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Dustin McCormick
Chad Garbarini
Alexander Ortiz-Theriault
Natasha Keyser
Emily Briggs
Marketing/Management
Marketing/Manag...
Company Overview
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
The world’s leading...
Company Overview
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Live Nation does co...
History: Developmental Era
1992 Robert F. X. Sillerman founded SFX Broadcasting, Inc. with Steven Hicks.
1996 SFX Broadcas...
History: Inception Era
2004 Michael A. Rapino became CEO.
2005 The company is spun off as Live Nation, Inc. on the
New Yor...
History: Expansion Era
2010 Live Nation merger with Ticketmaster.
2011 Partners with Groupon.
2013 Irving Azoff leaves Liv...
Mission Statement
Live Nation’s mission is to maximize the live concert experience. Our core
business is producing, market...
Opportunity Statement
In an industry characterized by artist loyalty, product
enthusiasm, and technological advancements, ...
Significance To Leadership
Based on our extensive research, we have gained
valuable knowledge on the entertainment industr...
Sustainable Competitive Advantage
Sustainable competitive advantage is a company’s ability to
create long-term and measura...
Expected Outcomes
● Increased Knowledge Capture
● Further Development of Strategic Relationships
● Competitive “Lockout”
●...
Situational Analysis
Internal Analysis
● Leadership
● Corporate Culture
● Organizational Structure
● Human Resources
● Operations
● Finance
● M...
Research Methodology
Secondary Research
● Objective, third party sources
● Environmental scanning and monitoring
● Limitat...
Michael Rapino
President and CEO of Live Nation Entertainment, Inc. since August 2005.
● Led the split from Clear Channel ...
Leadership
Russell Wallach
President of Media & Sponsorship
● Over 20 years of marketing experience
● Oversees all sponsor...
John Hopmans
Executive Vice President - Mergers and Acquisitions
& Strategic Finance since April 2008
Responsible for:
● M...
John Forese
SVP and General Manager LiveAnalytics,
Since November 2010
Lead the building of the analytics division.
Former...
Corporate Culture
Culture of Innovation
“Data is the greatest word in the business world… few people
have really used it, ...
Corporate Culture
Functionality vs. Experience
“[concerning TicketMaster] Although the company’s
customer reputation may b...
Corporate Culture
Alpha Culture
“As we near the end of 2014, Live Nation has never been in
a stronger position.”
“We only ...
Joe Berchtold
Chief Operating Officer
Organizational Structure - Corporate
Michael Rapino
President, Chief Executive
Offic...
Russell Wallach
President, Media &
Sponsorship
Mark Yovich
President, Ticketmaster
International
Jared Smith
President, Ti...
Human Resources - Recruiting
● Website
● Internships
● Third Party Websites
● Social Media
● Job Fairs
Background
External...
● Hiring Process:
○ Online Applications
○ Email Response
○ Panel Interview
○ Follow-Up Skills Interview
“Always keep in mi...
Human Resources - Training
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Perform...
Human Resources - Retaining
● EAP
● Pension
● Season Tickets
● Health Insurance
● Income Protection
● Childcare Voucher Sc...
Operations - Online Presence
● Primary Function
● Ecommerce
● Application Innovation
● Data Harvest
Background
External
An...
Operations - Clientele Management
● Artists
○ Labels and Contracts
○ Merchandising Distribution
○ Exclusive Rights
○ Analy...
Operations - Venue Management
● Acquisition of Established Companies
Concert Staffing
Background
External
Analysis
SWOT An...
Operations - Venue Management
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Owned ...
Operations- Strategic Partnerships
● Over 750 Sponsorships
● Symbiotic Brand Integration
● Specialization for Data Collect...
Operations- Strategic Partnerships
“Being as big as we are, We want to own the consumer from the minute
they walk through ...
Operations- Global
● Headquarters
9348 Civic Center Dr, Beverly Hills, CA 90210
● Operating in 36 Countries outside U.S.
8...
Finance
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Finance
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Finance
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Income Statement
Finance: Industry Competition
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Owne...
Industry Competition: Financial
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Finance
Cash Ratio
Measures the ability to pay
off debt obligations using
cash on hand
Background
External
Analysis
SWOT A...
