Professional Documents
Culture Documents
Certain statements in this presentation may constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. We wish to caution you that
there are some known and unknown factors that could cause actual results to differ materially
from any future results, performance or achievements expressed or implied by such forward-
looking statements, including but not limited to operational challenges in achieving strategic
objectives and executing on our plans, the risk that our markets do not evolve as anticipated,
the potential impact of any general economic slowdown, competition in the industry and
challenges associated with the integration of Live Nation and Ticketmaster.
We refer you to the documents that we file from time to time with the SEC, specifically the
section titled “Risk Factors” of our most recent Annual Report filed on Form 10-K and Quarterly
Reports on Form 10-Q, which contain and identify other important factors that could cause
actual results to differ materially from those contained in our projections or forward-looking
statements. You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this presentation. All subsequent written and
oral forward-looking statements by or concerning Live Nation Entertainment are expressly
qualified in their entirety by the cautionary statements above. We do not undertake any
obligation to publicly update or revise any forward-looking statements because of new
information, future events or otherwise.
2
LIVE NATION ENTERTAINMENT
OPPORTUNITY
JULY 15, 2010
KEY METRICS
Market Share
Ticketmaster Down (11%)
Per Head Spend
Live Nation Down (4%)
Sponsorship
Fixed Down
Ticket Sales
“AA”
International Festivals
Under 5000
4
DO YOU REMEMBER YOUR FIRST CONCERT?
5
WE’RE SELLING A POWERFUL, EMOTIONAL
SOCIAL EXPERIENCE
…a Memorable Moment They Want to Live, Relive and Share with the
People They Care About Over and Over Again.
Source: 2009 Live Nation Hotspex Study 6
…AND IT’S A UNIVERSAL GLOBAL NEED…
7
…AND AN INDUSTRY THAT HAS BEEN GROWING
FOR YEARS…
$5.0
$4.6
$4.2
$3.9
$4.0
$3.6
R +8%
C AG
$3.1
Industry Revenue ($Billions)
$2.8
$3.0
$2.5
$2.1
$1.8
$1.7
$2.0
$1.5
$1.4
$1.3
$1.3
$1.1
$1.1
$1.0
$1.0
$0.9
$0.8
$1.0
$0.0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
$1.0
$0.0
2003 2004 2005 2006 2007 2008 2009 2010B
Live Nation Ticketmaster
9
WHAT DOES THE FUTURE HOLD – YEARS OF
GROWTH
$8.0
$7.0
$6.0
$4.6
Industry Revenue ($ Billions)
$5.0
$4.2
$3.9
$3.6
$4.0
$3.1
$2.8
$2.5
$3.0
$2.1
$1.8
$1.7
$1.5
$2.0
$1.4
$1.3
$1.3
$1.1
$1.1
$1.0
$1.0
$0.9
$0.8
$1.0
$0.0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
11
MORE MARKETS
30 70 113 210
USA - 20 USA - 30 USA - 45 USA - 60
Africa - 1 Asia - 20
Africa - 5
12
MORE MARKETS HAVE DRIVEN LNE GROWTH
13
TECHNOLOGY WILL ENABLE US TO SELL MORE
TICKETS BECAUSE WE CAN IDENTIFY OUR
KEY CUSTOMERS
196.9MM U.S. Population U.S. Concert
18 to 64 Years Old Admissions
Concert 27%
Attendee
21% ANNUAL TICKETS 33MM
CONCERT-GOERS
PER CONCERT-GOER
42 Million 2.9
Non-Concert
Admissions:
Attendee
79% 2009 Tickets Sold
196MM U.S. Population 121MM
18 to 64 Years Old
1 Concert
37%
5-9 Concerts
9%
2-4 Concerts 2.7 Avg. Concerts
6.0 Avg. Concerts
47%
Source: 2009 Live Nation Concert Attendance Study, n=5,511; U.S. Census
Note: Concert is defined as a live music event in a Bar, Club, Theater,
Amphitheater, Arena, Stadium, Major Festival and/or Local Street Festivals that
requires paid admission.
