CASE STUDY – LIVE NATION
In today’s world where the number of brands and products (tangible or intangible) are growing in numbers and companies are ensuring rapid diversification, research and attempting a perfect blend of marketing and promotion, it has become a pre-requisite for any brand or product to maintain an edge over others if they have to survive competition and emerge as a “name” spoken of an remembered. One of such well known companies in the field of promotion of live events is “Live Nation”. A California based concerts promotion company which was formed in 2005 currently serves concerts worldwide and has been associated with many of the renowned international artists and bands like Madonna, Shakira, Jay-Z, U2 and owning and partnering many promotion and production companies and ticketing houses throughout a wide array of countries.
Facts used for analysing the strategy:
1. Live Nation started as a concert- promoter in the US in 2005 which operated in 117 venues, out of which 75 were in the US and 42 were international venues. Since 2007, Live nation had been signing in artists and bands like Madonna, Shakira, U2, Nickelback and Jay-Z on contracts that last from 10-15 years.
2. It is constructing a physical recording label with the “Live Nation Artists” thereby posing competition to the music industry giants like EMI, Sony Music, Universal Music Group and Warner Music Group
3. Live Nation has entered in to partnerships and mergers with many big music promoters and producers across US, UK, Netherlands, Spain, Finland, Denmark, Sweden and many other countries. Also acquired major companies owning music halls and restaurants, promoters of races and indoor motorsports.
4. 2009 merger with Ticketmaster Entertainment and joining hands with other secondary ticket reselling powerhouses.
5. As per the former chairman Michael Cohl, Live Nation aimed at being a multi-faceted powerhouse but as soon as the information was let out on the idea of outsourcing, some of the long related industry veterans were dismissed. Instead of taking advantage of the top selling company albums then, the company started getting in to royalty deals with the artists.
6. Due to lack of a properly drawn strategy on the path of travel to reach the mission of the company, it had to face some gross losses on deal signed with the band U2 in 2008
7. Live Nation has partnered recently with the Citi group to leverage on the client database that it can make and thereby increase the potential customers. Reaching customers through various channels of citi’s advertisements and promotions and making it a place for “offers” and “discounts” is the aim behind this stride
Analysing the above facts:
Live Nation’s Mission
Former chairman of Live Nation, Michael Cohl had mentioned that the company’s strategy and long term mission was “to transform the touring giant into a multi-faceted powerhouse, including a record company.” The senior...