Originally published in IQ Magazine
A series of recent mergers, acquisitions and partnerships in the production world points to the beginning of widespread consolidation of the sector, some industry experts are speculating. The statements come after a number of smaller owner-operated companies were snapped up by multinational outfits over the last year, operations that are increasingly offering one-stop shop solutions.
Last month saw New York-based Production Resource Group (PRG) announce the acquisition of Nocturne Productions, a leading concert touring video production company that has previously worked with Lady Gaga, Paul McCartney, Bon Jovi, Madonna and Elton John. The past year also saw PRG acquire Germany’s Showtec Beleuchtungs, Procon (formerly ETF Event Engineering), and Belgium EML Productions. “Our companies have been on the same tours and shared clients for years, so combining forces is a logical next step,” says Nocturne’s co-president Bob Brigham.
In April, three leading audio rental companies in Italy came together to form All Access. The new company has made a significant investment in Martin Audio’s Multi-cellular Loudspeaker Array and plans to compete with it on an international playing field. And in May, Pennsylvania’s Tait Towers announced a strategic alliance with Belgium’s Stageco when the two companies opened a joint London office in time for the 2012 Games.
“It’s a natural collaboration of our relationship because we now have an office together in Manheim, Pennsylvania, just outside Lidditz where our main office is,” says Tait’s second in command Winky. “It made sense for Stageco to have a presence there as well because we’re constantly collaborating on shows.” The ongoing increase in multinationals and companies forging increasingly close alliances is allowing for significant cost-cutting on some productions. Australian pop princess Kylie Minogue’s current Aphrodite: Les Folies tour (see IQ Issue 35) has taken advantage of this new opportunity by using only two companies for the tour, which spans Europe, Australia, Mexico and South Africa.
Tait Towers was able to provide the aquatic-themed Aphrodite tour with all water effects, staging, set, automation and performer flying, while all rigging, lighting, audio and video was provided by Montreal-based Solotech – making Kylie’s tour the first international production of its size to strike such a deal. “There are economies of scale with them providing all the personnel and all the equipment,” said production manager Kevin Hopgood.
In Belgium, Ampco Flashlight Group – itself the product of a merger between two leading rental companies – also offers a one-stop shop service. And while others stress the importance of relationships and track record, marketing director Marcel Albers says: “If you look at the music industry as a whole, you see that in a lot of territories worldwide, 80% of business is taken by four major companies. If you look at agents and promoters, that’s also the case. It’s a fact that you’re either small, and very small; or big, and very big.
“It’s an inevitability,” agrees John Penn, MD of SSE Audio (who oversaw the merger between SSE and Canegreen in August 2008). “It’s the way that things are going and a commercial reality.”