Live Nation Final Presentation

Dustin McCormick Chad GarbariniAlexander Ortiz-TheriaultNatasha KeyserEmily Briggs

Marketing/ManagementMarketing/ManagementMarketing/ManagementManagementMarketing

Company Overview

Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis

The world’s leading live entertainment and eCommerce company comprised of four major divisions, each of which is a global leader:- Ticketmaster- Live Nation Concerts- Artist Nation- Live Nation Media & Sponsorship

Company OverviewBackground External

Analysis SWOT Analysis Recommendation ConclusionInternal Analysis

Live Nation does concerts

History: Developmental Era

1992 Robert F. X. Sillerman founded SFX Broadcasting, Inc. with Steven Hicks.

1996 SFX Broadcasting buys their first concert promoter and the SFX Entertainment

division is founded.

1998 SFX Entertainment, Inc. is spun off; Blamed for monopolization, an exclusive

deal with Ticketmaster is signed.

2000 Clear Channel Communications buys SFX Entertainment.

2003 iTunes is launched.


History: Inception Era2004 Michael A. Rapino became CEO.

2005 The company is spun off as Live Nation, Inc. on the

New York Stock Exchange.

Live Nation cut 300 jobs.

Live Nation scaled back its network of regional offices.

2006 Downsizing and Specializing.

2008 Live Nation sold its North American Theatrical Business.

"At 20, I decided there was nothing else I wanted to do in life besides run a global live entertainment company…” - Michael Rapino


History: Expansion Era2010 Live Nation merger with Ticketmaster.

2011 Partners with Groupon.

2013 Irving Azoff leaves Live Nation Entertainment.

New employee benefit plan rolled out by HR.

2014 LYV acquires Maverick & Principles of Management.

Acquired majority share of C3 Presents rising LYV stock.

Clear Channel Communications Renamed iHeartMedia

2015 Partners with NFL.

Hilton Partnership.

Greek Theater denies Live Nation’s bid.


Mission StatementLive Nation’s mission is to maximize the live concert experience. Our core business is producing, marketing and selling live concerts for artists via our global concert pipe. Live Nation is the largest producer of live concerts in the world, annually producing over 22,000 concerts for 1,600 artists in 33 countries. During 2008, the company sold over 50 million concert tickets and drove over 70 million unique visitors to LiveNation.com. Live Nation is transforming the concert business by expanding its concert platform into ticketing and building the industry’s first artist-to-fan vertically integrated concert platform.

"...Our core DNA is to motivate the casual consumer and fan to show up on a Tuesday to see that show...It's kind of a full-time gig getting that right."

- Michael A. Rapino


Opportunity StatementIn an industry characterized by artist loyalty, product enthusiasm, and technological advancements, Live Nation has the opportunity to develop a more sustainable competitive advantage by leveraging intellectual capital from front-line employees, capitalizing on the customer’s perceived value, and perpetuating their innovative culture.


Significance To LeadershipBased on our extensive research, we have gained valuable knowledge on the entertainment industry. Therefore, we can provide recommendations to leverage their current and potential sources of sustainable competitive advantage to avoid future death and decline.


Sustainable Competitive Advantage

Sustainable competitive advantage is a company’s ability to create long-term and measurable customer relationships through augmented goods and/or services that have a high perceived value, which cannot be easily duplicated or surpassed by competition as they are tailored to each astute and heavily valued customer.


Expected Outcomes● Increased Knowledge Capture ● Further Development of Strategic Relationships● Competitive “Lockout” ● Uncovering new forms of Sustainable Competitive

Advantage● Distinctive Competency Through Unique, Extra Value

Packaging of Tickets● Positive Multiplier Effect● Overall Strengthening of Live Nation Brand Image


Situational Analysis

Internal Analysis ● Leadership ● Corporate Culture ● Organizational Structure ● Human Resources ● Operations● Finance● Marketing


Research MethodologySecondary Research● Objective, third party sources● Environmental scanning and monitoring● Limitations of secondary research


Michael RapinoPresident and CEO of Live Nation Entertainment, Inc. since August 2005.

