Live Nation (events promoter)

Live Nation
Subsidiary
Industry Entertainment
Founded 2005
Headquarters Beverly Hills, California
Area served
 Worldwide
Products Concerts Promoter
Live Events Promoter
Revenue Increase US$ 4.184 billion (2007)
Increase US$ 82.14 million (2007)
Increase US$ -11.94 million (2007)
Total assets Increase US$ 2.752 billion (2007)
Total equity Increase US$ 907 million (2007)
Number of employees
 Full-time: 4,700
Part-time: 15,900
Parent Live Nation Entertainment
Website LiveNation.com

Live Nation is an American live-events company based in Beverly Hills, California, focused on worldwide concert and entertainment-show promotions. Live Nation formed in 2005 as a spin-off from Clear Channel Communications, which then merged with Ticketmaster in 2010 to become Live Nation Entertainment.

Live Nation "signs" artists as a "record label", but predominantly takes the role of a promoter, rather than "music owner". The deal with U2 and Madonna, for example, does not include funding of the artists' future recordings. The 2007 deal signed with Jay-Z does, but he still retains full-ownership of his recordings and Live Nation funded Roc Nation.[1][2] Live Nation signed Colombian singer Shakira, Canadian band Nickelback and Mexican singer Luis Miguel.

Business

A prior incarnation of Live Nation, known as SFX Entertainment, was formed in the 1990s by media executive Robert F. X. Sillerman. Its business model involved the acquisition of regional concert promoters, consolidating them into a single national company. Sillerman sold SFX to Clear Channel Communications in 2000 for $4.4 billion; the Clear Channel Entertainment division was spun off in 2005 to form Live Nation.[3][4][5]

Annually, Live Nation promotes or produces over 22,000 events, including music concerts, with total attendance exceeding 50 million—more than the NBA, NFL, and NHL combined.[6] As of September 30, 2005, Live Nation owned or operated 117 venues, consisting of 75 US and 42 international venues. These venues include 39 amphitheatres, 58 theatres, 14 clubs, 4 arenas and 2 festival sites. In addition, through equity, booking or similar arrangements Live Nation has the right to book events at 33 additional venues.

SFX deals

Deals

In October 2007, Live Nation announced a new contract with pop singer Madonna throughout the next decade after her leaving Warner Music and Warner Bros. She will be the founding recording artist for the new music division Live Nation Artists, formerly Artist Nation. In July 2008, Shakira signed an estimated $70–100 million contract with Live Nation.[36][37][38][39]

In January, 2008, Live Nation sold its North American theatrical business (including the Broadway Across America business) to Key Brand Entertainment for $90.4 million. Key Brand Entertainment is a private investment company owned by British theater producer John Gore and led by senior entertainment industry executive Tom McGrath.[40]

In April 2008, a deal between Jay-Z and Live Nation for $152 million was confirmed. The deal covers financing of Jay-Z's own entertainment venture, live shows, tours and future recordings for the next 10 years.[41] Blueprint 3 was distributed by Atlantic Records, while his label, Roc Nation, is being distributed by Universal Music Group.[42]

In June 2013, Insomniac Events, a promoter focused on electronic dance music, announced a major "creative partnership" with Live Nation, giving the promoter access to Live Nation's resources while remaining an independent company. Live Nation did not take any ownership stake in Insomniac.[43][44]

House of Blues

In 2006 Live Nation acquired House of Blues. Current locations of the House of Blues include:
(in state order alphabetically)

Corporate governance

Current members of the board of directors of Live Nation are: Ari Emanuel, Jeffrey T. Hinson, L. Lowry Mays, Randall T. Mays, Connie McCombs McNab, James S. Kahan, Ted Enloe, Mark Shapiro, and Michael Rapino.[45]

Live Nation International Music and Live Nation Artists

Live Nation is currently constructing a physical recording label, Live Nation Artists, which will be a division of Live Nation International Music. The company is expected to become a major rival against Sony Music, Universal Music Group and Warner Music Group with artists such as Madonna, U2, Shakira, Jay-Z and Nickelback.

As of July 30, 2008, CEO Michael Rapino is considering doing licensing deals on an artist-by-artist basis, a source inside Live Nation said. Under that scenario, Warner Music Group could end up handling the marketing, promotion and distribution of albums by the very acts that defected from it to join Live Nation: Nickelback and Madonna. "Rapino wants to outsource everything," said a second source close to the situation. "He doesn't want to build an infrastructure or carry any overhead." The move is mirrored after the "rent-a-system" model used in Hollywood, whereby one studio produces a movie but licenses all the other functions to another studio that already has a distribution and marketing infrastructure.[46]

