Live Nation CFO doesn’t expect DOJ antitrust battle to result in “significant changes to how we operate…” and 3 other things we learned from Joe Berchtold’s Bank of America Q&A

Joe Berchtold, president and chief financial officer of Live Nation, said that in the age of music streaming, artists are seeing their fan bases grow globally, prompting them to expand their world tours.

Speech at BofA Securities Media, Communications and Entertainment Conference On Wednesday (September 4) in New York, Berchtold said that while looking at tickets for tours promoted by Live Nation and/or sold by its subsidiary Ticketmaster, he noticed 20% arrive 50% Artists are adding tour dates – and “almost all of them are international dates.”

“Ten years ago, the conversation was, ‘Let’s talk about a U.S. tour and maybe some European dates.’ Now it’s, ‘Hey, let’s talk about the three-year plan. What’s the role of the U.S., Europe, Latin America? Us Doing Asia? Where do we host music festivals compared to tourism?

“So the scope of the conversation is much broader and particularly the international scope is much longer.”

Berchtold attributes this to a growing global music fan base made possible by streaming services that allow listeners to listen to music instantly around the world. Recently, social media platforms have become a major amplification machine for artists’ work.

“On the demand side [there] Berchtold said the shift is from record labels being the deciding factor in distribution to… global distribution through Spotify, Apple Music and streaming platforms to ensure content is delivered simultaneously around the world.

“Then what you’ve seen further acceleration over the last five or six years is… social platforms as a discovery point. Now they can discover the artist on Tiktok, Instagram and social media platforms. And… I think that’s setting the stage for global growth. Here comes another acceleration.

To illustrate the scale of this growth, Berchtold pointed to another statistic: Over the past decade, Live Nation’s growth rate 2.5 times Increase in the number of tours sold 100,000 or more tickets.

“In 2015, we were approximately 90 We have sold over 100,000 tickets to artists… By 2019, that number had grown to approx. 150 [or] 155. This year, we expect that number to be approximately 250,” said Berchtold.

While the biggest shows usually sell out more than 500,000 Berchtold said the 100,000-plus ticket count is an indicator of future “supply” — that is, how many upcoming shows there are today, some of which will be major stadium tours tomorrow.

Berchtold said the figures showed “continued growth in global supply.”

Live Nation reports 2023 as ‘biggest year ever’, corporate banking $22.7 billion income, rising Annual increase of 36%. Its concert business has ushered in Annual increase of 39% Revenue surged to $18.7 billionwhile its ticketing business (Ticketmaster) generates $2.9 billionup 32% annual increase.

Growth Slows This Year—Revenue Increases in Q2 2024 7% annual increase – Major stadium tours are proving to be slower this year compared to 2023.

However, during a Q&A session at the Bank of America conference, Berchtold reiterated his expectations for a resurgence in stadium events in 2025.

He said 2025 “will be the best of both worlds, where we see very strong growth in our number of stadiums but also continued growth in our number of arenas at this time”.

Here are three other things we learned from Berchtold’s appearance at the Bank of America conference:

1. Live Nation antitrust trial could begin in early 2026

Much of the news about Live Nation in recent months has focused on an antitrust lawsuit filed against the company by the U.S. Department of Justice, which along with attorneys general from 39 states and the District of Columbia is asking the court to spin off Ticketmaster from its parent company.

Live Nation has vigorously defended itself against accusations that its practices violate antitrust laws and are harmful to consumers. The company argued both before and after the DOJ lawsuit that consumers’ biggest complaint against the company, namely fares, had nothing to do with it. Live Nation believes that artists, sports teams and other performers set their own prices.

“[The complaint] Live Nation said in a public response to the Justice Department lawsuit that “they blame the high ticket prices on concert promoters and ticketing companies, neither of which control ticket prices.”

“It ignores all the factors that actually cause ticket prices to rise, from increases in production costs to an artist’s popularity to 24/7 online ticket scalping, which shows that the public is willing to pay much more than the main ticket price. .