14
TECHNOLOGY WILL SELL MORE TICKETS
BECAUSE WE CAN DIRECTLY COMMUNICATE
WITH FANS
Friends/
Missed
Family
Show
31% Online/ 29%
Email
53%
Did Not Miss
Show
Print
69% Radio 2%
13%
TV
3%
Source: “% of People Who Would Have Attended a Show but Didn’t Know About It” – 2009 Live Nation Post Show Survey, n=216,900; “Where Fans Hear About
Shows” – 2009 Live Nation In-Venue Study, n=7,007 (Q: How did you hear about this concert?)
Note: Concert is defined as a live music event in a Bar, Club, Theater, Amphitheater, Arena, Stadium, Major Festival and/or Local Street Festivals that requires
paid admission.
15
MORE BANDS ARE ON THE ROAD
16,000 2,500
14,000
2000-2007
Concerts – 17% CAGR 2,000
12,000
Bands – 16% CAGR
10,000
1,500
# of Concerts
# of Bands
8,000
1,000
6,000
4,000
500
2,000
- -
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
Total Concerts (LHS) Total Bands (RHS)
nt h s
3 Mo
2 – 5 Years
Write Get Make Play Make Play Make Sell Post Sign Sell
Song Label Album Clubs Video Theater Another Out Song/Video Promoter Out
Album Arena Online Deal Arena
17
MORE BANDS ARE ON THE ROAD BECAUSE
IT’S WHERE THE MONEY IS
U2
Bruce Springsteen
Britney Spears
AC/DC
Taylor Swift
Kenny Chesney
Jonas Brothers
19
► #1 E-Commerce Site in the Music Industry and #3 in the World
► #1 Concert Promoter in the World
► #1 Ticket Provider in the World
► #1 Management Company in the World
► #1 Music Sponsorship Company in the World
► #1 Music Brand in the World
20
LNE HAS THREE LEADING GLOBAL MUSIC
BRANDS
Very Familiar Somewhat Familiar Not Very Familiar Not At All Familiar/Unaware
Q.I How familiar are you with the following brands for obtaining information about live events (such as concerts, theater, comedy events)
that are coming to venues in your city?.
Mar 2008 n=4,668; April 2009 n=6,090; May 2010 n=1,817
21
BUSINESS MODEL = 4 LEVER EVENT MODEL
Tickets Attendance
Clients Markets/Venues
Products Events
Royalty Costs
Event /
Concert
Management = Sponsorship =
9% Tickets 16%
Talent Costs
Marketing Costs
Clients Fans
28 Markets = LNE Profit Online Traffic
Event
E-Commerce Concerts
Revenue
Labels
Advertising
24
LNE STRATEGY
25
BIG GOALS
150 Markets
28 Markets
26
HOW ARE WE ORGANIZED
Board of Directors
Corporate Functions
27
FINANCIAL UPDATE
July 15, 2010
The combined company has a strong revenue history
$4,875
$5,000
$4,264 $4,181
$4,085
$3,635
$4,000 $3,416
$3,145 $3,201
$3,026
$3,000 $2,487
$2,397
$2,302
$2,000 $1,409
$1,240 $1,294
$929 $1,063
$724 $748
$1,000
$46 $192
$0
2003 2004 2005 2006 2007 2008 2009
$1,000 $904
$800 $719
