Live Nation Entertainment owns the House of Blues brand, which includes 10 clubs and 8 amphitheaters. In 2006, Live Nation CEO Michael Rapino purchased House of Blues for $350 million in order to expand the brand globally. While Live Nation's stock has increased significantly since 2013, outperforming the DOW, it has a high debt-to-assets ratio. House of Blues competes directly with venues like The Paramount and Stubbs Bar-B-Q through similar membership programs, merchandise shops, and gospel brunches. Rapino aims to help House of Blues expand internationally to gain an advantage over competitors like AEG, which owns prominent venues.

1. ASSIGNMENT 1 - INITIAL COMPANY RESEARCH
Student Name: Alisson Bisono
Date: 05/05/2018
COMPANY:
Parent Company (or Holding Company) Name: Live Nation Entertainment
Brand/Division/Subsidiary Name: House of Blues
Parent company structure:
In 2010, Live Nation decided to appoint Michael Rapino as the CEO of their company.
Allocating around $8.3 Billion in sales, Live Nation Entertainment is your typical touring
company. However, that’s not all they focus on, “…(it’s) an entertainment company that
engages in producing, marketing, and selling live concerts for artists via its global concert pipe.
(Forbes, 2018). It includes four business segments including Concerts, Ticketing, Artist Nation,
and Sponsorship and Advertising.
Brand/Division/Subsidiary Detail:
Ron Bension is the CEO of House of Blues Entertainment. House of Blues owns around
ten clubs and eight amphitheaters. In 2006, Live Nation CEO Michael Rapino decided to buy the
company at $350 million. This was a very great decision for Live Nation, “We have an incredibly
strong balance sheet and we believe there are great opportunities for growth on a global
basis,” (Waddel, 2006). Originating as a small club, Live Nation saw this as an opportunity to
expand their brand.
Parent company financial:
 Year over Year:
From 2013 to now, Live Nation’s stock has increased over the years. On May 6th, 2013, the
stock was at 14.07 million. As of April 30th, 2018, the stock is now at 40 million. This is a drastic
change in their stock. From February 2016 to February 2017, the stock started to incline. It
went from 19 million to 29 million in a year.
 Compare stock performance to a market index:
Compared to DOW, Live Nation is very successful. While DOW is at 56.52% today, Live
Nation is at a whopping 194.71%. That is a major difference for an entertainment company.
 Net Income: -$5,902 (in thousands) since December of 2017.
 Net Profit Margin: -0.057% since December of 2017.
 Debt to Assets Ratio: 0.81. This means that the company has a lot of debt they owe.

2. BUSINESS LINES OF BRAND OR DIVISION:
Product/Service line A: The Foundation Room
Example of Product/Service line A: This is a venue within the House of Blues. It’s an exclusive
room just for VIP Foundation Room members. You can gain exclusive access to House of Blues
tickets, elite dining and drinks, and high-class debauchery. (House, N.D.)
Product/Service line B: Gospel Brunch
Example of Product/Service line B: Featured at every House of Blues venue, Gospel Brunch
features local talent showcasing traditional and contemporary Gospel songs. It features an all-
you-can-eat breakfast buffet before and after the show. (House, N.D.)
Product/Service line C: House of Blues Gear Shop
Example of Product/Service C: At every House of Blues venue, a merchandise shop is featured
inside. It includes every miscellaneous House of Blues item, including mugs, t-shirts, pajama
pants, journals, pins, magnets, and more. (House, N.D.)

3. TARGET MARKET FOR BRAND OR DIVISION:
Example of Product/Service line A: The Foundation Room
 Geographic: The United States
 Demographic: Men and Woman ranging from 21-50
 Psychographic: Business Professionals and High-Status individuals
 Benefits Sought by consumer: People that are interested in joining an upscale, full-service
membership club. (Walker, 2002)
 Usage Rate of consumer: Lesser to Moderate Usage
Example of Product/Service line B: Gospel Brunch
 Geographic: The United States
 Demographic: Men and Woman ranging from 27-60, Families of four or more
 Psychographic: Close-knit families and Religious/Non-Religious individuals
 Benefits Sought by consumer: The community can enjoy a great brunch meal the first 30
minutes, then the last hour is the Gospel show. (Scribner-Maclean, 2009)
 Usage Rate of consumer: Heavy Usage
Example of Product/Service line C: House of Blues Gear Shop
 Geographic: The United States
 Demographic: Men and Woman ranging from 12-50.
 Psychographic: Avid concert goers, Collectors
 Benefits Sought by consumer: Individuals who are seeking a remembrance of their time at
the House of Blues.
 Usage Rate of consumer: Moderate Usage