“I predict we will win. I predict we won’t make significant changes to the way the process we have to go through with the Department of Justice works.

Joe Berchtold, “Live Nation”

At the Bank of America conference, Berchtold reiterated the company’s position that it hopes to emerge victorious from the legal battle.

“I predict we will prevail. I predict we will not make significant changes to the way the process we have to go through with the Department of Justice works,” Bechtold said.

He also provided a timeline for when we can expect the case to go to trial — if it does.

“I think next year [will be] A period of discovery and testimony and then the trial will begin in early ’26 if nothing happens between now and then that can allow us to reach an agreed upon resolution.

2. Live Nation plans to increase profits through market segmentation

In order to seek greater profit margins, Live Nation developed a strategy: market segmentation. Essentially, this means understanding your customers well enough to understand who is willing to pay more for a better experience.

Part of that strategy is dynamic pricing — the practice of adjusting fares on the fly based on demand. This has proven controversial with fans on a number of occasions, most recently the sale of tickets oasisA reunion tour of the UK and Ireland next year was launched last weekend.

The huge demand for these tickets has caused prices to skyrocket to £350 ($460), from the initial price £135 ($177).

Angry fans have complained that Oasis is now moving away from the practice, but Live Nation has long defended dynamic pricing, arguing that the secondary ticket market (i.e. scalpers and the like) is evidence that certain audiences are willing to pay more for movies. The price is higher than what it sells for—which means artists are leaving money on the table.

“It’s all about segmentation and just making sure you create opportunities for people to make their own choices.”

Joe Bechtold, “Live Nation”

But for Live Nation, market segmentation is about more than just dynamic pricing — it means tiering the price of event experiences in as many ways as possible — right down to the cost of parking.

“All of our amphitheaters now have different levels of parking,” Berchtold said at the Bank of America conference. “If you want to do that, [general assignment] If you want to park, you have to walk some distance.

For those willing to pay more, there are options for “VIP parking… valet parking… platinum parking…” explains Berchtold. “You charge what the market will bear.”

Once inside the venue, the question becomes “Do you want a really nice VIP club where you can sit down and have dinner, have air conditioning, [do] Do you want a mid-level club that might have a separate bar, no queues for the bathrooms, and a quieter environment with a little shade? Do you want to sit in the box? Do you want to get into the trap? Do you want to enter the VIP area inside the pit? Do you want to be on the lawn?

Berchtold added: “It’s all about segmentation and just making sure you create opportunities for people to make their own choices.”

3. Live event consumption shows no signs of slowing down

Many retailers have recently announced store closings and layoffs, saying they are seeing signs of slowing consumption two years after interest rates began to weigh on the economy.

We have recently received announcements of store closures from department store chains macy’s department store and discount retailers large batch. Chain restaurants seem to be hit harder, like TGI Friday, red lobster and Applebee’s.

But Live Nation executives said on a recent earnings call that they don’t see any signs of slowing in demand for live events.

“If you think back on that event, how memorable it was, you’re still talking about it with your friends months later.”

Joe Berchtold, “Live Nation”

At the Bank of America conference, Berchtold attributed this advantage to the idea that live events offer better value for money than many other experiences.

“We have a company where two-thirds of the tickets are at low prices. $100one-third of which are in $50. The higher-priced products get some media attention, but the vast majority are very affordable,” Bechtold said.

“If you want [how a] The typical fan goes to one or two concerts per year. If you think back on that event, how unforgettable it was and you’re still talking about it with your friends months later…

“If you want, you can spend the same money and eat out [a] Friday night with your wife…but [a concert is] Just more memorable.

Berchtold said Live Nation monitors sales closely every time a tour goes on sale — “Believe me, we’re paranoid every day” — but there’s no sign of any problems at all.

“We don’t see a problem,” he said.global music business