Live Nation Final Presentation

Dustin McCormick
Chad Garbarini
Alexander Ortiz-Theriault
Natasha Keyser
Emily Briggs
Marketing/Management
Management
Marketing

Company Overview
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
The world’s leading live entertainment and eCommerce
company comprised of four major divisions, each of which
is a global leader:
- Ticketmaster
- Live Nation Concerts
- Artist Nation
- Live Nation Media & Sponsorship

Company Overview
Background
External
Analysis
Live Nation does concerts

History: Developmental Era
1992 Robert F. X. Sillerman founded SFX Broadcasting, Inc. with Steven Hicks.
1996 SFX Broadcasting buys their first concert promoter and the SFX Entertainment
division is founded.
1998 SFX Entertainment, Inc. is spun off; Blamed for monopolization, an exclusive
deal with Ticketmaster is signed.
2000 Clear Channel Communications buys SFX Entertainment.
2003 iTunes is launched.
Background
External
Analysis

History: Inception Era
2004 Michael A. Rapino became CEO.
2005 The company is spun off as Live Nation, Inc. on the
New York Stock Exchange.
Live Nation cut 300 jobs.
Live Nation scaled back its network of regional offices.
2006 Downsizing and Specializing.
2008 Live Nation sold its North American Theatrical Business.
"At 20, I decided there was nothing else I wanted to do in life besides run a global live entertainment company…”
- Michael Rapino
Background
External
Analysis

History: Expansion Era
2010 Live Nation merger with Ticketmaster.
2011 Partners with Groupon.
2013 Irving Azoff leaves Live Nation Entertainment.
New employee benefit plan rolled out by HR.
2014 LYV acquires Maverick & Principles of Management.
Acquired majority share of C3 Presents rising LYV stock.
Clear Channel Communications Renamed iHeartMedia
2015 Partners with NFL.
Hilton Partnership.
Greek Theater denies Live Nation’s bid.
Background
External
Analysis

Mission Statement
Live Nation’s mission is to maximize the live concert experience. Our core
business is producing, marketing and selling live concerts for artists via
our global concert pipe. Live Nation is the largest producer of live concerts in the
world, annually producing over 22,000 concerts for 1,600 artists in 33 countries.
During 2008, the company sold over 50 million concert tickets and drove over 70
million unique visitors to LiveNation.com. Live Nation is transforming the
concert business by expanding its concert platform into ticketing and building
the industry’s first artist-to-fan vertically integrated concert platform.
"...Our core DNA is to motivate the casual consumer and fan to show up on a Tuesday to see
that show...It's kind of a full-time gig getting that right."
- Michael A. Rapino
Background
External
Analysis

Opportunity Statement
In an industry characterized by artist loyalty, product
enthusiasm, and technological advancements, Live Nation
has the opportunity to develop a more sustainable
competitive advantage by leveraging intellectual
capital from front-line employees, capitalizing on the
customer’s perceived value, and perpetuating their
innovative culture.
Background
External
Analysis

Significance To Leadership
Based on our extensive research, we have gained
valuable knowledge on the entertainment industry.
Therefore, we can provide recommendations to
leverage their current and potential sources of
sustainable competitive advantage to avoid future
death and decline.
Background
External
Analysis

Sustainable Competitive Advantage
Sustainable competitive advantage is a company’s ability to
create long-term and measurable customer
relationships through augmented goods and/or
services that have a high perceived value, which
cannot be easily duplicated or surpassed by
competition as they are tailored to each astute and heavily
valued customer.
Background
External
Analysis

Expected Outcomes
● Increased Knowledge Capture
● Further Development of Strategic Relationships
● Competitive “Lockout”
● Uncovering new forms of Sustainable Competitive
Advantage
● Distinctive Competency Through Unique, Extra Value
Packaging of Tickets
● Positive Multiplier Effect
● Overall Strengthening of Live Nation Brand Image
Background
External
Analysis

Internal Analysis
● Leadership
● Corporate Culture
● Organizational Structure
● Human Resources
● Operations
● Finance
● Marketing
Background
External
Analysis

Research Methodology
Secondary Research
● Objective, third party sources
● Environmental scanning and monitoring
● Limitations of secondary research
Background
External
Analysis

