JUNE | FEATURE
Arena, commented: “The funds raised
will allow the Group to continue
operating as it navigates its way
through this difficult period. We have
been working tirelessly to implement
plans to limit the human, financial
and commercial consequences of this
terrible health disaster on all Arena
stakeholders.”
“You’re going to see us in different
countries”
The PIF investment comes at an
opportune time for Live Nation, which
announced cost-cutting measures of
USD$500m back in April. This was
amended to $600m when the company
posted its Q1 2020 financial results,
which saw revenues falling 21% year on
year (from US$1.72 billion to $1.37bn).
Live Nation CEO Michael Rapino,
speaking during the earnings call,
remained optimistic about the
company’s future. He said 80% of Live
Nation shows have been rescheduled
rather than cancelled outright, and
added: “[the industry] has never come
together this well, from the agents, the
artists, the buildings, the managers,
the promoters… we’re all in the same
boat.”
Speaking to a Wall Street analyst,
Rapino hinted that the company was
open to experimenting with alternate
kinds of performances including
drive-in gigs and virtual concerts. He
said: “We’re going to dabble in fan-less
concerts with broadcast. We’re going to
go and reduce capacity shows, because
we can make the math[s] work.
“We’re seeing lots of artists jumping
to get back out when it’s safe. So, you’re
going to see us in different countries,
whether it’s Finland, whether it’s Asia,
Hong Kong – certain markets are
farther ahead.”
Concert promoters that operate
internationally, like Live Nation, will
have the option to reopen first in
countries that have been less severely
affected by Covid-19. As our cover
feature this month demonstrates, there
are some creative ideas currently flying
around the live industry, including
drive-in concerts. Having connections
to regions such as the Middle East
could provide an advantage in this
respect.
The rise of the Middle East as a live
destination in the last few years is
a reminder of the cultural power of
events. Beyond the economic incentive,
leaders in Saudi Arabia clearly sense
that music and live events are an
effective way of promoting cultural
values, and sending a message of
openness to the world at large. They
may be hoping it can go some way
to allaying human rights concerns,
after the murder of journalist Jamal
Khashoggi caused outrage around the
world in October 2018.
For young Saudis who are desperate
to attend events, the move away from
oil towards the live industry can only
be a positive one.
“The GEA was behind Jeddah World Fest, Saudi
Arabia’s first ever music festival, in 2019”
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