● Led the split from Clear Channel Communications.● Focused Live Nation’s Business model on customer share, advertising/sponsorship,

and controlling relationships with customers.

Leadership

“At 19 I wrote on a napkin that I would be the CEO of the greatest Promotion company… and at 38 I took over Live Nation. For Those 19 years straight, I did

everything you could think about that would make you a great CEO.”


LeadershipRussell WallachPresident of Media & Sponsorship

● Over 20 years of marketing experience ● Oversees all sponsorship, media and marketing

partnerships across venue, online, mobile and artist platforms.

● Developed multimillion-dollar, integrated marketing programs with Citi, Coca-Cola, Anheuser-Busch, Starwood Hotels, Hertz and Kellogg's.


John HopmansExecutive Vice President - Mergers and Acquisitions

& Strategic Finance since April 2008

Responsible for:

● Merger with Ticketmaster● Acquisition of premier EDM festivals Insomniac, HARDfest and Creamfields,

ticketing companies Ticketnet and ServiCaixa, and many others.

Leadership


John Forese

SVP and General Manager LiveAnalytics,

Since November 2010

Lead the building of the analytics division.

Former CEO of Mobile Analytics company

“Our mission is to understand the live event fan. To do that we leverage multiple data sources: transactional data, primary research, engagement data as well as third party data. We want insights across all aspects of live event attendance.”

Leadership


https://www.linkedin.com/vsearch/p?title=SVP+and+General+Manager+LiveAnalytics&trk=prof-exp-title



Corporate Culture

Culture of Innovation

“Data is the greatest word in the business world… few people have really used it, we are still trying to master it.”

-Irving Azoff

“At the end of the day, we are in business to serve the fans, and we do a better job of marketing and engaging, so we will win

in the end.”-Michael Rapino

“Our business model isn’t based on the two hours [of actual concert], it’s vibrate because it focuses on everything that

happens around the two hours.”-Michael Rapino


Corporate Culture

Functionality vs. Experience“[concerning TicketMaster] Although the company’s

customer reputation may be lower, our business has a 76% Satisfaction rate, because it is a great site.” -Michael

Rapino

“Our website can functionally do something better than any one person can do in the entire world.”- Michael Rapino

“In the beginning of Live Nation, we stepped into something with many moving parts… we stripped that

all away, to become the best at one thing: Concert Promotion”- Arthur Fogel, Global Touring Head at Live

Nation


Corporate CultureAlpha Culture

“As we near the end of 2014, Live Nation has never been in a stronger position.”

“We only do two things for a living in a concert company: we buy talent rights, and we monetize the pipeline.”

“If you wanna be the best worldwide act, you need the best promoters in the world, [Live Nation].”

-Scooter Braun, Talent Manager of Justin Bieber

“We have always been the best… and we always keep lazer focus on how we will be the biggest and best”

“In this business [of ticket sales], there is a fine line between the bad and the good guys. When I’m debating it, we’re the obvious

good guys.” “Takeover is such a harsh word…”


Joe BerchtoldChief Operating Officer

Organizational Structure - Corporate

Michael RapinoPresident, Chief Executive

Officer and Director

John HopmansExecutive Vice President -

Mergers and Acquisitions and Strategic Finance

Michael RowlesGeneral Counsel and Secretary

Kathy WillardChief Financial Officer


Russell WallachPresident, Media &

Sponsorship

Mark YovichPresident, Ticketmaster

International

Jared SmithPresident, Ticketmaster

North America

Ron BensionPresident, HOB Entertainment

John ReidPresident, Live Nation

Europe-Concerts

Mark CampanaCo-President, North

America Concerts

Alan RidgewayPresident, International

Emerging Markets

Bob RouxCo-President, North

America Concerts

Arthur FogelChairman, Global Music

and President, Global Touring

Organizational Structure - DivisionalBackground External


Human Resources - Recruiting● Website● Internships● Third Party Websites● Social Media● Job Fairs


● Hiring Process: ○ Online Applications○ Email Response○ Panel Interview○ Follow-Up Skills Interview

“Always keep in mind, the candidate has the opportunity to interview us, the employer, as much as we are interviewing the candidate.”

