Living nation CEO Michael Rapino and the CEO of the entertainment group Smith, Ryan Smith, said this week that live events are more central than ever for culture and commerce in a post-paymic world.
Speaking Tuesday at the conference of the CNBC Sport and Boardroom Game Plan, the leaders said that the high demand for events in person was undoubtedly.
“No matter what you bring to this table that day, you unite around this shared experience,” said Rapino. “During these two hours, I tend to drop the luggage that I have and to have a moment shared.”
According to Goldman SachsThe live music industry should grow at an annual rate made up of 7.2% until 2030, fueled by millennials and generation Z.
Smith bought Utah Jazz from the NBA in 2020 and launched a new NHL franchise in the state in 2024.
“In sports, we are really media companies,” said Smith. “We have talent, we have a distribution. We offer a show or a wedding or something every night.”
Rapino also pointed out how the music economy has changed. With streaming income overshadowed by tour income, live shows have become a main source of income for artists.
“The artist will earn 98% of their money from the show,” he said. “We have just tour of Beyonce. She has 62 transport trucks outside. It is a super bowl that she puts every night.”
Despite the headlines in the rise in ticket prices, Rapino argued that concerts are still undervalued compared to sporting events.
“In sport, I’m kidding, it’s like a badge of honor to spend [$70,000] For short Knicks, “said Rapino.” When you read ticket prices, it’s always an average concert price [of] $ 72. Try to go to a laker game for that, and there are 80 [in a season]. “”
The entry cost for films, theaters and concerts increased by 3.4% in August compared to the previous year, according to data from the consumer price index of the Bureau of Labor Statistics, exceeding the complete increase of 2.9%. Meanwhile, the entry cost for sporting events last month dropped by 0.5%compared to the same era last year.
Ryan Smith attended a media opportunity before the first match of the Utah Hockey Club at the Delta Center in Salt Lake City on October 8, 2024.
Bruce Bennett | Getty Images Sport | Getty images
For the future, the two executives are betting strongly on Salt Lake City as growth market. Smith and Rapino combine in a new downtown entertainment district in the city of Utah anchored by sporting and musical sites.
The plan is finally to welcome 100 to 200 nights of events per year, NBA and NHL matches at the main concerts.
“If we are doing our job, it’s probably a million people who come to the city center,” said Smith. “The impact it has on a city and businesses is almost indescribable.”
Rapino also said that technology, including the AI ticketing, could make purchase tickets smoother.
“Most websites will be challenged in the future because you will use this chatbot,” said Rapino. “We believe that the ticket office and the way you find this post and how you can get this post should be improved.”