Live Nation's talks represented the latest retrenchment from the strategy of former chairman Michael Cohl, who sought to transform the touring giant into a multi-faceted powerhouse, including a record company. News of the potential outsourcing move followed the dismissal of industry veterans Bob Ezrin, Bob Cahill and Bill Hein, all of whom were Artist Nation employees hired by Cohl to create a label infrastructure for Live Nation's newly signed acts. Instead of banking all the upside on album sales, as was once envisioned with these so-called "360 deals," Live Nation would likely collect a less lucrative outsourcing royalty of between 25 percent and 35 percent, based on other industry licensing deals. It would then be responsible for using that money to pay the artist's royalty - a fee that, at the superstar level, can come close to equaling the licensing royalty the company is apt to get from a label.[46]

On 31 March 2008, it was confirmed that Live Nation signed a 12-year deal with U2 worth an estimated $100 million (£70 million).[47] The deal includes Live Nation controlling the band's merchandise, sponsoring and their official website. In a contractual agreement with Live Nation signed in March 2008, the parties agreed that the band would receive $25 million for 1.6 million shares of the company; as of 17 December 2008, those shares were worth only just over $6 million. It was reported on 18 December 2008 that Live Nation, honoring their financial commitment, bought back the shares at a loss of $19 million.[48] The company had intended to recoup the cost of signing U2 with their most recent album, No Line on the Horizon. No Line on the Horizon achieved multi platinum status in the international market and has sold over 5 million albums to date.

Top executives

Source:[49][50]

Companies

United States

Worldwide

Proposed merger

On February 10, 2009, Live Nation and Ticketmaster Entertainment announced that they have entered into a definitive merger agreement to create a combined entity, to be called Live Nation Entertainment.[51] Ticketmaster's press release said Live Nation produces live concerts in 57 countries.[51]

The proposal has received regulatory approval in Norway and Turkey.[52]>

In October 2009, the United Kingdom's Competition Commission provisionally ruled against the merger with Ticketmaster.[53] On December 22, 2009, the Competition Commission decided to clear the proposed merger.[52]

Separate regulatory reviews of the proposal continued in the United States and Canada.[52] The United States Department of Justice approved the merger in 2010 subject to review by a federal judge after a 60-day comment period.[54] A condition of the approval, Ticketmaster agreed to license its software to rival Anschutz Entertainment Group, and to sell its subsidiary Paciolan to Comcast Spectacor, Comcast's sporting events subsidiary.[54] The company also agreed not to interfere with competition for the ten year life of the agreement.[54]

Criticism

Bruce Springsteen said "...the one thing that would make the current ticket situation even worse for the fan than it is now would be Ticketmaster and Live Nation coming up with a single system, thereby returning us to a near monopoly situation in music ticketing".[55]

In a January 25, 2010 press release, the TicketDisaster.org group—a coalition of consumer rights and anti-trust groups—also issued the following statement about the proposed Live Nation-TicketMaster merger:

"Despite its "monopoly-like dominance" controlling 70 to 80 percent of all concert ticket sales, Ticketmaster is unabashedly seeking to grow its empire - all to the detriment of the average fan. Ticketmaster is now trying to dampen competition by merging with Live Nation, the nation's largest concert promoter and second largest primary ticket seller. That merger is coming under heavy fire from consumer and industry groups and Members of Congress, particularly because of the clear anti-consumer and anti-competitive effects.


"As the Department of Justice reaches the final round of reviewing this merger, only one question must be answered: will the merger lead to increased prices, poorer service, or less innovation?"

