Instant replay for UMG acts
U Music tunes in live CDs
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Declaring that live music CDs extend the concert experience and strengthen the connection between artists and fans, Universal Music and Instant Live have created a template for artists on UMG's labels to use should they decide to offer the instant concert recordings. The UMG family includes Interscope, Island, Geffen, Republic, A&M and Def Jam.
Instant Live has built its base using bands without major label recording contracts such as the Allman Brothers Band, Black Crowes, Hall and Oates and moe. Company offered some recordings by Atlantic act Jewel last year and will work this fall with EMI's Chinese act Twelve Girls Band. Bands such as the Pixies have used similar services.
Artists' contracts with major labels have generally stymied any efforts to allow artists to offer the concert recordings, which are burned to CD and packaged within 20 minutes of a show's conclusion. Deal with UMG allows artists and labels to modify when, where and how many CDs and downloads of a show are allowed.
To test the system, Interscope artist ... And You Will Know Us by the Trail of Dead offered recordings at some of its shows this year. No other Universal artist is currently offering Instant Live recordings, which are seeing a penetration rate of about 17% per show.
"Standardizing these deals is difficult," said Stephen Prendergast, general manager of Instant Live. "With the deal signed corporately, there's a structure that's easily accessed."
Instant Live discs often cost about $25 for acts such as the Allmans and are two- or three-CD sets. Recordings by newer bands -- the Dears and the Decemberists have used the service -- can run as low as $15. Music publishing companies, venues and unions share in proceeds from the sale of the CDs.
Digital downloads of the concerts are priced similarly. The digital operation, however, is at the end of an agreement with Sony Connect, and a new digital partner will be announced in the fourth quarter.
"As we have become more understood, we are more accepted," he said. "The margins on (the discs) are good, and we have to preserve the price point. (Live recordings) is an area in which artists are getting a chance to take control." Illegal bootlegging, Prendergast noted, can become a thing of the past.
Prendergast sees the service eventually expanding into comedy and spoken word as well as internationally. He has introduced a pre-sale operation as well that allows ticket buyers the option of ordering the disc weeks before attending the concert.
