Live Nation Finally ‘Gets It’ From Plunge In Sales

When Live Nation teamed up with Ticketmaster to become the monster that is Live Nation Entertainment (LNE), all of the local and indie music companies were horrified at such a creation. Monopoly is never a fair game but it looks like LNE isn’t staying as strong as they said they were going to be in this economy. With ridiculous prices, which include fees to even print your own ticket out, they’ve had trouble filling those amphitheater seats. Most music fans would rather sweat it out in a small, dingy venue while standing instead of putting our rear ends in those unnecessary seats. (Besides who sits at shows anymore?)

According to the Associated Press, the operating income for LNE in 2009 was $445 million. The estimation for 2010 is around $405 million. However, if things get worse, earnings can fall to $365 million. This isn’t too hot for a company who bragged out reigning this concert season which already looks like a weak summer by the looks of artists pulling out. Numbers don’t lie and to make their numbers go up, they’ve finally realized that they’re going to have to slash those prices down for the consumers. Investors have also sold off shares at what Executive Chairman Irving Azoff called “ridiculously cheap” and “shortsighted.”

Sure, they may be doing better than most of the music industry because they are the top company but it also doesn’t help that some of their biggest acts are pulling out or postponing their tours. For example: U2. Due to Bono’s back injury, surgery, the cancellation of original tour dates cost the company $6 million but it is assumed to be made up during the rescheduled dates. Their other acts who had ups and downs with this year’s tours include: Rihanna, The Eagles, Simon and Garfunkel, The Jonas Brothers and Limp Bizkit.

Pollstar Editor In Chief has the last and truest line from our source: “Prices have to come down to a level that the public will accept.”

There’s no doubt that recorded music sales continue to fall with the rise of technology, but do you think these tours will be able to close that gap?