Live Nation Company’s Management

Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Click Here To Order Now!

Live Nation is the world’s largest live music company. It owns, operates and has booking rights for and has an interest in more than 155 venues, in North America and Europe including House of Blues music venues and prestigious locations such as The Fillmore in San Francisco, Nikon at Jones Beach Theatre in New York and London’s Wembley Arena. Annually, more than 60 million people attend some 28,000 Live Nation events (LIVE NATION INC Profile). The Company also produces, promotes or hosts theatrical, specialized motorsports and other live entertainment events. In 2007, Live Nation connected over 64 million fans, including over 45 million live music fans, with their favourite music, theatre and music stars at approximately 28,000 events in 18 countries around the world (Annual Report, 2007, p. 7). Through a deal with pop star Madonna, the Company owns a stake in Material Girl’s music, including albums, tours, and merchandise (LIVE NATION INC Profile).

Up to 2005, the Company was a part of radio giant Clear Channel Communications, in 2005 it was spun off. Now the principal executive offices are located at 9348 Civic Center Drive, Beverly Hills, California, 90210. Live Nation is listed on the New York Stock Exchange, trading under the symbol LYV. Prior to the separation, the Company was a wholly-owned subsidiary of Clear Channel Communications. After the separation holders of Clear Channel’s common stock received one share of Live Nation common stock for every eight shares of Clear Channel common stock.

Michael Rapino is the President of the Company and its Chief Executive Officer. He has served in this capacity since August 2005. Executive officers of the Company are Kathy Willard, Chief Financial Officer, Brian Capo, Chief Accounting Officer, Michael Rowles, General Counsel and Secretary, Jason Garner, Chief Executive Officer-North American Music, Thomas O. Johansson, Chairman-International Music, Alan Ridgeway, Chief Executive Officer, Michael Cohl, Chairman and Chief Executive Officer-Live Nation Artists and Director, Arthur Fogel, Chief Executive Officer-Global Touring and Chairman-Global Music, Bryan Perez-Chief Executive Officer-Global Digital.

The Company operates in five reportable business segments: North American Music, International Music, Global Artists, Global Digital and Global Theatre.

The North American and the International Music businesses embrace the promotion of live music shows in the Company’s owned and operated venues and in rented third-party venues and the production of music festivals. The Global Artists business deals with the management of Live Nation’s in-house ticketing operations and online and wireless distribution activities. The Company’s Global Theatre business involves the presentation and production of theatrical performances in owned and operated venues and in rented third-party venues.

In addition, Live Nation promotes and produces specialized motorsports events in rented third-party venues and operates in sports representations and other businesses.

In 2007 Michael Rapino announced the formation of a new division within the Company. The purposes of the new, Artist Nation division are: to partner with artists to manage their diverse rights, grow their fan bases and provide a direct connection to fans through the global distribution platforms (Live Nation’s Artist Nation Division Redefines the Music Industry with Unified Rights Model). The new division will serve the Company’s 10-year partnership with Madonna. It is headquartered in Miami, Florida.

Artist Nation division involves recorded music, merchandise, ticketing, artist fansite, sponsorship and marketing divisions. It is led by Michael Cohl. He commented on the formation of the new division:

Artist Nation works for the direct benefit of the artist to better market their music across all their diverse businesses to extend their fan base. Our company can leverage Live Nation’s many assets in order to help artists reach their fullest potential and deliver the ultimate experience to the fan. This is really an extension of the work we have already been doing with the Rolling Stones, U2 and many other bands over the years. In order to execute this, Artist Nation has put together a superstar team in every area of the music chain (Nation’s Artist Nation Division).

The new division is well-positioned to exploit the whole Company’s resources through various powerful tools like growing ticket components, a growing database, various corporate alliances, mobile telephone partnerships. A better relationship between artists and their fans is established also through online activities, fan websites, etc. The new division has a good infrastructure to execute on revenue streams.

The high returns of the division are expected due to the Madonna partnership which can attract other artists to collaborate and accelerate the growth of the Company.

Artist Nation’s division’s embrace:

  • Recorded music division. It serves in the creation, production, marketing, promotion, sales and distribution of artists’ recorded rights;
  • Merchandise division. It includes creative, product development, sourcing, licensing, marketing and fulfilment services under three brands: Anthill Trading (a global merchandising company, representing some of the most prestigious icons and trademarked properties in music, entertainment and lifestyle), Trunk, Ltd (a speciality merchandise company) and Musictoday (the official online store for over 500 artists and athletes);
  • Artists fan sites and artist ticketing division. It is composed of Ultrastar (the official artist website and fan club for over 20 artists) and Musictoday (executes fan club ticketing for over 500 artists and manages 25 fan websites for artists);
  • Broadcast/digital media rights division provides artists with studios and media rights;
  • Sponsorship and marketing division that offers music marketing and sponsorship opportunities that provide unparalleled access to the overall music experience through long term partnership programs (Nation’s Artist Nation Division).

Entering the public markets on December 22 as independent company Live Nation launched the strategy to provide value to artists and fans before, during and after the live event. The Company’s relationships with the customers were expanded beyond the two-hour experience of the show. The Company focused on evaluating its geographical footprint, its mix of venue properties by type and size and determining the current market value of its real estate property. The quality and the types of the services provided were improved (Live Nation Reports Fourth Quarter and Full-Year 2005 Financial Results).