Finance
Total Debt Ratio
A conservative measure of long
term solvency
Background
External
Analysis
SWOT Analysis Recommend...
Finance
Net Profit Margin
Shows what percent of sales
translates into net income
Background
External
Analysis
SWOT Analysi...
Finance
Return on Equity
Measures the annual
return on total equity
investment
Background
External
Analysis
SWOT Analysis ...
Finance
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Stock Price
Finance
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing
● Product
● Place
● Price
● Promotion
Background
External
Analysis
SWOT Analysis Recommendation ConclusionIntern...
LYV Business Model: Two Components
(Referring to 2014 Adjusted Operating
Income ($Millions))
1. Content:
● Concerts...$50....
Marketing: Product
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Ancillary $
Conte...
Strategy
Goal in 2012: increase AOI by 30-35% by 2015
“We are confident that our business model, and its scale, provides o...
Marketing: Place
● Ticket sales are continuing their rapid shift to mobile, with 35% growth in
2014 to 18% of total ticket...
Marketing: Price
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Promotion
● Advertising
● Sales Promotions
● Public Relations
● Direct Marketing
● Personal Selling
Background
...
Marketing: Advertising
● Mass Media:
○ Using [a•mo•bee] for Advertisers mobile advertising
solution, Live Nation promoted ...
Marketing: Sales Promotion
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Public Relations
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Direct Marketing
“Social has connected the dots so that consumers feel like they’re talking to someone at a com...
Marketing: Direct Marketing
Data Sources:
● Transactional data
● Primary research
● Engagement data
● Third party data
Bac...
Marketing: Personal Selling
Job Post Example: [USHER/ TICKET TAKER /GUEST SERVICES]
Who are you?
Passionate and motivated....
External Analysis
● Industry Competition
● Macro-Economic Factors
● Industry Technology
● Industry Customer
Background
Ext...
Industry Competition: Direct
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Industry Competition: Indirect
● Entertainment
● Streaming
● Talent Agency
Background
External
Analysis
SWOT Analysis Reco...
Macro-Economic Factors
● Recession
● Overhead cost of Venues
● Inflation
● Seasonality/ Weather
Background
External
Analys...
Industry Technology
● Apigee
● Digital Platform - online and
streaming
● Social and Mobile
● Geo-fencing technology
● Cust...
Industry Consumer
● Concert Goers
● Expansive Age Demographic
● Technology driven
● Measurable Sponsor
“With our tremendou...
SWOT Analysis
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Strengths
● Industry Standing
● Strategic Partnerships
● Customer Information
● Advertising Sales
Background
External
Anal...
● Control of Customer Experience
● Client Relationships
● Lack of Direct Competition
● Measurable Ad Campaigns
Strengths
B...
Weaknesses
● Over-reliance on Michael Rapino’s
Leadership
● Traditional Leadership Structure
● Underleveraged frontline em...
Weaknesses
● Cost plus pricing model
● Disconnect in functionality vs.
customer experience
● Ineffectively utilizing
datab...
Opportunities
● Industry Innovation and Technology
● In-house Hiring
● Switch to Mobile Phone
● Development of Streaming
B...
Opportunities
● Unleveraged Data
● Artist Royalties
● Development of Festivals
● Global Expansion
● Perceived Customer Val...
Threats
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Substitute products
● Indi...
Threats
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Volatility of global marke...
Sustainable Competitive Advantage
Sustainable competitive advantage is a company’s ability to
create long-term and measura...
New Forms of SCA
● Ability to anticipate and meet current and future
needs of customers
● Ability to build and insulate cu...
Recommendations
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Viable Alternatives
● Venue CRM program
● Artist Nation CRM program
● Packaged Concert Streaming
● Public Outreach Program...
Minor Recommendations
● Move towards venue ownership
● Dissolve Ticketmaster+
● Mobile Application Innovation
● Strengthen...
Live Nation Ticketing Philosophy
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
The Problem
● Control over experience
without customization
● Underleveraged data and partnerships
● Dissatisfied artist c...
Programmatic
Recommendation
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Ticket Purchasing
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
DestiNation App
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
DestiNation App
● Partnership with new app technology,
“BioBeats” to be offered within the
Destination app.
● Reads the he...