Michael Rapino
President and CEO of Live Nation Entertainment, Inc. since August 2005.
● Led the split from Clear Channel Communications.
● Focused Live Nation’s Business model on customer share, advertising/sponsorship,
and controlling relationships with customers.
Leadership
“At 19 I wrote on a napkin that I would be the CEO of the greatest Promotion
company… and at 38 I took over Live Nation. For Those 19 years straight, I did
everything you could think about that would make you a great CEO.”
Background
External
Analysis

Leadership
Russell Wallach
President of Media & Sponsorship
● Over 20 years of marketing experience
● Oversees all sponsorship, media and marketing
partnerships across venue, online, mobile and
artist platforms.
● Developed multimillion-dollar, integrated marketing
programs with Citi, Coca-Cola, Anheuser-Busch,
Starwood Hotels, Hertz and Kellogg's.
Background
External
Analysis

John Hopmans
Executive Vice President - Mergers and Acquisitions
& Strategic Finance since April 2008
Responsible for:
● Merger with Ticketmaster
● Acquisition of premier EDM festivals Insomniac, HARDfest and Creamfields,
ticketing companies Ticketnet and ServiCaixa, and many others.
Leadership
Background
External
Analysis

John Forese
SVP and General Manager LiveAnalytics,
Since November 2010
Lead the building of the analytics division.
Former CEO of Mobile Analytics company
“Our mission is to understand the live event fan. To do that we leverage multiple data
sources: transactional data, primary research, engagement data as well as third party
data. We want insights across all aspects of live event attendance.”
Leadership
Background
External
Analysis

Corporate Culture
Culture of Innovation
“Data is the greatest word in the business world… few people
have really used it, we are still trying to master it.”
-Irving Azoff
“At the end of the day, we are in business to serve the fans, and
we do a better job of marketing and engaging, so we will win
in the end.”
-Michael Rapino
“Our business model isn’t based on the two hours [of actual
concert], it’s vibrate because it focuses on everything that
happens around the two hours.”
-Michael Rapino
Background
External
Analysis

Corporate Culture
Functionality vs. Experience
“[concerning TicketMaster] Although the company’s
customer reputation may be lower, our business has a
76% Satisfaction rate, because it is a great site.” -Michael
Rapino
“Our website can functionally do something better than
any one person can do in the entire world.”- Michael Rapino
“In the beginning of Live Nation, we stepped into
something with many moving parts… we stripped that
all away, to become the best at one thing: Concert
Promotion”- Arthur Fogel, Global Touring Head at Live
Nation
Background
External
Analysis

Corporate Culture
Alpha Culture
“As we near the end of 2014, Live Nation has never been in
a stronger position.”
“We only do two things for a living in a concert company: we buy
talent rights, and we monetize the pipeline.”
“If you wanna be the best worldwide act, you need the best promoters in the
world, [Live Nation].”
-Scooter Braun, Talent Manager of Justin Bieber
“We have always been the best… and we always keep lazer focus on
how we will be the biggest and best”
“In this business [of ticket sales], there is a fine line between the
bad and the good guys. When I’m debating it, we’re the obvious
good guys.” “Takeover is such a harsh word…”
Background
External
Analysis

Joe Berchtold
Chief Operating Officer
Organizational Structure - Corporate
Michael Rapino
President, Chief Executive
Officer and Director
John Hopmans
Executive Vice President -
Mergers and Acquisitions and
Strategic Finance
Michael Rowles
General Counsel and Secretary
Kathy Willard
Chief Financial Officer
Background
External
Analysis

Russell Wallach
President, Media &
Sponsorship
Mark Yovich
President, Ticketmaster
International
Jared Smith
President, Ticketmaster
North America
Ron Bension
President, HOB
Entertainment
John Reid
President, Live Nation
Europe-Concerts
Mark Campana
Co-President, North
America Concerts
Alan Ridgeway
President, International
Emerging Markets
Bob Roux
Co-President, North
America Concerts
Arthur Fogel
Chairman, Global Music
and President, Global
Touring
Organizational Structure - Divisional
Background
External
Analysis

Human Resources - Recruiting
● Website
● Internships
● Third Party Websites
● Social Media
● Job Fairs
Background
External
Analysis

● Hiring Process:
○ Online Applications
○ Email Response
○ Panel Interview
○ Follow-Up Skills Interview
“Always keep in mind, the candidate has the opportunity to interview us, the
employer, as much as we are interviewing the candidate.”
Human Resources - Hiring
Background
External
Analysis
● Seasonal & Union Employees

