Interview, Fireside Chat
Michael Rapino – Live Nation Entertainment President and CEO
- Live Nation plans to achieve organic growth and bolt-on acquisitions to expand globally, specifically targeting Mexico and untapped markets in Asia, Eastern Europe, the Pacific Rim, Latin America, South America, China, India, and Japan over the next multiple years.
- The company aims to increase its global fan base from 100 million to 125 million marks while maintaining a strategy of driving per-head spending and sponsorship revenue at high-share existing venues rather than expanding market share in those specific locations.
- Industry growth is projected to continue for many years and maintain a compounded trajectory over the next 30 years, driven by increased attendance, new market openings, and the internet unlocking previously inaccessible regions.
- Despite the U.S. economy being in a late cycle with global headwinds such as Brexit and trade tensions, the company does not expect a potential economic pullback to have a significant impact on its overall global business.
- Live Nation retains the capacity to adjust ticket prices dynamically, potentially lowering them by $5 to maintain artist tours and ensure profitability during economic downturns.
- The company expects to optimize ticket pricing over the next five years to improve sell-through rates, which may involve increasing front-of-house prices while lowering back-end prices, while continuing to advance the secondary ticketing market toward digital, verified tickets and upfront fee transparency.
- Due to the competitive nature of artists, an increase in shows, and the proliferation of festivals, the on-sale system is expected to occur earlier and earlier, resulting in longer windows that allow for sales adjustments, earlier revenue inflow, and improved full sell-through capabilities.