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ATG moves to calm fears of monopoly in the regions

Published Wednesday 11 November 2009 at 12:45 by Alistair Smith

Theatre managers and producers will tomorrow (Thursday, November 12) have the chance to interrogate the Ambassador Theatre Group about its plans for its new portfolio of theatres, following its £90 million purchase of 16 of Live Nation’s UK venues, which has prompted concerns within the industry that it now holds a near monopoly of the regional touring circuit.

An extraordinary meeting has been arranged at this week’s Theatrical Management Association Winter Event at the Almeida Theatre in north London, where TMA members will be able to question Michael Lynas, ATG executive director, about the company’s plans. Lynas will also give a short presentation.

James Woods, a producer for Mark Goucher and council member of the TMA, said he was “delighted” that Lynas had agreed to address the concerns of TMA members.

He added: “I’m delighted that ATG has agreed to come and talk to a wider group of people and address questions from the floor. I think there are fears that their power may mean they can very much call the shots in terms of where shows play and what deals they might be playing on. Some independent venues are also concerned that there might be pressure to go to ATG venues instead of them.

“On the other hand, of course, there may be positives. It could be a one-stop shop to book your entire tour, to get virtually all the country in one go. That may be a positive, but I do feel that, with the lack of competition, there is a genuine fear that terms might be dictated very much in their favour and not in favour of the producers.”

His views have been echoed by other leading industry figures, including Calendar Girls producer David Pugh, while concerns have also been highlighted that, following the sale, a majority of the company is now owned by private equity firm Exponent, with observers unsure what this could mean for ATG’s ongoing strategy.

Exponent declined to comment on its involvement in the sale when approached by The Stage. However, it is understood that it supplied around £75 million for the acquisition and now holds a majority stake in ATG.

Meanwhile, the deal, which was finalised last week and saw ATG become the biggest theatre operator of the modern era, is being challenged in the US courts. Key Brand Entertainment - the failed bidder in the sale - has filed a lawsuit in the US, attempting to block the transfer of the venues to ATG. In the lawsuit, KBE, which bought Live Nation’s US theatres in 2008, claims that Live Nation has violated a previous agreement with the company by selling its British venues to a rival.

Live Nation, ATG and KBE all declined to comment on the lawsuit. However, it is understood that because the claim has been filed in a US court, it is unlikely to have jurisdiction over a deal for UK-based venues.

What the producers think of ATG’s purchase…

Edward Snape, producer Fiery Angel and founder of Lovetheatre.com

“There are many positives. They run the theatres well and they are genuine, very knowledgeable theatre people. My main concern is the issue of ticketing charges, which hit both the producer and consumer. In the West End, there is a freer market because all the theatres give up reasonable allocations to outside ticketing agents. In the regions, this is as much an issue in independent theatres as it is with ATG, but ATG should be seen to take a lead on this. They need to be encouraged to bring on board other partners - not just my own ticketing company, but Ticketmaster and Lastminute.com - to cross sell tickets along with Ambassador Tickets. Not only will this help keep down booking fees, but inspire better marketing.

“When you have tens of thousands of seats and there is no competition to the consumer, that cannot be a good thing. You read articles in newspapers complaining about ticketing fees, booking charges. How do we deal with this 18 months down the line, when restoration and booking fees are £6 and there’s no one to say no? The industry needs an effective independent body to regulate the theatre owners and to protect the consumer, independent producers and indeed public money. Both SOLT and TMA are headed by presidents who control and run theatres.”

Michael Harrison, independent producer

“My first reaction was what happens if you fall out with any organisation that has a complete hold over the business? On the pro side, they do need good product, because they’ve got a lot of seats to fill. So, I think it’s up to the producers to continue raising the bar, to be putting good stars, titles and shows out there. It’s a mixed bag from an independent producer’s point of view. But there are so many things that need to be discussed, which is why it’s good there is this meeting on Thursday. I think the important thing is ATG work with the independent producers.”

Mark Rubinstein, independent producer

“Everyone is scared when all the power is concentrated, but they are British theatre people and for that we should be grateful, because it could have been otherwise. Howard [Panter] and Rosemary [Squire] care about theatre and they are people who, as an industry, we know.”

Rachel Tackley, director English Touring Theatre

“As a subsidised producer, I’m not worried. The ATG venues are well-run with good audiences and, as a subsidised producer of drama, I don’t think they have acquired any of the venues I’d be going to. The bigger impact will be on the producers of musicals because they will now have a monopoly on the big musical houses. I’d rather these venues were in the hands of people who understand British theatre, than Americans looking at the profit margins.”

Stuart Griffiths, CEO Birmingham Hippodrome

“Competition is always healthy, so a lack of it is a concern. In practice, I can’t see things will change hugely. They could take the view that they want to be more protective in certain territories. We had a similar situation a few years ago with Live Nation, when they were producing. Producers need to take as much money as they can, so, in our instance, I would hope that will continue to be the case and what is appropriate for the Birmingham Alexandra [which ATG has acquired] will go to the Alex and what is appropriate for the Hippodrome will continue to come here.”

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