Human Resources - Training
Background
External
Analysis
● Performance Review
● Assessment Program
● Cross-functional Training
● Seminars
● Workshops

Human Resources - Retaining
● EAP
● Pension
● Season Tickets
● Health Insurance
● Income Protection
● Childcare Voucher Scheme
● Promotion and Development
Background
External
Analysis

Operations - Online Presence
● Primary Function
● Ecommerce
● Application Innovation
● Data Harvest
Background
External
Analysis

Operations - Clientele Management
● Artists
○ Labels and Contracts
○ Merchandising Distribution
○ Exclusive Rights
○ Analytics sales
“We built a platform that said the artist should take all of the money on stage.”
Background
External
Analysis

Operations - Venue Management
● Acquisition of Established Companies
Concert Staffing
Background
External
Analysis
● Variety of different forums
Festivals Concert Hall Music Lounge
“We built the model from 200 seats to the stadium”

Operations - Venue Management
Background
External
Analysis
Owned 24
Leased 78
Operated 14
Exclusive booking rights 41
Worldwide Total 157

Operations- Strategic Partnerships
● Over 750 Sponsorships
● Symbiotic Brand Integration
● Specialization for Data Collection
“Our top focus for the year has been on taking our advertising business to the next level, leveraging
our content platform to create products we can monetize through third-party platforms.”
- Josh Berchtold, COO of Live Nation
Background
External
Analysis

Operations- Strategic Partnerships
“Being as big as we are, We want to own the consumer from the minute
they walk through the front door…”- Michael Rapino
Transportation
LodgingCustomer Rewards
Delivery/Distribution
Concessions/Alcohol
ATM Rights
Background
External
Analysis

Operations- Global
● Headquarters
9348 Civic Center Dr, Beverly Hills, CA 90210
● Operating in 36 Countries outside U.S.
85 Venues Run Internationally 26 Separate Ticketing Websites
Background
External
Analysis

Finance
Background
External
Analysis

Finance
Background
External
Analysis
Income Statement

Finance: Industry Competition
Background
External
Analysis
● Ownership or partnership with 100 of the world’s
preeminent facilities for sports and live
entertainment.
● Successful artist management.
● Largest producer of music festivals in North
America.
● AEG 1EARTH, 1SOURCE, 1FORCE, Community
Involvement.
● Commands 50% of the resale market.
● “all in” ticket pricing policy.
● "We’ve reduced fees in 95 percent of [our
transactions] in order to provide a better price to
buyers," says StubHub president Chris
Tsakalakis
● Improving customer experience

Industry Competition: Financial
Background
External
Analysis

Finance
Cash Ratio
Measures the ability to pay
off debt obligations using
cash on hand
Background
External
Analysis
Cash and Equivalents
Current Liabilities

Finance
Total Debt Ratio
A conservative measure of long
term solvency
Background
External
Analysis
Total Liabilities
Total Assets

Finance
Net Profit Margin
Shows what percent of sales
translates into net income
Background
External
Analysis
Net Income
Total Sales

Finance
Return on Equity
Measures the annual
return on total equity
investment
Background
External
Analysis
Net Income
Shareholder’s Equity

Finance
Background
External
Analysis
Stock Price

Marketing
● Product
● Place
● Price
● Promotion
Background
External
Analysis

LYV Business Model: Two Components
(Referring to 2014 Adjusted Operating
Income ($Millions))
1. Content:
● Concerts...$50.6
● Artist …….$48.1
Total $98.7
2. Ancillary:
● Ticket Sales…………………...$326.1
● Advertising/Sponsorship..$213.4
Total $539.5
Marketing: Product
Background
External
Analysis

Marketing: Product
Background
External
Analysis
Ancillary $
Content
“We built a platform that said the artist should take
the money on stage. We built a model that said, let’s
not worry about the two hours but let’s make sure
that we are making money from everything
around the two hours. That’s why we built
sponsorships.”
- Michael Rapino, Live Nation CEO

