Something Controversial? $20m U2 tour sponsorship?

[paulrg]

Just found this in my email from atu2

October 24, 2004
Silicon Valley Watcher Scoop!

Intel beats out DHL for $20m deal to sponsor U2 tour
Silicon Valley’s love affair with the band U2 is about to expand into a ménage a trios, with Intel jumping into bed with the Irish rock band as sponsor of its world tour--reports our very own Silicon Valley Watcher, Jochen Siegle, also a contributing writer to the top German weekly news magazine, Der Spiegel, and Spiegel Online.

According to sources close to the deal, the value of the sponsorship deal is about $20m and Intel outbid DHL, the international package delivery company for the top sponsorship slot. It is part of Intel’s efforts to extend its “Intel Inside” brand into consumer electronics markets.

The deal expands on Silicon Valley's involvement with U2, and it signifies the growing importance of consumer electronics to the region’s technology companies and venture capital investments. Apple Computer is expected later this week to introduce a black iPod, pre-loaded with U2’s forthcoming CD release “ How to Dismantle an Atomic Bomb.” The songs will be available on Apple’s iTunes service about 1 month before they are released on CD.

U2’s lead singer, Bono, is working with Elevation Partners, a venture capital firm that includes Roger McNamee from Silver Lake Partners, Fred Anderson, the former Apple Chief Financial Officer, and John Riccitiello, former president of Electronic Arts.

The “Intel Inside” campaign has been extremely successful within the PC market. But now Intel’s focus is shifting to consumer electronics, where the Intel brand has less heft.

U2 could be a valuable ally in Intel’s brand building. U2’s audience includes plenty of people who grew up with U2 more than 20 years ago and now constitute a valuable demographic with plenty of money to buy expensive digital entertainment systems.

The sponsorship deal also indirectly associates Intel with Apple’s iPod music player--an association that sources close to the deal say was a key factor for Intel.


Full article at:http://www.siliconvalleywatcher.com/mt/archives/2004/10/silicon_valley_1.php#more

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My 2 cents worth..

I don't have a problem with this. If U2 can bring in money like this and put it to good use then go lads. Presumably this means they can undertake a very ambitious/expensive tour (like Popmart or ZooTV) without worrying about breaking even.

Apparently we are a "valuable demographic"

 

[ramblin rose]

My eyes stopped at the part where it said:

"The songs will be available on Apple’s iTunes service about 1 month before they are released on CD."

I actually agree with the demographics part. I couldn't spend the money I do now 20 years ago, that's for sure.

 

[paulrg]

Shit yeah! I missed that part but it could be crossed wires and referring only to Vertigo - I hope not though.

 

[Lo-Fi]

Vertigo was released nearly 2 months before the album for download. I hope it's right and the songs will be available around.... now?

The tour sponser is something they said they'd never do, but in sayin' that, it's never really bothered me to be honest. It'll mean an ambitious tour like PopMart as you said, so that's all good with me.

I'm more intrested on the songs being available a month before the CD release!

 

[ramblin rose]

Why does something like this happen to me everyday. Ever since the guy in the Ipod thread said yesterday evening that the songs would be available today I haven't been able to get it out of my mind.

I kept saying to myself it's not going to happen, it's not going to happen, but I can't stop thinking about.

Now there this article which says something similar. So now I'll suffer until noon central time and then just be disapointed again, until the next false alarm.

How many days left of this shit?

Back to the article:

Personally, corporate sponsorship doesn't bother me in the least. I guess I'll attribute it to the fact that I'm older, been a part of extremely large corporate America for a great # of years and got over my "sellout" phase somewhere around '87.

 

[Aardvark747]

Didnt they struggle to break even on without Corporate Sponsorship on the Zoo TV tour?
It doesnt bother me in the slightest anyhoo..

 

[Jim]

Doesn't bother me either - if this tells us anything it's that we are in for an incredible tour!

I saw the U2 Legends programme for the first time last night and it seems that since the last stadium tours, the band are not prepared to break their backs with the massive costs/stresses of those expensive tours. This way I guess they can spend more time on making the best show of their lives and less on commercial worries.

