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Thursday, November 4, 2021

Major Concert Promoter Reports Big Gains in Concert Spending

Gwar at Irving Plaza
Gwar at Irving Plaza on October 31

Live music roared back over the past quarter, as an upswing of major tours, pent-up demand for live events, and robust ticket sales contributed to an escalating concert economy. A financial report published today by major concert promoter Live Nation Entertainment, Inc. reflected the positive impact of recovery measures from the COVID-19 pandemic shutdown. The company further forecasts a big financial comeback in 2022 after considerable losses in 2020 and 2021.

Live Nation Entertainment is the world’s leading live entertainment company, founded in 2010 following the merger of Live Nation and Ticketmaster. The global enterprise promotes, operates, and manages ticket sales for live entertainment in the United States and internationally. It also owns and operates entertainment venues and manages the careers of music artists. It presents concerts locally at Northwell Health at Jones Beach Theater, the Ford Amphitheater at Coney Island Boardwalk, Irving Plaza, Mercury Lounge and other venues.

Eye Hate God at Irving Plaza
Eye Hate God at Irving Plaza on October 31
Napalm Death at Irving Plaza
Napalm Death at Irving Plaza on October 31

The report, entitled "Live Nation Entertainment Reports Third Quarter 2021 Results," presents the financial  results for the quarter that ended on September 30, 2021. The return to live entertainment is accelerating with show count up double-digits for 2022 relative to this time in 2019, according to the report. Concerts are growing to historic volume, with 17 million fans attending 5,500 concerts nationwide in July, August and September 2021 alone. Fan demand led to double-digit growth in pricing and on-site spending. Ticketholders already purchased 65 million tickets for events in 2022.

"The 2021 summer concerts season rebounded quickly, with 17 million fans attending our shows in the quarter, as the return to live reflected tremendous pent-up demand," stated Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment, Inc. "Festivals were a large part of our return to live this summer, with many of our festivals selling out in record time and overall ticket sales for major festivals were up 10 percent versus 2019.  And we have had a number of tours already sell over 500,000 tickets for shows this year, including sell-out tours by Harry Styles, Chris Stapleton and others.

"In addition to increased attendance, strong demand also enabled improved pricing, with average amphitheater and major festival pricing up double-digits versus 2019.  And at our shows, fans spent at record levels, with on-site spending per fan up over 20 percent in amphitheaters and festivals compared to 2019."

Hennessey at Mercury Lounge
Hennessey at Mercury Lounge on October 30
Miss Guy at Mercury Lounge
Miss Guy at Mercury Lounge on October 30
Princess Goes to the Butterfly Museum
Princess Goes to the Butterfly Museum at Mercury Lounge on October 30

In industry jargon, "improved pricing" means that the supply and demand market has allowed ticket prices to increase, creating a higher profit margin. Tickets for postponed concerts from 2020 and 2021 are costing considerably more now than they did for the originally scheduled events. According to Rapino, leading indicators point to a record 2022.

"As we now look forward to 2022, we are encouraged by all our leading indicators across each business. Through October, our confirmed show count across amphitheaters, arenas and stadiums is up double-digits relative to the same time in 2019 for 2020 shows, and through mid-October, we have already sold 22 million tickets for our shows in 2022," continued Rapino. "Demand has been stronger than ever for many of these on-sales with one million tickets sold for each Coldplay and Red Hot Chili Peppers tours, and several other tours already selling over 500,000 tickets."

A competitor in the live entertainment industry, Madison Square Garden Entertainment will present its financial statement on November 9. Madison Square Garden Entertainment is a national company which presents concerts locally at Madison Square Garden, the Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and other venues. Its financial report may be very similar to that of Live Nation Entertainment.

Rose Blanshei at Mercury Lounge
Rose Blanshei at Mercury Lounge on October 24
Vapors of Morphine at Mercury Lounge
Vapors of Morphine at Mercury Lounge on October 24
Altar de Fey at the Red Party at Mercury Lounge
Altar de Fey at the Red Party at Mercury Lounge on October 30

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The Manhattan Beat covers New York City's live music developments as they happen. All photographs are by Everynight Charley Crespo, except when noted otherwise. For a list of Manhattan venues that are presenting live music regularly, swing the desktop cursor to the right and click on the pop-up tab "Where to Find Live Music." For a listing of upcoming concerts for live audiences, visit The Manhattan Beat's November 2021 calendar. 

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