Company Live Nation Entertainment hasentertainment conglomerates that reside at theprestigious address 9348 Civic Center Drive Beverly Hills, California 90210. Theirparent company is Clear Channel, which makes for a great story about the history ofhow Live Nation Entertainment was born. In 2005, shares were listed on the New YorkStock Exchange, almost seven years ago today. Clear channel created a tax-free spin-off for their shareholders, and called it CCE Spinco, Inc. It was renamed Live NationEntertainment, Inc. and Michael Rapino was named the company’s CEO in September2004. Rapino previously headed the European music operations for Clear Channel. “The companys aim in the United States was to return to a more traditional way of developing bands, Rapino said in Amusement Business.” Rapino has made it a priority to bring back the brand identities of a dozendifferent United States promoters and apply them to regional divisions. In 2005, LiveNation Entertainment cut 300 jobs and closed many regional offices in efforts to balancetheir budget and pay off their debts. “While valued at more than $1 billion, the company had a total debt of about $367 million, noted Billboard.” Rapino decided to research ticket sales because Ticketmaster.com had acontract that was coming up for renewal in 2008. Live Nation Entertainment was set tobecome an entertainment portal while increasing its stadium management businessthrough venue rental and ownership.(“Live nation, inc.,” )Business Live NationEntertainment’s revenue generating units include operations ofvenues for live entertainment in the world by promoting or staging events. The types ofvenues Live Nation Entertainment owns are stadiums, amphitheaters, arenas, musictheaters, clubs, House of Blues clubs, festival sites, and theatrical theaters. Live Nation
Entertainment also has several other business units such as promoting music concerts,ticket servicing, artist management and services, as well as sponsorships. ("Live nationentertainment," 2010)Target Market Live Nation Entertainment has a variety of business units, which are allentertainment related; therefore, each business unit shares a target market. Theirmaintargeted core segments are people who love music. “Music touches women, teens, African-Americans, Hispanics, every demographic, every psychographic, every geographic market anywhere in the country. Anywhere in the world, music has an influence.”(Bhasin, 2011).The geographic target market is in the United States, Canada, and Europe. Theestimated data for demographic data calculated from LiveNation.com traffic: “Male: 46%, Female 54%, Under 18: 17%, 18-34: 36%, 35-49: 32%, 50+: 15%, Caucasian: 81%, No Kids: 56%, Has Kids: 44%, Household Income: $0-13k: 13%, $30-60k: 26%, $60-100k: 32%, $100k+: 29%, Education Level: No College: 44%, College: 43%, Graduate School: 12%.”(“Quantcast - audience,” ) To break down Live Nation Entertainment’s core segments, starting with theirservice of promoting music concerts.The target markets are people who attend aconcert on average of twice a year. Their benefits sought are about creating anexperience aimed at people who are tech-savvy. For example, through use of thecompany’s iPhone app, people can buy music and videos while at the concert. Thepsychographic description are people who have the lifestyle of having a smart phone,they are young and single and attend concerts more frequently than those with families. “The beauty about music is that its truly is universal. Everyone loves music. They listen to music for hours, many hours every day. And thats
whether youre a teenager or youre a senior -- music is a part of your life.” (Bhasin, 2011) Live Nation Entertainment also operates venues. The targeted core segments forvenue operations is achieved through ownership. The idea is to buy a successful namebrand and attach Live Nation Entertainment to the brand. For example, the House ofBlues chain of clubs is a well-known establishment that Live Nation Entertainment nowowns. Through the ownership of venues the company can streamline their eventpromotions business. A third service Live Nation Entertainment offers is ticket servicing. The targetedcore segments are people who have a heavy usage rate of going to entertainmentevents. Ticket sales are for many events from music concerts to monster truck shows.Competition Live Nation Entertainment’s main competitors are Anschutz EntertainmentGroup, SMG, Veritix, William Morris Endeavor Entertainment, and major sports leaguesthat sell sponsorships, combined with significant national media packages. Anschutz Entertainment Group’s similar services are promoting music concerts;they have similar customers of concertgoers, and are the same type of company that isin the live music industry. Another main competition’s company name is SMG. Theirsimilar services are operating venues, similar customers are music lovers, and they arethe same type of company who own and/or operate venues to serve artists to perform.A final example of comparing the competition is a company called Veritix. Similarservices are ticketing servicing, similar customers are ticket buyers, and they are also aticketing service provider. (“Live nation entertainment,” 2010) Live Nation Entertainment’s strength is their ability to stay focused on theentertainment industry while maintaining many different revenues; therefore, theircompetition is very dynamic.
