Changing the way fans attend live-music events
Philly-based CID Entertainment works with touring artists and festivals to enhance the fan experience.
DAN BERKOWITZ, 36, of Society Hill, is founder and CEO of CID Entertainment, a music company based in Philadelphia. CID (for Consider It Dan) is redefining the fan experience at live-music events. In January, it did its first "CID Presents" event, Luke Bryan's Crash My Playa, a four-night getaway/concert in Riviera Maya, Mexico.
Q: What's the backstory behind CID Entertainment?
A: I became tour manager in 2004 for a Philly band called The Disco Biscuits. I did packages for fans - transportation, tickets and hotel. Then I worked with Electric Factory and did travel and VIP packages. I saw this wasn't offered by everybody and started my own company.
Q: The startup money?
A: I moved into my old office at The Disco Biscuits' studio. When I got to where I wanted to grow the company in 2008, I sold a small stake in it for $100,000.
Q: What's the biz do?
A: We put together experiential packages for fans of live music. Traditionally, we support touring artists or festival producers. For tours, you can buy a package that includes travel, hotel and shuttles, meet-and-greet with artists and preshow events. For festivals, we provide similar packages. At Coachella [festival], we'll build you a 14-by-14-foot safari tent with full amenities on site.
Q: The biz model?
A: We're paid a fee by the producer of the festival to operate the program. If it's working with an artist, there's a net revenue share where we're paid a percentage. These segments account for 90 percent of revenues.
Q: And CID Presents?
A: That's where we produce and put on a show. That represents 10 percent of revenues.
Q: With whom do you compete, and what differentiates you?
A: We exist to create amazing experiences for fans. Other VIP packages may exist to make more money for the artist. The artists we work with are very much aligned with our goal to give fans a great experience. We compete with big companies but have carved out our own niche.
Q: Cost of a package?
A: Tour packages can run between $80 and $200. We've done packages with stadium artists that could be $500 to $800. It depends on the artist and type of experience. A multiday resort concert package could be $2,000.
Q: How big a biz is this?
A: We have 60 full-time staff based in Philadelphia. We probably have 15 additional employees that go on tours for us. At a big festival we could have 300 working for us for a weekend on program and travel packages. On the revenue side, we're seeing 25 percent annual growth in the number of programs we're doing and the size of the programs.
Q: What's next?
A: I see "CID Presents" doing four or five events a year.
Online: ph.ly/YourBusiness