Live nation
Page: 5
HipHopWired Featured Video
Travis Scott and Live Nation have reportedly settled a majority of the wrongful death lawsuits brought against them in the wake of the Astroworld tragedy. Out of 10 wrongful death lawsuits to emerge after the incident, one case went to trial this week.
As reported by the Associated Press, the bulk of the wrongful death lawsuits have been settled including the case of Madison Dubiski, 23, a Houston native who was one of the people killed in the tragic incident. Although the Dubisiki matter was set to go to trial this past Tuesday (May 7), that case was also settled.
“Mr. Scott is grateful that a resolution has been reached without the need for a trial,” Ted Anastasiou, a representative for the rapper, offered in a statment. “The confidential agreement will honor Madison Dubiski’s legacy and promote improvements for concert safety.”
The last open lawsuit is from the family of Ezra Blount, 9, who was the youngest person to lose their life at Astroworld. The judge overseeing the matter said that if the family doesn’t settle, this may be the next trial instead of the several injury cases brought against the defendants. ‘
Neal Manne, an attorney for Live Nation, said that around 2,400 injury cases are still pending. Over 4,000 plaintiffs filed hundreds of lawsuits after the conclusion of the concert.
After an investigation into the Astroworld tragedy was conducted, a grand jury did not indict Travis Scott along with five other individuals.
—
Photo: Gilbert Flores / Getty
Nine of the 10 wrongful death lawsuits filed after a deadly crowd surge at the 2021 Astroworld music festival have been settled, including one that was set to go to trial this week, an attorney said Wednesday.
Jury selection had been set to begin Tuesday in the wrongful death suit filed by the family of Madison Dubiski, a 23-year-old Houston resident who was one of 10 people killed during the crowd crush at the Nov. 5, 2021, concert by rap superstar Travis Scott.
But Neal Manne, an attorney for Live Nation, the festival’s promoter and one of those being sued along with Scott, said during a court hearing Wednesday that only one wrongful death lawsuit remained pending and the other nine have been settled, including the one filed by Dubiski’s family.
Trending on Billboard
Terms of the settlements were confidential and attorneys declined to comment after the court hearing because of a gag order in the case.
The one wrongful death lawsuit that remains pending was filed by the family of 9-year-old Ezra Blount, the youngest person killed during the concert. Attorneys in the litigation were set to meet next week to discuss when the lawsuit filed by Blount’s family could be set for trial.
“This case is ready for trial,” Scott West, an attorney for Blount’s family, said in court.
But Manne said he and the lawyers for other defendants being sued were not ready.
State District judge Kristen Hawkins said she planned to discuss the Blount case at next week’s hearing along with potential trials related to the injury cases filed after the deadly concert.
Hawkins said that if the Blount family’s lawsuit is not settled, she is inclined to schedule that as the next trial instead of an injury case.
More than 4,000 plaintiffs filed hundreds of lawsuits after the concert. Manne said about 2,400 injury cases remain pending.
The announcement that nearly all of the wrongful death lawsuits have been settled came after the trial in Dubiski’s case was put on hold last week. Apple Inc., which livestreamed Scott’s concert and was one of the more than 20 defendants being sued by Dubiski’s family, had appealed a court ruling that denied its request to be dismissed from the case. An appeals court granted Apple a stay in the case.
In the days after the trial stay, attorneys for Dubiski’s family settled their lawsuit with all the defendants in the case, including Apple, Scott and Live Nation, the world’s largest live entertainment company.
At least four wrongful death lawsuits had previously been settled and announced in court records. But Wednesday was the first time that lawyers in the litigation had given an update that nine of the 10 wrongful death lawsuits had been resolved.
Lawyers for Dubiski’s family as well as attorneys representing the various other plaintiffs have alleged in court filings that the deaths and hundreds of injuries at the concert were caused by negligent planning and a lack of concern over capacity and safety at the event.
