WSJ: How Live Nation Dominates the Concert Business (Video)

The Wall Street Journal published a comprehensive video looking at the Live Nation Entertainment business – and how it dominates live entertainment.

It is worth the watch – if only for how it makes clear how Live Nation’s “flywheel” business model – which allows high margin portions of the vertical integrated (allegedly monopolistic) company to subsidize low-margin operations. This enables them to dominate competitors by locking up business, knowing that they can take losses on promotions that are made up for through sponsorships, advertising, and ticketing feees through those other portions of their business.

“If you don’t work with them, there is great fear that they will destroy you,” says Stephen Parker of the National Independent Venue Assocation at one point.

“When we’re advocating as the independent live sector, it’s to make sure that we can keep our doors open,” Parker continued later in the video. “Live Nation is lobbying so that they can make sure that their profit margin… is large.”