From Local Love to Global Brand: The Montreux Jazz Festival’s Strategic Evolution (1/2)

Leaders League: As the director of the Montreux Jazz Festival for many years, you have seen the festival grow considerably. What role does intellectual property management play in the festival’s development?

Mathieu Jaton: The Montreux Jazz Festival stands out from many other festivals around the world because it is a true brand, not just a name or a label. Many festivals have names but are not brands with precise brand values. The Montreux Jazz Festival is recognized as a "Love Brand," which means it enjoys a special attachment from its audience.

Since its creation in 1967 by Claude Nobs, the festival’s goal has always been to make Montreux known worldwide. To do this, Claude had the idea of recording all the concerts and giving the tapes to the artists so they could publish their performances under the "Live at Montreux Jazz Festival" label. This helped to internationalize the festival, notably through televised broadcasts of the artists’ performances.

Claude Nobs unknowingly initiated the international development of the brand. Originally, it was just a way to promote his region, but it allowed the festival to forge alliances with other international festivals. For example, the Montreux Jazz Festival has been replicated in Atlanta, Tokyo and Singapore while retaining its distinct brand.

However, this organic and sometimes opportunistic expansion led to challenges in managing intellectual property. For instance, events abroad used the Montreux Jazz Festival name without us owning the rights. We had to undertake significant efforts to recover and protect our brand, working with intellectual property experts like Tradamarca and our lawyers at Kellerhals Carrard.

By the 2000s, I realized that while the festival was growing, we did not own the rights to many aspects of our brand. It took about a decade to clarify the situation, determine who owned what, and establish clear contracts. This allowed us to transition from opportunistic development to a systematic and controlled development.

The ability to say “no” to certain proposals has become essential to protect our brand. This ensures we maintain the coherence and values of our brand. In today’s world, intellectual property management is crucial, especially for an event like the Montreux Jazz Festival, which is developing both nationally and internationally.

The Montreux Jazz Festival stands out from many other festivals around the world because it is a true brand, not just a name or a label.

 

You began to seriously consider the festivals branding in the early 2000s and this led to a sophisticated strategy from the 2010s on. So, branding and Montreux Jazz are relatively recent concepts.?

Yes, exactly. The Montreux Jazz Festival in Switzerland has been a registered brand for a long time, especially since the creation of the Tinguely logo in 1982. The visual brand was protected in Switzerland, but registering the name "Montreux Jazz Festival" internationally is not always simple. It depends on the countries and the need to prove the uniqueness of the name, which combines a city name, a musical style, and a common term.

That’s why we worked with Tradamarca to register primarily the visual brand "Montreux Jazz," which is our signature and emblem, internationally. This strategy allows us to protect our visual identity and develop the brand in a more coherent and systematic way.

Swiss festivals must think about more efficient economic models to survive, relying on sponsorship, ticket sales, and revenue from food and beverages, rather than public subsidies.

What is the greatest source of value or wealth creation in terms of the festival’s intellectual property assets?  The valuation of artists and cash revenue, or in terms of image, are two distinct aspects. Regarding audiovisual production, it is never about profit because it generally costs more to put on than it brings in financially. It’s primarily a marketing investment to strengthen the international image of the Montreux Jazz Festival. The return on investment is mainly through the brand and its capitalization.

For example, a high-quality recording, distributed worldwide and praised by critics, strengthens the confidence of artists, managers and sponsors. A sponsor might invest several hundred thousand francs in the festival after being impressed by the visual production.

In terms of direct revenue, the Montreux Jazz Cafés franchises are a clear example. These cafés operate on a franchise model with contracts subject to royalties for using the Montreux Jazz Café brand. This has allowed us to partner with major international operators and open cafés in prestigious locations such as Geneva Airport, Gare de Lyon in Paris and Harrods in London.

Then there are the festival licenses, such as the Montreux Jazz Festival Tokyo, Singapore, Miami, and soon Abu Dhabi and Ibiza. These licenses are not franchises, but they involve a precise set of specifications and a license fee for using the brand, as well as a percentage of the returns.

The strategy really took shape in the mid-2000s with the evolution of the live music and recording industry. At that time, the festival, with its small venues, could no longer support the increasing artist fees while balancing its budget. We had to choose between reducing the festival’s size, which could have jeopardized it, or capitalizing on the brand. In 2004, I suggested to the board that we should capitalize on the brand to generate external revenue that would support the festival.

At the start of this strategy, 98% of the ecosystem’s revenue came from the two weeks of the festival, imagine the loss if it rained for 2 or 3 days. Today, the goal is that only 60% of this revenue comes from the festival, with the remaining 40% generated by ancillary activities. The total ecosystem revenue has reached around 60 million francs, thanks to the Montreux Jazz Cafés (12-17 million), international sister-festivals (about 10 million), and other activities such as the Montreux Jazz Foundation, Montreux Media Ventures, and Montreux Jazz International.

Our strategy involves using technology to enhance human experiences, making every detail contribute to a complete sensory experience.

What has been the most challenging aspect to implement or launch in your development strategy? The first is cultural. Under Claude Nobs’s influence, the Montreux Jazz Festival has always been guided by intuition and human relationships. We value proximity with the artists and the public. This human approach can sometimes conflict with the structured development of a brand. For example, when you have a personal relationship with someone who supports you or with an artist who wants to create a festival under our brand, it can be difficult to say no. This can lead to case-by-case decisions, which may seem chaotic compared to a large international brand.

The second most difficult aspect has been developing the Montreux Jazz Cafés. We chose to install them in places where people have the most time to kill, like airports, because bringing happiness to these places increases the brand’s capital. However, the airport terminal operator market is highly competitive, with enormous financial stakes and publicly traded international operators. When some of these companies went public, the new management, often financiers, found the Montreux brand too expensive. They decided not to propose it proactively anymore, keeping it only if an airport requested it. This was very difficult for us because we started with great enthusiasm for the brand, perhaps a bit naively.

Do you think being in Switzerland and supported by iconic brands of the country has played a crucial role in the success of the Montreux Jazz Festival?
The situation in Switzerland is unique, especially due to our cultural policy. Unlike other countries, there are no subsidies for festivals in Switzerland, except for what we call high culture, like classical music, opera, dance, ballet and theater. Festivals like Montreux and Paléo do not receive public subsidies. This pushes Swiss festivals to think about more efficient economic models to survive, relying on sponsorship, ticket sales and revenue from food and beverages.

The Montreux Jazz Festival’s branding strategy, which makes it more than just a festival but a true ecosystem around music, has attracted prestigious brands. Brands like Audemars Piguet, Julius Bär, Porsche, Nestlé, and Accor Hotels have affiliated with us because our brand resonates both nationally and internationally. For instance, Super Bock, a Portuguese beer, used the Montreux Jazz Festival to establish itself in Switzerland.

We also have interesting collaborations, such as with Accor Hotels. When I met Sébastien Bazin, the president of Accor, he asked what the Montreux Jazz Festival could bring to his hotels. I explained that we could offer a unique experience to his clients, like streaming an exclusive Nina Simone concert in their suite. It’s this kind of added value that makes our partnerships valuable.

We have thus managed to create an ecosystem that generates between 60 and 70 million francs in revenue thanks to the Montreux Jazz Festival brand. Although this does not necessarily mean net profits, it allows the festival to remain financially stable and continue to shine.

Interview by Aude Ghespière.