LIVE

NATION
Face the Music
BLEMBA 70 - Syndicate 2
 Our teams

Wulan Theresa Akbar R Bayu Muhammad

Swastika Putri Russavel Wibowo Yusuf
(29123374)
Theofilus Navis (29123458) (29123459)
(29123375) (29123457)
 COMPANY OVERVIEW
Live Nation, originally a concert production and promotion company, evolved into a global entertainment
powerhouse. Since its public debut in 2005, it expanded beyond live concerts into ticketing, artist
management, merchandising, and digital platforms. Initially focused on organizing and producing live
concerts, the company expanded into various areas of the music industry, traditionally dominated by
major record labels.
 LIVE NATION MAIN STRATEGIES
Signing Exclusive Deals with Many Artists
Live Nation entered into 360-degree deals with top-tier artists such as
Madonna, Jay-Z, U2, and the Jonas Brothers. These deals allowed Live
Nation to manage not only their concerts but also their merchandising,
ticketing, licensing, and branding.

Acquiring Concert Venues

The company either acquired or leased major venues, including House of
Blues and Wembley Arena, to gain control over live event experiences.

Merchandising and E-commerce Expansion

Live Nation acquired merchandising companies and fan engagement
platforms like Musictoday, enabling it to sell branded products and create
digital fan communities.

Launching Its Own Ticketing Platform

Previously relying on Ticketmaster, Live Nation decided to establish its
own ticketing service, reducing dependence on third parties and gaining
valuable customer data.
 COMPANY DILEMMA
By 2008, the company was at a crossroads. CEO Michael Rapino and Chairman
Michael Cohl had differing views on strategy:

Michael Rapino
Advocated a cost-cutting Michael Cohl
approach, by focusing on core Wanted to aggressively
concert business and expand by signing more
expanding through digital artists and acquiring
concert recordings. additional venues.
STRATEGIC DILEMMA
ANALYSIS
Porter Five Analysis and the Recommendation will be based on :
1. Live Nation had to choose between two strategic paths:
➢ Rapino’s approach : Cost-cutting and focusing on core concert business Reduce expenses and
streamline operations. Sell CDs, DVDs, and digital recordings of live concerts. Maintain
profitability by limiting risk.
➢ Cohl’s Approach : Aggressive Expansion and Artist Acquisitions. Continue signing major artists
under 360 deals. Expand into digital music, social media, and branding. Acquire key music
venues to strengthen dominance.

1. Challenges and Market Uncertainty : The global economic downturn (2008 financial crisis)
threatened consumer spending on concerts. Increasing competition from AEG Live and digital music
platforms. Uncertainty over whether Live Nation’s investments in artists and venues would generate
sustainable profits.

2. Key Decision: What Should Live Nation Do? Should Live Nation focus on its core business and
prioritize profitability, or should it continue its aggressive expansion strategy to dominate the
industry? How should the company differentiate itself from record labels and streaming platforms?
Can Live Nation successfully adapt to the evolving digital music landscape?
PORTER SUBSTITUTE
S

FIVE
ANALYSIS SUPPLIERS
INDUSTRY
RIVALRY
BUYERS

NEW
ENTRANTS
 Industry Rivalry
Assessment:
Competition is intense, with major players like AEG Live and regional
promoters. The industry's capital intensity and fixed costs (venues,
artist deals) fuel aggressive pricing and promotional strategies.

Parties Involved:
AEG Live, regional promoters, independent event organizers.
Competitive Pressure: Strong due to high fixed costs and
aggressive market competition.

SUBSTITU Specific Strategy:

TES ● Global Expansion: Target emerging markets with high
growth potential to diversify revenue streams and reduce
dependency on saturated markets.
● Differentiated Event Offerings: Develop unique event
formats, such as themed festivals and branded tours, to
INDUST create distinctive market positions.
SUPPLIER ● Strategic Acquisitions: Pursue mergers and acquisitions
S
RY BUYERS
to consolidate market share and expand operational
RIVALRY capabilities.

NEW
ENTRANT
S
 Buyers (Fans)
● Consumers have many options when it comes to enjoying music,
including live concerts, streaming, and social media.
● An increase in concert ticket prices may lead to a decrease in
demand if the experience offered is not comparable.
● While fans have multiple entertainment options, live concerts
offer unique experiences with limited substitutes.
● However, the rise of online secondary ticket markets increases
transparency and choice.

Parties Involved: Concertgoers, fan clubs, online ticket buyers.

