Analysis of Company Business Model of Live Nation

Livenation presentation

1. Live Nation Alexa Reis Drew Belk Gabriel Williams Travis Malana (Buckner, 2023) Company Business Model

2. Customer Segments Live Nation's customer segments encompass a broad spectrum of entertainment enthusiasts. From avid Music Lovers who appreciate various genres to Concert Lovers seeking live event experiences, and Nightlife Enthusiasts craving nighttime entertainment, Live Nation caters to a diverse audience with a shared passion for memorable and engaging experiences. Music Lovers:  Individuals who have a general love for music across genres. Concert Lovers:  People specifically interested in attending live concerts and events. Nightlife Enthusiasts:  Individuals seeking entertainment options during the night, which may include concerts and live performances. 2 (MBA, 2024)

3. Value Proposition Live Nation provides an unmatched live entertainment experience by offering a diverse concert portfolio that caters to various musical tastes. Live Nation's commitment to delivering premium, immersive experiences distinguishes it, ensuring each event is a memorable and enjoyable occasion. Extensive Concert Portfolio: Live Nation offers a diverse range of concerts and live performances, providing entertainment options for different tastes and preferences. Premium Concert Experience: Live Nation focuses on delivering high-quality, immersive experiences for concertgoers, enhancing the overall value of attending live events. 3 This Photo by Unknown author is licensed under CC BY-NC .

4. Channels Live Nation has done a great job with connecting with their customers and determining their target market. Some Channels used by Live Nation are :  Website  Social Medias: Twitter (X), Instagram, Facebook, LinkedIn Advertisements on the Internet/ Radio, Billboards, etc.  Live Nation can be seen interacting with fans on social medias, advertisements all over the country, and displaying info on their websites.  (Tama, 2023)

5. 5 Ticket Sales Ticket Sales: LN’s primary revenue stream. The company began with ticket sales for a variety of events (Concerts, Sporting events, etc.) Sponsorships Sponsorships: LN secures revenue through giving business the opportunity to advertise their product or service at their events. LN also grant these businesses the opportunity to promote their businesses digitally as well. Adverising Advertising: LN generates ad-revenue through selling ad space during events (Live and Virtual). Merchandise Live Streaming: LN gains revenue through offering a virtual concert experience. The company charges viewers a fee for access to viewing the live stream of a particular event. Livestreaming Merchandise: LN generates revenue through merchandise by selling t-shirts, hats, posters with the company’s logo and branding on it. LN also has a store that sells merch from artists and other Live Nation products. REVENUE STREAMS

6. Key Resources 6 LN is home to 150 venues nationwide comprised into clubs, theatres, amphitheaters, and festival locations in the major city locations of each state, As of June 2022, LN plans on constructing a new venue in Portland Oregon “The proposed venue would become the city’s largest event hall, baring Rose Quarter Arenas. The new construction plans to boast open seating in a ballroom-style event hall, which allows it to dwarf competitors of a similar size in total capacity.”  (IBISWorld, Para 6) Ticketmaster which use to be its own separate company merged with LN 2010 with a steep price of $2.5 billion. “With amazing content in all of our venues as a powerful foundation, we continue to discover imaginative new methods that leverage breakthrough technologies to create unparalleled consumer journeys including innovative food and beverage and premium VIP treatment for fans,” ASM Global President and CEO Ron Bension said in a statement. “Aligning with industry leaders like Ticketmaster is a critical component in providing millions of people with the most seamless and secure live experiences.”  (Rendon ASM global, Ticketmaster Extend Partnership Para 3) Live Nation current headquarters building is located at Beverly hills, California. It is divided into three separate subsidiary corporations which are. Arts, Entertainment Recreation – Sole focus is performing arts and promotion of arts, sports. Concert and Event Promotion - they offer event admissions contracted live performances and food beverages and merchandise. Arts, Entertainment and Recreation

7. 7 Customer Relationships Live nation has established relationships with not only the artists who work with the company but also the fans attending Live Nation events.  Live Nation has several benefits for the artists who work with them to include: the company taking on the tasks for touring so the artists doesn’t have to worry, promotional content for the artists, the opportunity for artists to try new things and collaborate with Live Nation to further the success of their brand.  This allows for artists to stay in the loop for the events and keep an open communication with the company.  Live Nation gives the ease of purchasing tickets for fans and allowing them to have presale opportunities for different events.  Live Nation also keeps an open communication with fans via social media. 