Those killed, who ranged in age from 9 to 27, died from compression asphyxia, which an expert likened to being crushed by a car.
Scott, Live Nation and the others who’ve been sued have denied these claims, saying safety was their number one concern. They said what happened could not have been foreseen.
After a police investigation, a grand jury last year declined to indict Scott, along with five others connected to the festival.
Live Nation shares fell 10.9% to $89.98 this week after The Wall Street Journal reported the U.S. Department of Justice plans to file a lawsuit against the company in the coming weeks. The DOJ could seek any number of remedies, but, in recent years, there have been calls from both the public and private sectors to break up the company and separate the concert promotion business from the ticketing business.
In February, Senator Amy Klobuchar, who helped organize the Jan. 2023 Senate hearing at which Live Nation president/CFO Joe Berchtold testified, called on lawmakers to “update and enforce antitrust laws” to prevent Live Nation and Ticketmaster from working on concert to “keep ticket prices high.”
“This merger never should have been allowed to happen,” Klobuchar wrote on X in February. “Break them up,” Senator Alexandria Ocasio-Cortez wrote in November 2022 following the Taylor Swift pre-sale fiasco. Likewise, the American Economic Liberties Project and the American Antitrust Institute have both called for the DOJ to break up the company.
Trending on Billboard
Live Nation shares have fallen 15.1% in the four weeks since the week ended March 22 but remain up 34.3% year to date. The company will report first-quarter earnings on May 2.
The large declines seen among some of the most valuable music companies caused the Billboard Global Music Index to drop 4.5% this week — its largest one-week loss since November 2022. That brought the index’s decline over the past two weeks to 7.5% after it reached an all-time high the week ended April 5.
Major stock indexes also suffered substantial losses this week. The tech-heavy Nasdaq composite fell 5.5% to 15,282.01 as video streaming giant Netflix and chipmaker Nvidia fell 9.1% and 10%, respectively, on Friday (April 19). The S&P 500 dropped 3.0% to 4,967.23. In the United Kingdom, the FTSE 100 fell just 1.2% to 7,895.85. South Korea’s KOSPI composite index lost 3.4% to 2,591.86. China’s Shanghai Composite Index was an outlier, rising 1.5% to 3,065.26.
Radio giant iHeartMedia had the biggest decline of the week after dropping 12.8% to $1.90. That brought the company’s year-to-date loss to 28.8% and its 52-week decline to 54.3%. Music streaming leader Spotify suffered the largest drop in terms of lost market capitalization, however, after an 8.2% decline, to $275.79, raised $4.9 billion of market value. Spotify will release first-quarter earnings on Tuesday (April 23).
Hipgnosis Songs Fund shares predictably surged this week on news that Concord has offered to acquire the company for $1.4 billion, or $1.16 (0.94 pounds) per share. The stock finished the week up 24.2% to 0.919 pounds ($1.14), just under Concord’s offer price. The board encouraged shareholders to accept Concord’s bid, which was a 32.2% premium over the prior day’s closing price. That would provide immediate returns, the board explained, because the company needs “substantial financial and governance changes to improve its financial performance” that will suppress the share price in the meantime.
The other big gainers for the week came from South Korea. HYBE gained 8.2% to 230,500 won ($167.70) and SM Entertainment rose 4.0% to 78,100 won ($56.82). Year to date, HYBE is down 1.3% and SM Entertainment is off 15.2%.
The U.S. Department of Justice is planning to sue Live Nation over alleged violations of federal antitrust laws, according to a report by the Wall Street Journal.
A lawsuit will be filed within weeks that alleges the concert giant leveraged its dominance over the live music industry to undermine competition for ticketing, the Journal reported Tuesday, citing people familiar with the matter. Few other details about the planned case were revealed.
Live Nation has faced widespread criticism from angry fans and lawmakers since its botched handling of Taylor Swift’s “Eras” tour in 2022. Days after the incident, news broke that the DOJ had already been investigating Live Nation for months over potential antitrust violations.
