Entertainment Business Finance

Michael Rapino was born in Canada where he graduated with a degree in business from Lakehead University. Later he worked for Labatt’s Breweries of Canada for 10 years. His role in the company was marketing and entertainment. While with Labatt’s Rapino became the Director of Entertainment and Sports. Labatt’s owned the Toronto Blue Jays and CPI, the largest concert promoter in Canada. After leaving Labatt’s he became the CEO of and President of Global Music for Clear Channel Music Group and had led Clear Channel Entertainment’s London-based International Music division. In August 2005 Rapion became the CEO of Live Nation.

Live Nation formed in 2005 by a spin-off from Clear Channel Communications. Live Nation (LYV) is the largest producer of live concerts in the world. With over 16,000 concerts held worldwide with 1,500 artists in 57 countries and selling 45-million concert ticket a year. Live Nation has become the new model and a major rival against record labels with the signing of megastars, such as Madonna and Jay-Z. Live Nation owns all entertainment venture, live shows, tours and future recordings for the next 10 years for these artists. In 2009 Live Nation merged with Ticketmaster to bring together promotions and ticketing expertise accelerates benefits to concertgoers, artists and venues.

There are many key positions within the company that make Live Nation the largest producer of live concerts in the world. The main goal of the company is to supply the best live entertainment in the world to concertgoers. This all begins with the Live Nation Talent/Touring department. Live Nation is known for having the best talent buyers in the industries. Some of the skill that makes them the best are their proven track record, respected in the industry and experience. Being a talent buyer is a one of the hardest jobs in the industry. Why is this? When a tour is being routed around the United States and you are a talent buyer for House of Blues (a Live Nation company), you are not the only person in the city that is trying to book that tour in your venue. This is a very competitive business and companies will do anything to get that tour booked. Some venues will pay over market price to lock in the tour at their venue. This is why Live Nation must have the best talent buyer in the world. Just last week the VP of booking for the Midwest region at Live Nation, Michael Yerke was promoted to president of talent for House of Blues. Yerke will over see the talent buyers for the 13 House of Blues venues across the United States. "Michael has a proven track record as one of the most respected and experienced talent bookers in our industry and I am confident he will successfully lead the booking team as we grow our HOB, club and theater businesses in 2009," in a statement by Ben Weeden - Chief Operating Officer, North American Music for Live Nation. (Billboard.biz.) Michael was one of the original team members who helped open HOB Chicago in 1996. Prior to joining House of Blues, Yerke was a talent buyer for several venues in Chicago, including Cubby Bear, the China Club and Avalon. (Billboard.biz)

Other key positions in the company are CFO and Research Department. The CFO Kathy Willard has a very hard job, because Live Nation has not turned a profit since starting in 2005. They are spending more money in Operating Expense than their total revenue. In 2007 Live Nation reported their Total Revenue was $4,185.0 million and their Operating Expense where $4,102.8 million. (Reuters.com) As you can see this does not leave much of Live Nation to make a profit and the CFO has a hard job a head of her. Ms. Willard has the training and the experience to turn this company around. She has been with the company predecessors since 1998, and promoted to CFO in 2007 for Live Nation. Ms Willard comes to Live Nation with a Bachelors degree in Business Administration with highest honors from the University of Oklahoma and is a Certified Public Accountant. (LiveNation.com)

Research Department at Live Nation is all about staying a head of the game at any cost. Three years ago, the company was really just a promoter and a venue operator. (Smith, Ethan, 2008) Now, when an artiste comes to town Live Nation does not just make money of ticket sales, they are making money off of merchandise and Web sites too. In 2008 they took the bar even higher with singing “360” deals with Madonna and Jay – Z. Live Nation is now making money not just on ticket sales but also on the whole tour for the next ten years. The most important thing to remember is Live Nation got Madonna 2014 tour for 2008 price. (Smith, Ethan, 2008)

Live Nation will merge with Ticketmaster in April 2009, to make it the largest ticketing entertainment company. The company will be called Live Nation Entertainment. The Justice Department will conduct an investigation to make sure the merger of the world's largest ticket seller with the biggest concert promoter and facility operator doesn't result in an illegal monopoly of the concert business.( Lewis, Randy. February 12, 2009) "Let's make sure we send a strong message from the first investor call. . . . There's no way around it, we've got to build a better mousetrap to compete in today's times." President Michael Rapino said (Lewis, Randy. February 12, 2009)

Live Nation has become the new model and a major rival against record and now with the merge with Ticketmaster there is nothing that can stop them. If Live Nation sticks to what they know best, live concert promotions, they will do fine with making a profit signing megastars.

Entertainment Business Finance (PDF)