Need more proof that concerts took a big hit this past summer? Well here you go: DigitalMusicNews.com is reporting that Live Nation’s income has experienced a drop of 25.7% to $51.4 million, while revenue experienced a 14% drop to $2.14 billion. This accounts for the third quarter through September 30. To make matter’s worst, Live Nation CEO Michael Rapino has admitted that the low sales from October may cause them to miss its full-year forecast by 5%.
Such a huge decline in revenue and income isn’t too shocking, seeing as how concert attendance has been declining all summer and Live Nation’s poor 2nd quarter report showed how sales were turning for the worst. Live Nation was relying so heavily on discounted tickets to re-attract concert goers that they pretty much set themselves up for weakening their revenue. They were banking on fans wanting to attend shows but for a reasonable price. They weren’t, however, considering that fans were fed up of paying a crap load of service fees and for overpriced venue food and parking. Rapino explained that they are taking steps to cutting more costs and making ticket prices low from the start (most likely to be $20). This could end up helping a bit, since Live Nation’s discount scheme this past summer forced people to wait until tickets became cheaper to purchase (alienating those who wanted to buy tickets in advance). But until the ridiculous service fees and venue costs (seriously, $25 for parking?!) are altered or taken out completely, don’t expect much of a change.