Trending on Billboard
Representatives for Live Nation and the DOJ did not immediately return requests for comment from Billboard.
Since Live Nation and Ticketmaster merged in 2010, the company has long faced criticism that it exerts an unfair dominance over the market for live concerts. The DOJ approved the merger at the time, but imposed a so-called consent decree designed to prevent the company from abusing its position. Those restrictions were set to expire in 2020, but they were extended by five years after the DOJ accused Live Nation of repeatedly violating the decree.
That same criticism resurfaced in late 2022 with the disastrous roll out of tickets to Swift’s tour, which saw widespread service delays and website crashes as millions of fans tried – and many failed – to buy tickets. Live Nation pinned the blame on a “staggering number of bot attacks,” but lawmakers quickly argued that the incident was the result of a market dominated by one company.
“Ticketmaster’s power in the primary ticket market insulates it from the competitive pressures that typically push companies to innovate and improve their services,” said Sen. Amy Klobuchar (D-Minn.), the chair of the Senate subcommittee for antitrust issues.
In December 2022, the New York Times reported that DOJ had already been investigating Live Nation for months before the Swift debacle, including reaching out to venues across the country to ask about the company’s conduct. A year later, Reuters reported that the probe was ongoing, with federal investigators focusing on whether Live Nation imposed anticompetitive agreements on venues.
Last year, Live Nation hired Dan Wall, a veteran competition attorney who previously headed the antitrust practice at the law firm Latham & Watkins, as an executive vice president for corporate and regulatory affairs. In a blog post last month, Wall publicly defended the company against allegations similar to those that could be coming in the DOJ’s lawsuit, arguing that ticket prices were set by artists and driven up by the forces of supply and demand.
“In the ongoing antitrust attacks on Live Nation and Ticketmaster, a constant theme is that their alleged ‘monopolies’ are responsible for high ticket prices,” Wall wrote. “Rhetorically, that’s understandable, because if you want to rile up fans against Live Nation and Ticketmaster, there is no better way than to blame them for something you know fans dislike.”
On Wednesday (April 10), Music Forward Foundation’s All Access Fest is expecting roughly 1,200 students and young adults to enter the Hollywood Palladium in Los Angeles to learn all about the music industry.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Launched in 2018, the music and live entertainment convention gives 16–24-year-olds the opportunity to meet professionals who work in the business and provides resources for those who want to pursue a career in it.
This year’s day-long event will feature panels, networking sessions, roundtables and exhibit booths with more than 100 industry professionals from entertainment companies including BMG, Snap Inc., Downtown Music, Live Nation, Concord, Ticketmaster, EMPIRE and many more.
Exhibitors for the 2024 edition will include AEG, Girls Make Beats, Universal Music Group, Los Angeles Film School, Lux Lighting, Inner City Arts and Belmont University. In addition to high school students, hundreds of post-secondary students from colleges including Cal State Fullerton, Cal State Northridge, Carnegie Mellon University, Loyola Marymount University, NYU, Pepperdine University, UCLA, UC Irvine, UNLV, USC, Santa Monica College, and more are also expected to attend.
Trending on Billboard
The wide breadth of industry partners and experts at All Access is designed to give students — many of whom are coming from the Los Angeles, Compton, Inglewood and Centinela school districts — and other young people a greater understanding of all the possible employment opportunities in the music business, from artist to record label executive to lighting tech to costume handler.
“A lot of the kids, particularly in the demographics that we’re reaching, don’t know about these opportunities,” says Nurit Smith, executive director at Music Forward Foundation. “They don’t know the ecosystem. That’s why when we talk about live entertainment, we’re looking at touring from all different angles.”
Nurit Smith
Music Forward Foundation
Live entertainment is just one of many areas of expertise that All Access covers. The event can help give attendees an understanding of what it takes to be a touring musician or someone who makes those touring dreams a reality in a number of different capacities. To that end, promoters Insomniac Events and C3 Presents — which put on festivals like EDC and Austin City Limits, respectively — will have activations at the event, helping showcase the path to getting involved in that aspect of the industry.