Strategy
Goal in 2012: increase AOI by 30-35% by 2015
“We are confident that our business model, and its scale, provides ongoing growth potential. There remain continued
opportunities to consolidate the global concerts business, and we will use that scale to drive fan monetization,
advertising and ticketing. Since 2012 we have grown revenue by 18%, AOI by 20% and cash flow by 31%.
Looking forward, we see this growth as sustainable and repeatable given the breadth of levers and trends currently
working for us.” - Michael Rapino, 2014 Financial Results
2012 AOI
Content $69
Ancillary $469
Total $538
Elimination $79
Total $459
2014 AOI
Content $98.7
Ancillary $539.5
Total $638.2
Elimination $83.3
Total $554.9
Background
External
Analysis

Marketing: Place
● Ticket sales are continuing their rapid shift to mobile, with 35% growth in
2014 to 18% of total ticket sales.
● As a result of technology investments with Ticketmaster Platform, reduced
cost per ticket in North America by almost 25 cents per ticket.
● Expanding global footprint.
Background
External
Analysis

Marketing: Price
Background
External
Analysis

Marketing: Promotion
● Advertising
● Sales Promotions
● Public Relations
● Direct Marketing
● Personal Selling
Background
External
Analysis

Marketing: Advertising
● Mass Media:
○ Using [a•mo•bee] for Advertisers mobile advertising
solution, Live Nation promoted individual concerts
through short "burst" campaigns across iOS and Android.
Background
External
Analysis
“We are continuing to shift marketing spend from traditional media outlets to social media and digital
platforms to more effectively reach our fans and drive more ticket sales. We will continue to develop new tools for
mobile devices in additional markets to make it easier for our fans to get information on live events and conveniently
buy and sell tickets.” - 2014 10K

Marketing: Sales Promotion
Background
External
Analysis

Marketing: Public Relations
Background
External
Analysis

Marketing: Direct Marketing
“Social has connected the dots so that consumers feel like they’re talking to someone at a company and
less like they’re speaking to an answering service.” -
Chase Fritchle, social media manager at Live Nation
Background
External
Analysis

Marketing: Direct Marketing
Data Sources:
● Transactional data
● Primary research
● Engagement data
● Third party data
Background
External
Analysis
Content Captured:
● Awareness
● Satisfaction
● Demographics
● Psychographics
“Our mission is to understand the live event fan. To do that we leverage multiple data
sources. We want insights across all aspects of live event attendance” (John Forese, Senior
VP and GP of LiveAnalytics).
*Database Asset = 59 Million Fans

Marketing: Personal Selling
Job Post Example: [USHER/ TICKET TAKER /GUEST SERVICES]
Who are you?
Passionate and motivated. Driven, with an entrepreneurial spirit. Resourceful, innovative,
forward thinking and committed.
The Role:
Primary responsibility is to greet guests, check tickets, and direct guests to their seats. Previous guest
services experience a plus, excellent communication skills, and the ability to easily maneuver
throughout the pavilion. Strong customer service skills preferred.
Responsibilities:
● Ensuring each guest to the PNC Music Pavilion has an enjoyable and safe visit by tending to all
needs of public safety and security as directed by management.
● Controlling and managing crowds, performing guest services functions. (i.e. Directing guests)
Background
External
Analysis

External Analysis
● Industry Competition
● Macro-Economic Factors
● Industry Technology
● Industry Customer
Background
External
Analysis

Industry Competition: Direct
Background
External
Analysis

Industry Competition: Indirect
● Entertainment
● Streaming
● Talent Agency
Background
External
Analysis

Macro-Economic Factors
● Recession
● Overhead cost of Venues
● Inflation
● Seasonality/ Weather
Background
External
Analysis

Industry Technology
● Apigee
● Digital Platform - online and
streaming
● Social and Mobile
● Geo-fencing technology
● Customer Interaction
Background
External
Analysis

Industry Consumer
● Concert Goers
● Expansive Age Demographic
● Technology driven
● Measurable Sponsor
“With our tremendous database in terms of live events history, we can create unique,
specific targets psychographically, demographically, in terms of entertainment spend
and affinity,” - Levine
Background
External
Analysis

SWOT Analysis
Background
External
Analysis

Strengths
● Industry Standing
● Strategic Partnerships
● Customer Information
● Advertising Sales
Background
External
Analysis

● Control of Customer Experience
● Client Relationships
● Lack of Direct Competition
● Measurable Ad Campaigns
Strengths
Background
External
Analysis

Weaknesses
● Over-reliance on Michael Rapino’s
Leadership
● Traditional Leadership Structure
● Underleveraged frontline employees
● Market share focused
Background
External
Analysis