Human Resources - HiringBackground External


● Seasonal & Union Employees

Human Resources - TrainingBackground External


● Performance Review● Assessment Program● Cross-functional Training● Seminars● Workshops

Human Resources - Retaining● EAP● Pension● Season Tickets● Health Insurance● Income Protection● Childcare Voucher Scheme● Promotion and Development


Operations - Online Presence● Primary Function● Ecommerce● Application Innovation● Data Harvest


Operations - Clientele Management

● Artists○ Labels and Contracts○ Merchandising Distribution○ Exclusive Rights○ Analytics sales

“We built a platform that said the artist should take all of the money on stage.”


Operations - Venue Management● Acquisition of Established Companies

Concert Staffing


● Variety of different forums

Festivals Concert Hall Music Lounge

“We built the model from 200 seats to the stadium”

Operations - Venue ManagementBackground External


Owned 24

Leased 78

Operated 14

Exclusive booking rights 41

Worldwide Total 157

Operations- Strategic Partnerships● Over 750 Sponsorships● Symbiotic Brand Integration● Specialization for Data Collection

“Our top focus for the year has been on taking our advertising business to the next level, leveraging our content platform to create products we can monetize through third-party platforms.”

- Josh Berchtold, COO of Live Nation


Operations- Strategic Partnerships

“Being as big as we are, We want to own the consumer from the minute they walk through the front door…”- Michael Rapino

Transportation

LodgingCustomer Rewards

Delivery/Distribution

Concessions/Alcohol

ATM Rights


Operations- Global● Headquarters9348 Civic Center Dr, Beverly Hills, CA 90210

● Operating in 36 Countries outside U.S.

85 Venues Run Internationally 26 Separate Ticketing Websites


FinanceBackground External






Income Statement

Finance: Industry Competition


● Ownership or partnership with 100 of the world’s preeminent facilities for sports and live entertainment.

● Successful artist management.

● Largest producer of music festivals in North America.

● AEG 1EARTH, 1SOURCE, 1FORCE, Community Involvement.

● Commands 50% of the resale market.

● “all in” ticket pricing policy.

● "We’ve reduced fees in 95 percent of [our transactions] in order to provide a better price to buyers," says StubHub president Chris Tsakalakis

● Improving customer experience

Industry Competition: Financial Background External


Finance

Cash RatioMeasures the ability to pay off debt obligations using

cash on hand


Cash and EquivalentsCurrent Liabilities

Finance

Total Debt RatioA conservative measure of long

term solvency


Total LiabilitiesTotal Assets

Finance

Net Profit MarginShows what percent of sales translates into net income


Net IncomeTotal Sales

Finance

Return on EquityMeasures the annual return on total equity

investment


Net IncomeShareholder’s Equity



Stock Price



Marketing

● Product ● Place● Price● Promotion


LYV Business Model: Two Components

(Referring to 2014 Adjusted Operating Income ($Millions))

1. Content: ● Concerts...$50.6● Artist …….$48.1

Total $98.7

2. Ancillary: ● Ticket Sales…………………...$326.1● Advertising/Sponsorship..$213.4

Total $539.5

Marketing: Product Background External


Marketing: Product


Ancillary $

Content“We built a platform that said the artist should take the money on stage. We built a model that said, let’s not worry about the two hours but let’s make sure that we are making money from everything around the two hours. That’s why we built sponsorships.”

- Michael Rapino, Live Nation CEO

Strategy Goal in 2012: increase AOI by 30-35% by 2015

“We are confident that our business model, and its scale, provides ongoing growth potential. There remain continued opportunities to consolidate the global concerts business, and we will use that scale to drive fan monetization, advertising and ticketing. Since 2012 we have grown revenue by 18%, AOI by 20% and cash flow by 31%. Looking forward, we see this growth as sustainable and repeatable given the breadth of levers and trends currently working for us.” - Michael Rapino, 2014 Financial Results

2012 AOI

Content $69

Ancillary $469

Total $538

Elimination $79

Total $459

2014 AOI

Content $98.7

Ancillary $539.5

Total $638.2

Elimination $83.3

Total $554.9


Marketing: Place

● Ticket sales are continuing their rapid shift to mobile, with 35% growth in 2014 to 18% of total ticket sales.