8. Key Activities 8 One of Live Nation’s key activities are event promotion and production. LN promotes a variety of live events providing complete execution of logistics and details of their events. Another key activity for LN is Ticketing. Live Nation provides a website or app-based platform for the distribution of tickets. The next key activity for live nation is artist and venue management. Live Nation manages venues across the country and produces events for those venues. Live Nation also manages a roster of artists which include contract negotiation, organizing performances for these artists, and marketing these artists. Live Nation also sells merchandise at events and online. Also, sponsors and partners are also key activities for Live Nation. Sponsorships and Ads are key revenue generator for Live Nation. Negotiating contracts and creating marketing campaigns are important activities in creating these partnerships. Technology and Data Analytics is important key activity for Live Nation. Live Nation is very intentional about the User experience on their platform. They tailor the customer experience using algorithmic technology and analytics to show customers more options that align with them.

9. 9 Hilton Hotels & Resorts Red Bull Spotify Key Partnerships Live nation has an infinite number of partnerships over the years. The purpose of these partnerships is forging a connection and as a form of communication with the fans who regularly consume their products.  (Strategy & creative para 1)  “We don’t believe in traditional sponsorships. We believe in strategic partnerships that solve real problems for our clients and forge meaningful, long-term relationships with their consumers. We give brands a role in music culture and establish an authentic language to communicate with fans through impactful creative work.” Among those brand that LN has partnered with include:

10. 10 CONCERT Cost, Event production cost, talent fees, marketing cost. ARTISTS NATION Talent costs, personnel/operations costs, marketing costs associated with managing artists. TICKETING Cost of software for ticketing, operations cost, website hosting cost, cost associated with credit cards E-COMMERCE Inventory/production expenses, marketing costs, and shipping costs. Cost Structure The Cost structure for Live Nation is specific to the segment within the business. The segments are Concerts, Ticketing, Artists Nation, and E-Commerce. Artists Nation is the artists management sector of LN’s business. Each segment and their cost structure is listed below.

11. PRESENTATION TITLE 11 Live Nation’s subsidiary company Ticketmaster and other ticket selling websites such as Eventbrite and See tickets partnered with Spotify to sell tickets directly through their live feeds. A great business strategy considering Spotify has as of 2023 in the third quarter 574 million worldwide listeners, 226 million premium Subscribers Globally therefore it was natural for LN to partner with them to begin with. “In the section, you can buy tickets through a third party and browse nearby shows. The new site, known as Spotify Tickets, lets you buy them through Spotify itself.”  (Wilson Forbes Para 3) Red bull was another merchandise brand that Live Nation partners during Festivals “Live Nation’s in-house creative team designed the first-ever custom Red Bull can and packaging, celebrating the power of music festivals and the fans that attend them.”  ( LiveNationForBrands , 23 Aug 2019, Para 4). Red Bulls marketing ad strategy has always been in the interest in what the consumers want. It even has appealed to non-consumers of the product. Live Nation and Red Bull recognized the pull that the merchandise had on customers hence is why together they decided to partner up to make and make an investment. “This synergy brings out a deep sense of connection and loyalty, transforming customers into devoted fans. The impact? It’s profound. Red Bull’s events become experiences that their audience eagerly anticipates, discusses, and cherishes. This engagement goes beyond traditional brand loyalty. It’s a shared journey of excitement and adventure.”  (Digital Legacy, Para 22-23). Music has always been in their DNA. In an interview with Mark Weinstien , he says “We do a lot of sports, we do food and beverage, but we started migrating much more to music as our core starting point. First, music versus sports, nobody loses, which is kind of nice. And it’s so deeply personal, yet communal, which we love. Live Nation was a natural starting point. It’s allowed us to get incredible access to incredible artists and that’s been the genesis for that.”  ( Baltin Forbes, Para 10) Live Nation has also teamed up with Hilton to provide Hilton Honor members a chance to redeem points every time you make a Live Nation ticket purchase. All the Hilton Honors Customers must do is connect their existing accounts to the Live Nation website in order to be eligible. Depending on how you use it you can use you honor points to pay partial or full price using your honors points. Key Partnerships( contin .) Hilton Spotify RedBull