After several years of virtual or hybrid events, Music Forward Foundation — a national non-profit in the Live Nation family — returned last year to a fully in-person convention, which Smith says made a huge impact coming out of the pandemic. The young people were a lot more eager for interpersonal connections rather than panels, so this year, the format “is being flipped on its head,” he explains.
“We’re gamifying this whole thing” with a scavenger hunt, Smith says. During the hunt, participants can have their resumes reviewed and will also be given the opportunity to meet three new people, have a new headshot taken and engage in additional activities that will help them experience different facets of the music industry and where their interests might align with a future career. “We really want to help them navigate this exciting and dynamic space that we’re creating and be very active in their learning,” Smith adds.
Additional happenings at the convention include an artist lounge for open mic sessions, artist wellness activities, an appearance from artist Blu DeTiger, A&R listening sessions and direct access to industry mentors.
While All Access Fest is only in its sixth year, Music Forward Foundation has been helping young people for more than three decades. The organization was established in 1993 as the International House of Blues Foundation in association with the famed House of Blues franchise. After House of Blues was acquired by Live Nation in 2006, the foundation became Music Forward as it expanded its reach and partnered with music entities far beyond the scope of its parent company. In its more than 30 years of work, the foundation has invested more than $42 million back into the music community and placed hundreds of young adults in paid positions.
While those numbers speak to the foundation’s ongoing efforts, Smith insists that All Access’ success is, in other ways, incalculable. “The success of supporting this next generation’s pathway will be the connective tissue in the partnerships that we all build together,” she says.
Registration for All Access Fest is free and open to young adults, regardless of school enrollment. In September, Music Forward will also host a virtual All Access Fest to reach more people globally.
The Brooklyn Paramount, Live Nation‘s new 2,700-capacity venue in downtown Brooklyn, opens its doors Wednesday (March 27) with its first show: A headlining performance by Damian and Stephen Marley.
The concert kicks off an inaugural season at the venue that will bring artists including PinkPantheress, Oneohtrix Point Never, Waxahatchee, Norah Jones and Sting to its stage in the coming months.
For Live Nation, Brooklyn Paramount fills a gap in the New York market between the promoter’s two 1,100-capacity clubs, Manhattan’s Irving Plaza and Brooklyn’s Warsaw, and its 3,500-capacity outdoor venue, The Rooftop at Pier 17.
Trending on Billboard
“It was my journey for the last 10 years, finding this exact capacity within our pipeline of venues in New York City, because it was the one that we were missing,” says Stacie George, senior vp of Live Nation Northeast. “Now we have a home for artists in between those two stages [of development].”
The Brooklyn Paramount concourse.
Evan Joseph
The addition of Brooklyn Paramount to Live Nation’s portfolio allows the promoter to better compete with AEG and its regional affiliate The Bowery Presents, which operates three venues across the city — Webster Hall, Brooklyn Steel and Terminal 5 — that range in capacity from 1,500 to 3,000, as well as Madison Square Garden Entertainment’s Beacon Theatre (2,900 capacity). And, taken in conjunction with Live Nation’s Manhattan clubs Mercury Lounge and Bowery Ballroom, which hold about 250 and 600, respectively, Brooklyn Paramount now creates a clear path for an artist in Live Nation’s ecosystem from small rooms all the way up to the 5,000-capacity Central Park Summerstage, with which the promoter inked an exclusive booking partnership in late 2022.
“We want an artist, manager, agent to feel that we invest in their artist all the way from the beginning,” George says. “We want to grow with your artists and continue to give them amazing venues to play at. Your hope is always that you retain that relationship and that history.”
That doesn’t only apply to artists “on their way up” to the arena level but “on their way down”: “We want to be with them across their full journey and long musical career,” George says.