● As a result of technology investments with Ticketmaster Platform, reduced cost per ticket in North America by almost 25 cents per ticket.

● Expanding global footprint.


Marketing: PriceBackground External


Marketing: Promotion● Advertising● Sales Promotions● Public Relations● Direct Marketing● Personal Selling


Marketing: Advertising

● Mass Media:○ Using [a•mo•bee] for Advertisers mobile advertising

solution, Live Nation promoted individual concerts

through short "burst" campaigns across iOS and Android.


“We are continuing to shift marketing spend from traditional media outlets to social media and digital platforms to more effectively reach our fans and drive more ticket sales. We will continue to develop new tools for

mobile devices in additional markets to make it easier for our fans to get information on live events and conveniently buy and sell tickets.” - 2014 10K

http://www.amobee.com/advertisers/

Marketing: Sales PromotionBackground External


Marketing: Public Relations


Marketing: Direct Marketing

“Social has connected the dots so that consumers feel like they’re talking to someone at a company and less like they’re speaking to an answering service.” -

Chase Fritchle, social media manager at Live Nation


Marketing: Direct Marketing

Data Sources:

● Transactional data

● Primary research

● Engagement data

● Third party data


Content Captured:

● Awareness

● Satisfaction

● Demographics

● Psychographics

“Our mission is to understand the live event fan. To do that we leverage multiple data

sources. We want insights across all aspects of live event attendance” (John Forese, Senior

VP and GP of LiveAnalytics).

*Database Asset = 59 Million Fans

Marketing: Personal SellingJob Post Example: [USHER/ TICKET TAKER /GUEST SERVICES]Who are you?Passionate and motivated. Driven, with an entrepreneurial spirit. Resourceful, innovative, forward thinking and committed.The Role:Primary responsibility is to greet guests, check tickets, and direct guests to their seats. Previous guest services experience a plus, excellent communication skills, and the ability to easily maneuver throughout the pavilion. Strong customer service skills preferred.Responsibilities:

● Ensuring each guest to the PNC Music Pavilion has an enjoyable and safe visit by tending to all needs of public safety and security as directed by management.

● Controlling and managing crowds, performing guest services functions. (i.e. Directing guests)


External Analysis ● Industry Competition ● Macro-Economic Factors● Industry Technology ● Industry Customer


Industry Competition: Direct


Industry Competition: Indirect

● Entertainment

● Streaming

● Talent Agency


Macro-Economic Factors● Recession● Overhead cost of Venues● Inflation● Seasonality/ Weather


Industry Technology● Apigee ● Digital Platform - online and

streaming● Social and Mobile● Geo-fencing technology● Customer Interaction


Industry Consumer

● Concert Goers● Expansive Age Demographic● Technology driven ● Measurable Sponsor

“With our tremendous database in terms of live events history, we can create unique, specific targets psychographically, demographically, in terms of entertainment spend and affinity,” - Levine


SWOT Analysis


Strengths● Industry Standing● Strategic Partnerships● Customer Information● Advertising Sales


● Control of Customer Experience● Client Relationships● Lack of Direct Competition● Measurable Ad Campaigns

StrengthsBackground External


Weaknesses● Over-reliance on Michael Rapino’s

Leadership● Traditional Leadership Structure● Underleveraged frontline employees● Market share focused


Weaknesses● Cost plus pricing model ● Disconnect in functionality vs.

customer experience● Ineffectively utilizing

database asset● Low profit margins


Opportunities● Industry Innovation and Technology● In-house Hiring● Switch to Mobile Phone● Development of Streaming


Opportunities● Unleveraged Data● Artist Royalties● Development of Festivals● Global Expansion● Perceived Customer Value Pricing


Threats Background External


● Substitute products● Indirect competition● Customer volatility● Artist cost● Artist retention

Threats Background External


● Volatility of global market● Bad economy● Seasonality● Merger regulation● Venue retention

Sustainable Competitive AdvantageSustainable competitive advantage is a company’s ability to create long-term and measurable customer relationships through augmented goods and/or services that have a high perceived value, which cannot be easily duplicated or surpassed by competition as they are tailored to each astute and heavily valued customer.