Weaknesses
● Cost plus pricing model
● Disconnect in functionality vs.
customer experience
● Ineffectively utilizing
database asset
● Low profit margins
Background
External
Analysis

Opportunities
● Industry Innovation and Technology
● In-house Hiring
● Switch to Mobile Phone
● Development of Streaming
Background
External
Analysis

Opportunities
● Unleveraged Data
● Artist Royalties
● Development of Festivals
● Global Expansion
● Perceived Customer Value Pricing
Background
External
Analysis

Threats
Background
External
Analysis
● Substitute products
● Indirect competition
● Customer volatility
● Artist cost
● Artist retention

Threats
Background
External
Analysis
● Volatility of global market
● Bad economy
● Seasonality
● Merger regulation
● Venue retention

New Forms of SCA
● Ability to anticipate and meet current and future
needs of customers
● Ability to build and insulate customer
relationships
● Improve relationships with front-line employees
● Improve relationships with venues
Background
External
Analysis

Recommendations
Background
External
Analysis

Viable Alternatives
● Venue CRM program
● Artist Nation CRM program
● Packaged Concert Streaming
● Public Outreach Program
Background
External
Analysis

Minor Recommendations
● Move towards venue ownership
● Dissolve Ticketmaster+
● Mobile Application Innovation
● Strengthening Existing Partnerships
● HRM Program
Background
External
Analysis

Live Nation Ticketing Philosophy
Background
External
Analysis

The Problem
● Control over experience
without customization
● Underleveraged data and partnerships
● Dissatisfied artist clients
● Profit loss associated with
secondary ticket market
Background
External
Analysis

Programmatic
Recommendation
Background
External
Analysis

Background
External
Analysis

Ticket Purchasing
Background
External
Analysis

DestiNation App
Background
External
Analysis

DestiNation App
● Partnership with new app technology,
“BioBeats” to be offered within the
Destination app.
● Reads the heartbeat of the individual
through the touch of a finger to be
translated into music.
● The collective audience’s heartbeat can be
sent to the performer and translated into
music.
Background
External
Analysis

Leveraging Customer Data:
● Existing data: Awareness, Satisfaction,
Demographics, Psychographics.
● Utilize current data: Package
recommendations.
● Obtained through app: Data for new pricing
model, Further customer preferences,
desired products or services, employee
feedback.
Backgound
External
Analysis
PROFILE
● Where do you live?
● When and where is your
next vacation?
● Who do you usually
attend shows with?
● Do you prefer to drive
yourself to concerts?
● Enjoy small or large
venue?
● Favorite food and drink.
● Prefered form of
communication.
● Work schedule?
Background
External
Analysis

Required HR Program
● Opt-in Program
● Training and Retraining
● 3 Month Reviews
Background
External
Analysis

Value Based Pricing
● In app surveys post-concert
● Upgrade options
● Detailed historic research
● Transparent pricing
● Elimination of secondary market profits
● Reduced operating costs
Background
External
Analysis

Select Markets:
● Ownership of 41
Venues.
● 31 artists currently
participating in
VIPnation program.
● Present opportunity
to the 31 artists
currently
participating who play
at any of the 41
venues.
Background
External
Analysis

Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal AnalysisBackground
External
Analysis

Every part of the journey is its own
Background
External
Analysis

● Employee satisfaction
● Customer satisfaction
● Artist satisfaction
● Higher ticket prices
● Increased profit per ticket
Metrics
Backgrond
External
Analysis
SWOT Analysis Recommendation ConclusionInternal AnalysisBackground
External
Analysis

Areas of Future Study
Background
External
Analysis
● Separating from ticket brokers
● Differentiating value in strategic partnerships
● Global market expansion
● Music festival development
● Further digital streaming implementation
Background
External
Analysis

Reasoning:
● Frontline employees
● Venue relationship
Background
External
Analysis
Would we Invest in Live Nation?
NO
Background
External
Analysis

Would we Work for Live Nation?
Background
External
Analysis
YES
Stipulations:
● Corporate Setting
● Management Role
Background
External
Analysis

● Galatians 6:9-10: Let us not become weary in doing good, for at the proper
time we will reap a harvest if we do not give up. Therefore, as we have
opportunity, let us do good to all people, especially to those who belong to the
family of believers.
● Romans 12:10: Love one another with brotherly affection. Outdo one
another in showing honor.
● 1 Corinthians 16:14: Let all you do be done in love.
Background
External
Analysis
Spiritual Implications
Background
External
Analysis

