Live Nation CEO Michael Rapino and his company have been in the news frequently over the past few months signing mega-deals with the likes of Jay-Z, Shakira and Madonna. Rapino appeared on CNBC’s PowerLunch recently to discuss the company’s future. (see video here)
Rapino talked about the economic situation of Live Nation, whose stock price sits at about $10, down from its previous high of nearly $25.
“It’s a tough economic times. Period,” he said. “There is a lot of press everyday about the music business being in trouble and if you’re selling a six inch disc, you got a broken business model. If you are in the concert business, we’ve got a great model and it’s going to take some time to put some numbers on the board.”
Despite the lack of enthusiasm from investors, Rapino believes that “360 degree” deals that were signed by major artists will pay major dividends for the company. Madonna, the most publicized of those artists, signed a 10 year, $120 million deal in October.
Over the past ten years, the Material Girl saw more than $1 billion in revenue and Live Nation expects to match that over the next ten. Her current Sticky & Sweet Tour is expected to see $250 million in sales, according to the company.
Rapino added they anticipate Madonna’s tour will “be the biggest single tour in history.”