Leveraging Customer Data:
● Existing data: Awareness, Satisfaction,
Demographics, Psychographics.
● Utilize current data: ...
Required HR Program
● Opt-in Program
● Training and Retraining
● 3 Month Reviews
Background
External
Analysis
SWOT Analysi...
Value Based Pricing
● In app surveys post-concert
● Upgrade options
● Detailed historic research
● Transparent pricing
● E...
Select Markets:
● Ownership of 41
Venues.
● 31 artists currently
participating in
VIPnation program.
● Present opportunity...
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal AnalysisBackground
External
Analysis
SWOT Ana...
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Every part of the journey is its own
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Employee satisfaction
● Customer satisfaction
● Artist satisfaction
● Higher ticket prices
● Increased profit per ticket...
Expected Outcomes
● Increased Knowledge Capture
● Further Development of Strategic Relationships
● Competitive “Lockout”
●...
Areas of Future Study
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Separating f...
Reasoning:
● Frontline employees
● Venue relationship
Background
External
Analysis
SWOT Analysis Recommendation Conclusion...
Would we Work for Live Nation?
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
YES
S...
● 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...
Work Cited
http://www.customerinsightgroup.com/marketinglibrary/how-the-internet-changed-the-music-business
http://consequ...
Work Cited Continuedhttp://www.billboard.com/articles/business/6289185/ticketmaster-vs-stubhub-winning-resale-battle
http:...
Work Cited Continued
https://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation
Background
Exte...
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Questions?
Background
External
Analy...
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Inducing Trial
● Customers prompted with tutorial video
● Work with partnerships like Uber
● Added products and services a...
Why the Current Pricing Strategy isn’t
Working:
● Focus on market share vs. customer share
● Lack of understanding of cust...
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...
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Programmatic Recommendation
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
The Prob...
Finance
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Finance
Measures how many times
per year inventory is
liquidated
Background
External
Analysis
SWOT Analysis Recommendation...
Finance
Current Ratio
An extremely conservative
measures of short term
solvency
Background
External
Analysis
SWOT Analysis...
New Product Strategies:
● Gained U2, Madonna, Lady Gaga, Miley Cyrus, Britney Spears,
Nicki Minaj, Lil Wayne and Alicia Ke...
Price Strategies
● Ticketmaster and Marketshare partnership:
"By utilizing MarketShare and Ticketmaster’s technology, our ...
Strategy to Gain 5 Million Fans
5M Fans Worldwide
100% Annual Growth
Electronic Dance Music
$50M+ Profit Pool by 2015
5M f...
Strategy to Continue AOI Growth
Goal: Increase AOI by 30 - 35%
2012
Add 5M Fans
Leverage Social & Mobile
Sponsorship
$0.35...
Finance: Industry Competition
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
● Owne...
Overall Feasibility:
● Long-term investment
● Slow roll-out
● $100 million spent on TM+
● Value based pricing fixes second...
Leadership
Irving Azoff
Chairman/CEO of Ticketmaster in 2008 - 2012.
Considered 2012’s “Most Powerful Person in Music
Indu...
VIPnation?
Background
External
Analysis
SWOT Analysis Recommendation ConclusionInternal Analysis
Live Nation Currently:
May 13, 2015: Jordan Zachery
named chief strategy officer.
Key in their festival acquisition strate...
CFO Kathy Willard on Lack of Profitability:
“Still, as CFO Kathy Willard noted, while the concert division's AOI improved ...
Marketing Place: Arena Information
Live Nation is not in the arena business from a real estate perspective—they
own/operat...
Expanded from 5 to 41 different countries
The one differentiating
the moat around the castle has been untouchable because ...
“And with more concert demand comes more brand involvement. Last year the sponsorship and advertising division derived $28...
