Live Nation Loses $100 million, Concert Attendance Declines
By Morelli
Global ticket sales rose 8 percent in 2008, but Live Nation’s earnings report for the first quarter of 2009 showed losses of $102.7 million. In the UK, live music sales surpassed recorded music, yet Live Nation reports a 22 percent drop in attendance of live shows.
The anticipation that live performances would continue to grow in sales, or even try to compensate for losses in physical sales is deeply shaken. Live Nation President and CEO Michael Rapino doesn’t think there’s a problem:
“Our first quarter results were in line with our plan and, despite challenging economic times, fans are buying concert tickets at a healthy pace.”
The money Live Nation made per ticket went up, and that may be the result for higher prices. Are the losses a consequence of the economic recession, or are people just unwilling to pay for overpriced tickets? I don’t think there is any lack of desire to attend live events.
Personally, nothing tempts me more than watching a live recorded performance on YouTube, or at other sites like Moshcam, where you can watch an entire Ben Harper, Nine Inch Nails or Mogwai performance right now. Nothing beats the real thing, but it makes the wait until their next nearby tour seem shorter. Also, free live broadcasts over the internet are becoming popular, with live streaming sites like Justin.tv and Ustream.tv pulling in millions of visits monthly. I just don’t see how Ticketmaster, Live Nation’s partner-to-be, can charge $250 for a ticket.
Perhaps tough economic times and ticket prices are causing the drop, and consumers simply prefer less expensive entertainment. The company considers this summer to be very important for their 2009 total, and the company has plans to sell tickets under $30 for summer shows to stimulate attendance. Rapino said that the Live Nation will have a good year, and that “most entertainment companies aren’t growing at all.”
Live Nation tends to plug more popular artists like Aerosmith, Coldplay, Incubus and The Killers, so there’s a possibility that fans are turning to their local bands, and spending their dollars on the indie market. Which concerts do you go to?
Are you giving money to Live Nation?
Photo via boston.com
