#229

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Back of House
November 12, 2024

Issue #229

Live Nation’s Q3 revenue fell 6% to $7.6 billion, despite record summer profits, as CEO Michael Rapino projects an even bigger 2025. SXSW’s impact on Austin decreased slightly to $377.3 million, with ticketing and badge spending down. Endeavor reported $2.03 billion in Q3 revenue but faced a $420 million loss, planning to go private while selling assets like On Location. HeadCount registered 400,000 voters, with Sabrina Carpenter leading efforts. Meanwhile, a study finds social media as a major source for ticket scams, and Ticketmaster's suspected hacker was arrested.

Credit: Alexis Monet

Live Nation Q3 results; Rapino bullish on 25

Live Nation released its Q3 results yesterday, showing revenue of $7.6 billion, a 6% decline from the same period last year. CEO Michael Rapino boasted the “most active summer concert season ever,” generating $6.6 billion, driven by a 13% increase in shows, leading to record profitability. Ticketing revenue fell 17% and operating income was down 2% to nearly $640 million. Rapino is bullish on “an even bigger 2025”, backed by a “show pipeline [that] has never been bigger.”

Live Nation’s stock has been on the rise since the election. TBD how these results will impact its price.

SXSW generates $377.3 million for local economy

SXSW’s economic impact on the Austin, TX economy slightly decreased to $377.3 million from $380.9 million last year. The decline can be attributed mostly to a $16 million dip in spending related to ticketing/badges($217.8 million total), though spending was up on operations ($98.5 million) and partnerships ($61 million), making up most of the difference. The bulk of the nearly 48,000 in-person participants continue to be from outside of the local area and spend about $650 per day while in town for the fest.

Endeavor posted its Q3 results last week showing revenues of $2.03 billion, up 66% YOY, including $899.8 million from the events, experiences and rights segment (up 145% YOY, fueled by On Location’s involvement in the Paris Olympics). However, they also posted a net loss of $420.4 million, up 262% YOY.  According to CEO Ariel Emanuel, the focus remains on taking Endeavor private via Silver Lake and selling PBR, On Location, and IMG to TKO.

HeadCount registered over 400,000 voters through over 160 campaigns this election cycle. The initiative included artists such as Ariana Grande, Camila Cabello, Demi Lovato, Sofi Tucker, Maggie Rogers, and Sabrina Carpenter. Carpenter led all artists with an impressive 35,814 voter registrations and an additional 263,087 voters who engaged outside of registering directly attributable to her.

According to S&P Global, funflation, the “the bubble in pricing for live events” caused by consumers prioritizing experiences over things, has benefited ticketing companies more than anything else. They estimate that the gross transaction value of tickets went up 20-30% due to ticketing companies’ ability to scale quickly coupled with higher ticket prices and more concerts overall. They expect this growth to continue, but then begin to level out in the coming year.

A bill recently introduced in the UK Parliament to ban smoking in many public places did not include the originally planned ban in clubs, pubs, and cafes. The restrictive Tobacco and Vapes Bill is one of the most restrictive bills on smoking in the world at one time included a ban in clubs, pubs, and cafes, but they were left out due to the “devastating impact” it would potentially have on an already-struggling hospitality industry. “This pragmatic decision will allow pubs, bars, and clubs to continue operating in a way that respects the choices of patrons while also prioritizing the wellbeing of local communities,” said Michael Kill, CEO of Night Time Industries Association.

The suspected hacker behind the Ticketmaster breach earlier this year has been arrested in Canada. As a reminder, the hack involved stealing the data of upwards of 500 million Ticketmaster users - most likely including you - in May. The hacker demanded an $8 million ransom and threatened to release barcodes for Taylor Swift concert tickets.

A lot of attention around ticket fraud has been centered around the secondary market, however, a new study by Lloyds claims that social media is actually the biggest source of ticket scams. The report adds that Oasis fans account for 70% of ticketing scams since August and of those, “over 90% of reported cases started with fake adverts or posts on social media, with the vast majority originating on Facebook, which includes Facebook Marketplace.”

AXS has acquired white label eCommerce, an independent direct-to-fan ticketing and e-commerce solution based in Hamburg, Germany. The appropriately-named ticketing company sells tickets under anyone else’s name - other than its own - will become part of AXS Germany, which recently started selling premium tickets to AEG venues in Germany and potentially signals AEG’s move towards becoming a promoter in Germany.

London festivals BTS Hyde Park and All Points East have achieved sustainability certifications from A Greener Festival. BTS Hyde Park received a highly commended certification and All Points East received a commended certification. Both festivals are part of AEG’s London festival series and implemented several new sustainability initiatives in 2024.

Ticketing companies' revenue in 2025:

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Last Week's Results:
82% of BOH readers say its OK to start decorating for Christmas / Chanukah / Kwanzaa after Thanksgiving.

Lineups, Festival & Tour Announcements 

  • Thanksgiving halftime performances: Lainey Wilson will perform during the Dallas Cowboys vs. New York Giants game; Shaboozey will perform in the middle of the Detroit Lions vs. Chicago Bears game; and at halftime of the Green Bay Packers vs. Miami Dolphins game, Lindsey Stirling will take the field.

  • The Smashing Pumpkins, and Beck lead the 33rd KROQ Almost Acoustic Christmas lineup, December 14 at Kia Forum in Los Angeles, CA. 

  • Igloofest Montréal will feature twelve nights of music across four weekends at Vieux-Port de Montréal, including Four Tet, Steve Angello, and Michael Bibi from January 16 - February 8.

  • Ubbi Dubbi announced Subtronics, Fisher, Seven Lions, Adventure Club and more at thePanther Island Pavilion in Fort Worth, TX, April 26 - 27. 

  • Judas Priest have announced a European tour in celebration of the 35th anniversary of fan-favorite album Painkiller. The tour will kick off in Norway on June 14 and wrap July 20 in Germany.

Cancelations, Changes

  • Morrissey was “whisked off stage” in the middle of his November 2 encore in Dallas after a fan joined him on stage and many others followed, creating an “impromptu meet-and-greet” which security struggled to contain. 

  • Dua Lipa canceled her concert in Jakarta, Indonesia on November 9, posting on instagram that it was, “determined that it is not safe for the performance to carry on due to safety issues with the staging.” 

  • Organizers of Pitchfork Festival announced that the festival will not take place in 2025 after 19 years in Chicago, citing only the rapidly evolving festival landscape as reason for the “difficult decision.”

  • Gem & Jam Festival is postponed until 2026. Organizers said, “After tirelessly working on the lineup and things not falling into place like they usually do, it just didn’t feel right.

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