Rebel Heart Tour pricing sparks Economic Inequality debate in the Phillipines

[realityisalways]

Meanwhile, in Manila, Lulu Moguel, a business professor at a top graduate school, calls the business executed for the Philippine audience “an exploitation.”

“What is in the Philippines that they’re selling tickets at that price point?” she asked. “Why do we allow these people to sell us tickets at this price, when they know we’re Third World?”

She recalled a 2012 column by Jemy Gatdula in BusinessWorld, which noted that the Philippines scored an average IQ level of 86 (“borderline cretin in terms of IQ, just one level up from moron and two levels up from an imbecile.”). That, in the analysis of Ms. Moguel, may have been taken into consideration during the local concert’s market research. “With very few thinking Filipinos, and fueled by arrogance, we can be exploited by foreigners,” she said.

She added that the pricing takes advantage of the demarcation of social classes, with corporations and celebrities on the frontline. This more successful segment, after all, grew up with Material Girl.

“Most of the patron seats are paid for by corporations. Rarely do patron ticket holders pull money out of their pockets,” she said.

Maria Lourdes Lim, a tax managing partner at Isla Lipana & Co., clarified that corporations may generally claim sponsorship or ticket purchases as deduction for income tax purposes. In an e-mail, Ms. Lim said that fees paid by corporate sponsors to local concert promoters may qualify as advertising or marketing expense for promotion of the corporation’s name, products, and brand. The expense should be properly substantiated and, if applicable, subjected to withholding tax. On the other hand, the value of tickets purchased may be claimed by the corporation as deduction against its gross income either as entertainment, amusement and recreation expense, or fringe benefits expense.

LUCKY STARS
For Ms. Moguel, local celebrities patronizing the concert will also encourage other Filipinos to do the same for them. “The industry will flourish,” she said. “In the long run, it will help celebrities recruit more audiences when it’s their turn to perform.”

For his part, Star Studio Magazine editor Ian Reyno believes the ticket pricing is justified. Much like himself, local celebrities he is close to do not have qualms about the cost. “When it comes to the Queen of Pop, there are no celebrities,” he said. “We’re all fans.”

To actress and singer Cherie Gil, one of Madonna’s fans among the country’s top celebrities, the American diva is no second-rate artist. “One night to watch Madonna is money well-spent,” she told BusinessWorld in an interview.

Ms. Gil knows that the move to sell at those prices is a calculated business move. “Why would they bring a Madonna not knowing if they can sell the show or not? There’s money here!” She also qualifies that Madonna’s artistry, having evolved a long way from the lapidary Eighties, is not “pa-masa [for the masses]. She’s quite elitist, her concept. So that’s the market: people who can pay.”

When ticket pricing to the Rebel Heart concert trended on social media, netizens broke into an uproar. But whether it urged or discouraged people from getting tickets, for sure the pricing was its own unwitting statement.

“She is definitely asserting her iconic status,” said Joel Mangahis, a marketing management professional in the financial industry. “From the marketing point of view, Madonna’s target has a higher capacity to pay than the target of the younger pop singers.”

Apart from the more accomplished segment of society, the extent of Madonna’s local audience reaches younger professionals who were not even born when her zeitgeist film Desperately Seeking Susan was showing in Manila cinemas.

Alyssa Cuarto, a 25-year-old manager at a record company that produces music for digital distribution, bought tickets within the first hour of selling on the second day. By that time, seats in the Php8K category were already few and far apart. That didn’t stop her. From watching the diva -- through YouTube -- greet the crowds in London, Paris, and New York, Ms. Cuarto is now anticipating hearing: “Thank you for being here, Manila!”

Music Insights, a tool of Google’s YouTube For Artists initiative, reveals that the Philippines is the 17th country in the world with the largest fanbase for Madonna -- with 7,335,170 total views, as of this writing. YouTube’s developers designed this as a resource for artists to map a tour, because top cities are a good indicator on where fans may shell out money to see a concert, an upgrade from watching free at home.