Brooklyn Paramount’s concert space from the back of its floor.
Evan Joseph
Brooklyn Paramount’s new chapter is just the latest in its rich, nearly century-long history. First opened in 1928, the venue hosted seminal artists including Miles Davis, Ella Fitzgerald, Chuck Berry, Fats Domino and Buddy Holly throughout the ’30s, ’40s and ’50s. Long Island University (LIU) purchased the space in 1954 and, shortly after, converted it to a gymnasium. Nearly a decade ago, LIU began working to renovate the dormant theater; the venue’s re-opening is the culmination of a five-year planning, design and construction process by Live Nation.
For George, one of Brooklyn Paramount’s strongest assets is its location, which is immediately accessible by several subway lines and the Long Island Rail Road. And she expects the venue’s fusion of old Brooklyn history — its Rococo ceiling is among the many design details the renovation preserved — and modern amenities to attract fans and artists alike. For the former, the venue offers multiple high-end cocktail bars and a VIP balcony and lounge (Ella’s, taking its name from Fitzgerald). For the latter, Brooklyn Paramount provides spacious artist accommodations with showers, a workout space and even a game room with Pac-Man and a pinball machine.
From a production standpoint, the theater has parking space for three buses. “In New York, that’s a luxury,” George says with a laugh. “Half the time the buses have to drive to, like, New Jersey to park at a Walmart, because they can’t park in front of the venue.”
Ella’s VIP lounge at Brooklyn Paramount.
Evan Joseph
In terms of booking, Brooklyn Paramount plans to continue to program a spectrum of genres in keeping with its initial calendar and to satisfy the diverse clientele it’s courting. While the venue was designed primarily as an all-general-admission space, some shows, like the multi-night runs by Jones and Sting, will be seated. Brooklyn Paramount has already announced more than 60 shows through October, and George says it has locked in an additional 50 that have yet to be unveiled.
Several hundred guests received a first look at the venue — “this beautiful masterpiece,” as George puts it — on Tuesday night at its re-opening preview party, with live music including a DJ set by St. Vincent in Ella’s. “Seeing people walk in and just have that ‘wow’ moment — that’s exciting,” George says.
Live Nation shares gained 4.0% to hit $103.77 this week, marking the stock’s best closing price since May 2, 2022, and the first time the concert promotion giant had five straight closes above $100 since late April and early May that same year.
Other music stocks didn’t fare as well. Most of the 20 companies in the Billboard Global Music Index dropped this week, with 13 stocks losing ground and just seven finishing the week in positive territory. The index fell 0.1% to 1,697.90, marking the first time it’s decreased in successive weeks since it fell during three consecutive weeks in October 2023. Multi-week declines are rare for the index: Since the beginning of 2023, it has had just two two-week declines, two three-week declines and one four-week decline (in July and August 2023). This week’s slight drop brought the index’s year-to-date gain to 10.8%.
In a relatively quiet week free of earnings releases or market-moving news, there was roughly an even mix of gains and losses from the most valuable companies. Universal Music Group increased 2.1% to 27.32 euros ($29.77) while Spotify dropped 1.7% to $254.89 and Warner Music Group (WMG) fell 2.9% to $32.94. Elsewhere, German promoter CTS Eventim rose 2.1% to 76.70 euros ($83.56) and reached a new 52-week high of 77.80 euros ($84.76).
Trending on Billboard
K-pop companies rebounded after a string of weekly declines. HYBE improved 2.3% to 199,000 won ($149.59) and SM Entertainment climbed 2.5% to 74,900 won ($56.30). YG Entertainment jumped 6.3% to 43,050 won ($32.36) but is still down 19.6% year to date.
French indie music company Believe finished at 15.52 euros ($16.91), still well above the 15.00 euros ($16.34) tender offer by a consortium that seeks to take the company private. WMG has expressed interest in Believe at 17.00 euros ($18.52) per share.