New Forms of SCA● Ability to anticipate and meet current and future

needs of customers

● Ability to build and insulate customer

relationships

● Improve relationships with front-line employees

● Improve relationships with venues


Recommendations


Viable Alternatives● Venue CRM program

● Artist Nation CRM program

● Packaged Concert Streaming

● Public Outreach Program


Minor Recommendations● Move towards venue ownership● Dissolve Ticketmaster+● Mobile Application Innovation● Strengthening Existing Partnerships● HRM Program


Live Nation Ticketing PhilosophyBackground External


The Problem● Control over experience

without customization

● Underleveraged data and partnerships● Dissatisfied artist clients● Profit loss associated with

secondary ticket market


Programmatic Recommendation



Ticket PurchasingBackground External


DestiNation App


DestiNation App

● Partnership with new app technology, “BioBeats” to be offered within the Destination app.

● Reads the heartbeat of the individual through the touch of a finger to be translated into music.

● The collective audience’s heartbeat can be sent to the performer and translated into music.


Leveraging Customer Data:

● Existing data: Awareness, Satisfaction, Demographics, Psychographics.

● Utilize current data: Package recommendations.

● Obtained through app: Data for new pricing model, Further customer preferences, desired products or services, employee feedback.

Backgound External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis

PROFILE● Where do you live?● When and where is your

next vacation?● Who do you usually

attend shows with?● Do you prefer to drive

yourself to concerts?● Enjoy small or large

venue?● Favorite food and drink.● Prefered form of

communication. ● Work schedule?


Required HR Program

● Opt-in Program

● Training and Retraining

● 3 Month Reviews


Value Based Pricing● In app surveys post-concert● Upgrade options● Detailed historic research● Transparent pricing● Elimination of secondary market profits● Reduced operating costs


Select Markets:● Ownership of 41

Venues.

● 31 artists currently participating in VIPnation program.

● Present opportunity to the 31 artists currently participating who play at any of the 41 venues.


Background External Analysis SWOT Analysis Recommendation ConclusionInternal AnalysisBackground External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis





Every part of the journey is its own


● Employee satisfaction● Customer satisfaction● Artist satisfaction● Higher ticket prices● Increased profit per ticket

Metrics

Backgrond External Analysis SWOT Analysis Recommendation ConclusionInternal AnalysisBackground External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis

Expected Outcomes● Increased Knowledge Capture ● Further Development of Strategic Relationships● Competitive “Lockout” ● Uncovering new forms of Sustainable Competitive

Advantage● Distinctive Competency Through Unique, Extra Value

Packaging of Tickets● Positive Multiplier Effect● Overall Strengthening of Live Nation Brand Image


Areas of Future Study


● Separating from ticket brokers● Differentiating value in strategic partnerships● Global market expansion● Music festival development● Further digital streaming implementation


Reasoning:● Frontline employees● Venue relationship


Would we Invest in Live Nation?NO


Would we Work for Live Nation?


YES

Stipulations:● Corporate Setting● Management Role


● Galatians 6:9-10: Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up. Therefore, as we have opportunity, let us do good to all people, especially to those who belong to the family of believers.

● Romans 12:10: Love one another with brotherly affection. Outdo one another in showing honor.

● 1 Corinthians 16:14: Let all you do be done in love.


Spiritual Implications


Work Cited http://www.customerinsightgroup.com/marketinglibrary/how-the-internet-changed-the-music-business

http://consequenceofsound.net/2014/12/live-nation-acquires-controlling-interest-in-lollapaloozaacl-promoter-c3-presents/

http://finance.yahoo.com/news/live-nation-entertainment-partners-facebook-163200496.html

http://seekingalpha.com/pr/12292956-shopping-for-super-bowl-xlix-tickets-on-the-resale-market-nfl-and-ticketmaster-encourage-fans-to-buy-from-nfl-ticket-exchange