12. New Opportunity 12

13. 13 References Baltin, Steve. (2017, June 2). Hilton, Live Nation and Spotify Team up to Show ‘Music Happens Here’. Forbes Magazine. www.forbes.com/sites/stevebaltin/2017/06/02/hilton-live-nation-and-spotify-team-up-to-show-music-happens-here/?sh=2ee8dacf46c8 . Buckner, M. (2023). Variety. photograph. Retrieved January 26, 2024, from  https://variety.com/2023/music/news/live-nation-record-attendance-revenue-1235777899/ .   Jack Shepherd(2024, January 5). 3 Essential Spotify Statistics You Need to Know in 2024.”  Spotify Sheperd . https://thesocialshepherd.com/blog/spotify-statistics Home . Live Nation for Brands. (2020, April 2).  https://livenationforbrands.com/     Investor relations . Live Nation Entertainment. (n.d.). https://investors.livenationentertainment.com/ Live Nation Entertainment, Inc.- Company Profile. IBISWorld Industry Reports .  www.ibisworld.com/us/company/live-nation-entertainment-inc/10039/ Live Nation . Music Business Worldwide. (2021a, January 21). https://www.musicbusinessworldwide.com/companies/live-nation/ Our Top Markets. LiveNation .  https://specialevents.livenation.com/venues/regions Rendon, Francisco. (2021, June 15). ASM Global, Ticketmaster Extend Partnership.”  Pollstar News .  https://news.pollstar.com/2021/06/15/asm-global-ticketmaster-extend-partnership/ Strategy & Creative. (2019, August 23). Live Nation for Brands .  https://livenationforbrands.com/capabilities/strategy-creative/ The4. (n.d.).  Live Nation Entertainment, Inc. (LYV): Business model canvas . dcf. https://dcf.fm/blogs/blog/lyv-business-model-canvas THE LIVE MUSIC INDUSTRY WILL BE WORTH $31 BILLION WORLDWIDE BY 2022 . (2024). Music Business Association. photograph. Retrieved 2024, from  https://musicbiz.org/news/the-live-music-industry-will-be-worth-31-billion-worldwide-by-2022/ .   Tama, M. (2023).  Live Nation’s ‘On The Road Again’ campaign harms US independent venues, NIVA claims . NME. photograph. Retrieved 2024, from  https://www.nme.com/news/music/live-nations-on-the-road-again-campaign-harms-us-independent-venues-niva-claims-3515106 .   Tas, Gizem. (2024, January 18). Red Bull Marketing Strategy: Target the Edge for Maximum Impact! Digital Agency Network . https://digitalagencynetwork.com/red-bull-marketing-strategy-how-they-make-the-difference/#:~:text=Since%20Red%20Bull%20is%20aimed,energy%2C%20power%2C%20and%20fun . Wilson, Josh. (2011, September 11). Spotify Launches New Site to Sell Tickets to Live Music Events. Forbes .   www.forbes.com/sites/joshwilson/2022/09/11/spotify-launches-new-site-to-sell-tickets-to-live-music-events/?sh=175636a762db .