Ticketmaster owner Live Nation is having a really nice year, thank you very much

Live Nation, the parent company of concert and ticketing platform Ticketmaster that’s drawn the ire of fans, artists, and — most significantly — the Department of Justice, is thriving, with its stock up 45% year to date, thanks to a huge year for live music.

Rising stars like Chappell Roan have drawn unprecedented crowds at festivals; we’ve witnessed comeback concerts from The Rolling Stones and Blink-182, as well as the warring Gallagher brothers rekindling the Oasis magic. Then, of course, there’s been Taylor Swift’s Eras Tour, which became the highest-grossing tour of all time, with its own mini economy, last year before continuing for another 83 shows across four continents this year.

Unsurprisingly, the hot-gig summer wasn’t lost on the world’s leading live-music business. On Monday, Live Nationposted some gleaming results, sending its share price soaring to record highs after the company reported 144 million global ticket sales (+3%) this year through to October, with profitability for the quarter rising 39%... and though total sales and profit fell on the year, Live Nation still expects momentum from fans to drive it through to a blockbuster 2024.

Despite the price of an average concert ticket being up almost 10% from last year, per Sherwood Snacks, Live Nation estimated that total fan attendance topped 50 million over the last three months — its most active summer concert season ever — bringing this year’s total attendance to almost 112 million, on track to beat its all-time record attendance figure from 2023.

Luxury watches

Looking forward, in-person events show no signs of slowing: Live Nation also detailed that more than 20 million tickets have already been sold for concerts in 2025. What might change, though, is how people experience live events, with more fans being drawn toward premium packages. Increasingly, people want concertgoing to be an unforgettable experience... and they’re willing to shell out top dollar to make it happen.

On the earnings call, CEO Michael Rapino described an increase in demand for VIP offerings, referring to premium experiences as “a big underpin” to growth, and speculating that the tier could grow to up to 20% of show revenue, from somewhere between 2% and 6% now.

According to Live Nation, VIP ticket premium revenue at major festivals rose by more than 20%, with some amphitheaters seeing season seat and box-suite sales increase by as much as 50%. And even those who aren’t going all out on extravagant tickets are forking out more while they’re at events, with on-site spending per fan increasing by “double digits,” consistent with a broader bump in fan spending. One 2023 survey found that the average Eras Tour attendee spent ~$1,300 in total on tickets, outfits, travel, and extras.

While a greater share of fans are willing to splash out on better vantage points and backstage access, rocketing demand for gigs in recent years has seen prices for even the nosebleed seats shoot up to new heights.

The “experience economy” (how much people are spending on experiences, rather than physical products) has bounced back strongly from its pandemic slump. Personal expenditures on live entertainment admissions has shot up more than tenfold from 1990, compared with just a relative ~400% increase in overall consumer spending. Indeed, splurging on “making memories” remains one of the biggest hangovers from the pandemic, and the cost of gigs, sporting events, and other live shows — or “funflation” — is reflecting this.

Still, expensive tickets seemingly aren’t enough to deter young people from emptying their pockets to go to gigs… where they can then empty their pockets again on merch and drinks. In Luminate’s 2024 Midyear Music Report, Gen Z led all generations in their monthly concert spend, averaging $38 per month, and a Bankrate survey from March found that Gen Z and millennials are also much more willing than older generations to go into debt to pay for their live-entertainment fix.

One significant driver for young people’s eagerness to part with their cash for their favorite artists, or even their favorite artist’s favorite artist, might be social-media-driven effects of “FOMO” (fear of missing out). A Credit Karma survey found that more than three-quarters of Gen Z respondents, as well as 69% of millennials, admitted to going into debt as a result of FOMO.

DOJ-TO-GO

There are several factors at play contributing to ticket price gouging, not least high seller fees, the controversial use of dynamic pricing, and the general sense that platforms like Ticketmaster are simply too big — a view shared by the United States Department of Justice, which is suing the site over “monopolizing markets across the live concert industry.”

However, whether the lawsuit remains a priority under the new Trump administration remains to be seen, and Live Nation execs are hopeful it may get tuned out. Investors seem to have put some merit in that idea, too: Live Nation’s stock is up 10% since the election.