LIVE NATION ENTERTAINMENT LIVE NATION ENTERTAINMENT INTRODUCTION - - PowerPoint PPT Presentation
ALYSSA ADANK AND GEORGIA HUTTON LIVE NATION ENTERTAINMENT LIVE NATION ENTERTAINMENT INTRODUCTION & OVERVIEW Worlds Leading Entertainment Company Annual Revenue: $10.7B President/CEO: Michael Rapino Employees: 44,000
ALYSSA ADANK AND GEORGIA HUTTON
LIVE NATION ENTERTAINMENT
▸ 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
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
FACTORS AFFECTING DEMAND
ELASTICITY
▸ Live Nation has such a big target market depending on the
event, lowering the price would likely increase sales and
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