http://seekingalpha.com/pr/12169455-hilton-invites-the-world-to-play https://lpelin.expressions.syr.edu/trf635/2014/09/25/iheartradio-the-media-of-the-future/

http://www.aegworldwide.com/about/companyoverview/aeg1earth

https://www.youtube.com/watch?v=7Eyi7uZuZX8

http://www.thembj.org/2013/10/ticketmaster-and-the-business-of-scalping/#sthash.QAVPrMpR.dpuf

http://www.usatoday.com/story/money/personalfinance/2013/04/10/concert-ticket-sales-resales-scalping/2068661/

http://www.billboard.com/articles/business/6289185/ticketmaster-vs-stubhub-winning-resale-battle


http://www.customerinsightgroup.com/marketinglibrary/how-the-internet-changed-the-music-business



http://finance.yahoo.com/news/live-nation-entertainment-partners-facebook-163200496.html





http://seekingalpha.com/pr/12169455-hilton-invites-the-world-to-play



https://lpelin.expressions.syr.edu/trf635/2014/09/25/iheartradio-the-media-of-the-future/

https://lpelin.expressions.syr.edu/trf635/2014/09/25/iheartradio-the-media-of-the-future/











Work Cited Continuedhttp://www.billboard.com/articles/business/6289185/ticketmaster-vs-stubhub-winning-resale-battle

http://investors.livenationentertainment.com/files/doc_news/2011/TM%20MSP%20Release%204%2018%2011%20final.pdf

http://concerts.livenation.com/retail-outlets?tm_link=help_nav_3_retail

http://fanbeat.onenation.livenation.com/#!/shows/3627/detail/image/3747

http://adage.com/article/datadriven-marketing/live-nation-pre-games-data-insights/245688/

http://investors.livenationentertainment.com/files/doc_financials/2013/4Q/LiveNationEntertainmentInc-10K-022414.pdf

http://investors.livenationentertainment.com/files/doc_financials/2014/4Q/LNE-10K-2014-2-26-15_v001_o380i4.pdf

http://www.nasdaq.com/article/live-nation-everybody-wants-to-rule-the-world-cm243623#/ixzz3U1kMJuZh

http://www.nytimes.com/2014/07/15/business/media/yahoo-seeks-to-bring-the-concert-to-your-couch.html?ref=topics

http://www.amobee.com/customers/casestudy_livenation.shtml

http://investors.livenationentertainment.com/files/doc_financials/2014/4Q/LYV-Q4-FY-2014-Earnings-Press-Release-FINAL_v001_p6t8oq.pdf

http://socialmedia.org/blog/chase-fritchle-social-marketing-manager-live-nation-entertainment/

https://livenation.tms.hrdepartment.com/jobs/4797/Usher-Ticket-Taker-Guest-ServicesCharlotte-NC






























Work Cited Continuedhttps://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation


https://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation

https://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation


Questions?



Inducing Trial● Customers prompted with tutorial video ● Work with partnerships like Uber● Added products and services are what

customers already need, destination meets the convenience needs


Why the Current Pricing Strategy isn’t Working:

● Focus on market share vs. customer share● Lack of understanding of customer’s perceived value. ● Competition with StubHub● Dissatisfied artist clients● Underleveraged partnerships


Why Leadership Would Be On board● “This is an industry that has not done a great job of letting you know of

what’s coming, recommended bands, what’s on sale tonight, generally lots of apps out there are doing it. We’re trying to do it better. I think we have a long way to go before we cross this line with consumers.”

- Michael Rapino

● John Forese, current senior VP and GP of Live Analytics was the CEO of a mobile analytics company called Motally.



Programmatic RecommendationBackground External


The Problem:Current Systems/why they aren’t working:1.Recommendation:2.Website Purchasing: 3.App Inclusivity:4.Leveraging Existing Customer Data:5.Select Markets:6.Financial Feasibility:



Finance

Measures how many times per year inventory is

liquidated


Inventory Turnover

Finance

Current RatioAn extremely conservative

measures of short term solvency


New Product Strategies: ● Gained U2, Madonna, Lady Gaga, Miley Cyrus, Britney Spears,

Nicki Minaj, Lil Wayne and Alicia Keys.

