The Chief Executive of live music conglomerate Live Nation says he is concerned by the ever rising prices for gigs and concerts, suggesting that the live sector's best hopes for further growth will come by cutting ticket prices. However, he indicated that he faces opposition in ticket price cuts from Ticketmaster, who have exclusive rights to sell tickets for many Live Nation tours and events. Live Nation CEO Michael Rapino told the LA Times: "Seventy percent of people didn't go to a concert last year, and even the average concert fan only attends about two shows a year. We can grow this industry by lowering prices."
Rapino's comments come as Live Nation starts to renegotiate its relationship with Ticketmaster, with their current contract up for renewal in 2008. Rapino is known to want to win more control over ticket prices in his new deal with the ticket agency, and admits that he also wants better access to customer data generated by ticket sales so that he can develop more sophisticated viral marketing. He told the Times: "When a fan buys a ticket, we learn an enormous amount about them: What bands they like, where they live, how much they are willing to spend. Someday, a fan will be sitting in a bar and his cell phone will text message, 'Sonic Youth are playing tonight. Do you want to go?' He'll buy his ticket over the phone and walk to the concert."
Of course if Rapino wants to bring down the cost of gig tickets he could just take a cut in the share of revenues Live Nation gets, but some insiders reckon he has started publicly discussing this issue now, as Ticketmaster negotiations are about to get under way, in a bid to pressure the ticket agency into taking a cut in its share of the revenues too.