Memo
5 October 2011
To: Geoff
Williams
From:
Natalie Hansby, acting Marketing and Development Manager
Subject:
Zoo Music 2012
Background
Auckland Zoo has hosted eight Zoo Music concert series since 2004, with the following
objectives:
Providing a unique music entertainment experience for traditional and non-traditional Zoo
visitors
Raising awareness of Auckland Zoo’s conservation goals and status
Generating revenue for Auckland Zoo
Raising funds for the Auckland Zoo Conservation Fund
The event retained a unique positioning for some years, based on its offering of a unique setting,
top Kiwi music talent (both contemporary and legendary), a family-friendly environment and an
affordable price point. The ‘concerts for conservation’ message has been increasingly important,
gaining profile particularly since 2007.
In 2010, a strategic review of Zoo music summarised the key environmental challenges for Zoo
Music. These remain valid, and are being compounded over time. The key challenges are:
Significant competition in the music events space - free outdoor concerts offered by
Auckland Council and others, the family-friendly outdoor concert model being applied to
winery tours, and new ‘concert for a cause’ offerings
Limited pool of local talent and changing expectations regarding appearance fees
Events in direct competition with ZooMusic also utilise same artists
The series has declined in profitability over recent years, and in 2011 made a loss. A review of
the 2011 season highlighted the key contributors to be poor ticket sales associated with a sub-
optimal artist line-up, higher than usual artists’ fees, revised pricing and unseasonably poor
weather harming walk-up/gate sales, and the costs associated with using outsourced event
coordination expertise instead of in-house staff resource. The review also highlighted various
efficiency, cost saving and promotional opportunities for future concert series.
Zoo Music 2012
In the initial planning process for a 2012 Zoo Music series, a thorough review of costs was
completed to identify potential efficiencies and savings with a view to improving profitability. A
number of innovations were also considered and discussed with industry representatives,
including the possilbity of introducing overseas artists (where previously we had featured
exclusively Kiwi music) and exploring alternative locations outside the Zoo to increase ticket
sales capacity. These possibilities were discounted by the industry representatives as either not
financially viable or risked losing Zoo Music’s unique proposition and therefore appeal.
Having received this advice the Zoo then proceeded to explore an artist line-up for a 2012 series.
As part of this process, the Zoo surveyed 928 Friends of the Zoo members and 1,733
Aucklanders through the Auckland Council’s Peoples Panel for their views on Zoo Music and
preferred artists. The results of these surveys showed strong support for the Zoo Music brand
and produced a shortlist of New Zealand musicians that were likely to attract healthy ticket sales.
Respondents also contributed to an understanding of ticket pricing expectations among the key
target audiences. Initial enquiries seeking expressions of interest were made to artists on behalf
of the Zoo, and draft budgets were prepared taking into account efficiencies and opportunities
identified earlier in the review, and indicative costs provided by the interested artists.
Having completed this planning step, the decision not to proceed with a Zoo Music series in 2012
was made. Key contributing factors were the limited number of suitable artists that were
interested, available and had not performed at the Zoo in recent years, and the costs associated
with performances by those artists. Artist costs have increased considerably in the last few years,
which in turn impacts on the ticket price charged, pushing it well above the indicative pricing
arising from the research conducted and feedback from previous attendees. Event budget
forecasts indicated that the breakeven point for each concert would be significantly higher than
those forecast in previous years. Furthermore, the likely profit did not represent a good return on
investment for the Zoo and instead presented an unacceptable risk to the Zoo’s operating
budget.
As such, the decision not to deliver a 2012 Zoo Music series was communicated to Zoo staff,
sponsors, event partners, and relevant suppliers in September 2011.
2011/12 Zoo event calendar
The Zoo’s events strategy and event portfolio is currently under review in order to refresh the
Zoo’s event offering and align it with current strategic objectives. While Zoo Music will no longer
be part of the event mix for the 2012 summer season, various alternatives are currently being
explored and discussed with potential sponsors, and business cases are being prepared.
It is important to note that Zoo Music or a similar event has not been ruled out for future years.
Public/media interest in the decision On Friday 30 September an enquiry was received via social media channels regarding the
decision not to proceed with Zoo Music in 2012. The correspondent, Peter McLennan,
subsequently posted a blog entry suggesting that the series had been ‘canned’ because it had
proven unpopular in the recent Peoples Panel survey, and speculating that the loss arising from
the 2011 series was related to the involvement of an event management company. A commenter
on the blog entry also suggested that the events company had a prior relationship with a Council
staff member which had influenced the outcome.
The Zoo’s media relations team have since received enquiries regarding the decision from a
range of entertainment media outlets and a draft statement is attached for approval.
The Zoo also understands that a LGOIMA request has been received by Auckland Council. The
Zoo will assist in preparing a response to this request as per usual Council processes.
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