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Live Nation Targets More International Arenas
Live Nation is planning further investment in arenas outside the US as international markets and non-English-language artists become an increasingly important part of the company’s growth strategy.
Speaking at the Goldman Sachs Communacopia + Technology Conference on 9 September, Live Nation president and CFO Joe Berchtold said arenas are the company’s top venue priority, particularly in Europe, Asia and Latin America.
Non-English-language tours growing rapidly
Berchtold highlighted a major shift in the make-up of Live Nation’s biggest tours.
“Pre-COVID, I think 8% of our top 50 tours were by non-English-speaking artists. Today, it’s 30%,” he said.
“I’m amazed. I look at all of our shows down in LA—the number of artists who I’ve never heard of who are selling out arenas, even stadiums in LA. But if you think about it, if you’re an artist of a very specific genre, you only need 0.1% of the population in LA to be your community.”
The growth of non-English-language artists is becoming an important factor in Live Nation’s international strategy. Berchtold suggested the trend could continue, saying it may not be long before more than half of the company’s leading artists are from outside the traditional US and UK English-speaking markets.
Artists including Bad Bunny, alongside the international growth of genres such as K-pop, reggaeton and other regional music markets, are helping to broaden the global touring business beyond English-language acts.
Arena infrastructure seen as growth opportunity
Live Nation believes this changing artist landscape is creating additional demand for modern large-capacity venues around the world.
According to Berchtold, 47 of the 75 largest international touring markets do not currently have sufficient modern arena infrastructure.
He highlighted cities including Rome, Frankfurt and Istanbul in Europe; Seoul, Tokyo and Manila in Asia; and São Paulo, Rio de Janeiro and Lima in Latin America.
“We look at the top 75 markets, and 47 of the top 75 markets internationally don’t have enough modern arena infrastructure,” Berchtold said. “These are big markets that lack the infrastructure.”
Live Nation sees opportunities to build, acquire or operate more arenas in these markets. Berchtold said the company’s ability to promote a large volume of concerts gives it an advantage in driving utilisation at its venues.
“Because we promote so many concerts, we’ve got a better ability than anybody else, frankly, to make sure that utilisation is higher and can generate a return,” he said.
International arenas a priority
Berchtold confirmed that arenas are currently Live Nation’s leading venue development priority.
“There’s no question that arenas are our number one priority,” he said, pointing particularly to opportunities in Europe, Asia and Latin America.
The majority of Venue Nation’s strategy around arenas and other major venues is expected to be focused on international markets, where Live Nation believes a combination of growing touring demand and limited infrastructure offers significant room for expansion.
The company expects international markets to play an increasingly important role in its future growth as both global touring and the audience for artists outside the traditional English-language markets continue to expand.