Revenue / 03.03.21
The Market Sure Thinks Live Events Are Coming Back Strong
Forbes (02/26/21) Salkowitz, Rob
The live events market appears to already be anticipating a post-pandemic comeback, with stock in Ticketmaster parent Live Nation trading at a record high of $90-plus per share. Helping to drive this trend is that 83% of fans still hold tickets for postponed events, suggesting strong pent-up demand. Meanwhile, the suspension of live events led to a nearly $1 billion cost reduction, and helped Live Nation realize cash savings of $1.65 billion. The company further used the pause to invest in new capacity, build out its livestreaming capabilities and make strategic acquisitions, including a majority interest in artist-oriented online performance venue Veeps. "The supply-demand fundamentals of the concerts business remain strong, with artists ready to get back on the road and fans eager to reconnect at events," said Live Nation CEO Michael Rapino. Polls also showed enthusiasm among 95% of fans to return to concert venues when restrictions are lifted, while artists are eager to resume live performing. "There are twice as many major touring artists on cycle in 2022 than a typical year — about 45 artists versus the usual 25," added Rapino. "And there remains plenty of scheduling availability at arenas, amphitheatres and stadiums to accommodate these additional tours, with over two-thirds of these venues' nights unused by sporting events or major concerts in a typical year."
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