Work Cited
http://www.customerinsightgroup.com/marketinglibrary/how-the-internet-changed-the-music-business
http://consequenceofsound.net/2014/12/live-nation-acquires-controlling-interest-in-lollapaloozaacl-promoter-c3-presents/
http://finance.yahoo.com/news/live-nation-entertainment-partners-facebook-163200496.html
http://seekingalpha.com/pr/12292956-shopping-for-super-bowl-xlix-tickets-on-the-resale-market-nfl-and-ticketmaster-encourage-fans-to-
buy-from-nfl-ticket-exchange
http://seekingalpha.com/pr/12169455-hilton-invites-the-world-to-play
https://lpelin.expressions.syr.edu/trf635/2014/09/25/iheartradio-the-media-of-the-future/
http://www.aegworldwide.com/about/companyoverview/aeg1earth
https://www.youtube.com/watch?v=7Eyi7uZuZX8
http://www.thembj.org/2013/10/ticketmaster-and-the-business-of-scalping/#sthash.QAVPrMpR.dpuf
http://www.usatoday.com/story/money/personalfinance/2013/04/10/concert-ticket-sales-resales-scalping/2068661/
http://www.billboard.com/articles/business/6289185/ticketmaster-vs-stubhub-winning-resale-battle
Background
External
Analysis

Work Cited Continuedhttp://www.billboard.com/articles/business/6289185/ticketmaster-vs-stubhub-winning-resale-battle
http://investors.livenationentertainment.com/files/doc_news/2011/TM%20MSP%20Release%204%2018%2011%20final.pdf
http://concerts.livenation.com/retail-outlets?tm_link=help_nav_3_retail
http://fanbeat.onenation.livenation.com/#!/shows/3627/detail/image/3747
http://adage.com/article/datadriven-marketing/live-nation-pre-games-data-insights/245688/
http://investors.livenationentertainment.com/files/doc_financials/2013/4Q/LiveNationEntertainmentInc-10K-022414.pdf
http://investors.livenationentertainment.com/files/doc_financials/2014/4Q/LNE-10K-2014-2-26-15_v001_o380i4.pdf
http://www.nasdaq.com/article/live-nation-everybody-wants-to-rule-the-world-cm243623#/ixzz3U1kMJuZh
http://www.nytimes.com/2014/07/15/business/media/yahoo-seeks-to-bring-the-concert-to-your-couch.html?ref=topics
http://www.amobee.com/customers/casestudy_livenation.shtml
http://investors.livenationentertainment.com/files/doc_financials/2014/4Q/LYV-Q4-FY-2014-Earnings-Press-Release-FINAL_v001_p6t8oq.
pdf
http://socialmedia.org/blog/chase-fritchle-social-marketing-manager-live-nation-entertainment/
https://livenation.tms.hrdepartment.com/jobs/4797/Usher-Ticket-Taker-Guest-ServicesCharlotte-NC
Background
External
Analysis

Work Cited Continued
https://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation
Background
External
Analysis

Background
External
Analysis
Questions?
Background
External
Analysis

Inducing Trial
● Customers prompted with tutorial video
● Work with partnerships like Uber
● Added products and services are what
customers already need, destination meets
the convenience needs
Background
External
Analysis

Why the Current Pricing Strategy isn’t
Working:
● Focus on market share vs. customer share
● Lack of understanding of customer’s perceived value.
● Competition with StubHub
● Dissatisfied artist clients
● Underleveraged partnerships
Background
External
Analysis

Why Leadership Would Be On board
● “This is an industry that has not done a great job of letting you know of
what’s coming, recommended bands, what’s on sale tonight, generally
lots of apps out there are doing it. We’re trying to do it better. I
think we have a long way to go before we cross this line with consumers.”
- Michael Rapino
● John Forese, current senior VP and GP of Live Analytics was the CEO of a
mobile analytics company called Motally.
Background
External
Analysis

Programmatic Recommendation
Background
External
Analysis
The Problem:
Current Systems/why they aren’t working:
1.Recommendation:
2.Website Purchasing:
3.App Inclusivity:
4.Leveraging Existing Customer Data:
5.Select Markets:
6.Financial Feasibility:

