home Music, News Live Nation Reports 4th Quarter Loss

Live Nation Reports 4th Quarter Loss

Variety reports that Live Nation Inc, the nations largest live event and venue management company, is reporting a net loss of $18.4 million, citing lower revenue due to fewer big-ticket artists staged tours.

Is this a bad thing? Personally, I think as we were reporting earlier on the lack of teens buying CDs, the only way these companies are going to post profit is by turning to live shows. How do you make the most of a live show? Hold it in a huge venue, and charge upwards of 50 bucks a head. Is this a good experience for the consumer? Hell no. If I want to watch a performer on a giant TV, I’ll buy a DVD stay at home and sit real close to mine (I don’t have a giant TV).

I’m no business analyst, but when companies like this start doing poorly, its a reflection of our economy, mixed in with bad choices made by the company. Maybe the consumer is just tired of these “big-ticket” shows, and paying fees on top of the ticket when buying it through Ticketmaster.

Live Nation is on a better track then the RIAA and the big record companies, because, there is money in live performance, but, with the dollar falling, people perhaps are weary to spend top dollar for first row Christina Aguilera tickets. Hannah Montana tickets? Well, now we’re talking.

One thought on “Live Nation Reports 4th Quarter Loss

  1. The loss has less to do with fewer big-ticked artists touring and far more to do with the rest of the seismic changes in the music business happening right now. The economy going sour certainly isn’t helping; nor is the ever-escalating price gouging of the consumer via the surcharges and fees added on to the purchase price, which at times can add 10-20% or more to the per-ticket fee. At the same time, there are fewer and fewer artists who can fill those arenas…the future of the business is in the 2500 to 6,000 seat venues at one end, and the large summer festivals at the other. It’s all about value: seeing 100 or so bands over a couple of days for one reasonable price is a far better value than shelling out $125 a ticket for nosebleed seats in a soul-less hockey arena.

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