With no live events for more than 8 months now, Live Nation Entertainment has reported a 95% drop in revenue for its third quarter, in comparison to the same time last year, showing just how paid the pandemic has been on the industry.
In Q3 2020, Live Nation managed to generate just $184 million in revenue – a fraction of their $3.7 billion in revenue during Q3 2019. Live Nation also owns Ticketmaster – which is included in the numbers.
As a result, Live Nation is looking to cut company costs $900 million by the end of the year – and that probably means jobs are on the line. It still has decent liquidity – with the hopes that outdoor festivals and events will be in full-throttle by sometime in 2021.
Most (83%) of customers have opted to keep their tickets for rescheduled dates, with some music fans choosing to have their tickets refunded. Refunds still accounted for 5.2 million tickets with a gross transactional value of $500 million.
While Live Nation remains confident about the future of live entertainment – some experts believe we’re in for a long ride, some say we could expect full blown events to return late 2022.
In the hopes of making events safer, Live Nation developed SmartEvent technology – which creates socially distanced seating options. Another product called SafeTix is used to help with contact tracing.
While some venues have started drive-in concerts and limited outdoor events, Live Nation believes they help pay the bills in the short run but full-capacity events need to return.
Live Nation joined rivals AEG and other talent agencies to launch the #SaveLiveEventsNow campaign to advocate for more legislation to support the live music industry.