See also

Sources

  1. ↑ "Hip-Hop's Wealthiest Artists 2013". Forbes. 2013-10-14. Retrieved 2014-09-03.
  2. ↑ "NEAR TRUTHS BY I.B. BAD". Hits Daily Double. 2014-08-01. Retrieved 2014-09-03.
  3. ↑ "Sale of Promoter AEG Would Radically Alter Concert Business". Rolling Stone. Retrieved 17 April 2013.
  4. ↑ Sisario, Ben (26 February 2013). "SFX Entertainment Buys Electronic Dance Music Site". Media Decoder. The New York Times. Retrieved 16 April 2013.
  5. ↑ "Clear Channel Communications, Form 8-K, Current Report, Filing Date Dec 23, 2005" (PDF). SEC Database. Retrieved Mar 27, 2013.
  6. ↑ Corporate Overview - Investor Site
  7. ↑
  8. ↑ Shift At Meadows Means More Competition In Area Concert Scene
  9. ↑ SFX BROADCASTING BUYING SUNSHINE FOR $50 MILLION
  10. ↑ SFX BUYS THREE CONCERT PROMOTERS
  11. ↑ In Plan For E-center Sale, No Job Cuts Or Changes Are Foreseen
  12. ↑ SFX Buys Westbury Music Fair
  13. ↑ SFX Entertainment to Buy L.A. Concert Promoter Avalon
  14. ↑ SFX TO BUY SPORTS AGENCY AND ENTERTAINMENT ASSETS
  15. ↑ Sfx Pays $105m For Cellar Door
  16. ↑ Magicworks Is Sold
  17. ↑ Bound for Boston: SFX subsidiary gains legit house American Artists
  18. ↑ SFX lands in Chicago
  19. ↑ Merriweather concert lease goes to SFX
  20. ↑ SFX Acquires Top Int'l Promoter TNA
  21. ↑ Franklin Roach, M.P.A.
  22. ↑ SFX turns up urban beat
  23. ↑ Legal Documents Relating to Beyonce, Mathew Knowles May Shed Light on Singer's New Management, Touring Deals
  24. ↑ U.S. Courts Approve Sale of Livent to SFX Entertainment
  25. ↑ [Candid Productions http://www.thefreelibrary.com/SFX+Entertainment+Announces+Acquisition+of+Skating+Legend+Dick...-a055264172 SFX Entertainment Announces Acquisition of Skating Legend Dick Button's Candid Productions.]
  26. ↑ Theatre group stages takeover
  27. ↑ SFX to Buy Apollo Leisure for $254 Million
  28. ↑ SFX, Latin concert firm pact.
  29. ↑ SFX Lands Another Major UK Entertainment Asset, Midland Concerts
  30. ↑ SFX buys Swedish promoter
  31. ↑ SFX Acquires 80 Percent of Mojo Works, Leading Dutch Event Promoter
  32. ↑ Electric Factory To Sfx Magid, Spivaks See 'Business As Usual'
  33. ↑ Twin Cities-based show producer Jujamcyn is sold to N.Y. giant SFX
  34. ↑ SFX Acquires Control of Core Audience Entertainment, Premier Concert and Event Marketing Company in Canada.
  35. ↑ Danny Zelisko launches new venture
  36. ↑ PR Newswire
  37. ↑ "Van Halen, Shakira, Seal Support Live Nation/Ticketmaster Merger". Rolling Stone. 24 February 2009. Retrieved 31 May 2011.
  38. ↑ "Businesswoman Shakira mesmerises with new album". Emirates 24/7. 16 October 2009. Retrieved 31 May 2011.
  39. ↑ "Singer Shakira joins Live Nation". BBC Online. 3 July 2008. Retrieved 31 May 2011.
  40. ↑ Jones, Kenneth (January 24, 2008). "Key Brand Entertainment Acquires Live Nation Tour Markets". Playbill. Retrieved 2008-07-21.
  41. ↑ Jay-Z to sign deal with Live Nation Rosie Swash, The Guardian, April 3, 2008. Accessed July 2008
  42. ↑ http://www.huffingtonpost.com/2013/04/09/jay-z-universal-roc-nation_n_3044895.html
  43. ↑ "Electric Daisy Chain: Insomniac and Dick Clark Prod. Plan 2014 EDM Awards". Spin. Retrieved 20 July 2013.
  44. ↑ "Live Nation Teams With Insomniac Events in 'Creative Partnership'". Billboard.biz. Retrieved 20 July 2013.
  45. ↑ Live Nation Investor Site - Corporate Governance - Board of Directors
  46. 1 2 Garrity, Brian; Lauria, Peter (July 30, 2008). "A Different Tune". New York Post.
  47. ↑ U2 ties knot with Live Nation deal
  48. ↑ Kamalakaran, Ajay (December 18, 2008). "UPDATE 1-Live Nation takes $19 mln hit on U2 buyback deal". Reuters.
  49. ↑ Corporate Governance - Management
  50. ↑ Live Nation Announces New Key Positions in International Music Head Office
  51. 1 2 "Live Nation, Ticketmaster Announce Merger". pollstar.com. 2009-02-10. Archived from the original on April 9, 2014. Retrieved April 9, 2014.
  52. 1 2 3 "MEDIA STATEMENT: Ticketmaster and Live Nation Welcome Competition Commission Ruling on Merger" (PDF). files.shareholder.com. April 9, 2014. Archived (PDF) from the original on April 9, 2014. Retrieved April 9, 2014.
  53. ↑ Van Buskirk, Eliot (October 12, 2009). "Live Nation/Ticketmaster Merger Faces Obstacles Here and Abroad". Wired. Condé Nast. Retrieved 2009-10-19.
  54. 1 2 3 Chmielewski, Dawn C. and Fritz, Ben and Lewis, Randy (January 26, 2010). "Ticketmaster-Live Nation merger gets Justice Department's approval". The Los Angeles Times. Retrieved January 26, 2010.
  55. ↑ "Bruce Springsteen "Furious" At Ticketmaster, Rails Against Live Nation Merger". Rolling Stone. February 4, 2009. Retrieved 2009-10-19.


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