Credit: Found On Internet

The Dark Arts of promoting big bands is an odd game run by an increasingly decreasing circle of people. The commercial value of the companies that they work for can be a investment roller coaster ride dependent on the slightest personal hiccup. If Eminem is depressed, or it rains every day leading up to a festival can cost hundreds of thousands if not millions to the value of your company. The bigger you get as a promoter, the bigger the risks are. just look a the Wembley Stadium fiasco. 

This can stifle the potential development of these companies. After all there is only so many Stadium filling bands, and only so many shows that will sell out.

Live concert promoters are selling someone else’s product through someone else’s means. They are neither the band, nor the seller of tickets. Yet they will put up the costs of the show, all the advertising and take all the risk, can’t be easiest business model to work with. So doing my usual nosing around of company financial reports I found myself looking at Live Nation.

Live Nation are a leviathan amongst entertainment companis. Around the world last year promoted, produced or hosted over 29,500 events:  music concerts, theatrical performances, specialized motor sports and other events at their owned or operated 119 venues, including 37 amphitheatres, 61 theatres, 15 clubs, four arenas and two festival sites. They estimate to an audience of 60 million people which makes them worth a few billion dollars.

So was quite surprised to read about the amount of money that Live Nation is losing. In the last quarter they have announced a loss of $62 million dollars, in the quarter before $61 million.

There is a lot of borrowing going on: To the tune of $300 million dollars spent and another 300m available should they need it. And if the next year goes on the same vein as the last 6 months they might be in trouble. I suppose in the 119 venues & festivals there is a lot of value that could be sold off to back them up. But since being spun off from the media giant Clearchannel last year, and renamed Live Nation, they have only been expanding.