the company more muscle to flex across the industry.

Critical Risk Factors

There are several risks associated with entering the live music promotion industry. Although AEG and Goldenvoice Productions are already one of California’s dominant live entertainment promoters, there exist several risks associated with being an active player in this industry. These include risks associated with individual events promoted and produced by the company, as well as risks within the industry itself and outside the control of the company. Listed below are the primary associated risks that AEG and Goldenvoice must manage to be successful in the industry:

1. Maintaining the company’s brand in a mature market2. Risks associated with festival activities3. Bargaining power of suppliers4. External political factors

1. Competing within a mature marketThe live entertainment promotion industry has reached sufficient maturity in recent years thanks to the explosive growth of music festivals and the consistent decline in record sales. As a result, there now exist a seemingly limitless list of music festivals that the general population can choose from. While Goldenvoice aims to set its festival experience apart

56 http://www.reachourfans.com/aeg-live-goldenvoice-festivals


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from the competition, the fact that many potential festival attendees will ultimately choose another promoter (for reasons beyond company control) is an inevitability. However, there are several factors that Goldenvoice can control to successfully pitch its festival events to its target market. To ensure a successful attendance, two primary factors are required: a successful marketing strategy (to both the target market and potential performers), and competitive production and admissions costs.

2. Festival-related dangers and risksMusic festivals such as Coachella, Stagecoach, and Firefly draw massive crowds every year. In 2013, for example, Goldenvoice reported that 90,000 people bought three-day passes for both weekends of the Coachella Valley Music & Arts Festival, and about 45,000 people purchased similar passes to the Stagecoach Country Music Festival.57 For any event that draws such a high attendance in a confined, active environment, several safety risks are associated and must be accounted for. While not a common occurrence, death and serious injuries may sometimes occur during music festival events as a result of drug overdose or reckless behavior. In the event that such an accident happens during one of Goldenvoice’s events, the company must be prepared for this by 1) purchasing significant levels of insurance; 2) educating festival-goers about the risks associated with drug use and reckless behavior; and 3) having a substantial law enforcement and emergency response presence throughout the festival duration.

3. Bargaining power of suppliersAs with many industries, suppliers hold significant levels of bargaining power when it comes to providing their services. For Goldenvoice and AEG Live, the primary supplier is the performing artist - without their services, the company would have no reason to exist. Other suppliers, including property holders and advertising agencies, play a large role in shaping the success of Goldenvoice’s activities. If these three entities are not properly organized and maintained, and if they are not properly compensated, then the Goldenvoice brand would be put at risk. If the company cannot properly compensate its performing artists, the risk of dropped performances becomes a reality - resulting in the necessity of refunds to the consumer. Also, improper or insufficient advertising and marketing strategies will inevitably result in poor turnout at events.

4. External political factorsThe effects of national and state politics sometimes impact the efforts and objectives of Goldenvoice and its brand. For example, in 2012 a ticket tax proposed by Indio City councilman Sam Torres would have implemented a 5 - 10% admission tax on the Coachella Valley Music & Arts Festival. This measure was met with ‘severe opposition’ by

57 https://www.coachella.com/forum/showthread.php?67555-Official-Coachella-attendance-released-by-Goldenvoice


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Goldenvoice as Paul Tollett threatened to cancel the festival altogether.58 Fortunately, the proposed tax never became reality. However, as Goldenvoice’s music festivals and live concerts have a significant impact on the greater regions in which they take place, so remains the possibility of external political activities and decisions in affecting the company’s activities in California as well as nationwide.

Appendix

58 http://www.rollingstone.com/music/news/plan-to-tax-coachella-suspended-20120706

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