Monday, 28 May, 2012 | 17:42 WIB
Will Concert Cancellation Cost Promoters?
TEMPO Interactive, Jakarta:How much financial losses does Big Daddy Entertainment suffer over Lady Gaga’s concert cancellation?
"Yes, this is most unfortunate. As for the commercial losses, they can't be shared," said Michael Rusli, President Director of Big Daddy Entertainment in Jakarta, Sunday, May 27, 2012.
According to Michael, the cancelation was the sole decision of the Lady Gaga management. So Big Daddy should not pay penalty money to the Mother Monster. However, Big Daddy considered it a contract secret.
Big Daddy's attorney, Herna Sutana, said 70 containers of Lady Gaga's concert equipment had been transported by air and by sea to Jakarta. Forty containers had arrived in Jakarta by sea.
The concert tickets had been sold out. It cost from Rp465 thousand to Rp2.25 million. Tickets shall be refunded in full. According to music promoter Marcel Permadi who is also Account Director of Berlian Entertainment, Lady Gaga is the most expensive artist today. The price to get this singer to perform in Jakarta is about US$ 2 to 3 million or some Rp20 billion.
If 50,000 tickets had truly been sold out, the concert committee would have pocketed at least some Rp67 billion from the ticket sales proceeds. Naturally the promoter continued to strive to obtain a permit for the Gaga concert.
Nonetheless, music promotor Adrie Subono did not count the ticket money refund as a financial loss from a canceled concert. Adrie assured that a month before the concert, the promotor would normally have paid off the rest of the 50 percent advance money to the artist's management. According to him, this burdened the Big Daddy Entertainment as the concert promotor. "If the cancelation is made by the Indonesian promotor, the paid money would not be returned," he said.
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