$637 $659
$597 $625
$586 $571
$600
$461 $464 $435
$404 $387 $391
$333
$400
$258
$193 $199 $234
$200
$53
$8
$0
2003 2004 2005 2006 2007 2008 2009
$500
$445
AOI $398
$415 $407
$400 $352
$0
2003 2004 2005 2006 2007 2008 2009
$97
$90 $96
$41
$40 $39
$229
$227
$283
$24 $64
$2
$110 $100
$78
$MM
Recharacterize/revalue Non-
Recoupable Contract Advances Headcount Reductions
+$40mm
-$43mm
One-Time
Costs Concerts
-$5mm
Purchase -$25mm
Accounting
Concerts:
Artist
Reserve
+$40mm -$13mm
U2 Tour
Delay
-$6mm
2009
Other/
Full Year Divestiture
-$14mm
2010
MERGER RELATED IMPACTS BUSINESS OPERATIONS Full Year
Divestitures Pre-Merger
Period
$445 $409
<$20mm>
<$16mm>
$405 $400
<$5mm>
2009 2010
LN Ticket Sales (First Half of Year) TM Ticket Sales (First Half of Year)
(excluding Stadiums)
61
24.4
Down 3% Down 11%
23.7
55
1 Source: Pollstar 36
Down Case Scenario – 2010 Full Year AOI
($MM)
2010
Full Year
Outlook AOI
$405
Concerts:
Ticket Sales Risk for
Q3/Q4 (1mm tix)
<$25mm>
Ticketing:
Ticket Sales Risk for
Q3/Q4 (4mm tix)
<$15mm>
2010
Down Case
Scenario AOI
$365
+$20mm
Incremental
Synergies
+$6mm +$5mm
U2 Tour One-time
+
Costs
2011 AOI
-
Potential
AOI Impacts
from 2010 -$5mm
Reduced impact
from Purchase
-$12mm
Accounting AEG & Paciolan
Impact
38
Here is where we make our money…by Segment
AOI
$3,704
$MM
Margin
60%
Artist 49%
Management
44%
$1,261
Revenue
18% 14%
9% AOI
Without Gross
Ticket Revenue
Artist
Services 5%
$459
3%
NA: 2%
Int’l: 6% $162
$229 $94
$100 $97
$64 $41
REVENUE AOI
(Concert Promotion)
E-Commerce Other
Artist Mgmt/ 2% 2% E-Commerce
Services 8%
Artist Mgmt/
Sponsorship Services 8%
3%
Onsite 11%
9%
Sponsorship Ticketing
Concert 48%
15%
Ticketing Promotion
23% 53%
Onsite
18%
REVENUE AOI
International International
27% 29%
44%
27%
21%
8%
Q1 Q2 Q3 Q4
60%
45%
30%
15%
2007 2008 2009
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
GBP (£)
14%
USD ($)
56%
EUR (€)
14%
$MM
$500
AOI: $445
$9 AOI: $405
$400 $63 $7
$49
$81 $50
$300
$108 $105
$200
FREE
$100 $183 $194 CASH
FLOW
$0
2009 2010
Distributions to/from noncontrolling Interest Partners
Maintenance CapEx
Cash Taxes
Cash Interest Expense
Free Cash Flow
Source: Live Nation Entertainment internal calculation, adjusted for discontinued operations. 44
Notes: 2010 figures at constant currency
Our CAPEX base has been consistent
$250 $238
$182
$200
$164
$150 $88
$50
$76
$56 $50
$41
$0
2007 2008 2009 2010B
Source: Historical financials 10-K, 2010B estimated. Ticketmaster Maintenance / New Revenue split based on internal calculations. 45
Notes: 2010 figures at constant currency.
