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COVID-19's Impact on Live Nation

Live Nation Entertainment is a major live entertainment company based in Beverly Hills, California that has seen its business come to a halt due to the COVID-19 pandemic. The pandemic led to the cancellation of live events, festivals and concerts, hitting the company's profits and business. Live Nation's revenue for the first three quarters of 2020 decreased 81% compared to the same period in 2019. However, Live Nation remains an important player in the international live music business and will strengthen its position as the industry recovers from the pandemic.

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152 views2 pages

COVID-19's Impact on Live Nation

Live Nation Entertainment is a major live entertainment company based in Beverly Hills, California that has seen its business come to a halt due to the COVID-19 pandemic. The pandemic led to the cancellation of live events, festivals and concerts, hitting the company's profits and business. Live Nation's revenue for the first three quarters of 2020 decreased 81% compared to the same period in 2019. However, Live Nation remains an important player in the international live music business and will strengthen its position as the industry recovers from the pandemic.

Uploaded by

Dhi Insight
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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IMPACT of COVID-19 upon Live Nation stakeholders:

Live Nation Entertainment well known as “Live Nation” is headquartered in


Beverly Hills, California. Hitherto Michael Rapino was named as the company's
CEO his management skills has helped transform Live Nation into the top live
entertainment brand in the world, with operations in 40+ countries and an annual
revenue of more than $10 billion. Live Nation was founded in the year 1996
primarily known as SFX Entertainment. During the late 90s SFX group co-
partnered with music, business, theatre, touring, merchandising and its Artist
management division. It owns and manages several international venues in London
and Ireland. Live Nation reached to music artists for live concert tours with
Madonna, Shakira and Jay-Z  with estimate of $100-$150 million contract. Live
Nation also took a 3-tour deal contract with a Canadian rock band, Nickelback.

Its Merger with Ticketmaster in February 2009, with a $2.5 billion, all-stock deal
which received regulatory approval in Norway and Turkey. This led to several
pitfalls such as Ticketdisaster.org a union of consumer rights and anti-trust groups,
released a statement opposing the merger. Followed by acquisitions in June
2013, it collaborated with Insomniac Events, promoter focused on electronic dance
music, announced a major "creative partnership" giving the promoter access to the
company’s resources while remaining independent. In March 2008, it was
confirmed that Live Nation signed a 12-year deal with U2 to receive $25 million
for 1.6 million shares of the company it later back the shares at a loss of $19
million. 64 per cent of the UK’s live music workforce of 262,000 full-time
employees will have lost their jobs by Christmas was the estimate. We can expect a
much higher revenue loss for the last quarter 2020 due to the continued lockdown.
Live Nations business is linked with ticketing, concert promotions, artist
performances, sponsorship and production. It was able to sustain the Coronavirus,
regardless of the fact that the company’s stake has largely come to halt. A huge hit
on the company’s profits, returns and business undertakings was observed as live
events, festivals, and concerts were cancelled with people feeling unsafe gathering
in groups. It recalled itself as tax incentive Aliant group, to claim valuable federal
and state government-sponsored tax credits and incentives due to COVID-19 crisis.

It generates revenue from order processing fees regardless if the tickets are sold
from the promotion or production of live music events in owned, operated and
rented concert venues by selling concert tickets and concessions as well as
collecting parking fees and service charges of on tickets sold by its subsidiary
Ticketmaster. Live Nation Entertainment stock (NYSE: LYV) has declined by
20% since the beginning of the year, overall revenue for the three quarters (Q1-Q3)
2020 decreased by 81 per cent to just US $1.6bn from US $8.7bn in the same
period 2019. The ticketing revenue was even negative in two of three quarters

Live Nation being the pivotal player in the international live music business will
strengthen its position and value chain. Despite the crisis and the huge impact it
has created on different domains of the Live music and entertainment industry. It
still holds a important role and will again lead and generate employment and
revenue and the spirit of togetherness and organizers will regain its lost charm in
due course of time.

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