The companies with the largest gains and losses are among the least valuable on the index. The week’s greatest gainer was Abu Dhabi-based music streamer Anghami, which rose 15.6% to $1.11 and has a market capitalization of just $30.7 million — less than 0.1% of Spotify’s. Radio broadcast giant iHeartMedia and French music streamer Deezer had the index’s biggest losses of 10.0% and 10.3%, but iHeartMedia’s market cap is only $255 million while Deezer’s is about 245 million euros ($267 million).
The index’s four live music stocks had an average gain of 0.9% this week, topping the 0.4% gain of the seven record label and publishing stocks. Five streaming stocks averaged a less than 0.1% decline. Three radio companies — iHeartMedia, Cumulus Media and SiriusXM — had an average decline of 5.1%.
Key U.S. indexes also saw small declines this week. The Nasdaq composite fell 0.7% to 15,973.17. The S&P 500 fell 0.1% to 5,117.09. In the United Kingdom, the FTSE 100 gained 0.9% to 7,727.42. South Korea’s KOSPI composite index declined 0.5% to 2,666.84. China’s Shanghai Composite Index grew 0.3% to 3,054.64.
A U.S. District Court judge is allowing a shareholder lawsuit against Live Nation to move forward, denying the concert promotion giant’s motion to dismiss it in a decision handed down Friday (Feb. 27).
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
The case involves how much the company should have to disclose about ongoing public pressure from federal authorities and how much of its financial success it should attribute to its dominant market share in the concert industry — as opposed to demand for concert tickets or the strength of its business.
Shareholders Brian Donley and Gene Gress are suing Live Nation over drops in its share price from February 2022 to November 2023 that they say were brought on by the company’s “false and misleading statements and omissions” within its annual earnings reports — specifically regarding the company’s alleged “anticompetitive behavior and cooperation with regulators.”
Trending on Billboard
The lawsuit did not reveal any new antitrust allegations against Live Nation, nor did it detail any new antitrust investigations into the company by regulators. Attorneys for the shareholders instead focused on boilerplate language within the company’s shareholder report and argued that it should have spent more time talking about the threat a federal antitrust investigation posed.
In siding with the shareholders, Judge Kenly Kiya Kato took issue with how the company described its success, noting in a 13-page ruling that she believed that Live Nation’s “failure to include specific facts and details about their presence and control of the live entertainment industry” in its annual report didn’t paint the full picture. Kato wrote in her ruling that the company’s claim that 2022 revenue growth “was a reflection of the quality of the Ticketmaster platform and its continued popularity with clients across the globe” was “misleading” because it failed to mention that “Ticketmaster controls ticket distribution for over 70% of major concert venues,” and “77% of the top 100 amphitheaters worldwide.”
Kato also wrote that Ticketmaster’s claims that its success was based on the superiority of its ticketing systems was in part a false claim because it omitted criticism from competitors who testified against the company in front of the U.S. Senate in early 2023.
Since it merged with Ticketmaster in 2010, Live Nation has faced antitrust complaints over the company’s size and market share from competitors, politicians including Senators Amy Klobuchar and Richard Blumenthal, and consumer advocates. Scrutiny of the company increased in 2019 when officials with the Department of Justice opted to extend a decade-old consent decree against it, and then ramped up again following the high-profile 2022 crash of Taylor Swift’s Ticketmaster sale for her Eras Tour.
Since 2022, Live Nation has not been notified that it’s the subject of any legal action by the Department of Justice and has written in its annual disclosures that it cooperates with all federal and state authorities, operates in a highly competitive marketplace and attributes its revenue growth at the end of 2021 to an increase “in events and higher ticket sales.”
Attorney Laurence M. Rosen, representing several shareholders in the class action lawsuit, said Live Nation’s answers contradict June 2023 reports from Politico and CNBC that the company was “allegedly stonewalling” a Senate subcommittee led by Senator Blumenthal that was seeking documents from the company about how it operated its concerts division.