Revenue Generating CAPEX enhances
$MM
System / Web Development
Target Hurdle Rate = 12.5%
• Venue Management Tools
• Mobile Application Development
2010 FY
Budget • Event Management System Upgrades
• Online Customer Enhancement
• 3D Seat Map Development
$ 50mm
Ticketing: New Venues / Outlets
10% • Ticketing Outlet Center expansions
• Infrastructure for New Client Venues
• Preparation for 2012 Olympics
55% 35%
Refurbished Venues
• Venue Renovation and Build-out
• Concessions Upgrades & Conversions
• Stage Improvements
• VIP Area Upgrades
• Sponsorship Enhancements
2010 FY
Budget • Computers, laptops, printers,
servers & data warehouses
$ 50mm 40% Systems / IT • Financial & Other IT system
improvements
• Business Intelligence Tools
• HVAC
Health & • Fire Alarm & Emergency
10% Safety Lighting
• Security & Camera Systems
• Facility Upgrades
$MM
Online Shopping Cart
Database Investment
Dynamic Pricing
$120
Ticketing System improvements
$100 $100
$80 $50
$60
$40 $50
$20
$0
2010B 2011 (est.) 2012 (est.)
4
Convertible Senior Notes 170 7/15/14 2.875%
Other Debt 100
Capital Leases 11
Total Debt $1,743 4.3x
49
The refinancing simplified our operations …
$MM Covenant
Total Debt / AOI Ratio 4.90X
New Covenants Interest Coverage Ratio 2.50X
50
Added cash to the balance sheet…
$MM
Sources Uses
New Revolver ($300MM Capacity) Repay Existing Facilities
Committed Amount $300 Repay Revolvers $200
Drawn Amount $0 Repay Term Loans 773
Total $973
New Term Loan A $100
LN Preferred Stock
New Term Loan B $800 Principal Payment $40
Make Whole 8
New 8.125% Senior Unsecured Notes $250 Total $48
51
…and reduced interest expense
$MM
$130
$160 $120
Future impacts –
$140
• LIBOR increases
$120 • Debt paydowns
$60
$40
$20 P&L
Cash
$0
2009 2010 2011
Source: 2009 P&L Interest from TM and LN 10-K; 2010 P&L Interest estimated. Cash Interest from Free Cash Flow adjusted for Discontinued Operations. 52
Notes: 2010 figures at constant currency.
The Merger reduced cash taxes
$MM
$90 $81
$80
• 2010 Effective Tax
$70 rate on taxable
ordinary income of
$60 $50 20%
$50 • 2010 includes the
U.S.: 40%
$40 Int’l: 60%
impact of the merger
& refinancing
$30
$20
$30 $30
Cash
$10
P&L
$0
2009 2010 2011
Source: 2009 P&L Taxes from TM and LN 10-K; 2010 P&L Taxes estimated. Cash Taxes from Free Cash Flow adjusted for Discontinued Operations. 53
Notes: 2010 figures at constant currency.
And will continue to impact taxes in the future
$MM
CURRENT STATUS:
Increasing • Not a federal tax payer in the US except on Front Line
Profitability • Pay taxes in most other countries
• Pay taxes in many states
Tickets Attendance
Clients Markets/Venues
Products Events
Royalty Costs
Event /
Concert
Management = Sponsorship =
9% 16%
Tickets
Talent Costs
Marketing Costs
Clients Fans
28 Markets = LNE Profit Online Traffic
56
HOW WE MAKE OUR MONEY
21.7k 52.1M
Events attendees
Gross Revenue
$3,704M
Fixed Costs
$(498)M
57
ANATOMY OF A CONCERT TICKET
58
GLOBAL CONCERTS: KEY METRICS