And I doubt that we will have 'Intel' slogans everywhere.. it will have to be done in a very subtle way.

 

[MadelynIris]

I'm shocked it's Intel though. They are major competitors with Apple and if Apple didn't know about this, expect some dissapointment.

Thought for sure it was going to be apple.

From a business POV, this might be U2's exit strategy.

Mark

 

[paulrg]

Didnt they struggle to break even on without Corporate Sponsorship on the Zoo TV tour?
It doesnt bother me in the slightest anyhoo..

The below extract from Bill Flanagan's book shows how none of this is new - issues U2 were tackling 13 years ago.
***
Larry's question hangs in the air. What is it going to cost? One element essential to the whole enterprise is the purchase of a Vidiwall, a giant television screen. The bad news is, it costs four to five million dollars. The good news is, the Vidiwall is built by Philips, the company that owns Polygram, the company that just bought Island, the record label to which U2 is signed! McGuinness has been wanting the band to meet Alain Levy, the head of Polygram. The band hatch a plan to invite Levy over and really butter him up. They will invite him to dinner at Adam's house and to spend the night at Bono's—and they'll hit him with the notion that it would be great for everyone if Philips gave U2 the Zoo video gear for free—as a demonstration of corporate synergy. Here's the hardware from Philips, the album from Polygram, and the music from U2.

At dinner Levy, a Frenchman, seems neither unpleasant nor overly chummy. What he clearly is is smart. Bono figures if they try to play games with the guy they'll just insult him. After all, Philips/Polygram just paid $300 million for Island, essentially to get U2. They must like the band. So during dinner Bono leans over and asks: How about you asking Philips to give us the video screens? Levy looks at Bono coldly and says, "You don't even wait for dessert to ask me this?"

Bono is taken aback. Levy continues coolly: "I'm not stupid. I know why you asked me here. I'll look into it. We'll see."
To U2's disappointment (and resentment) Philips rejects Levy's proposal. U2 will have to fork out the money for their Vidiscreens like anybody else. Apparently the research scientists at the electronics company care less about U2 than they would about a longer-burning lightbulb. Levy gets Polygram to kick in a half million bucks or so in tour support, as a gesture of goodwill.
By the time U2 starts getting a fix on just how expensive their plans are going to be to execute, Larry's not the only one swallowing hard. Mounting Zoo TV could easily cost $50 million.

 

[Earnie Shavers]

Intel? That blows.

 

[tkramer]

I'll reserve judgement for when the tour revs up. At this point its all too early to tell what I think of it. If I have a see their name on my ticket, no big deal. I stared at VH1 on the last two. If it's on the back on the program in the corner, who cares. But if a giant Intel logo is emblazened across the stage, that could be tacky. So I'll just have to see what they do with it.

Personally, my opinion is Intel is the anti Apple. Unhip, Uncool, boring tech corp, etc.

 

[starsgoblue]

My eyes stopped at the part where it said:

"The songs will be available on Apple’s iTunes service about 1 month before they are released on CD."
.

That can't be right....the CD would be all over the internet illegally then..

 

[artdirector]

So where are we with this...any annoouncement?

 

[isabelle_guns]

I'm not bothered by this at all

 

[barrett]

I am just glad it is Intel rather than DHL. At least the intel commercials will be high tech and in line with any Apple commercials. If DHL had bought u2 then we would be having commercials showing Bono delivering packages across the world.

 

[Achtung Ya'll]

I am just glad it is Intel rather than DHL. At least the intel commercials will be high tech and in line with any Apple commercials. If DHL had bought u2 then we would be having commercials showing Bono delivering packages across the world.

In those super gaudy yellow and red colors at that!

I like Intel, I love U2, I don't mind Corporate Sponsorship...this is all good IMO.

 

[PowerSurge]

does it really matter who helps pay for it?

If they get Preperation-H to pay for the tour and my tickets are $30-40 cheaper than the last tour I'm all for it.

