Live Nation CEO Michael Rapino and Smith Entertainment Group CEO Ryan Smith said this week that live events are more central than ever to culture and commerce in a post-pandemic world.
Speaking at CNBC Sport and Boardroom’s Game Plan conference on Tuesday, the executives said that the high demand for in-person events has been unmistakable.
“No matter what you bring to that table that day, you unite around that one shared experience,” Rapino said. “For those two hours, I tend to drop whatever baggage I have and have a shared moment.”
According to Goldman Sachs, the live music industry is expected to grow at a 7.2% compounded annual rate through 2030, fueled by millennials and Generation Z.
Smith bought the NBA’s Utah Jazz in 2020 and launched a new NHL franchise in the state in 2024.
“In sports, we’re really media companies,” Smith said. “We’ve got talent, we’ve got distribution. We’re putting on a show or a wedding or something every night.”
Rapino also emphasized how the economics of music have shifted. With streaming revenue dwarfed by touring income, live shows have become a primary source of revenue for artists.
“The artist is going to make 98% of their money from the show,” he said. “We just did Beyonce’s tour. She’s got 62 transport trucks outside. That’s a Super Bowl she’s putting on every night.”
Despite headlines about rising ticket prices, Rapino argued that concerts are still underpriced compared to sporting events.
“In sports, I joke it’s like a badge of honor to spend [$70,000] for Knicks courtside,” Rapino said. “When you read about the ticket prices going up, it’s still an average concert price [of] $72. Try going to a Laker game for that, and there’s 80 of them [in a season].”
The cost of admission for movies, theaters and concerts rose 3.4%Â in August from a year earlier, according to the Bureau of Labor Statistics’ consumer price index data, outpacing the full index’s increase of 2.9%. Meanwhile, the cost of admission for sporting events last month fell 0.5%, compared to the same time last year.
Ryan Smith attends a media opportunity prior to the premier game for the Utah Hockey Club at Delta Center in Salt Lake City on Oct. 8, 2024.
Bruce Bennett | Getty Images Sport | Getty Images
Looking ahead, both executives are betting heavily on Salt Lake City as a growth market. Smith and Rapino are partnering on a new downtown entertainment district in the Utah city anchored by sports and music venues.
The plan is to eventually host 100 to 200 nights of events a year, from NBA and NHL games to major concerts.
“If we do our job, that’s probably a million people coming downtown,” Smith said. “The impact it has on a city and businesses is almost indescribable.”
Rapino also said technology, including AI-driven ticketing, could make buying tickets smoother.
“Most websites are going to be challenged in the future, as you’re going to use that chatbot,” Rapino said. “We think ticketing, and how you find that ticket and how you can get that ticket, needs to be improved.”