Competitive Pressure: Moderate, with increasing influence through
SUBSTITU social media and digital platforms.
TES

Specific Strategy:
● Personalized Fan Experiences: Utilize data analytics to offer
tailored concert experiences, loyalty programs, and exclusive
content.
INDUST ● Dynamic Pricing Models: Implement flexible pricing based on
SUPPLIER
RY BUYERS demand forecasting to optimize ticket sales and revenue.
S
● Direct Engagement Platforms: Develop mobile apps and
RIVALRY
online communities to strengthen direct relationships with fans.

NEW
ENTRANT
S
 Suppliers
● Artists are the main suppliers in this industry. Big
artists have high bargaining power because their
popularity can determine the success of a concert or
tour.
● Live Nation has to compete with record labels and
other companies for exclusive contracts with artists.

Parties Involved: Artists, managers, venue owners,

production companies.
Competitive Pressure: Strong due to the limited supply of
superstar talent.
SUBSTITU
TES
Specific Strategy:
● Talent Development Program: Establish programs to
nurture emerging artists, reducing dependency on
established superstars.
● Integrated Venue Operations: Increase direct
INDUST ownership of venues to limit reliance on third-party
SUPPLIER
S
RY BUYERS venue operators.
RIVALRY ● Flexible Contract Models: Create performance-based
contracts that align artist success with Live Nation’s
profitability.

NEW
ENTRANT
S
 New Entrants
The live entertainment industry has high barriers to entry due
to significant capital requirements, control over key venues,
exclusive artist contracts, and brand recognition. However,
technological advancements (digital platforms, online
ticketing) are lowering these barriers.

Parties Involved: New event promoters, tech-driven ticketing

platforms, independent venues.
Competitive Pressure: Moderate due to capital intensity but
increasing with digital disruptions.
SUBSTITU
TES Specific Strategy:
● Exclusive Partnerships: Establish strategic alliances with
global brands for event sponsorship, enhancing financial
stability and brand equity.
● Venue Control: Expand ownership and long-term leases of
key venues globally, creating entry barriers for new
INDUST competitors.
SUPPLIER ● Innovation in Digital Platforms: Invest in proprietary
S
RY BUYERS
technology for ticketing and fan engagement to create a
RIVALRY competitive rivalry.

NEW
ENTRANT
S
 Threat of Substitutes
● Live Nation faces high substitution threats, mainly from digital
music, streaming, and alternative entertainment.
● MP3s, iTunes, Napster, Digital Entertainments (e.g Youtube), and
Streaming Services (e.g., Rhapsody) provide a convenient
alternative to attending live concerts.Consumers can access
music anytime, anywhere without going to a concert.
● Economic downturns further shift consumer spending towards
cheaper alternatives.

Parties Involved: Streaming services, virtual events, gaming

SUBSTITU
platforms.
TES Competitive Pressure: Strong due to the convenience and
affordability of digital substitutes.

Specific Strategy:
● Hybrid Event Models: Offer virtual concert experiences
alongside live events to capture digital audiences.
INDUST ●
SUPPLIER Content Monetization: Leverage recorded performances for
S
RY BUYERS
distribution on streaming platforms, creating new revenue
RIVALRY channels.
● Exclusive Partnerships: Collaborate with popular streaming
services to cross-promote live events.

NEW
ENTRANT
S
Why The
Strategies Wins?
0 Limits financial
Avoids overspending on artists

1 risk

0 Expands core Venue ownership, ticketing, fan

2 concert business experiences

0 Leverages digital
disruption instead
e.g streaming, online

3
engagement
of fighting it

0 Strengthens long-
term dominance in
Maintains control over key revenue
streams such as concerts, ticketing,

4 live entertainment sponsorships, and digital content.

 Final Recommendation:
Balanced Expansion Strategy
Strategy
● Selectively invest in high-value artists with proven concert revenue
Recommendation:
(strategy for 360 deals).
● Continue growing ticketing & venue ownership to lock in long-term
profitability.
● Expand digital monetization (live-streamed concerts, exclusive fan content,
social media partnerships).
● Use ticketing data & analytics to better understand consumer demand &
pricing strategies.

Real-World Proof :
● Live Nation merged with Ticketmaster in 2010, creating a dominant
player in live entertainment & ticketing.
● 360 deals continued but became more selective, avoiding
overinvestment in risky artists.
● Digital integration became a core strategy, helping Live Nation
survive in a streaming-dominated industry.
Thank You