BEVERLY HILLS (CelebrityAccess) – Live Nation Entertainment (LN) CEO Michael Rapino sat down with CNBC’s Power Lunch back in 2022 and predicted LN is “on track for back-to-back record years,” and the numbers do not lie. LN today released financial results for the quarter and full year ending December 21, 2022.
Overall sales for the live music goliath increased 59% to $4.3 billion as fans continue in droves to concerts and events after being homebound by the COVID-19 pandemic. In its report, LN says more than 121 million fans attended over 43,500 events, as total full-year revenue increased 44% to $16.7 billion from the pre-pandemic time of 2019.
LN reports that concerts remain a top priority for discretionary spending and that trend will continue into 2023. With ticketing, they report they’ve connected 550 million fans with their favorite artists, teams, events, and performers with the majority of growth from international markets with untapped fan demand and more growth opportunities.
Ticketing revenues grew 44.9% to $2.24 billion in 2019 and up 97.4% from 2021. However, average ticket prices were higher in 2022 as well. LN estimates $700 million was shifted into the artists’ hands. The average entry price for tickets in the US did remain below $35. Attendance for Venue Nation, the venues operated by LN, reached almost 50 million.
LN also reports an investment of $9.6 billion in helping artists put on their shows throughout 2022, working with mega superstars, artists just getting their footing in the industry, and “all those in-between.” LN’s investment in touring artists increased by 45% from 2019, showing that LN is helping put artists on the road for fans to see. The company reports that 90% of LN’s ticket sales for LN shows go to the artists – as they become more reliant on touring for revenue streams.
In looking ahead to 2023, ticket sales for upcoming shows already exceed 50 million fans, up 20% from 2022 with international growth at 25%.
In the report, the company touched on the Ticketmaster controversy after the Taylor Swift ERAS Tour sale didn’t go as planned. In explaining how competitive the ticketing industry is, and that LN’s share has decreased since the TM merger, the report offered insight into ticketing reform including the FAIR Ticketing Act, which states:
~Artists should decide resale rules in order to protect their ability to use face-value exchanges and limited transfer to keep pricing lower for fans, and prevent scalpers from exploiting fans.
~Selling speculative tickets should be illegal so scalpers cannot use deceptive tactics to trick fans into spending more or buying tickets the seller does not actually have.
~The scope of the BOTS Act needs to be expanded and enforced to deter those who break the law, cheating artists and fans in the process.
~And there needs to be industry-wide all-in pricing so fans see the full cost they are paying up front.
The reports end with this and is signed Michael Rapino, President and Chief Executive Officer, Live Nation Entertainment, Inc.
“Artists create their music and their concerts. It’s only fair that they create their ticketing rules, too. We will always be on the side of the artist, who are the best advocates for their careers and their fan base.”
You can read the report in its entirety HERE.