Live Nation countered that Blumenthal was misrepresenting the dispute, that it had already handed over thousands of documents and was contesting demands for confidential information that included private details about how much artists earned from touring. In its response to the Senate committee, the company argued it would only hand over the documents if confidentiality protections were put in place. While Live Nation’s attorneys viewed the disagreement as insignificant, Rosen argued that the objection meant the company was “not cooperating fully with the ongoing DOJ and Senate Subcommittee investigations,” an attorney for the shareholders wrote.
Live Nation declined to comment for this story.
If 2023 was the year of Taylor Swift, 2024 could be the year of the superfan.
While Swift’s The Eras Tour proved that music fans are willing to spend large sums and travel far to see their favorite artist, for years promoters have improved their revenues by selling premium experiences to concerts and festivals. Whether it’s dynamically priced seats close to the stage, VIP access or a revamped cocktail offering, there are more options for fans willing to pay more to enjoy the sights, sounds and hospitality of live music. Expect an even greater emphasis on this in the new year.
The focus on superfans isn’t confined to live music. The CEOs of Universal Music Group and Warner Music Group both started the year by highlighting a desire to better serve superfans. In the recent past, that may have meant NFTs and newfangled web3 offerings. Today, superfans buy multiple copies of albums (both LP and CD) and merchandise, often directly from the artist’s web store. Streaming services could soon be getting into the game, too, by offering “superfan clubs,” Spotify CEO Daniel Ek suggested in a Jan. 24 open letter.
But live music has a unique ability to upcharge for premium experiences — and add to companies’ bottom lines in the process. Tickets for superstar acts have proven to have remarkably resistant to price increases. In 2023, the average price of a Taylor Swift concert ticket on Stubhub was nearly $1,100. Drake, Morgan Wallen and Beyonce prices averaged about $450, $390 and $324, respectively.
Trending on Billboard
Emphasis on superfans makes sense in an era of higher priced primary tickets that capture value that would otherwise go the secondary market. Artists are increasingly willing to charge more up front rather than lose money to re-sellers. Still, the typical secondary ticket is still almost twice the price of a primary ticket, Live Nation president and COO Joe Berchtold said during the company’s earnings call on Thursday. Currently, about 9% of Live Nation’s amphitheater business comes from premium offerings such as VIP boxes, added president and CEO Michael Rapino. He thinks that should be 30% to 35% instead. To get those numbers, Live Nation is upgrading the concert experience.
This year, Live Nation plans to spend $300 million of its $540 million of capital expenditures on revenue-generating projects. The top four projects — including Foro Sol in Mexico City and Northwell Health at Jones Beach on Long Island — will account for $150 million of the $300 million. The other half includes several projects in the tens of millions of dollars such as VIP clubs, viewing decks, rock boxes and new bar designs, said Berchtold. Those “tactical improvements,” as he called them, can produce a return on investment in the 40–50% range.
Putting more emphasis on revenue-generating enhancements will boost the bottom line in 2024. Following a stadium-heavy touring slate in 2023, Live Nation will put more tours in owned and operated amphitheaters and arenas that allow the company to capture fan spending on parking and hospitality. Stadium shows have higher average ticket prices, Rapino explained, but amphitheater and arena shows produce higher per-person spending. In other words, the venues are smaller but have better margins for the promoter. As a result, Live Nation expects higher adjusted operating income in the second and third quarters. “We’re going to have a fabulous year,” said Rapino.
Dynamic pricing — seats closer to the stage are priced far above seats further away — is just getting started outside of the United States and presents “a great growth opportunity” as it expands from Europe to South America and Australia, said Rapino. There’s room for growth in the United States, too, as dynamic pricing extends beyond the top artists and into amphitheaters and other concerts. “We still think that’s a multi-year opportunity to continue to grow our top line plus [our] bottom line,” he said.