Finance
Measures how many times
per year inventory is
liquidated
Background
External
Analysis
Inventory Turnover

Finance
Current Ratio
An extremely conservative
measures of short term
solvency
Background
External
Analysis

New Product Strategies:
● Gained U2, Madonna, Lady Gaga, Miley Cyrus, Britney Spears,
Nicki Minaj, Lil Wayne and Alicia Keys.
● Now monetizing content in their deal with Yahoo! to distribute a
streaming concert every day.
● Live analytics.
● Acquisition of North America festival assets Austin City Limits,
Lollapalooza festivals and brands, and majority share of C3 Presents.
Background
External
Analysis

Price Strategies
● Ticketmaster and Marketshare partnership:
"By utilizing MarketShare and Ticketmaster’s technology, our clients will be able
to retain economic value that is normally siphoned off by the secondary market,
and to sell more of their tickets that go unsold today. Meanwhile, more fans
will have more opportunities to enjoy live entertainment events because
tickets will be more accessible and pricing options will broaden.” -
Nathan Hubbard, CEO of Ticketmaster
● TM+ has produced over $1 billion of secondary gross transaction value since its
launch in the fall of 2013.
Background
External
Analysis

Strategy to Gain 5 Million Fans
5M Fans Worldwide
100% Annual Growth
Electronic Dance Music
$50M+ Profit Pool by 2015
5M fans worldwide
North American Festivals Emerging Markets
4M fans
25% Annual Growth
20M fans
5% annual growth
Background
External
Analysis

Strategy to Continue AOI Growth
Goal: Increase AOI by 30 - 35%
2012
Add 5M Fans
Leverage Social & Mobile
Sponsorship
$0.35 NA cost per ticket reduction
2015 Secondary Growth
Background
External
Analysis

Overall Feasibility:
● Long-term investment
● Slow roll-out
● $100 million spent on TM+
● Value based pricing fixes secondary ticketing
market problems
Background
External
Analysis

Leadership
Irving Azoff
Chairman/CEO of Ticketmaster in 2008 - 2012.
Considered 2012’s “Most Powerful Person in Music
Industry” by Billboard Magazine.
Current CEO of Azoff Music Management, Inc.
Background
External
Analysis

VIPnation?
Background
External
Analysis

Live Nation Currently:
May 13, 2015: Jordan Zachery
named chief strategy officer.
Key in their festival acquisition strategy.
Background
External
Analysis

CFO Kathy Willard on Lack of Profitability:
“Still, as CFO Kathy Willard noted, while the concert division's AOI improved 80%, it still operated at a
loss of $2.6 million….the improvement in the net loss "was driven by our higher operating income
in the first quarter; lower interest expense, due to the refinancing of our debt in Q3 of last
year, and a discrete one time tax benefit of $7 million, related to deferred tax liabilities recorded
from an acquisition completed during the first quarter of 2014."
As of March 31, total current and long-term debt, including capital leases, was $1.8 billion.
Background
External
Analysis

Marketing Place: Arena Information
Live Nation is not in the arena business from a real estate perspective—they
own/operate amphitheaters, clubs, and theaters. They can't capture arena
ancillary revenues like parking, concessions, and venue sponsorships.
Unable to gain ancillary revenue from 35% of all venues operated in.
Still, grosses in arenas are typically significantly higher than those in sheds,
where generally two-thirds of the house is GA seating. And arena shows are
profitable and tap into a higher-end clientele and those seeking VIP
experiences.
Background
External
Analysis

Expanded from 5 to 41 different countries
The one differentiating
the moat around the castle has been untouchable because 10,000 people want the same ticket on a saturday morning at 10:00am
we moved from best available to always available
alot of fraud and counterfeits in the secondary business
“Let’s not worry about the two hours of concert… we make money everywhere else around the two hours”
“As the frontrunner in an artist centered model, we need to make sure we are truthful and completely transparent to our Artists”

“And with more concert demand comes more brand involvement. Last year the sponsorship and advertising division derived $285
million in revenue from 900 million online visitors and 60 million concertgoers. Experts think there’s room to grow: Macquarie
analysts believe Live Nation can sustain or accelerate its double-digit growth in sponsorships and advertising during the next few
years.”

Live Nation Final Presentation

Live Nation Final Presentation

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Live Nation Final Presentation