You didn't have to be an event planner to know about a celebrated double bill that had rock fans buzzing. In November 1997-those heady, cash-rich days-rock legend Bob Dylan played a corporate gig with his son Jakob's band, the Wallflowers, for Silicon Valley chip manufacturer Applied Materials' 30th anniversary party. The rumored cost of the evening's entertainment: $1 million. But are corporations willing to shell out that kind of cash these days?
"There will always be a market for big performers," says Denise Kirk, director of corporate events for Clear Channel Entertainment. "But companies are being more considered and thoughtful in their decision-making."
Blame the still-suffering economy, fear of terrorism and the threat of war. "Headline entertainment is a thing of the past in the current economic situation," says David Landgraf, head of global marketing for Barclays Capital.
Even companies who can afford seven-figure sums for big acts are holding back. "To these companies, it's not so much the money as it is the perception," says Jonathan Scharer, founder of Overland Entertainment, a New York-based booking and production firm. "How do you justify paying four to five million dollars for the Rolling Stones when you've just laid off 200,000 employees?"
In fact, Mark Sonder of Mark Sonder Productions, a D.C.-based entertainment company, says the only segment that still consistently splurges on headliners is the pharmaceutical industry. "We're about to book Elton John for a pharmaceutical company," he says, and another drug firm recently booked Aerosmith for a seven-figure fee.
But if you're not pushing pills, the trend for American companies is to consider a big draw while looking at various entertainment options. "A few years ago, they would get fixated on an act, and say, 'Get it for us.' Now they're saying, 'Give us five or six choices,'" Scharer says.
The lag in demand for top-tier acts comes at a time when they are more comfortable than ever doing corporate gigs. "The acts themselves over the last five or 10 years have now become used to doing these corporate events. They have a much better attitude and approach things better," Scharer says. Still, planners looking to book such names should pay attention to their targets' tour schedules. For perfection-minded performers like Janet Jackson, Faith Hill and Tim McGraw, no matter how much a company is willing to spend, Sonder says, "if the band's not together and the show isn't polished, some acts just won't do it."
Some companies request lesser known acts for reasons other than budget. While a set from Aerosmith might pump up a sales force, a well-selected speaker can leave them with insight on their minds instead of ringing in their ears. "We've done a lot with speakers in the past four to five months, and more creatively, like CEO panels speaking about trends and innovations," says Clear Channel's Kirk. She recently booked a panel with CNN's Lou Dobbs and Kinko's founder Paul Orfalea for an auto dealership meeting in Las Vegas.
Landgraf also opts for speakers at his events. "We tend to make [headliners] more current event- or topic-centered, like an economic or political speaker or a war correspondent who can speak on how the current threat of war will affect the economic climate-something that drives business forward, rather than a musical act."
Demographics affect bookings, too. Often younger employees-and younger CEOs-don't want big rock acts from their parents' generation. Wired magazine recently booked indie band Wilco for an awards show in San Francisco, and a financial company hired Kirk to produce a Barenaked Ladies show to close a conference.
—Suzanne Ito
This story originally appeared in the Spring 2003 issue of the BiZBash Event Style Reporter newspaper.
"There will always be a market for big performers," says Denise Kirk, director of corporate events for Clear Channel Entertainment. "But companies are being more considered and thoughtful in their decision-making."
Blame the still-suffering economy, fear of terrorism and the threat of war. "Headline entertainment is a thing of the past in the current economic situation," says David Landgraf, head of global marketing for Barclays Capital.
Even companies who can afford seven-figure sums for big acts are holding back. "To these companies, it's not so much the money as it is the perception," says Jonathan Scharer, founder of Overland Entertainment, a New York-based booking and production firm. "How do you justify paying four to five million dollars for the Rolling Stones when you've just laid off 200,000 employees?"
In fact, Mark Sonder of Mark Sonder Productions, a D.C.-based entertainment company, says the only segment that still consistently splurges on headliners is the pharmaceutical industry. "We're about to book Elton John for a pharmaceutical company," he says, and another drug firm recently booked Aerosmith for a seven-figure fee.
But if you're not pushing pills, the trend for American companies is to consider a big draw while looking at various entertainment options. "A few years ago, they would get fixated on an act, and say, 'Get it for us.' Now they're saying, 'Give us five or six choices,'" Scharer says.
The lag in demand for top-tier acts comes at a time when they are more comfortable than ever doing corporate gigs. "The acts themselves over the last five or 10 years have now become used to doing these corporate events. They have a much better attitude and approach things better," Scharer says. Still, planners looking to book such names should pay attention to their targets' tour schedules. For perfection-minded performers like Janet Jackson, Faith Hill and Tim McGraw, no matter how much a company is willing to spend, Sonder says, "if the band's not together and the show isn't polished, some acts just won't do it."
Some companies request lesser known acts for reasons other than budget. While a set from Aerosmith might pump up a sales force, a well-selected speaker can leave them with insight on their minds instead of ringing in their ears. "We've done a lot with speakers in the past four to five months, and more creatively, like CEO panels speaking about trends and innovations," says Clear Channel's Kirk. She recently booked a panel with CNN's Lou Dobbs and Kinko's founder Paul Orfalea for an auto dealership meeting in Las Vegas.
Landgraf also opts for speakers at his events. "We tend to make [headliners] more current event- or topic-centered, like an economic or political speaker or a war correspondent who can speak on how the current threat of war will affect the economic climate-something that drives business forward, rather than a musical act."
Demographics affect bookings, too. Often younger employees-and younger CEOs-don't want big rock acts from their parents' generation. Wired magazine recently booked indie band Wilco for an awards show in San Francisco, and a financial company hired Kirk to produce a Barenaked Ladies show to close a conference.
—Suzanne Ito
This story originally appeared in the Spring 2003 issue of the BiZBash Event Style Reporter newspaper.
Corporate event planners aren't booking big-time bands like the Rolling Stones as often as they have in recent years. (Photo by Kenny Mazur)