Live Nation Final Presentation
Live Nation Final Presentation
Live Nation Final Presentation
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Live Nation Final Presentation

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Live Nation Final Presentation

  1. 1. Dustin McCormick Chad Garbarini Alexander Ortiz-Theriault Natasha Keyser Emily Briggs Marketing/Management Marketing/Management Marketing/Management Management Marketing
  2. 2. 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
  3. 3. Company Overview Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Live Nation does concerts
  4. 4. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  5. 5. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  6. 6. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  7. 7. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  8. 8. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  9. 9. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  10. 10. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  11. 11. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  12. 12. Situational Analysis
  13. 13. Internal Analysis ● Leadership ● Corporate Culture ● Organizational Structure ● Human Resources ● Operations ● Finance ● Marketing Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  14. 14. Research Methodology Secondary Research ● Objective, third party sources ● Environmental scanning and monitoring ● Limitations of secondary research Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  15. 15. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  16. 16. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  17. 17. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  18. 18. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  19. 19. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  20. 20. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  21. 21. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  22. 22. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  23. 23. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  24. 24. Human Resources - Recruiting ● Website ● Internships ● Third Party Websites ● Social Media ● Job Fairs Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  25. 25. ● 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 SWOT Analysis Recommendation ConclusionInternal Analysis ● Seasonal & Union Employees
  26. 26. Human Resources - Training Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis ● Performance Review ● Assessment Program ● Cross-functional Training ● Seminars ● Workshops
  27. 27. Human Resources - Retaining ● EAP ● Pension ● Season Tickets ● Health Insurance ● Income Protection ● Childcare Voucher Scheme ● Promotion and Development Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  28. 28. Operations - Online Presence ● Primary Function ● Ecommerce ● Application Innovation ● Data Harvest Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  29. 29. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  30. 30. Operations - Venue Management ● Acquisition of Established Companies Concert Staffing Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis ● Variety of different forums Festivals Concert Hall Music Lounge “We built the model from 200 seats to the stadium”
  31. 31. Operations - Venue Management Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Owned 24 Leased 78 Operated 14 Exclusive booking rights 41 Worldwide Total 157
  32. 32. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  33. 33. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  34. 34. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  35. 35. Finance Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  36. 36. Finance Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  37. 37. Finance Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Income Statement
  38. 38. Finance: Industry Competition Background External Analysis SWOT Analysis Recommendation ConclusionInternal 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
  39. 39. Industry Competition: Financial Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  40. 40. Finance Cash Ratio Measures the ability to pay off debt obligations using cash on hand Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Cash and Equivalents Current Liabilities
  41. 41. Finance Total Debt Ratio A conservative measure of long term solvency Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Total Liabilities Total Assets
  42. 42. Finance Net Profit Margin Shows what percent of sales translates into net income Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Net Income Total Sales
  43. 43. Finance Return on Equity Measures the annual return on total equity investment Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Net Income Shareholder’s Equity
  44. 44. Finance Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Stock Price
  45. 45. Finance Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  46. 46. Marketing ● Product ● Place ● Price ● Promotion Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  47. 47. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  48. 48. Marketing: Product Background External Analysis SWOT Analysis Recommendation ConclusionInternal 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
  49. 49. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  50. 50. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  51. 51. Marketing: Price Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  52. 52. Marketing: Promotion ● Advertising ● Sales Promotions ● Public Relations ● Direct Marketing ● Personal Selling Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  53. 53. 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 SWOT Analysis Recommendation ConclusionInternal 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
  54. 54. Marketing: Sales Promotion Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  55. 55. Marketing: Public Relations Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  56. 56. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  57. 57. Marketing: Direct Marketing Data Sources: ● Transactional data ● Primary research ● Engagement data ● Third party data Background External Analysis SWOT Analysis Recommendation ConclusionInternal 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
  58. 58. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  59. 59. External Analysis ● Industry Competition ● Macro-Economic Factors ● Industry Technology ● Industry Customer Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  60. 60. Industry Competition: Direct Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  61. 61. Industry Competition: Indirect ● Entertainment ● Streaming ● Talent Agency Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  62. 62. Macro-Economic Factors ● Recession ● Overhead cost of Venues ● Inflation ● Seasonality/ Weather Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  63. 63. Industry Technology ● Apigee ● Digital Platform - online and streaming ● Social and Mobile ● Geo-fencing technology ● Customer Interaction Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  64. 64. 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 Recommendation ConclusionInternal Analysis