As such, YouTube viewers like Ms. Cuarto are lining up, carrying some bragging rights along with the privilege. “To be able to say you saw the Queen of Pop performing in the flesh, when other people are just stuck at home watching clips of her online, means that you’re one of the lucky few.”

BORDERLINES
Rolando Tolentino, University of the Philippines College of Mass Communication Dean, calls this phenomenon a “coming-into-consumerist age” of the generation of loyal fans who patronized her and now have access to financial wealth.

Mr. Tolentino, who once wrote about social hierarchy in malls, believes that a similar pattern is at play in the configuration of concert arenas.

“Anything that is highly priced caters primarily to the rich. But unlike other ventures marked exclusively for the elites, there is pop culture built into the Madonna concert,” he said. “This means that Madonna is a pop icon whose music is accessible to all. The concert therefore is even made more elitist because the rich know they can attend while the poor know they can only desire.”

After filtering those who can pay from those who can’t, inside the arena, social stratification persists.

The rich get to be up close to the star, and the poor enjoy the view from the bleachers. Other spaces -- exclusive restaurants in malls, hotel buffets, high-end premieres and meet-ups with celebrities, including the Pope -- have long reified class hierarchy in the country, Mr. Tolentino said.

“Intersections in society in the partaking of consumer goods are only possible if the class base has been liberalized, i.e., there is a substantial middle class in place. As it is, the middle class is supposed to account for only 20% of the population, with only one percent in class A,” he said. Given an economic boom that affords a considerable portion of the populace financial wealth that, in turn, allows the luxury of consumer purchases, there is further growth in high-end retail and consumption. “The high-end can begin to become middle-end, and, of course, new higher-end products will be made available. As for now, most Filipinos can only desire these brands and only in their dreams, to purchase them.”

As Madonna begins her tour in September, the few who can afford wait expectantly for the day they get to fill the MoA Arena. This will be the closest their money can take them to pop paradise. Cause we are living in a corporate world, and we are material boys and girls, and few are privileged to touch the star’s ray of light, for the very first time.


http://www.bworldonline.com/weekender/content.php?id=113007#sthash.xHgSyoj0.dpuf

[Nightshade]

I am not trying to sound inconsiderate, but why do people complain about ticket prices to a concert? If you can't afford it, don't go. If enough people don't go, the prices come down. It's not like health care costs (a service you will need at some point in your life). It's a friggin' pop concert.

[Guest Rachelle of London]

I am not trying to sound inconsiderate, but why do people complain about ticket prices to a concert? If you can't afford it, don't go. If enough people don't go, the prices come down. It's not like health care costs (a service you will need at some point in your life). It's a friggin' pop concert.

I agree with you.

[MeakMaker]

Exactly, no one is moaning about the price of an iPhone! If you haven't got the dosh stay home or go watch Taylor Swift who is cheaper. lol

[FreeMySoul]

I am not trying to sound inconsiderate, but why do people complain about ticket prices to a concert? If you can't afford it, don't go. If enough people don't go, the prices come down. It's not like health care costs (a service you will need at some point in your life). It's a friggin' pop concert.

Madonna is my health care

[kingvirtue]

It's sad when real fans are unable to attend a show because they can't afford it.

[Kim]

It's sad when real fans are unable to attend a show because they can't afford it.

That's the crux of it.

So if Madge/her management decide that her next tour is gonna be a corporate $$$-fest for REALLY rich people only in the West as well, then we should all just shut-up and "don't go then"? Selfish.

[FreeMySoul]

ok lets start boycotting this damn tour

we will stand outside the arena and burn our tickets

[Guest Rachelle of London]

That's the crux of it.

So if Madge/her management decide that her next tour is gonna be a corporate $$$-fest for REALLY rich people only in the West as well, then we should all just shut-up and "don't go then"? Selfish.

The prices in the PH are RIDICULOUS but I agree that it's a pop concert. It's not a necessity. I wanted to buy some LV trainers this week, but they were too expensive. It sucks. Should I write an article about Louis Vuitton and their prices? Madonna doesn't owe anyone anything. Yes her prices are extortionate but a Filipino member already explained that the PH government adds taxes onto concert tickets so the high prices over there aren't all M.