 

[doctorwho]

I know a lot of fans will hate this sponsorship, but as I wrote in another thread, a large group of fans also hated when U2 "dared" to charge $57.50 for tickets during the PopMart tour or when tickets reached $130 for the Elevation tour. Never mind that the PopMart tour still sold $35 tickets (the same price as ZOO TV) and that the Elevation tour had lots of $45 tickets (just $10 more than ZOO TV).

Given the ridiculous cost of items these days, I fear that without sponsorship, U2's ticket prices would be incredibly high - and that would truly set off some fan revolt. Even though the Bee Gees were charging $300 for tickets in 1997 and Madonna's *cheapest* tickets for her current tour were $100, if U2 charged $150 for top tickets for the upcoming tour, fans would scream.

It's really a no-win situation for U2. Fans will cry if there's sponsorship yet fans will cry if tickets are too high.

Therefore, I say take the sponsorship. I may not be crazy about seeing the "brought to you by Intel" all over the place, but this at least keeps more $$ in my pocket.

Now, if U2 take this sponsorship AND sell tickets at $200+, I will be irate.

 

[SkeeK]

well quoth, doctorwho

 

[adamgirl]

I read in the "U2 Show" book in the interview with Paul McGuinness that they have been trying to hold off on corporate sponsership but didn't know how much longer they could and thought it was inevitable. The only reason they are doing it is to keep ticket prices at a reasonable price and to keep things running with minimal headaches. I was surprised that it wasn't Apple too but then saw today with the ipod announcement that U2 recieved no money for the ipod commercials and that it was a complete joint venture. No matter what, they had to go with the best deal. Whatever the deal is with Intel it will be done smartly and they wouldn't go into something like that not knowing to make sure things aren't over done. We might not see an Intel commercial with U2 in it, especially after the ipod commercial. Probably something like Intel commercials with U2 music playing in the background or Intel mentioning that they are sponsering the tour in the commercials. That's at least what I would like to see. I seriously dobut we'll see the Intel logo across the stage floor. U2 would fight that one tooth and nail.

 

[Zoomerang96]

wow, every day the news keeps getting worse and worse. it's like u2 is tripping over themselves, they can't sell out any faster than they already are.

oh how morals always seem to get in the way of a pretty penny...

 

[Flying FuManchu]

I don't mind it as long as ticket prices come down and its not in my face during a show.

 

[UnforgettableLemon]

remember, all of the business decisions are imperative to the quality of the music. If they're taking on sponsors, that must mean the album sucks... or not. The band is about the music people. I give not a shite what they do in regards to business, unless they're exploiting small children to make the parts for the stage

 

[Zoomerang96]

well why the hell are they doing this NOW?? they're multi, multi, MULTI MILLIONAIRES WHO DONT NEED THE MONEY. if they sold out when they were trying to get started, fine, but what's the excuse at their age and level of success they currently enjoy?

 

[UnforgettableLemon]

I'll buy the cheaper ticket prices theory, myself. And continue to judge the art, not the artists. I just don't see how this affects the music.

 

[Zoomerang96]

no, you're right it doesnt necessarily affect the art. it rarely does. however, so long as u2 is trying to appeal to everyone, they'll soon start appealing to noone. i've never seen a band so concerned about remaining popular.

 

[UnforgettableLemon]

I don't know; if the leaked lyrics are legit, there's some pretty intense personal stuff there. I think this is almost a cathartic album. If you just mean musically, then maybe so. But from what I've heard I find it refreshing. I don't want to see them abritrarily pursuing musical directions if they're not inspired to do so. I don't want half-assed experimentation. If that's not what they're feeling anymore, so be it

 

[Hawk269]

The jury is still out, but here is how I see it. It's all about intent. If U2 did this Intel tour sponsorship to benefit the fans and keep ticket prices down, that is one thing. But if they did this to put out the same technology and scale level of shows as Elevation, while they turn a huge multi-million dollar profit, then that is not cool. That would be pure greed, in my opinion. I'm not saying the negative scenario is what I believe at this point, though, because I am giving U2 the benefit of the doubt.

Aaron

 

[adamgirl]

The only reason I can see U2 taking on a sponser is to keep the ticket prices low and as I said before, they are going to do it carefully.

 

[jay canseco]

Golden Circle seating?