By Jim McCarthy Jun 29, 2009 0 comments

AEG’s Michael Jackson Problem

When Michael Jackson’s ultimately ill-fated London concert series went on sale, I talked about it here.  And here’s a key tidbit:

“So this is a hit, and I’ve been saying for years that this is a natural thing for MJ to do.  Even better, and still likely, would be a Jackson Theatre in Las Vegas, where he’ll hold court a la Celine Dion and just mint money for years to come.

And not a recording in sight…”

And although obviously none of that (including the concerts themselves) was to be, it was a huge concept with incredible appeal.  It’s probably safe to call it the best selling live show in the history of the world.

In having to unwind the shows because of Michael’s death, AEG has what one “concert executive” called “the biggest mess in the history of our business.”

Not only is there the matter of refunding nearly a million tickets worth almost $100,000,000, but there’s also the issue of $30,000,000 in production and marketing costs that have already been extended, and the issue of having a vacant building for the next 9 months, and the issue of the ultimate official cause of death determining whether AEG’s insurance will compensate them for some of these losses.

Ultimately, the company will work through the issues and take a meaningful but not devastating loss on the show, in all likelihood.  But the bigger lesson to take away is that the giant hole left behind by the death of a star like Michael Jackson shows us again the value of the live experience.  People are buying mp3s and CDs now because they are a substitute, in essence the only one still available, for what they really want, which is to see the man perform live.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Reddit
  • Twitter
  • Yahoo! Buzz

Comments are closed.