Attendance in ‘000’s
Revenue in $m’s
International Concerts
2009 2010 Est. Var % Var
Attendance (ex stadiums) 9,692 9,143 (549) -6%
Attendance Stadiums 1,956 994 (962) -49%
Show Count (ex stadiums) 4,251 3,263 (988) -23%
Show Count Stadiums 49 33 (16) -33%
Ticket Sales Rev $743.8 $653.6 ($90.2) -12%
Avg Tix Price $58.2 $54.3 ($3.9) -7%
Talent % 56% 55% 1% 2%
Attendance and Show count is for promoted events only and does not include
rentals of 8k in 2009 and 9k in 2010
59
CONCERT METRIC: MID YEAR vs. INDUSTRY
Industry down 17% LN down 9% Industry down 12% LN down 4%
16,495k
$902m
15,792k
$822m
LN Est Mid Year Avg Gross LN Est Mid Year Avg Tix
2686
$143k 2621
$140k
60
CONCERT METRIC: EVENT COUNT
30,000
22,167
20,000 21,699
21,226
16,747
13,386
10,000
10,877
0
2005 2006 2007 2008 2009 2010
Estimate
61
CONCERT METRIC: TICKET PRICES
$60.00 $58.17
$40.00 $41.82
$35.00
$30.00
2005 2006 2007 2008 2009 2010
Estimate
62
CONCERT METRIC: TALENT COSTS
90%
77% 75% 74% 75% 74%
80% 74%
70%
56% 56% 55%
60% 52% 53% 51%
NAC
50%
INTL
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009 2010
Estimate
63
CONCERT METRIC: ATTENDANCE
60,000
Attendance in ‘000’s
52,114
50,000 52,148
46,437
47,031
Additional
attendance
40,000 41,606 Risk
46,031
36,875
30,000
20,000
2005 2006 2007 2008 2009 2010
Estimate
64
CONCERT METRIC 2010: AMPH PROMOTIONS
TICKET SALES
2009 Final
9.6MM
10m 2009 2010
8.4MM
Tickets (8.2%) Gross (7.0%)
6m
Thru June 30
5m Tickets (2.5%) Gross (6.9%)
4m
3m
2m
1m
FEB MAR APR MAY JUN JUL AUG SEP
65
PRICE WILL DRIVE ATTENDANCE
June Promotion Drove Sales 4-Packs Drive New Sales $10 Lawn is Strongest Offer
Daily Tickets Sold Per Event 48% Incremental Ticket Rate Daily Tickets Sold for 10 Events
600,000 30,000
300
e
327K
as
re
300,000 15,000
Inc
150
%
00
200,000 10,000
70
100
100,000 5,000
50
0 338
‐ ‐
"Standard" Tickets Total 4‐Pack Tickets Pre‐Offer Daily Average $10 Offer Day
May June
Per Order
66
CONCERT METRIC 2010: PERCENTAGE OF
TICKETS DISCOUNTED
Tickets in ‘000’s
67
CONCERT METRIC 2010: CANCELED SHOWS
68
HOW WE MAKE OUR MONEY ON ANCILLARY
$627M
Rentals/Venue
Rebates/Other
F&B
$126m
$223m
20%
36%
Premium Seating
$46m, 7%
Agency
$12m, 2%
Parking
$44m, 7%
Merch
$26m
Ticket Fees 4%
$150m
24%
69
ANCILLARY METRIC: F&B PER CAP (GROSS)
$18.00 $17.48
$17.37
$17.00
$16.59
$16.00
$15.00
$14.04
NAC AMP
$14.00
+8.5% INTL FESTIVAL
$12.85 $12.94
$12.00 +2.2%
$11.00
$10.00
2008 2009 2010 Estimate
Industry includes MLB, NFL, NHL, NBA, Disney, Cinemark and Regal Ent
70
2010 Full Year AOI Walk
($MM)
ARA
Impairment
-$13mm
NA Legal
-$5mm
2010
2009 Full Year
Full Year Outlook
$ 64
Concerts
Ticket
Sales Risk
$ 100 <$25mm>
BUSINESS OPERATIONS
($23mm) 2010
With Risk
$ 39
71
HOW WE GROW
72
1. EXPAND GLOBAL PLATFORM TO TOP 75
MARKETS
Gross Box Office Opportunity
Competitors
LN
Existing Markets New Markets
800
1500 10 0 %
1400
700
Estimated GBO ($M)
600
500
400
300
10 0 % 88%
200
99%
100 99%
10 0 % 10 0 % 10 0 %
