LYV
🎟️ Live Nation holds a near-monopoly in the live event promotion space (concerts, festivals) through vertical integration, owning Ticketmaster, artist representation, and venues.
✨ The company benefits from the shift towards the ‘experience economy,’ where consumers, particularly aging demographics with increasing purchasing power and younger generations, prioritize spending on live events over material goods.
⚖️ Despite its strong business model and market position, Live Nation faces significant risk from potential antitrust investigations in the US due to its dominant market share, alongside potentially demanding valuation multiples.
@Academiadeinversion:
“Another company that I like a lot, which is related to the aging population in a way, but also to the change in people’s tastes, is Live Nation Entertainment. Live Nation Entertainment has a monopoly or practically a monopoly on the promotion of concerts, festivals, and some sporting events, practically worldwide, but especially in the United States and Europe. Many of you will know it because it owns Ticketmaster, typically where you get tickets. And it has everything very well set up because it is highly vertically integrated; it has an artist representation agency. So, for those it represents, it organizes concerts, it also sells tickets through Ticketmaster, then it also operates venues where concerts are held. And you say, ‘Well, what does this have to do with the aging population?’ Well, it’s that the people who are getting older, previously most spending was on consumer goods. However, our generation, even a later generation, we’re talking about people who haven’t yet turned 50, are increasingly spending more money on the experience economy, on live events. And well, I think those people will continue spending this money as they get older, and increasingly these people spending money on experiences have more purchasing power because they are older, there are more of them, and also the kids coming up behind want these things. The rise of social media has also been very good for them. And Live Nation Entertainment, I tell you, is a true monopoly. So much of a monopoly that both Google and Amazon tried to enter this sector and said they couldn’t because Live Nation operates with exclusivity contracts. The only risk I see, apart from the multiples being demanding, the only risk I can see here is the antitrust investigations that may come from the United States, but it’s a very well-managed company too and has an almost perfect business model.”
Watch the exact part of the video where @Academiadeinversion talks about Live Nation Entertainment here:
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