Is Michael Jackson Proof There's Life After Death?

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Nov. 12 (Bloomberg) -- Billboard Editorial Director Bill Werde discusses the business of touring on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Editorial director at billboard magazine joins us.

There is huge business around these brands, estates, after death, and that is what this war is about.

It'll want to connect with the artist.

The fact that billboard is hosting a conference about tours, it does take me back to jerry garcia.

This is a business where people drove around in winnebago's. why is it so big?

Where as the recorded music business has had its challenges, with people not paying for it, but there is no replacement for hours.

Is it also because of the sponsor opportunities?

For pepsi, you can dump your money into beyonce television advertisements, but if they sponsor the worldwide tour, their name is everywhere.

Brands use entertainers all the time, and one of the biggest tors was a rolling stores -- rolling stones tour.

Citibank sponsor this.

Help me get my head around this.

Why would citibank want to associate themselves with a rock band?

For the credit card company it is about the presale and offering opportunities that no one else can offer.

If you are a city card member, and you get a crack at meeting the rolling stones, that is the experience.

Furthermore, the rolling stones are not selling kids tickets anymore.

Not so much.

What are the ingredients for a successful tour?

Like any other business, it is pricing, demand, marketing.

The business had a correction where they went down for the first time in eight or nine years, and the business took it as a wake-up call.

You cannot over such a macro -- over saturate a market.

It is about using the metrics, social data, information fans will give you, and make sure you are routing the right to work -- tour.

It -- it is the artist traveling the world, how much of a cut do they get?

Typically, it is 80% split.

If you are a superstar, you could command up to 100% of the gross.

The numbers are amazing.

There were seven in the last year that did more than $100 million in growth, and at least three of them, you're looking at taylor swift, pink and rihanna.

Other artists are right behind them.

What does it say to the venues that these artists have so much control?

In new york you have msg, the barclays center, and they're all willing to undercut one another.

Are the venues making less and less money?

The menus are thin, but if they were not making money, they would not keep doing this.

Jim: runs -- jim dolan runs msg.

I do not think he could sell it out himself.

Is it as much about the music or is it the performance?

Is about the music, but there is an expectation of spectacle that is starting to feed this boom in touring because you are having these amazing experiences.

They want to see mick jagger twerk.

That is what it is.

This text has been automatically generated. It may not be 100% accurate.

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