Effects[edit]
Radius clauses contractually ensure that a particular act does not hold events at competing venues or festivals within a certain distance of a city in which they are scheduled to perform, for a length of time prior to and/or after the performance.[1] For example, a band booked to perform at a venue in San Francisco may be barred from performing in cities within a 60 miles (97 km) radius of San Francisco, for 60 days, before and after the concert. These clauses intend to maximize ticket sales; as an act cannot also perform concerts in smaller, nearby markets, fans in these markets are forced to instead buy tickets for the act in the major market.[1][2]
The use of radius clauses has been considered controversial by some venue owners—especially those who own small-market venues in proximity to larger markets, or those in markets with a large number of venues—as they affect their ability to book major acts. In the city of Chicago, radius clauses imposed by the city's major music festival Lollapalooza can make it difficult for venues and block parties around the city to book major acts during the lucrative summer months. Similar effects are faced by the Greater Los Angeles Area in the lead-up to the Coachella Festival, although they are not as pronounced as those of Lollapalooza because their radius clauses fall during the winter months.[1][2][3]
Dangerbird Records founder Jeff Castelaz argued that such clauses were a "reality" in the music business, since music festival promoters have to protect their investments in securing acts and promoting their event.[3] On the other hand, while noting that festival appearances can be a significant milestone for an up-and-coming act rather than exclusively playing clubs, talent agency head Tom Windish felt that there was a mentality in the live events industry where "if you don't have 75,000 people at your event, it's a failure."[3]
Notable users[edit]
Coachella[edit]
The Coachella Valley Music and Arts Festival uses radius clauses which, as of 2012, could prevent acts from performing in Los Angeles, the Inland Empire, or San Diego for up to three months before and after the festival. The festival has allowed some of its acts to make appearances in the region prior to the festival, but only at events and venues operated by festival parent company Anschutz Entertainment Group (AEG)—such as Jay-Z at Staples Center in 2010. That year also marked the first time Coachella had ever sold out in advance.[3][4][5]
In 2018, the organizers of the Portland, Oregon Soul'd Out Music Festival filed an antitrust lawsuit against AEG, alleging that Coachella had enforced radius clauses much stricter than previously reported. In its original complaint, the organizers stated that the restrictions had extended to the entirety of California, as well as Arizona, Nevada, Oregon, and Washington. In an amended complaint, the organizers identified that Coachella performers are forbidden from:[6]