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FEBRUARY 2019
Sales Time in the Concert Industry Manfred Tari mt@vip-booking.com We seem to be experiencing the conversion
parts. At least from the point of view
the entire concert sector. Providence Equity is
of the live music industry into a new era,
of large investment companies, making
only one of the companies of the financial
seeing the departure of impresarios, with
direct comparison even the operational key
sector that has currently discovered the
concert agents being turned into product
figures of the two industry giants appears
concert business as a worthwhile investment
managers, similar to those within major
to be out doable.
opportunity. The private equity company is
record companies. Less obvious but in
22
currently financing the live shopping tour
the main responsible for this meaningful
While Live Nation achieved a turnover of
of Superstrukt Entertainment, led by James
structural change are the activities of external
over 10 billion US dollars for the first time
Barton as spin doctor. Barton previously
investment companies, some of them in
in 2017 and currently achieves a market
worked for Live Nation and was originally one
financial terms actually more wealthy than
capitalisation of around 11 billion US dollars
of the founders of the Creamfields Festival.
Live Nation and CTS Eventim together.
on the New York Stock Exchange (NYSE), the company is still modest compared to
In early 2017, Superstruct acquired a 70
Following the purchases made by powerful
the US investment company Providence
per cent majority stake in Sziget Festival in
players from the financial sector who recently
Equity with an investment volume of over
Budapest, which also hosts four other festivals
devoted themselves extensively to buying
46 billion US dollars. In addition, the market
in Hungary, including Balaton Sound and the
music publishing companies, it is now concert
capitalization of the European industry leader
Volt Festival, with annual sales of around 36
companies who are enjoying the attention of
CTS Eventim at Frankfurt Stock Exchange, is
million euros.
external investors...
3.5 billion Euros, it should be mentioned that this company for the first time generated
Sziget was just the beginning as Superstruct
Even though Live Nation and CTS Eventim
sales of over 1 billion Euros in 2017. Back to
has since then acquired stakes in the Sonar
within almost two decades have combined
Providence Equity and its remarkable role in
Festival
parts of the concert industry into corporate
the context of a structural change that so far
organiser Elrow, Oya Festival (Oslo) as well as
structures, this part of the music business
has received only limited attention, but in the
the Flow Festival in Helsinki in November last
is still predominantly organized in smaller
long run certainly generates consequences for
year. For those who are not familiar with the
(Barcelona),
the
multi-electronic