4. DIRECT COMPETITION FOR YOUR BRAND OR DIVISION:
Name of Competitor Company 1: The Paramount in Huntington, New York
Competitor Company 1 Product/Service: The Founders Room (Sloggat, 2017)
Competes with your Product/Service A: The Foundation Room
Name of Competitor Company 2: Sylvia’s in Harlem, New York (Mandy, N.D.)
Competitor Company 2 Product/Service: Brunch and Gospel
Competes with your Product/Service B: Gospel Brunch
Name of Competitor Company 3: Stubbs Bar-B-Q
Competitor Company 3 Product/Service: Stubbs Merch Shop
Competes with your Product/Service C: House of Blues Gear Shop
Ranking the following companies by their Twitter presence:
Company #1: House of Blues: Orlando with 44.9 K Followers
Company #2: Stubbs Bar-B-Q with 35.5 K Followers
Company #3 The Paramount with 15.2 K Followers
Company #4: Sylvia’s Restaurant with 5,681 Followers

5. FINDINGS: (Include in-text citations)
While researching the House of Blues, I never noticed how successful it was compared to other
venues across the country. When Michael Rapino, the CEO of Live Nation, decided to purchase
House of Blues, it was a power move. He not only wants to revolutionize his brand but the
venue’s brand, “This will really help us accelerate our plans to enter into that small to midsize
music venue business,” (Waddell, 2006). Rapino is planning on helping the House of Blues
branch out of the United States. This will give them an upper hand to their competition.
Expanding the venue to countries like China or England will bring a new audience to the brand.
The House of Blues has their membership program to the Foundation Room. As I was
researching, I noticed that multiple venues are adopting this concept. Having access to a
membership lounge before a show and being invited to these special events shine a light on
House of Blues. Their competition is starting to notice the success, and are now adapting to
creating their own memberships in their venues. The Paramount Theatre in New York has
applied this concept to their venue, naming it The Founders Room. They are very alike in all
areas, especially the name. Having a loyalty program can have an increase of flow to your
business and more positive feedback.
One of Live Nation’s biggest competitors is AEG. Both of these companies have ownership on
one of the best venues in the country. Live Nation has House of Blues, and multiple
amphitheaters while AEG owns The El Rey Theater and other establishments. These two have
been going head to head for a while now, “The two biggest promoters in the world…have taken
aim,” (Ruiz, 2016). Not only are they competing with venues, but festivals as well. All of this
information is very significant if I was an analyst for House of Blues. It’s one of the only venues
that are chained across the country. Using this information will not only help House of Blues
persona but Live Nation’s as well.
REFERENCES: (APA Format)
$2,000 Worth of the Blues At some private clubs membership has its punishments. (2002, July 01).
Retrieved May 5, 2018, from
http://money.cnn.com/magazines/fsb/fsb_archive/2002/07/01/325599/index.htm

6. A Taste of Huntington's Most Exclusive Club at The Founder's Room. (n.d.). Retrieved May 5,
2018, from http://www.longislandernews.com/the-foodies-archives/a-taste-of-huntingtons-most-
exclusive-club-at-the-founders-room
CRIBLEZ, D. J. (2015, April 01). Members-only perks at LI music venues. Retrieved from
https://www.newsday.com/entertainment/music/concert-venues-on-long-island-offering-
members-only-perks-spaces-1.10158296
Live Nation and AEG Live: The Two Companies Eating the Music Festival Industry. (2016, January
28). Retrieved from http://flavorwire.com/558174/live-nation-and-aeg-live-the-two-companies-
eating-the-music-festival-industry
Mandy, T. (n.d.). Gospel Brunches. Retrieved from
http://nymag.com/nymetro/arts/columns/topfive/n_7709/
Sunday Gospel Brunch at the House of Blues. (n.d.). Retrieved May 5, 2018, from
http://allears.net/din/gospelbrunch.htm
Waddell, R. (2006). LIVE NATION THINKS BIG(GER). Billboard, 118(28), 6, from
ebscohost.com