The live music industry for the gross concert revenue increased from $3.9 billion in 2007 to $4.6 billion in 2009, which was a compound annual growth rate of approximately 9%. The industry growth was primarily due to increasing ticket prices for top-grossing acts. Booking agents need to directly contract with performers to represent them for defined periods hence initiating live music events (Harrison, 2014). Promoters earn revenue from the sale of tickets while the promoters pay performers (Bernstein, Sekine & Weissman, 2013).
The company Live Nation Entertainment was formed through acquisitions of entertainment businesses and assets (Live Nation Entertainment Schedules fourth quarter and full year 2014 earnings release and teleconference, 2015). It became a public traded company after its separation from Clear Channel and the name was changed to Live Nation. Since the company went public, it now has to take into account the needs of its shareholders. The CEO of the company is Michael Rapino.
|Key financial results for the fiscal year were as follows|
|Costs and expenses||2,792||2,611||181|
|Earnings/(loss) before interest, taxes, depreciation and amortisation||221||(70)||291|
|Depreciation and amortisation||833||858||(25)|
|Net finance costs||106||387||(281)|
The company has a database, which provides the means to efficiently market shows to fans (Wikström, 2014). Presence of online website is designed to promote ticket sales for live events (Arditi, 2014). Full-time employees provide first class service to artists and corporate sponsors (Allen, 2014; Weiss & Gaffney, 2013). It is crucial for operators to have appropriate licensing that is associated with copyright, synchronisation (music and background), performing rights, broadcast and so on.
Global music platform is increased hence the quality of the product offered improved (Burgess, 2014). Promoter presence is expanded that includes the top music markets and centres around the world (Choi & Maliangkay, 2014). Customers expect to get numerous services including high quality venues, ticket availability, numerous online services (Anderton, Dubber & James, 2013). Comprehensive information about live concerts and access to tickets can be regarded as key requirements of customers.
Arenas are able to offer amenities such as luxury suites and premium club membership. This is subject to audience size limitations. Music theatres that have a capacity of 1,000 and 6500 are there to generate annual profits and present fewer risks to concert promoters because of lower fixed costs. There is the ability to predict occupancy of the attractions. There is no rigid seasonality.
During 2009, the music business generated approximately $2.6 billion. Cost is reduced by using humans as performers. Revenue is generated from the sale of food and beverages, parking and rental income. Normal operations are maintained by having teams. Revenue generated from venue operations has a higher margin due to a more direct relationship to operating income.
ECHO: A Music-Centered Journal is a peer reviewed journal that focuses on issues of the music industry. The journal was first published in 1999. This is a web-based resource and it can be accessed free of charge, which makes it a good opportunity for all stakeholders (fans, performers, music companies, promoters) learn more about recent trends and news (Strachan, 2014).
The power of the brand has brought about financial support and investments from certain partners in business. Motivated performers are part of the event (Leslie & Rantisi, 2011). Shows are supposed to be on full-time basis. There is an increased population of artistic communities and associations. The key to success is massive investment into the industry and companies.
Allen, P. (2014). Artist management for the music business. Burlington, MA: CRC Press.
Anderton, C., Dubber, A., & James, M. (2013). Understanding the music industries. Thousand Oaks, CA: SAGE.
Arditi, D. (2014). Itake-over: The recording industry in the digital era. New York, NY: Rowman & Littlefield Pub Incorporated.
Bernstein, A., Sekine, N., & Weissman, D. (2013). The global music industry: Three perspectives. New York, NY: Routledge.
Burgess, R. J. (2014). The history of music production. New York, NY: Oxford University Press.
Choi, J. B. & Maliangkay, R. (2014). K-pop – The international rise of the Korean music industry. New York, NY: Routledge.
Harrison, A. (2014). Music: The business. Croydon, UK: Random House.
Leslie, D. & Rantisi, N. M. (2011). Creativity and place in the evolution of a cultural industry the case of Cirque du Soleil. Urban Studies, 48(9), 1771-1787.
Strachan, J. (2014). Extermination music nights: Reanimating Toronto’s lost geographies in sound and art. ECHO, 12(1).
Weiss, M. & Gaffney, P. (2013). Managing artists in pop music: What every artist and manager must know to succeed. New York, NY: Skyhorse Publishing, Inc.
Wikström, P. (2014). The music industry: Music in the cloud. Malden, MA: John Wiley & Sons.