Posted on 07/16/2010 10:54:36 AM PDT by a fool in paradise
This could be one of the biggest bombs Live Nation Entertainment ever produced.
Minutes after the concert promoter and ticket company told analysts at its first investor day that ticket sales for its biggest acts fell 9 percent in the first half of the year and were likely to see a steeper decline during the rest of 2010, its shares plunged -- tumbling throughout the afternoon until they lost about 18 percent of their value.
The bad news rocketed from the stage of Manhattan's Irving Plaza concert hall near Union Square, where the meeting was held, to Wall Street and back to the stage, where shocked company executives stood, not believing the reaction.
Live Nation Entertainment, the product of a merger between Live Nation and Ticketmaster that was blessed by the government at the start of 2010 but is still awaiting judicial sign-off, has been troubled in recent months by a slow concert season.
...CEO Michael Rapino interrupted the presentation saying, "We had a real buzz kill at about slide nine, when I saw the e-mails go out." Slide nine showed data that had the two companies' revenue flat between 2008 and 2009 at $5.5 billion and no data at all for 2010, a source told The Post.
...Adjusted operating income for 2010 was forecast at $405 million, down $40 million. Shares closed at $10.19, off $1.24. Company executives also spent time criticizing the press and bloggers for painting such a negative picture of the touring business this season and said that had a secondary effect with artists declining to go on the road.
Tours have long been one of the most lucrative parts of the business for musicians.
(Excerpt) Read more at nypost.com ...
Related news item:
A kinder, friendlier Live Nation Entertainment? Cheaper tickets come with a cost
LA Times July 16, 2010 Todd Martens
http://www.freerepublic.com/focus/chat/2553921/posts
$117 for nearly everything on the floor or first level for Tom Petty. Vast majority of the upper deck is $78. That is before service charges. Hard to make that work assuming you want to go with someone.
They always talk about the bigger acts, I would like to know how the next 200 touring bands are doing. Or how club sales have been this year.
On a brighter note, according to another article I read on this, Lady Gaga and Justin Bieber are having no problem selling tickets.
I rarely hear about Tom Waits or Morrissey having problems selling tickets to their shows and yet they aren’t the subject of media hype in America. No tv appearances, no magazine covers on the big 10.
And yet they remain in demand.
Iron Maiden didn’t need radio to become a big sensation. They did it through constant touring.
When Prince left WEA, he put out his own CDs and sold them at his own arena shows.
When he signed to Sony after his legal dispute with Warner was over, he made a deal to give away his new album to everyone at the show.
When the media locks you out of airplay and exposure, you have to find you own avenues of self-promotion.
Seems like reality to me ....
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