Jessica Northey

In Practicum 2 – Trends

Excel and Data Reporting | Alexia Brehm

Full Sail University

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The old business models, such as CD sales, are slowly going away and being replaced

with new media. The music industry is changing, but it is growing. The music is now going into

video games, television, and online music services. The future will be different than today

because it is so much bigger than simply working for a record label. The people have more

power now in the music industry because they now get a vote. (Bishop, 2008)

People are looking for new experiences with music. What live performances provide for

people is creating an environment with music and/or storytelling that can be heard in its most

raw form, which is something that new digital media cannot provide. The gross value of tickets

sold has steadily increased dramatically since 2009 because Live Nation Entertainment added a

revenue stream in ticket sales through the merger with Ticketmaster. The amount reported

included primary tickets only.

“The tickets sold for 2010 do not include 7.1 million tickets with a gross

value of $406.4 million for the pre-Merger period. Tickets sold for the full year

ended December 31, 2010, including the pre-Merger period, were as follows:

concerts, sports, arts and theater, family, comedy shows, facility tours, donations,

lectures, seminars, and cinemas.” (Willard, 2012)

Basically, the merger between LiveNation and Ticketmaster to add the ability to purchase

more tickets for a variety of different kinds of events dramatically increase the revenues.

The companies that would be interested in this data reporting information are

LiveNation’s competitors. LiveNation’s top two competitors are Anschutz Entertainment Group

(Shaw, 2011) and “StubHub, the world’s largest ticket marketplace” (EON, 2010). Another

reason a company would be interested in the data is if a company is interested in mergers and

acquisitions. For example, Cream Holdings recently was bought out by LiveNation. (Morris,

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2012) LiveNation can analyze the data for their benefit because it will assist them in making

important business decisions such as how their ticket sales are doing over the years and what it

could look like with continue growth. The music industry is volatile and requires consistent

analysis, especially with the competition. AEG and StubHub could use this information to their

benefit during marketing meetings when evaluating how their competition is doing in ticket

sales. Cream Holdings was recently acquired by LiveNation, and could benefit from knowing

this information to keep up with their recent business partnerships.

A few potential external factors that could influence the projected trends are new

partnerships, emerging technologies, and the economy. A new partnership such as Cream

Holdings can change the projected data to larger jumps in percent averages. (Rys, 2012)

Emerging technologies has influenced the trend for choice back into the hands of the

marketplace. (Kresge, 2006) The economy has a direct influence with the live entertainment

industry. ("Ticketmaster entertainment (tktm) ," 2009)

If the trend continues to grow as suggested in the data, the impacts to the industry will

allow LiveNation to remain a strong competitor in ticket sales through Ticketmaster. The impact

that it will have on me personally is that I have been considering entering into developing a

travel agency that books group trips for people who want to travel to music festivals. The more

events people attend, the more opportunities to make money in combining the two industries.

The data use to make the financial projections was the LiveNation’s Annual Report. This

was the best resource for the data because of its reliability of being accurate and will be

published annually. This is an excellent resource to continue monitoring the trends to determine

progress. (Willard, 2012)

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Reference:

Bishop, P. (Performer) (2008). The music industry in 2012: What will it look like? [Web].

Retrieved from http://www.artistshousemusic.org/videos/the music industry in 2012

what will it look like

EON. (2010, December 20). 2010 concert ticket sales report: Stubhub bucks national trend with

record-breaking sales. Retrieved from

http://eon.businesswire.com/news/eon/20101220005086/en

Kresge. (2006, September 27). Emerging technologies and trends in online entertainment and

business. Retrieved from http://techtv.mit.edu/videos/16181-emerging-technologies-and-

trends-in-online-entertainment-and-business

Morris, C. (2012, May 09). Live nation announces earnings. Retrieved from

http://www.variety.com/article/VR1118053742?refCatId=16

Rys, D. (2012, May 09). Live nation buys edm entertainment company cream holdings ltd,

owner of creamfields festivals . Retrieved from

http://www.billboard.biz/bbbiz/genre/dance/live-nation-buys-edm-entertainment-

company-1007004962.story

Shaw, L. (2011, August 23). Aeg enters competition with live nation ticketmaster. Retrieved

from http://www.thewrap.com/media/column-post/aeg-enters-competition-live-nation-

ticketmaster-30347

Ticketmaster entertainment (tktm) . (2009, May 13). Retrieved from

http://www.wikinvest.com/stock/Ticketmaster_Entertainment_(TKTM)/Live_Entertain

ment_Industry_General_Economic_Trends-our_Success_Depends

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Willard, K. (2012). 10klivenationentertainmentinc. In M. Rapino (Ed.), Key operating metrics

(p. 51). Los Angeles, CA: Ernst & Young LLP. Retrieved from http://phx.corporate-

ir.net/External.File?item=UGFyZW50SUQ9NDYzNjUyfENoaWxkSUQ9NDkyNTM4f

FR5cGU9MQ==&t=1