The Capshaw Model

Coran Capshaw, the brains behind Red Light Management, Starr Hill Presents, MusicToday and Bonnaroo, single handedly changed the way fans discover events, buy tickets and experience live music. This new found link between fans and artists boosted overall event awareness.  "That direct interaction is unique," says Capshaw. "It's a bonding experience." The proof lies when in 2002, Capshaw, through MusicToday, sold out Bonnaroo in eleven days without mainstream marketing.

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Capshaw, in using the technological advances of the Internet and social networking, took a stagnant industry and sent it skyward. In 2009, the festival grossed $30 million dollars, $18 million from ticket sales alone. The key to this success, in Coran’s eyes, was event awareness. Too many shows and acts would come and go without notice of primary demographic pools. Capshaw altered his business model with the growth of technology and networking to boost awareness, which ultimately led to ticket sales. "We're able to say to artists, 'We know more about your fans than you do,'" says Nathan Hubbard, 31, who runs Musictoday as Capshaw's chief of staff. "Let's put our heads together and figure out how to monetize this relationship."

Not all business models are seen as successful even though they are a prominent industry power. CEO of Live Nation, Micheal Rapino, is often at the end of criticism from media and investors alike about his aggressive expansion and acquisition model. According to Rapino, LiveNation spent $3 billion dollars to promote 20,000 shows in more than 30 countries. Some may say he’s spreading himself too thin. One of Live Nation’s biggest acquisitions was TicketMaster, combining the worlds leading promoter and ticket provider. Will the monopoloy-esque model survive? Only the market will tell.

Capshaw and Rapino both have found success in similar industries. Both models lead to ticket sales and customer relationships. The main difference lies within sheer size of outreach. Is it better to provide mainstream information to a larger group of customers? Or is it better to provide a personalized relationship between artist and fan?