Bob Lefsetz // Predictions
[Via – Bob Lefsetz – Lefsetz Letter, January 4th]
1. Ticketmaster and Live Nation Will Merge
After public outcry lasting a week, people will move on to tracking the exploits of faux celebrities and the two companies will get down to trying to improve their bottom lines. Which will depend not so much on fees, but the artists in the Front Line stable.
Expect innovative merchandising and distribution deals. The ability to stream concerts at home. And a ton of data delivered to acts that will allow them to enhance their careers.
Will this be enough to improve Live Nation’s anemic bottom line? Will Ticketmaster be able to demonstrate growth? Unclear at this time. In a business where the lion’s share of the revenue goes to the acts, it’s hard to grow. But this is their challenge.
And if you want to compete with the behemoth, you’ve got to deliver more. And better.
Independent concert promoters must do more than pay an advance and sell tickets. They too will be forced to go high tech. Government conditions will allow independent ticketing agencies to flourish, but will they? Or will we learn that Ticketmaster does a good job (which Live Nation’s ticketing debacle proved). Or will it all come down to money. How much new agencies will kick back and how little they’re willing to profit.