The price-conscious fan isn’t forgotten as concerts increasingly cater to big spenders. Live Nation offers a lawn pass for amphitheaters called Lawnie Pass — the 2024 edition costs $239 each and offers lawn admission to multiple shows at select amphitheaters — and sold an unlimited pass for select clubs called Club Pass in 2022. And company executives have repeatedly stated that a benefit of dynamic pricing is that higher prices for in-demand seats allow for lower prices for seats further from the stage.
But from live music to music streaming, companies are searching for ways to beef up their margins. As such, expect the market to continue segmenting into higher-value and lower-value fans.
Live Nation had another record year in 2023, topping the all-time highs reached in 2022 when artists hit the road in heavy numbers after COVID-19 restrictions shut down the touring business for most of 2020 and 2021.
The concert promoter and ticketing giant had revenue of $22.7 billion in 2023, up 36% from the prior year, thanks to record levels of attendance, ticket sales and sponsorships. Adjusted operating income (AOI) was $1.86 billion, up 32% year-over-year and double the AOI from 2019, the last full year before the pandemic.
As artists went on tour in record numbers, there was ample fan demand to soak up the increased supply of live music. Concert attendance climbed 20.3% to 145.8 million. Attendance in North America rose 16.6% to 81.3 million and international attendance spiked 25.4% to 64.5 million. The biggest attendance gains came from stadium shows — notably Metallica, Beyonce and Luke Combs — which grew 60% to 29 million. The number of concerts — individual shows and festivals — rose 15.3% to 33,629 in North America and 13.5% to 16,430 internationally.
Trending on Billboard
The rise of K-pop and Latin music, along with Live Nation’s Dec. 2021 acquisition of Mexican promoter OCESA, led to an increasingly international concert business. Live Nation’s top 50 tours had 50% more international acts in 2023 than five years ago, and additional international dates meant tours had 15% more shows on average.
“Our digital world empowers artists to develop global followings, while inspiring fans to crave in-person experiences more than ever,” said president/CEO Michael Rapino in a statement. “At the same time, the industry is delivering a wider variety of concerts which draws in new audiences, and developing more venues to support a larger show pipeline.
The concerts division’s full-year revenue increased 39% to $18.76 billion as demand increased across markets and venue types. At Live Nation’s owned and operated venues — branded as Venue Nation — attendance increased 13% to 55 million and ancillary per-person revenue had double-digit growth. At its amphitheaters, per-person spending increased 10% to over $40. Because Live Nation owns and operates those venues, its bottom line benefits from increased fan spending on items such as beverages, food and merchandise.
At Ticketmaster, revenue rose 32% to $2.96 billion and AOI improved 35% to $1.12 billion. Total fee-bearing gross-transaction value (GTV) rose 30% to $36 billion — North America GTV rose 26% while international GTV jumped 42%. The number of fee-bearing tickets sold increased 17% to over 329 million. New clients accounted for 21 million additional tickets old, with about 80% of those coming from international markets.
The sponsorship and advertising division’s revenue increased 13% to $1.1 billion and its AOI rose 14% to $675.1 million. Led by growth in beverage, technology and financial services sectors, Live Nation’s sponsorship business had over 100 partners with multi-million-dollar, multi-year commitments.
In the fourth quarter, historically a slow period compared to the spring and summer months, Live Nation’s revenue rose 36% to $5.8 billion. The concerts division’s revenue soared 44% to $4.87 billion. The company’s AOI rose 20% to $116.9 million in the quarter.
Looking ahead, “we expect all our businesses to continue growing and adding value to artists and fans as we deliver double-digit operating income and AOI growth again this year, with our profitability compounding by double-digits over the next several years,” Rapino added. Through mid-February, Live Nation has sold 57 million concert tickets, up 6% year-over-year, and Ticketmaster had $13 billion in fee-bearing gross-transaction-volume for events so far in 2024, a double-digit increase. In addition, the company has booked 75% of its expected sponsorship commitments, also a double-digit increase from the prior-year period.