● Now monetizing content in their deal with Yahoo! to distribute a streaming concert every day.

● Live analytics.

● Acquisition of North America festival assets Austin City Limits, Lollapalooza festivals and brands, and majority share of C3 Presents.


Price Strategies

● Ticketmaster and Marketshare partnership:"By utilizing MarketShare and Ticketmaster’s technology, our clients will be able

to retain economic value that is normally siphoned off by the secondary market, and to sell more of their tickets that go unsold today. Meanwhile, more fans will have more opportunities to enjoy live entertainment events because tickets will be more accessible and pricing options will broaden.” - Nathan Hubbard, CEO of Ticketmaster

● TM+ has produced over $1 billion of secondary gross transaction value since its launch in the fall of 2013.


Strategy to Gain 5 Million Fans

5M Fans Worldwide

100% Annual Growth

Electronic Dance Music

$50M+ Profit Pool by 2015

5M fans worldwide

North American Festivals Emerging Markets

4M fans

25% Annual Growth


20M fans

5% annual growth



Strategy to Continue AOI GrowthGoal: Increase AOI by 30 - 35%

2012

Add 5M FansLeverage Social & Mobile

Sponsorship

$0.35 NA cost per ticket reduction

2015 Secondary Growth


Finance: Industry Competition


● Ownership or partnership with 100 of the world’s preeminent facilities for sports and live entertainment.

● Successful artist management.

● Largest producer of music festivals in North America.

● AEG 1EARTH, 1SOURCE, 1FORCE, Community Involvement.

● Commands 50% of the resale market.

● “all in” ticket pricing policy.

● "We’ve reduced fees in 95 percent of [our transactions] in order to provide a better price to buyers," says StubHub president Chris Tsakalakis

● Improving customer experience

Overall Feasibility:● Long-term investment● Slow roll-out● $100 million spent on TM+ ● Value based pricing fixes secondary ticketing

market problems


LeadershipIrving Azoff

Chairman/CEO of Ticketmaster in 2008 - 2012.

Considered 2012’s “Most Powerful Person in Music Industry” by Billboard Magazine.

Current CEO of Azoff Music Management, Inc.


VIPnation?Background External


Live Nation Currently:May 13, 2015: Jordan Zachery named chief strategy officer.Key in their festival acquisition strategy.


CFO Kathy Willard on Lack of Profitability:“Still, as CFO Kathy Willard noted, while the concert division's AOI improved 80%, it still operated at a loss of $2.6 million….the improvement in the net loss "was driven by our higher operating income in the first quarter; lower interest expense, due to the refinancing of our debt in Q3 of last year, and a discrete one time tax benefit of $7 million, related to deferred tax liabilities recorded from an acquisition completed during the first quarter of 2014."

As of March 31, total current and long-term debt, including capital leases, was $1.8 billion.


Marketing Place: Arena Information

Live Nation is not in the arena business from a real estate perspective—they own/operate amphitheaters, clubs, and theaters. They can't capture arena ancillary revenues like parking, concessions, and venue sponsorships.

Unable to gain ancillary revenue from 35% of all venues operated in.

Still, grosses in arenas are typically significantly higher than those in sheds, where generally two-thirds of the house is GA seating. And arena shows are profitable and tap into a higher-end clientele and those seeking VIP experiences.


Expanded from 5 to 41 different countries

The one differentiating

the moat around the castle has been untouchable because 10,000 people want the same ticket on a saturday morning at 10:00am

we moved from best available to always available

alot of fraud and counterfeits in the secondary business

“Let’s not worry about the two hours of concert… we make money everywhere else around the two hours”

“As the frontrunner in an artist centered model, we need to make sure we are truthful and completely transparent to our Artists”

“And with more concert demand comes more brand involvement. Last year the sponsorship and advertising division derived $285 million in revenue from 900 million online visitors and 60 million concertgoers. Experts think there’s room to grow: Macquarie analysts believe Live Nation can sustain or accelerate its double-digit growth in sponsorships and advertising during the next few years.”

Documents

Live Nation Final Presentation