A Careful Examination of the Live Nation-Ticketmaster Merger
Live Nation Final Presentation
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Transcript of 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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background 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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Situational Analysis
Internal Analysis ● Leadership ● Corporate Culture ● Organizational Structure ● Human Resources ● Operations● Finance● Marketing
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Research MethodologySecondary Research● Objective, third party sources● Environmental scanning and monitoring● Limitations of secondary research
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.”
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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…”
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Human Resources - Recruiting● Website● Internships● Third Party Websites● Social Media● Job Fairs
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● Seasonal & Union Employees
Human Resources - TrainingBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Operations - Online Presence● Primary Function● Ecommerce● Application Innovation● Data Harvest
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.”
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Operations - Venue Management● Acquisition of Established Companies
Concert Staffing
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● Variety of different forums
Festivals Concert Hall Music Lounge
“We built the model from 200 seats to the stadium”
Operations - Venue ManagementBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
FinanceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
FinanceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
FinanceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Income Statement
Finance: Industry Competition
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Finance
Cash RatioMeasures the ability to pay off debt obligations using
cash on hand
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Cash and EquivalentsCurrent Liabilities
Finance
Total Debt RatioA conservative measure of long
term solvency
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Total LiabilitiesTotal Assets
Finance
Net Profit MarginShows what percent of sales translates into net income
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Net IncomeTotal Sales
Finance
Return on EquityMeasures the annual return on total equity
investment
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Net IncomeShareholder’s Equity
FinanceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Stock Price
FinanceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing
● Product ● Place● Price● Promotion
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Product
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: PriceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Promotion● Advertising● Sales Promotions● Public Relations● Direct Marketing● Personal Selling
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
“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
Marketing: Sales PromotionBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Public Relations
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Marketing: Direct Marketing
Data Sources:
● Transactional data
● Primary research
● Engagement data
● Third party data
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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)
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
External Analysis ● Industry Competition ● Macro-Economic Factors● Industry Technology ● Industry Customer
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Industry Competition: Direct
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Industry Competition: Indirect
● Entertainment
● Streaming
● Talent Agency
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Macro-Economic Factors● Recession● Overhead cost of Venues● Inflation● Seasonality/ Weather
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Industry Technology● Apigee ● Digital Platform - online and
streaming● Social and Mobile● Geo-fencing technology● Customer Interaction
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
SWOT Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Strengths● Industry Standing● Strategic Partnerships● Customer Information● Advertising Sales
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● Control of Customer Experience● Client Relationships● Lack of Direct Competition● Measurable Ad Campaigns
StrengthsBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Weaknesses● Over-reliance on Michael Rapino’s
Leadership● Traditional Leadership Structure● Underleveraged frontline employees● Market share focused
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Weaknesses● Cost plus pricing model ● Disconnect in functionality vs.
customer experience● Ineffectively utilizing
database asset● Low profit margins
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Opportunities● Industry Innovation and Technology● In-house Hiring● Switch to Mobile Phone● Development of Streaming
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Opportunities● Unleveraged Data● Artist Royalties● Development of Festivals● Global Expansion● Perceived Customer Value Pricing
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Threats Background External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● Substitute products● Indirect competition● Customer volatility● Artist cost● Artist retention
Threats Background External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Recommendations
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Viable Alternatives● Venue CRM program
● Artist Nation CRM program
● Packaged Concert Streaming
● Public Outreach Program
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Minor Recommendations● Move towards venue ownership● Dissolve Ticketmaster+● Mobile Application Innovation● Strengthening Existing Partnerships● HRM Program
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Live Nation Ticketing PhilosophyBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
The Problem● Control over experience
without customization
● Underleveraged data and partnerships● Dissatisfied artist clients● Profit loss associated with
secondary ticket market
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Programmatic Recommendation
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Ticket PurchasingBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
DestiNation App
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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?
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Required HR Program
● Opt-in Program
● Training and Retraining
● 3 Month Reviews
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Value Based Pricing● In app surveys post-concert● Upgrade options● Detailed historic research● Transparent pricing● Elimination of secondary market profits● Reduced operating costs
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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 Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal AnalysisBackground External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Every part of the journey is its own
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Areas of Future Study
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● Separating from ticket brokers● Differentiating value in strategic partnerships● Global market expansion● Music festival development● Further digital streaming implementation
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Reasoning:● Frontline employees● Venue relationship
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Would we Invest in Live Nation?NO
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Would we Work for Live Nation?
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
YES
Stipulations:● Corporate Setting● Management Role
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Spiritual Implications
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Work Cited Continuedhttps://www.billboard.com/articles/business/6205174/why-wall-street-loves-live-nation
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Questions?
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Programmatic RecommendationBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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:
FinanceBackground External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Finance
Measures how many times per year inventory is
liquidated
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Inventory Turnover
Finance
Current RatioAn extremely conservative
measures of short term solvency
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
$40M+ Profit Pool by 2015
20M fans
5% annual growth
$150M+ Profit Pool by 2015
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Finance: Industry Competition
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
● 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
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
VIPnation?Background External
Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
Live Nation Currently:May 13, 2015: Jordan Zachery named chief strategy officer.Key in their festival acquisition strategy.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.
Background External Analysis SWOT Analysis Recommendation ConclusionInternal Analysis
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.”