Wednesday, February 2
International Views: American Artists in Foreign Markets
Moderator: Roberto Meglioli, AssoMusica
Peter Gruber, Wiener Stadthalle
Noel McHale, MCD Productions
Arie Kaduri, NYK Productions
Michael Gudinski, Frontier Touring Company

Michael Gudinski kicked off the panel with a fairly sunny assessment, noting the last decade has been a period of increasing tours in Australia by American artists. However, he set the tone for the discussion in saying that much more could be done.

“We’re lucky because Australia is a taste-making market. We get a lot of American TV shows, so a lot of acts get exposure in Australia without even realizing it and don’t take advantage of it.”
Gudinski said record companies should take advantage of their acts’ appearances on shows like “Late Night With David Letterman,” which are popular downunder and could easily be used to promote those artists’ Australian tours.

He cited Alicia Keys and Simple Plan as examples of artists whose consistent attention to Australian media and repeat tours have paid off in sellouts and impressive record sales.
Peter Gruber said artists and promoters alike suffer when foreign touring comes too late in the cycle. All too often, he said, the record comes out, the artist tours the U.S. until its domestic market is exhausted, and only then goes to the foreign markets.

“And what is a foreign market? They start with Australia, they start with Japan, they start with Hong Kong, and then they come to Europe. But what is Europe? Europe is England. And maybe after England it’s Germany and that’s it,” Gruber said.

The panelists and audience seemed to agree the main problem is that American artists are simply not touring foreign markets enough. Noel McHale said the demand in his market for certain artists – The Game, for example – can even precede their debut album releases.

“But the big gap in the market,” he said, “is comedy and country & western acts. They’re just not coming. The big line I get from all the country & western bands is they take more money in Texas in one day than I can give them for a week. And the same with comedy, but it’s a bad career move.”
Building a career as a worldwide name needs to be a higher priority for American artists, McHale said. When those artists do come, the high demand and favorable exchange rates send them home with a smile.

“Kris Kristofferson came in last year and sold 20,000 tickets in three days. Willie Nelson sells out, but there’s nobody else there under 60,” McHale said, sparking another main theme of the panel – the lack of new artists.

“Where are the teen idols around here?” asked Roberto Meglioli. “I’m not so young, but still, I’m disappointed when I see that in any of the magazines, when they talk about a new big tour, they’re talking about The Rolling Stones or Bruce Springsteen or, when we are very lucky, U2. ... This is not the way that the business grew up and (not) what we expect from America.”

Meglioli asked where the fault might lie – with the American industry and artists, or on the foreign side?

Gruber blamed promoters who play it safe and are reluctant to invest money to create a successful new artist, and wondered how the next generation’s Rolling Stones can ever be created under the current conditions.

“I think one of the biggest problems is there are too many agents who have never gone to the different markets to have a look,” Gudinski said. “You can’t do those things by remote. People that have come and understand the market think ahead.

“They’re not necessarily thinking about doing the biggest gig; it’s about doing the right gigs. It’s about doing the right special guest supports.”

Gudinski cited Canadian acts as an example of artists who are utilizing the Australian market to grow their names.

“And let’s face it, there are some American acts that are breaking internationally and using that as a lever to come back into America. I mean, look how big Anastacia is in our country and all over Europe, and yet in America, she’s one-tenth of what she is everywhere else in the world. So I think it can work both ways.”

He singled out bands like Simple Plan and Maroon5, who have come back for several tours and built their audience rather than taking short-term money on larger venues right away.

Although many acts in many markets may need to focus on a slow build, other acts in other areas can make better money right away than they do in the U.S., Meglioli said.

To take advantage of that, Arie Kaduri recommended that record companies, agents, managers and promoters improve their communication.

He also brought up radio as a problem, due to virtual “blackmail” schemes in which artists must play radio shows in order to get airplay.

“And on top of this,” Kaduri said, “you have a big company – I don’t want to mention names here – they buy the tour, and they throw the money like crazy because they have the money. And, to be honest, they don’t know what they’re doing.”

“Can you give me their telephone number?” asked George Leitner of GLP Artist Marketing GmbH from the audience, inciting a round of laughs.

Gudinski again emphasized the need for agents to have a working knowledge of the territories they are booking – if not culturally, at least geographically.

“It is improving,” McHale said, “but I have been asked, ‘How long does it take to drive from Paris to Dublin?’ Which is a very long time because you have to go across a sea.”

The panel wrapped with Kaduri, Gudinski, Meglioli and McHale in relative agreement that communication on all levels needs to be improved. Gruber concurred but wondered whether the parties are interested in communication.

“I think it’s not so much communication as a strategy question,” Leitner chimed in. “You’ve got to have the balls to tell your act, ‘Look, we’re going to go into the market, we’re going to lose a certain amount of money in the short run, but we’re going to make a lot more in the long term.’”