[Mmmmm]

And yet a lot of the fans go to multiple shows which cost £££ and that's their own choice.

Putting on a show cost millions so expect high ticket prices.

[Guest Rachelle of London]

The thing I have an issue with is M shouldn't complain about the corporate business types at her shows. They're the ones buying tickets. Especially in nations like The Philippines

[Kim]

There's no point in getting into this debate AGAIN, £200 tickets are just fine and dandy. All the "regular" pricing (by Madonna's standards) is understandable and expected. BUT making it so that over HALF the arena are 2 3 and 4 times inflated VIP/package deals IS a rip-off. End of. The situation in Asia where it looks like just a load of corporate people getting freebies is a damn shame. End of 2,

[Mmmmm]

The thing I have an issue with is M shouldn't complain about the corporate business types at her shows. They're the ones buying tickets. Especially in nations like The Philippines

But does M leave the ticket business to live nation? I just think a big finger should be pointed at Live Nation. Other big acts, not just M charge ALOT!

[Kim]

Putting on a show cost millions so expect high ticket prices.

Oh, and according to so-called insider 'andifeel' (who indeed goes to about 30 odd shows per tour) the likes of Katy Perry's last show had a far more elaborate/expensive staging budget than MDNA. That's no excuse either.

[Guest Rachelle of London]

But does M leave the ticket business to live nation? I just think a big finger should be pointed at Live Nation. Other big acts, not just M charge ALOT!

True that. Justin Timberlake was charging £110 for upper tier at the O2. Even Madonnas concert is less.

[Jazzy Jan]

I can fully understand people complaining about prices to concerts. Not every one is wealthy and what of people who may have just lost their jobs for one example. It is sad when huge fans can't afford to go to a concert while spoilt corporates go instead who may not even be that interested. Nothing wrong with huge prices for great seats but when average seats are so expensive, it is all a bit much for less wealthy people to shell out. This conversation reeks of that saying " I'm all right Jack" which is a bit unfair.

[Kim]

It also prices younger generations out of the market. Her live audience therefore gets older and smaller. It comes back and bites them on the bum eventually. Young 'uns who should have been discovering her live shows round about RIT and Confessions tours...didn't ..because that's when the "legacy act" prices started (prematurely in my opinion, as she was still very much a chart act unlike The Stones et al) It's a damn shame when some people these days aren't even aware of what a great live performer she is.

[Mmmmm]

Yeah agree with you guys, such a damn shame.

[Guest Rachelle of London]

Yeah I agree with Kim and Jazzy. It's true what you're saying, it really isn't fair on real fans. I do still think too much is written about Ms prices when artists who aren't even as good charge more

[MeakMaker]

I think it's all down to our priorities. People save money for a lot of things; holidays, cars, gifts, etc... If you're a huge fan you would start saving. Some people are not that kind of fans so they would rather go on a holiday or something. But then again, it's not that expensive. If you consider it would take at least 200 quid if not more for a good night out in London then you see everything in perspective.

The thing is the show is worth all the money and that's what matters in the end. If you pay that much and then you go see a shitty concert ( I would name a few but I don't wanna be mean) people will have all the rights to complain but I'm sure once they see the show they will realise why it cost so much.

[GOD]

There's no point in getting into this debate AGAIN, £200 tickets are just fine and dandy. All the "regular" pricing (by Madonna's standards) is understandable and expected. BUT making it so that over HALF the arena are 2 3 and 4 times inflated VIP/package deals IS a rip-off. End of. The situation in Asia where it looks like just a load of corporate people getting freebies is a damn shame. End of 2,

Kimy crack corn and I don't care!!! 😊

[Nightshade]

The thing I have an issue with is M shouldn't complain about the corporate business types at her shows. They're the ones buying tickets. Especially in nations like The Philippines

This part I agree with.

And again, the costs are high because the show costs a shit ton of money to produce and fly to all corners of the Earth. I don't know what Katy Perry's show cost to launch, but seriously, I have NEVER felt like I didn't get my money's worth at a Madonna show. EVER.

