In the wake of online chatter about high-profile tour cancellations, Ticketmaster's parent company says artists aren't ditching shows any more than usual
Live Nation expects full-year fan attendance to increase 10% in 2026.
After tour cancellations from some major artists this year raised concerns about concert-ticket fatigue, Live Nation on Thursday insisted it's seeing no signs of "blue-dot fever."
That term is a reference to how empty seats get displayed on the Ticketmaster platform. But Live Nation $(LYV)$, which owns Ticketmaster, said in conjunction with its second-quarter results on Thursday that concert-cancellation rates were on par with previous years - that is, around 1% to 2% of its overall lineup for a year.
Sell-through rates in the U.S., a gauge of an artist's ability to fill a venue, were up compared with last year, at least at large venues. During the second quarter, Live Nation said, worldwide demand drove a record 49 million fans to concerts.
Live Nation reported its results following a proliferation of online discussion about "blue-dot fever," a shorthand for weaker ticket demand - and pricier tickets - as artists like Meghan Trainor and the Pussycat Dolls have canceled all or some tour dates this year for various reasons.
Shares of Live Nation rose 1.3% in the extended session on Thursday, after its second-quarter revenue topped Wall Street's estimates and management said it expected more fans to turn out at shows this year worldwide.
Live Nation's stock is up 28.8% so far this year and trading at record highs, as ticket sales hold up despite concerns about consumers' struggles with inflation. However, some analysts have raised concerns that concert-ticket sales depend increasingly on wealthy people and superfans.
Live Nation has also sought more growth abroad, amid signs of a slowdown in the U.S., after concerts roared back to life when pandemic restrictions lifted. Meanwhile, a jury in federal court this year ruled Live Nation acted as an illegal monopoly, after the company gobbled up what has been estimated to be 80% of the market for big concert venues. A judge will ultimately decide the company's fate in the wake of that decision.
Live Nation on Thursday said second-quarter revenue overall rose 9% year over year to $7.67 billion. That figure was above the $7.56 billion forecast by FactSet.
The gains were helped by international growth, as bigger artists went on bigger tours and Live Nation reaped the rewards of venue purchases in cities like Paris and Milan. The company has also made bigger investments in Mexico. More than 143 million tickets had been sold through mid-July, a record, with "mid-teens" sales gains across stadiums, arenas and amphitheaters, the company said.
Executives said they expect full-year fan attendance to increase 10%.
"More artists are on the road than ever - and fans keep choosing to be in the room with them, driving the strongest concert-ticket sales we've ever seen," CEO Michael Rapino said in Live Nation's earnings release.
Live Nation has put more focus on larger venues and amphitheaters, as well as VIP services. However, during the second quarter, stadium attendance fell, as World Cup games filled more stadiums through June and limited the times when artists could perform there.
-Bill Peters
Comments