Concert Still to Profit?
The situation looked grim for concert promoter AEG Live. With an investment of up to $30 million, and AEG responsible for a potential of $85 million in ticket refunds, the unfortunately canceled concert was going to be a huge financial burden on the company. But AEG Live CEO Randy Phillips is feeling optimistic.
The company had a $17 million insurance policy that covered an accidental death, which it might be able to claim, Mr. Phillips said. And he expected only 40 to 50 percent of fans to redeem their tickets for a refund, substantially reducing the company’s potential losses. AEG Live also owns the rights to audio and high-definition video that was created at the rehearsals, which Mr. Phillips said could earn millions. (source)
As long as Phillips’ estimation of nostalgic fans is correct, sales of rehearsal film footage could provide a huge financial boost for his company.