LUIS ESTRADA IS NAMED PRESIDENT OF UNIVERSAL MUSIC’S SOUTHERN CONE (ARGENTINA, CHILE, URUGUAY AND BOLIVIA). WARNER MUSIC INDIA OPENS, LED BY MANAGING DIRECTOR JAY MEHTA.
VIÑA DEL MAR, CHILE — As the
spread of the coronavirus
forces promoters around the world to
cancel and postpone concerts, music
executives in Chile are dealing with
another kind of epidemic: protests and
political rallies that add costs, compli-
cations and concerns about security to
productions throughout the country.
Chile, traditionally one of the safest
and most politically stable countries in
Latin America, underwent a political
shift last October during the estallido
social (“social explosion”), a series of
nationwide protests against the eco-
nomic policies of right-wing president
Sebastián Piñera. After years of mal-
aise that have seen the erosion of edu-
cation, health and retirement benefits,
protesters are demanding constitu-
tional reform. (The “social explosion”
term refers to protests that are not
centered on one issue, region or faction
— hence the term “explosion.”) Now
the protests and economic downturn
are rattling the concert industry.
Some promoters have reduced their
slate of shows by over one-third this
summer (which runs from December
to March in Chile), and the number of
bookings has fallen. Insurance and se-
curity costs also have risen, sometimes
by as much as 50%, according to some
organizers. “You have protests, the
coronavirus,” says Carlos Lara, CEO
of concert promoter Swing Music,
whose clients include Luis Fonsi. “It’s
a lot of variables that were not in the
equation before.”
The tumult came to a head during
the six-day, sold-out Viña del Mar In-
ternational Song Festival in February.
Protesters outside the event demanded
its cancellation, even though it has
nothing to do with politics. But the
festival’s international importance — it
has a global TV audience of 250 million
viewers, according to Kantar Ibope
Media — made it a perfect place to find
an audience for their grievances.
On opening night, cars were set afire
in front of the famous Hotel O’Higgins,
causing the evacuation and closure of
the property. That evening, sources
say protesters threw rocks at vans
taking Ricky Martin’s staff to the event.
Martin did not consider canceling his
show, according to Daniel Merino, a
promoter at Bizarro Entertainment
who was also the general producer of
Viña del Mar, and none of the artists
canceled their sets. “But we did have
artists calling to ask what was going
on.” (The festival resumed the next day
without incident.)
So far, the coronavirus largely
has not affected Chile, and no major
concerts or tours have been canceled
for health concerns. However, many
smaller shows and festivals, includ-
ing the municipal summer events that
are important for multiple artists and
promoters, have been put on hold due
to the civil unrest. Swing Music went
from 35-40 shows last summer season
to 10-12 this year. Bizarro is cutting
back about one-third of its shows,
going from an average of 75 per year
to roughly 50 to accommodate the
economic contraction.
The website for Movistar Arena in
Santiago, one of Chile’s most important
venues, shows a long list of canceled or
postponed shows, the reasons ranging
from “health” to “factors having to do
with national contingency.”
Discontent in Chile reached a
boiling point on Oct. 18, 2019, when
thousands of students protested
a spike in subway fares. That day,
Merino was producing the second of
four shows by André Rieu at Movistar
Arena. “They called me literally in
the middle of the concert,” he says.
“I turned on the television backstage,
and I saw the army in the streets.
We had 12,000 people in their seats,
“ IT’S A LOT OF
VARIABLES THAT
WERE NOT IN THE
EQUATION BEFORE.”
(^) —CARLOS LARA, SWING MUSIC
In Chile, Concert Promoters Face More
Than A Virus As Political Protests Take Toll
BY LEILA COBO
and Rieu was playing waltzes.” The
concert went on without interruption
and attendees left safely, despite
subway closures. But the final two
shows were postponed, translating to
$1 million in lost revenue. Merino says
insurance covered the costs, and Rieu
is scheduled to return in May.
Moving forward, increased insur-
ance costs are but one additional
element promoters in Chile have to
consider. Another is security. Carlos
Geniso, president of local promoter
Digimedios, says he has increased
security personnel by 30% to 40%.
“We never had security
checkpoints in venues before,” says
Merino. “We had to invest in that.”
For Viña del Mar, Bizarro’s biggest
production, the company hired a
security drone and 220 guards, 80
more than in previous years.
Chile’s economy continues to strug-
gle. The currency has fallen nearly
20% versus the dollar since October.
“These costs appeared overnight, and
you can’t transfer them to the con-
sumer because the tickets have already
been sold,” says Merino, echoing Lara.
“But in a convulsed society, we don’t
want to raise ticket prices.”
On April 26, Chileans will vote to
decide if their country’s constitution
will be amended to reduce the role of
government in the economy, which is
what the protests have been calling for
all along. In the meantime, the shows
will go on — at least for big names.
Geniso already sold out a Billie Eilish
concert in June, and tickets for Harry
Styles and Michael Bublé are going on
sale soon. Lollapalooza Chile is still
slated to take place March 27-29 at
O’Higgins Park, with performances by
Guns ’N Roses, Travis Scott and Lana
del Rey. Thus far, no one has canceled,
according to Maximiliano del Río of
Lotus Productions, which has pro-
duced the festival for a decade.
Del Río says that most tickets had
been sold prior to the disturbances
in October. “We’ve reinforced secu-
rity and some controls, always aimed
at ensuring things take place peace-
fully,” he says.
As for Lara, he says he’s not adjust-
ing plans for his concerts over the
next 12 months, but he’s also not
venturing into projects where he’s
uncertain about ticket sales. “Even
in a crisis, people want to have fun,”
he says. “Things will normalize once
the masses see a change in how the
country is managed.”
From far left: Martin at the Viña del Mar
festival on Feb. 23; demonstrators clashed
with riot police at the event on Feb. 24.
16 BILLBOARD • MARCH 14, 2020
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THE MARKET GLOBAL REPORT