When Live Nation announced its earnings for Q1 2020, they were down 20% year over year, which is surprisingly not bad. Convert revenue was down 25% and ticketing off 16% compared to the same quarter in 2019. According to Live Nation CEO Michael Rapino, “Globally, over 90% of fans are holding on to their tickets where refunds are available, which is the clearest demonstration of pent up demand that will enable us to quickly start concerts back up.”
Of course, there are other considerations as to why a number of those people may still have their tickets, which has absolutely nothing to do with their fervor to see a show.
For one thing, according to the Johns Hopkins Coronavirus Resource Center, as I am writing this there are 3,965.863 total confirmed COVID-19 cases globally, of which 1,284.708 are in the U.S. There have been 275,527 deaths, of which 77,201 are in the U.S.
Presumably there are a whole lot of people on the planet who have been otherwise occupied.
And given that 20.5 million people lost their jobs in the U.S. in April, bringing the overall unemployment rate to 14.5%, odds are that even if they have a cache of ducats, they’re probably spending their time trying to file for unemployment benefits than dealing with trying to get refunds for tickets, as expensive as those tickets may be.
But CEOs must be optimistic.
Live Nation put out some stats with its earnings numbers that are lack only a bright, big smiley face.
For example, according to a survey it conducted, “when event restrictions are lifted”—which in some states can’t happen fast enough, which makes one wonder about what the governors of those states really think about their governed—the most “likely attended type of event” will be. . .live music.