NEW YORK (CelebrityAccess MediaWire) — Michael Rapino's got a grand vision for Live Nation. Not content to just manage performances spaces and promote shows, Rapino hopes to expand Live Nation's business into all corners of the live entertainment market. "We've been moving to create a branded live-music company and maximize, expand and capture all of the dollars in the total live chain from the fan to the artists," Rapino said during a conference call, Variety reported, "We're looking to extend the two-hour experience with our fans and maximize all revenue in between."
Live Nation hopes to capitalize on seemingly untapped revenue streams such as merchandising, fan clubs and even parking at their venues. The acquisition of the House of Blues seems to be a vital part of that strategy. In addition to providing a network of well-known venues that already have a cachet of cool with the public, the $350 million dollar deal will also give Live Nation control of one of the most recognized brands in the live music business.
Live Nation began as a division of Clear Channel until it was spun off as a separate entity last year. They are currently one of the largest promoter/venue operators in the US, overseeing 170+ venues in the United States. Live Nation is also exploring possibilities to expand their business abroad as well, with an eye towards Europe and Asia, but as of yet, revealed details of international expansion plans have been sparse.
It is unclear if investors are as enthusiastic about the plans. According to Variety, Live Nation's bottom line has been affected by the acquisitions. From a pleasingly plump $26 million dollar profit in Q2, they are $9 million in the red in Q3. – CelebrityAccess Staff Writers