Another strategy of the Company is entering the ticketing business. The Company has signed a long-term agreement with CTS Eventim, the Bremen, Germany-based ticket marketer and promoter, to launch a worldwide ticketing business, with effect from Jan. 1, 2009.

According to this deal, Live Nation will exclusively license the Eventim platform in North America, while Eventim will provide back-office ticketing services in the United Kingdom and ticketing services throughout Europe. Michael Rapino sees the agreement as “a monumental step forward in the evolution of Live Nation into a next-generation music company.” Rapino continues that Live Nation will use the most important asset of Eventim, the concert ticket, “to build artist careers and customer relationships, forge innovative sponsorship deals, create a fan and artist-friendly secondary ticketing platform and provide a ticketing alternative for third-party venues.” (Brandle).

The new ticketing platform is expected to allow the Company to control customer data to create “enhanced ticket-based concert products,” and capitalize on expanded distribution channels and sponsorship opportunities.

Other strategies include:

  • Growth of global concern platform internally;
  • Entering relationships with touring artists for longer and wider product lines centred around the core concert business (Annual Report, 2007, p. 2).

One of the growth options that any business might have is growing in physical size. Live Nation is now in the process of “finding new ways… to use its platform as a giant in the concert business as a base for expansion.” The following ways are thoroughly worked out at the current stage of the Company’s development:

  • Increasing the Company’s presence in the small-to-midsize venue market;
  • moving into the merchandising business with its acquisition of Signatures Network;
  • handling the Company’s own ticket sales;
  • trying to cut costs by de-emphasizing its amphitheatres, which are empty for huge chunks of the year (Live Nation Prepares to Unleash a Blizzard of Changes to Its Structure).

The overall strategy of the Company is to connect the artist to the fan. This focus is expected “to increase shareholder value by developing new ancillary revenue streams around the live music event and the artists themselves” (Annual Report, 2007, p. 7). The Company executes on this strategy through pursuing the following objectives:

  • Improve the profitability of the existing core business. It will be done by implementing strategies to increase ancillary fans per fan at all events and at all values, the Company operates in and by striving to be the low-cost operator;
  • Extend relationships with artists and sponsors. Live Nation plans to expand its relationship with artists through longer-term and broader relationships by providing more services and partnering with artists to grow their music properties. The relationships with corporate sponsors by providing strategic programs that deliver more value through the Company’s unique relationship to the music fan and to the artist and by utilizing the distribution network of venues and the Company’s extensive online presence;
  • Develop ticketing and online services. The growth of the Company’s website is expected to be established through the online offering to increase traffic and generating incremental revenue from additional ticket sales, merchandise sales, online advertising and other goods and services;
  • Divest non-core assets. The Company expects to continue to divest non-live music-related assets and/or underperforming live music assets and use the net proceeds to re-invest in or core lives music business, repay outstanding indebtedness or for general corporate purposes.

To achieve the objectives and successfully implement the strategies the Company has made and expects to continue to pursue, investments, acquisitions and divestitures that contribute to the goals where the valuations, returns and growth potential are consistent with the Company’s long-term goal of increasing shareholder value (Annual Report, 2007, p. 8).

Currently, Live Nation operates in 19 markets. The financial results of the Company’s foreign operations are measured in their local currencies. The foreign operating income reported is $92.4 million for the year 2007(Annual Report, 2007, p. 82). Among the Company’s plans is to expand its promoter presence to include the top music markets and population centres around the world. Internationally, the company focuses on increasing its North American platform in key larger markets through ownership or operation of key venues and by growing its festival presence.

Market success both internally and externally depends significantly on seasonality: because of the seasonal nature of performances in outdoor amphitheatres and festivals (primarily occur May through September), the revenue of the Company is higher during the second and the third quarters. Seasonality also contributes to higher balances in cash and cash equivalents, accounts receivable, prepaid expenses, accrued expenses and deferred revenue at different seasons throughout the year (Annual Report, 2007, p. 94).

The Company spends nearly $100 million dollars a year marketing concerts around the world. Significant amounts are spent on advertising, promotional and other marketing campaigns for different business activities. Marketing activities that the company is engaged in include promotion of ticket sales, premium seat sales, hospitality and other activities that enhance the distribution of related souvenir merchandise and apparel. In 2007 Live Nation spent about 5.8% of its revenue on marketing (Annual Report, 2007, p. 43). Online costs constitute less than 5 %, whereas 70% of the Company’s consumers find out about the services online. The management expects to shift a lot of print and radio advertising to a much more efficient direct consumer model which will make the Company’s core concert business a more effective one.

To succeed more in the market the Company needs to develop an understanding of the consumer purchase pattern and to establish a continual dialogue that will grow the core margin concert business. Another step to take is to use ticketing business to find the most efficient way to market and monetize the tickets.

Works Cited

‘Annual Report’, 2008. Web.

Brandle, L 2007, ‘Live Nation, CTS Team For Ticketing Platform’, Industry News, 2008. Web.

‘Live Nation’s Artist Nation Division Redefines the Music Industry With Unified Rights Model’, 2008. Web.

‘LIVE NATION INC profile’, AOL Money and Finance, 2008. Web.

‘Live Nation Prepares to Unleash a Blizzard of Changes to Its Structure’, Idolator, 2008. Web.

‘Live Nation Reports Fourth Quarter and Full-Year 2005 Financial Results’, PR Newswire, 2008. Web.

Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Click Here To Order Now!