Last year, Groupon (http://www.groupon.com), a shopping website offering a daily deal in more than 300 markets around the world, announced it “will offer recorded music features, kicking off with the fifth studio album from pop sensation Rihanna, “LOUD” (Island Def Jam Music Group), in addition to the variety of unbeatable features that have made Groupon a global phenomenon, “LOUD” will be available as a $5 digital download in the inaugural holiday store of Groupon, the Grouponicus Store”
On top of the digital album download from Rihanna, Groupon continued to sell tickets for area festivals and concerts, previously featuring in-demand events including Chicago’s Riot Fest and tickets to Bon Jovi.
Many music industry professionals point to touring as the last frontier to make money for bands and artists, as music sales (CD / downloads) have dwindled. But can larger Music Acts, Concert Promoters and Tour Management yield sufficient revenue from Concerts if they’re giving tickets away at 50% off?
The answer is that they are leveraging GroupOn to fill arenas that on “off” dates or venues that don’t drive as much traffic, and plan on making up for the lost ticket revenue via merchandise sales and concessions. In addition, the “buzz” that’s generated when fans hear that a concert is “SOLD OUT” is magnetic and often encourages others to buy tickets for other dates and venues on the tour schedule.
What are your thoughts on Groupon for Music? Will it help or hurt Music Talent or Fans?



