Surviving China concert biz in six easy steps

By Will Freeman

BEIJING (Billboard) - With the announcement of Linkin Park's November 18 show at the 25,000-capacity Hongkou Stadium in Shanghai -- reportedly the biggest Chinese concert yet by an international act -- the country continues to open up to Western touring talent.

But industry insiders warn that local ticketing culture is a unique beast that outsiders need to study carefully. As more touring acts contemplate stopovers in China, Billboard presents six things every artist manager and international promoter should know.

1. UNDERSTAND THE HISTORY

Live events in China have been government-controlled since the Communists took power in 1949.

Until recently, "the government would select a state-run or related company to organize an event," says Li Bin, marketing manager at promoter Beijing Gehua Live Nation Entertainment. "If you had connections with the government or that company, you'd get a bunch of tickets for free."

The hangover from that culture means selling tickets to the public can be difficult, while local authorities and others may still expect free ones.

"These days," Li says, "paying for a ticket is like losing face -- it means you're not well connected."

2. GET YOUR TECHNOLOGY RIGHT

"Antiquated" is how Chinese industry insiders describe most domestic ticketing companies' practices.

Traditionally, "there were many small players in the market with limited technology," explains Jonathan Krane, CEO of leading Shanghai-based ticketing/promotion company Emma Ticketmaster, which has brought acts like Eric Clapton and the Rolling Stones to the mainland since its 2004 launch.

"Counterfeit ticketing was a major problem," Krane says. "We saw an opportunity to immediately add a lot of value to the marketplace by putting in advanced ticketing systems with the right access controls."

3. UNDERSTAND GOVERNMENT RULES AND REGULATIONS

Promoters must acquire a Ministry of Culture permit before announcing or advertising a show or selling tickets.

"The time that takes depends on whether the act is foreign or local and if the promoter has a good track record," Krane says. "(And) a first-time promoter will have to find the right government agencies to partner with."

4. BEWARE OF SCALPERS AND FAKERS