Is Lollapalooza Going Too Far on Radius Clause?

Is Lollapalooza hurting the summer concert scene in Chicago? The Attorney General of Illinois thinks so and is looking into an anti-trust violation by the large Chicago festival.

Lollapalooza, as well as Coachella, and Bonnaroo, have what is called a 'radius clause.' It prohibits any band performing on the festival from playing within 300 miles of where the venue is held. The 300 mile clause starts nine months prior to the event and lasts 90 days AFTER the event.

Most big name artists have the ability to negotiate this clause out of the contract. Don't think Soundgarden is allowing Lollapalooza to dictate when they play Chicago again. But smaller bands like American Bang and others don't have that negotiating power. So they have to just play one show in the third largest US market a year.

It also hurts the local concert venues who relay on the word of mouth, or the buzz these bands are generating from being on Lollapalooza to fill their venues. Business is slower in the summer around Chicago because big festivals have these clauses and pull over 100 bands a piece. These venues are squeezed on in the summertime when most kids and grownups have the time to go to shows.

When you think about 300 miles for just Lollapalooza, it affects big markets like Milwaukee, Detroit, and Indianapolis. So the effect is felt far and wide to this dumb clause.

It is, however, the industry norm. You want to protect your investment. You want people to come and see the band they like at YOUR festival and not in a smaller venue for less money. I understand this, but NINE MONTHS PRIOR?! That is a bit excessive.

You can read more about the clause and what the Attorney General is looking into at the Rolling Stone article here.

 
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  • 6/28/2010 7:57 PM Ben Sommer wrote:
    Wah - it's a free country don't play a festival if you don't like it. And if enough bands feel it's worth the sacrifice and opt out, the festivals will lighten up or suffer the increased competition.
    1. 6/28/2010 8:32 PM Craig Wettner wrote:
      Generally, I'd agree with you. However, some of these bands need the exposure these large festivals can bring in, but then they are not allowed to go back and capitalize on the new fan base for at least a year. Most people can't remember anything past 5 days now a days, so I can't expect them to remember a band they liked out of 121 bands.

      I just think the 300 radius clause should be slacked to maybe 100 or just the major area.

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