Live Nation Faces The Music - Harvard Case Study Analysis

1. LIVE NATION | FACES THE MUSIC

2. LIVE NATION | THE HISTORY

3. LIVE NATION | PROBLEMS
• In 2008, CEO Michael Rapino and Chairman Michael Cohl
advocated different business approaches concerning the future of
LIVE NATION.
• During the same year, the U.S. record industry shrunk to $10.3 billion,
and the worldwide market was down to $19.4 billion.

4. LIVE NATION | ALTERNATE SOLUTIONS
a) Focus more on the core of the business – booking live concerts
throughout the world.
b) Expand LIVE NATION, ramping up the pace of deals to sign major
artists, aiming for at least 15 signed stars by the end of 2008.

5. LIVE NATION | ALTERNATE EVALUATION
• I would personally expand upon the current business model
and continue to make 360 deals with signed recording artists.
360-Deals with Artists
Korn: $3 million deal (January 2006)
Madonna: 10-year, $120 million contract (October 2007)
Jonas Brothers: 140 events, 2-year deal (January 2008)
Jay-Z: 10-year, $150 million contract (March 2008)
U2: 12-year deal (March 2008)
Shakira: speculated $70 million contract (July 2008)
Nickelback: speculated $50 million contract (July 2008)

6. LIVE NATION | RECOMMENDATION
• In 2012, it was reported that LIVE NATION’s net losses were
approximately $163 million. The company places itself in especially
vulnerable position towards investors and competitors within the
industry.