“Competition in the live entertainment industry is intense. We believe that we compete primarily on the basis of our ability to deliver quality music products, sell tickets and provide enhanced fan and artist experiences. We believe that our primary strengths include: the quality of service delivered to our artists, fans and corporate sponsors. Our track record in promoting and producing live music events and tours both domestically and internationally; artist relationships; ticketing software and services; distribution platform (venues); the scope and effectiveness in our expertise of marketing and sponsorship programs; and our financial stability.("Live nation entertainment," 2010) Live Nation Entertainment’s competitors are successful and have a variety ofcompetitors in different industries, and some that have more financial backing andlarger brand awareness. “Touring artists have significant alternatives to our venues in scheduling tours. Our main competitors in venue management include SMG and Anschutz Entertainment Group, in addition to numerous smaller regional companies in North America and Europe. Some of our competitors in venue management have a greater number of venues in certain markets as well as greater financial resources in those markets.” Live Nation Entertainment’s challenges are dealing with the accessibility thecompetition has in the Internet arena concerning ticket sales. There are venues that areintegrating self-ticketing systems. Another threat of loss of revenue is primary ticketingservice providers who lock a client into their contracts. Services directly competing withLive Nation Entertainment are in the live music industry promoting music concerts. Thecompetition’s additional product and services lines are local and national sports teamswho offer state of the art venues and strong media packages for sponsorships.
Summary Live Nation Entertainment’s company structure is made up of Officers andDirectors. The Board of Directors are as follows: Irving Azoff is Chairman of the Board,Live Nation Entertainment. Mark Carleton is Senior Vice President, Liberty MediaCorporation. Jonathan Dolgen is Principal, Wood River Ventures, LLC. Ariel Emanuel isChief Executive Officer, WME Entertainment. Robert Ted Enloe, III is Managing GeneralPartner, Balquita Partners, Ltd.Jeffrey T. Hinson is President, YouPlusMedia, LLC isJames S. Kahan is AT&T Senior Executive Vice President – CorporateDevelopment,Retired. Gregory B. Maffei is President and Chief Executive Officer,Liberty Media Corporation. Randall T. Mays is Vice Chairman, Clear ChannelCommunications, Inc.Michael Rapino is President and Chief Executive Officer, LiveNation Entertainment. Mark S. Shapiro is Chief Executive Officer, Dick ClarkProductions.("Live nation entertainment," 2010) Live Nation Entertainment’s current position isto continue to increase ownershipin well-established brands within the entertainment industry. They aim to create anexperience at their concerts in order to build their brand and bring value to theiraudiences around the globe. Their main focus is to give the fans what they want.
ReferencesBhasin, K. (2011, September 07). Q&a: Live nation exec on how social media and mobile tech are completely changing live music read more [Web log message]. Retrieved from http://articles.businessinsider.com/2011-09- 07/strategy/30126733_1_live-music-artist-brands(n.d.). Live nation, inc. - company profile, information, business description, history, background information on live nation, inc.Reference For Business - Encyclopedia of Small Business, Business Biographies, Business Plans, and Encyclopedia of American Industries, Retrieved from http://www.referenceforbusiness.com/history2/54/Live-Nation-Inc.htmlQuantcast - audience measurement, lookalike modeling, audience buying. (n.d.). Retrieved from http://www.quantcast.com/livenation.com(2010). Live nation entertainment inc. annual report. Retrieved from website: http://phx.corporate-ir.net/phoenix.zhtml?c=194146&p=irol-irhome