[Guest CzarnaWisnia]

It's fine to want to save up to enjoy a pricy concert, but:

average monthly wage (in US$)

USA 3,263

UK 3,065

France 2,886

Canada 2,724

....

Syria 364

Philippines 279

So getting your money's worth is all relative.

[le smoking]

It also prices younger generations out of the market. Her live audience therefore gets older and smaller. It comes back and bites them on the bum eventually. Young 'uns who should have been discovering her live shows round about RIT and Confessions tours...didn't ..because that's when the "legacy act" prices started (prematurely in my opinion, as she was still very much a chart act unlike The Stones et al) It's a damn shame when some people these days aren't even aware of what a great live performer she is.

I don't think this is strictly true - I was in high school during RIT/Confessions and paid around $60 for upper tier tickets for both, which I think is extremely reasonable (pretty much every A list popstar charges more for the same level). Even MDNA had seats with a distant but decent view for less than $80 I believe. She's always had varying ticket prices, but word of mouth makes the general public believe that every ticket is $300 and that puts them off even looking for tickets. However, with this tour, even the mid level seating prices are $380 (when they were $200 less for MDNA) and that's a whole chunk of the ticket buying public gone

[Sloane]

I've seen Madonna live 5 times and never paid more than $50 for a ticket (and one of those was scalped).

Even a diehard fan such as myself would never pay $1000 for a ticket, even if it's front row. So I guess I agree w/ poster above... if ppl don't buy them, the price will lower.

If she lowered her prices, corporations would still buy them up anyway; after all, they're not buying them simply bc the tickets are expensive.

And, yeah, her shows cost a lot of money to create, hence the price. I'd rather have higher prices and better shows than cheap, cheap, cheap all the way around... like the lessors.

[Nightshade]

It's fine to want to save up to enjoy a pricy concert, but:

average monthly wage (in US$)

USA 3,263

UK 3,065

France 2,886

Canada 2,724

....

Syria 364

Philippines 279

So getting your money's worth is all relative.

Or she could just not go to the Philippines at all. Maybe that's a better option. Lord knows Brazil, Mexico and Argentina would kill to have her back.

[realityisalways]

Oh, and according to so-called insider 'andifeel' (who indeed goes to about 30 odd shows per tour) the likes of Katy Perry's last show had a far more elaborate/expensive staging budget than MDNA. That's no excuse either.

Agree with most of your posts but you can't possibly compare the costumes, rehearsals and video production that goes into a Madonna show with a Katy Perry concert

[Kim]

I don't think this is strictly true - I was in high school during RIT/Confessions and paid around $60 for upper tier tickets for both, which I think is extremely reasonable (pretty much every A list popstar charges more for the same level). Even MDNA had seats with a distant but decent view for less than $80 I believe. She's always had varying ticket prices, but word of mouth makes the general public believe that every ticket is $300 and that puts them off even looking for tickets. However, with this tour, even the mid level seating prices are $380 (when they were $200 less for MDNA) and that's a whole chunk of the ticket buying public gone

Well, all I know is that since 2004, in the UK, every single floor seat, front to back, has been at the highest price level, but sure, some cheaper tix up the back tiers have always been available. I do still think she joined the legacy pricing brigade a bit too early. To still be hitting number one in singles and albums (in Europe) yet alienating a proportion of the people who are putting you there, was a mistake, and allowed low level wannabes like kylie to come in and take (and keep) that market, hence kilo selling out the O2 multiple nights now (at £100ish ticket levels which is mid-upper priced) while Madge is struggling to fill a second night.

[Kim]

..but you can't possibly compare the costumes, rehearsals and video production that goes into a Madonna show with a Katy Perry concert

I was surprised when he said it, but he's very familiar with her tech crew (which explains why he gets front row for EVERY show) and the Perry tour was one he specifically mentioned as supposedly having a more complicated set-up and higher overheads to stage each night than MDNA. Whether it's true or not I have no idea.

[FreeMySoul]

Agree with most of your posts but you can't possibly compare the costumes, rehearsals and video production that goes into a Madonna show with a Katy Perry concert

uhm that shark must be worth a fortune