ALYSSA ADANK AND GEORGIA HUTTON LIVE NATION ENTERTAINMENT
LIVE NATION ENTERTAINMENT INTRODUCTION & OVERVIEW ▸ World’s Leading Entertainment Company ▸ Annual Revenue: $10.7B ▸ President/CEO: Michael Rapino ▸ Employees: 44,000 ▸ Headquarters: Beverly Hills, CA
MARKET DESCRIPTION HISTORY OF THE MARKET/COMPANY ▸ 1996 SFX Broadcasting buys concert promoter Delsener/ Slater ▸ 1997 SFX Entertainment is founded ▸ 1999 SFX Entertainment goes international ▸ 2000 Clear Channel Communications buys SFX Entertainment ▸ 2002 SFX is renamed to Clear Channel Entertainment ▸ 2005 The company spins off as Live Nation
MARKET DESCRIPTION TOP COMPETITORS $8M, 10,000 employees $275M, 12,000 employees $8M, 50 employees
MARKET DESCRIPTION REVENUE STREAMS ▸ Concerts ▸ Venues ▸ Ticketing ▸ Sponsorships ▸ Artist Management ▸ Long Term Touring Deals ▸ Roc Nation
MARKET DESCRIPTION COMPETITION STRUCTURE ▸ Live Nation is a potential illegal monopoly
LIVE NATION ENTERTAINMENT FACTORS AFFECTING DEMAND
FACTORS AFFECTING DEMAND *CONSUMER’S INCOME ▸ If the change in customers incomes was an increase, it would affect the demand for the product greatly. More package passes would be bought and more tickets for shows would be sold. So the demand for the product would increase. If the change in customers incomes was a decrease it would drop ticket and pass sales. So the demand for the product would decrease.
FACTORS AFFECTING DEMAND *PRICE OF RELATED GOODS ▸ Recently Live Nation bought the Music Festival, Bonnaroo. A substitute of that would be an alternate ticket sale company like Seat Geek. Seat Geek is currently selling tickets to Bonnaroo for $389 and the Tickets through Bonnaroo’s website are only selling for $329.
FACTORS AFFECTING DEMAND TASTES WITHIN THE MARKET ▸ Within the market, the trends to watch for are which artists are doing well and which aren’t doing as good. Then the focus should be on both categories of artists. The artists that are doing well should be booked more shows and get more promo. The artists that aren’t doing well should get more help in artist development and with their marketing. The other changes to look out for is the number of tickets being sold at the large events and concerts. If they are lower consider a better marketing strategy or even lowering price.
FACTORS AFFECTING DEMAND *EXPECTATIONS WITHIN THE MARKET ▸ One big thing people within the market expect would be ticket fees to go down. People pay ticket fees that range from a few dollars to more the $30 depending on the tickets and the event. A lot of the competition for Live Nation/Ticketmaster is applying low, constant ticket fees and advertising their brand around that focus. I feel is Live Nation doesn’t follow suit soon, they’ll end up losing money in the future.
FACTORS AFFECTING DEMAND NUMBER OF BUYERS ▸ The media is a big factor in potential customers. If something positive comes out for the company, more eyes are on it so that will raise awareness and interest which should in turn bring more potential customers. If something negative happens that could bring the number of customers down.
FACTORS AFFECTING DEMAND ELASTICITY ▸ Live Nation has such a big target market depending on the event, lowering the price would likely increase sales and open up to more potential buyers, raising the prices wouldn’t do much besides cut the lower income market off because they’ll no longer be able to afford tickets.
LIVE NATION ENTERTAINMENT FACTORS AFFECTING SUPPLY
FACTORS AFFECTING SUPPLY INPUT PRICES ▸ Due to Live Nation being a billion dollar company, very few things would affect Live Nations decisions to supply. Minor things like catering and beverage services could change, which could affect supply costs.
FACTORS AFFECTING SUPPLY TECHNOLOGY ▸ The merger with Ticketmaster will help decrease company costs in sale of tickets.
FACTORS AFFECTING SUPPLY EXPECTATIONS ▸ Now that Live Nation and Ticketmaster has merged, the expectations of the sale of ticket prices will rise.
FACTORS AFFECTING SUPPLY ENTRY/EXIT ▸ Live Nation Entertainment is already a huge company, so it would be very easy to take on new competitors as they enter the market. Live Nation has been known to buy out venues so that is definitely an option for more business if a new competitor comes along.
LIVE NATION ENTERTAINMENT WORKS CITED ▸ Bonnaroo (2019). Retrieved from https://www.bonnaroo.com/tickets/ ▸ Castillo, R. (2018, April 4). The US Department of Justice pins Live Nation as potential monopoly. Dancing Astronaut . Retrieved from https://dancingastronaut.com/2018/04/us-department-justice- pins-live-nation-potential-monopoly/ ▸ Live Nation Entertainment (2019). Retrieved from https://www.livenationentertainment.com ▸ Owler (2019). Live Nation’s Competitors, Revenue, Number of Employees. Retrieved from https:// www.owler.com/company/livenationentertainment ▸ Reference for Business (2019). Chronology of Live Nation, Inc. Retrieved from https:// www.referenceforbusiness.com/history2/54/Live-Nation-Inc.html ▸ Ritholtz, B. (2018, April 5). How Live Nation makes money. Ritholtz. Retrieved from https:// ritholtz.com/2018/04/livenation-makes-money/ ▸ SeatGeek (2019). Bonnaroo Music Festival tickets. Retrieved from https://seatgeek.com/bonnaroo- music-festival-tickets
LIVE NATION ENTERTAINMENT WORKS CITED CONT. ▸ Images ▸ billboard.com ▸ rgim.com ▸ amplify.com ▸ twitter.com ▸ eventgroup.ca ▸ http://exclaim.ca/music/article/live_nation_and_ticketmaster_sued_by_canadas_competition_bureau_over_deceptive_drip_pricing ▸ https://www.google.com/search? biw=1314&bih=1118&tbm=isch&sa=1&ei=hbI_XLLBMMip_Qa6vaeQCg&q=ticketbooth+at+a+concert&oq=ticketbooth+at+a+concert&g s_l=img.3...2787.10987..11173...0.0..0.67.721.13......1....1..gws-wiz-img.......0j0i24.cgNLbCRKtno#imgrc=Ghat0F13ye0iXM: ▸ https://www.google.com/search? q=live+nation+tickets&source=lnms&tbm=isch&sa=X&ved=0ahUKEwigxL7Br_PfAhXJmeAKHT2DBHsQ_AUIECgD&biw=1314&bih=1118 #imgrc=RZXyOGWisOhj5M: ▸ https://www.tripadvisor.com/ShowUserReviews-g187069-d12215290-r478469153-Turing_Tap- Manchester_Greater_Manchester_England.html ▸ https://www.app.com/story/entertainment/music/2017/11/29/asbury-park-music-live-nation-inks-deal-stay-stone-pony-beachfront-venues/ 904222001/ ▸ http://www.sponsorship.com/Report/2017/12/04/How-Live-Nation-Is-Monetizing-Social-Media.aspx
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