  65. 65. SWOT Analysis Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  66. 66. Strengths ● Industry Standing ● Strategic Partnerships ● Customer Information ● Advertising Sales Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  67. 67. ● Control of Customer Experience ● Client Relationships ● Lack of Direct Competition ● Measurable Ad Campaigns Strengths Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  68. 68. Weaknesses ● Over-reliance on Michael Rapino’s Leadership ● Traditional Leadership Structure ● Underleveraged frontline employees ● Market share focused Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  69. 69. Weaknesses ● Cost plus pricing model ● Disconnect in functionality vs. customer experience ● Ineffectively utilizing database asset ● Low profit margins Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  70. 70. Opportunities ● Industry Innovation and Technology ● In-house Hiring ● Switch to Mobile Phone ● Development of Streaming Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  71. 71. Opportunities ● Unleveraged Data ● Artist Royalties ● Development of Festivals ● Global Expansion ● Perceived Customer Value Pricing Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  72. 72. Threats Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis ● Substitute products ● Indirect competition ● Customer volatility ● Artist cost ● Artist retention
  73. 73. Threats Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis ● Volatility of global market ● Bad economy ● Seasonality ● Merger regulation ● Venue retention
  74. 74. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  75. 75. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  76. 76. Recommendations Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  77. 77. Viable Alternatives ● Venue CRM program ● Artist Nation CRM program ● Packaged Concert Streaming ● Public Outreach Program Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  78. 78. Minor Recommendations ● Move towards venue ownership ● Dissolve Ticketmaster+ ● Mobile Application Innovation ● Strengthening Existing Partnerships ● HRM Program Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  79. 79. Live Nation Ticketing Philosophy Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  80. 80. The Problem ● Control over experience without customization ● Underleveraged data and partnerships ● Dissatisfied artist clients ● Profit loss associated with secondary ticket market Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  81. 81. Programmatic Recommendation Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  82. 82. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  83. 83. Ticket Purchasing Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  84. 84. DestiNation App Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  85. 85. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  86. 86. 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 SWOT Analysis Recommendation ConclusionInternal 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  87. 87. Required HR Program ● Opt-in Program ● Training and Retraining ● 3 Month Reviews Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  88. 88. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  89. 89. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  90. 90. Background External Analysis SWOT Analysis Recommendation ConclusionInternal AnalysisBackground External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  91. 91. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  92. 92. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  93. 93. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  94. 94. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  95. 95. Every part of the journey is its own Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  96. 96. ● Employee satisfaction ● Customer satisfaction ● Artist satisfaction ● Higher ticket prices ● Increased profit per ticket Metrics Backgrond External Analysis SWOT Analysis Recommendation ConclusionInternal AnalysisBackground External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  97. 97. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  98. 98. Areas of Future Study Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis ● Separating from ticket brokers ● Differentiating value in strategic partnerships ● Global market expansion ● Music festival development ● Further digital streaming implementation Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  99. 99. Reasoning: ● Frontline employees ● Venue relationship Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Would we Invest in Live Nation? NO Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  100. 100. Would we Work for Live Nation? Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis YES Stipulations: ● Corporate Setting ● Management Role Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  101. 101. ● 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 SWOT Analysis Recommendation ConclusionInternal Analysis Spiritual Implications Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  102. 102. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  103. 103. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  104. 104. Work Cited Continued https://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  105. 105. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Questions? Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  106. 106. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  107. 107. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  108. 108. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  109. 109. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  110. 110. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  111. 111. Programmatic Recommendation Background External Analysis SWOT Analysis Recommendation ConclusionInternal 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:
  112. 112. Finance Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  113. 113. Finance Measures how many times per year inventory is liquidated Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis Inventory Turnover
  114. 114. Finance Current Ratio An extremely conservative measures of short term solvency Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  115. 115. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  116. 116. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  117. 117. 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 $40M+ Profit Pool by 2015 20M fans 5% annual growth $150M+ Profit Pool by 2015 Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  118. 118. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  119. 119. Finance: Industry Competition Background External Analysis SWOT Analysis Recommendation ConclusionInternal 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
  120. 120. Overall Feasibility: ● Long-term investment ● Slow roll-out ● $100 million spent on TM+ ● Value based pricing fixes secondary ticketing market problems Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  121. 121. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  122. 122. VIPnation? Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  123. 123. Live Nation Currently: May 13, 2015: Jordan Zachery named chief strategy officer. Key in their festival acquisition strategy. Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
  124. 124. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  125. 125. 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 SWOT Analysis Recommendation ConclusionInternal Analysis
  126. 126. 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”
  127. 127. “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.”

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