- Court Ruling Could Mean Trouble for TiVo
- Another Music Lawsuit, but with an Unexpected Target
- Will Newspaper Readers Pay For Digital Content?
- Is Google Hurting Book Publishers?
- Supreme Court's Ruling A Blow To Big Media
- The "New" Michael Jackson Fortune
- Hollywood Cashing In On Financial Crisis
- GM Gives Hope To Ad Industry
- "Revenge of the Fallen's" Transforming Effect On Viacom, Hasbro And ...GM?
- Time Warner And Comcast Partner To Save Cable
More Videos
|
CNBC'S MOST SHARED
- A Goldman Trading Scandal?
- The Threat of Ballooning Pensions
- SEC May Reinstate Rules for Short-Selling Stocks
- Malaysia PM Speaks to CNBC
- Your First Move For Monday July 6th
- The Rising Mountain of Debt May Be the Next Crisis
- Texting And Driving Worse Than Drinking and Driving
- Hey, What's Up Doc?
- Rich People With A Death Wish
- Hey, What's Up Doc?
- Busch: Summertime Blues Hits Investors
- Chadwick: Recession and Scandals Pave the Way for Romney 2012
- Art Cashin: The S&P's 'Head and Shoulders' Number
- Michael Jackson: Death And Taxes
- Is Andy’s Mojo Back? We Asked Him
- GM A Step Closer To Exiting Bankruptcy
- Schork Oil Outlook: The Fear Trade
- Market's Monday Blues
- US Service Sector Has Best Showing In Months
- Despite Slump, Manufacturers Still Innovating
- GM A Step Closer To Exiting Bankruptcy
- Ex-Goldman Programmer Must Post $750,000 Bail
- Farrell: Don't Head For The Exits Yet
- Swings in Price of Oil Hobble Forecasting
- Lehman CEO: Firm Deserved Bailout or 'Wind Down'
- Tribune, Cubs Deal Agreed In Principle
- Facebook Director Sees 'Billions' in Revenue in 5 Years
Text Size 
The pullback in consumer spending hasn't yet hurt the concert business. Live Nation put on 17 percent more concerts in the past quarter and concert attendance rose 5.7 percent. Live Nation [LYV
Loading...
()
] the nation's largest concert promoter reported strong earnings after the bell—its third quarter profit more than tripled to $139.9 million, on strong performance, the gain from selling its motor sports division and a tax benefit.
Looking just at continuing op[operations, earnings were $1.41 per share, up from 55 cents per share in the year-ago period. Revenue was up nine percent from the year ago period to $1.59 billion, but a bit less than analysts expected.
Still, Live Nation stock traded down in Friday's trading—finishing the day down more than 10 percent. Investors are clearly concerned that the downturn in consumer spending means the concert business will fall off a cliff. I had an exclusive interview with Live Nation CEO Michael Rapino who is more optimistic.
By Live Nation's estimates, the average concert-goer goes to about one and a half concerts a year. They are determined to see their favorite performers and they make it a special occasion, and a priority. Rapino cited Thursday night's Madonna concert in Los Angeles, which was packed, and Coldplay and AC/DC tickets selling out quickly.
The big test for Live Nation will come next year when it breaks off from Ticketmaster, currently its partner, and becomes Ticketmaster's competitor, selling tickets itself and attempting to change the concert ticket landscape. Live Nation is slowly accumulating exclusive deals with different concert venues, including last month, the Roseland ballroom in New York. And the real question is whether a vertical model for the music business makes sense—Live Nation has deals with big stars including Madonna, U-2 and Jay-Z to handle all their business from concert tours to recording. We'll see if this approach to the music industry can flourish despite the fact that traditional music sales have been tanking.
Economic Downturn
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes