Live Nation CEO foresees a bright 2022 and a massive return of live music
Michael Rapino, the Live Nation CEO is excited about the future and based on the strong demand for tickets and solid vaccination programmes, he is predicting a huge 2022 for the live music industry.
Last week Live Nation’s share price hit an all-time high of over $90, reaching even higher values than those marked in the months before the pandemic. This encouraging rise can be justified by the new hope brought by the ongoing vaccination plans and the growing eagerness to return to festivals which have led to massive ticket purchases by festival-goers selling out Creamfields tickets in record-breaking style. Is the industry coming back soon? Live Nation’s CEO’s statements are encouraging:
‘Vaccine distribution is accelerating, and declines in Covid cases throughout most of the world gives us even more confidence that a safe and meaningful return to shows will soon be possible. (…) Just to show you when we keep talking about pent-up demand, Reading and Leeds went on sale, thanks to the government-outlined new plan for the summer, and sold 100,000 tickets in 72 hours, (…) Creamfields went on sale and sold out in 48 hours, over 70,000 [tickets]. So we are seeing the fan and [this is] what we’ve been talking about; they are excited to get back to the show as soon as we get the green lights in these markets to open up.’
In 2020, the company lost more than $1 billion in total. Live Nation Concerts recorded a loss of $639 million and Ticketmaster lost around $375 million. Still, Michael Rapino is not discouraged and investor confidence in the company remains strong and growing. Despite the substantial losses, Live Nation has recorded nice cost savings and its investment in new technology will help the company get a further boost. Confidently, Rapino states:
‘So while this past year has been challenging for the company, our employees, fans, artists and so many others globally impacted by Covid, I have never been more excited about the opportunities in front of us.’
As for this summer, Rapino admits that the return of the shows will be regional. The status of vaccination processes, the spread of the pandemic and the imbalances in economic support will determine a differentiated return in each country and its regions. In 2022, however, the Live Nation CEO foresees a gigantic return in international tours and an even greater demand than before that will lead to the multiplication of the offer. It definitely sounds exciting, but we will have to wait a little longer to see.
Image Credit: Creamfields (via Facebook)