82% 10 0 %
12 % 1% 1% 18 % 10 0 % 10 0 % 10 0 %
-
Russia
Austria
South
Las Vegas
Australia
Japan (Int'l)
France
Korea
Germany
America
Ireland
Mexico
Montreal
Switzerland
South
(Int'l)
10 0 %
IFPI Rank 4 7 5 8 18 NA 12 14 24 2 NA 15 19
73
2. REDUCE FIXED IN NA
Shows Markets
20% 20%
2010 Fixed per show: $35k 2010 Fixed per market: $1.6m
74
3. SELL MORE TICKETS
+146%
Pricing Partners/Marketing/Database
Current Pricing Scale Max Revenue Scale
3 PL Seats % Sold Price 10 PL % Sold Price
VIP 100% $280
1 80% $150
1 2,723 92% $114 2 79% $139
3 79% $129
4 78% $104
5 89% $76
2 5,667 63% $77 6 84% $66
7 75% $52
8 65% $36
3 4,811 26% $55
9 59% $29
Lawn 5,650 81% $31 Lawn 90% $28
$77 (R) $53 (R)
Total 18,851 63% Total 79%
$31 (L) $28 (L)
75
4. GROW HOB TO ARTIST DISCOVERY BRAND
Industry Club Business Club Artist Population Growing
9,000
8,179
Industry Live Nation 8,000
8,127
3,000
-
2007 Industry 2007 2008 Industry 2008 2009 Industry 2009
Live Nation and HOB rank #3 for concert Fragmented Music Discovery Sites
information amongst peers.
8 88%
7 65%
6 54%
5 41%
4 38%
3 34%
2 24%
1 23%
76
TICKETING
July 15, 2010
BUSINESS MODEL = 4 LEVER EVENT MODEL
Tickets Attendance
Clients Markets/Venues
Products Events
Royalty Costs
Event /
Concert
Management = Sponsorship =
9% Tickets 16%
Talent Costs
Marketing Costs
Clients Fans
Online Traffic
$B
Ticketmaster 6.5%
Note: Primary ticket sales including movies, concerts, sports and arts; does not include service fees 79
Source: Goldman Sachs, MPAA, Pollstar, BEA, US Census
TM ticket sales down in 2010 driven by industry ticket
decline
Ticket Sales
200+
6.2%
55
(11.0)%
61 55
(5/31)
61
55 Total (6.8) (11%)
Other (0.2) (11)%
Family 0.1 1%
Arts (1.3) (14%)
Tickets
(M) Sports (0.6) (5%)
Client Count
CAGR
(2005-2010)
12.3 5.1%
11.9 11.7
11.3
9.6 9.1
K of
Clients
82
TM continues to maintain strong renewal rates
above 95% in North America
Renewals (1) N.A. YTD (5/31/2010) (2)
Before impact of purchase accounting; 2010 and after are management estimates 85
Global AOI has declined as fixed and variable
outpace revenue
Ticketing Financials
(Global) CAGR
1,360 (2005-2009)
1,261 Revenue 9.3%
1,189
1,011
884 Variable 9.3%
$M
AOI -0.4%
$M
$216 Additional
$15M risk
88
Reorg North America around five client segments
to solidify current business and reduce fixed costs
• Paciolan
• Tessitura
Arts / Theater 14% • Donation Management
• AudienceView
• Marketing & Distribution • JumpTV • Eliminate $20M in
annualized fixed
Club / Small • eTix
costs
Venues
10% • Marketing & Distribution
• TicketFly
• Self service
89
Reduce overall ticketing fee and get paid on all
tickets
Global Fees/Ticket
Global Tickets
(2009)
90
Enter new segments: within the U.S. alone there are
9 clearly defined segments; TM is only currently in 5
$96B 5.0B
ROW
$B
U.S.
Note: Primary ticket sales including movies, concerts, sports and arts; does not include service fees 91
Source: Goldman Sachs, MPAA, Polstar, BEA, U.S. NAICS Census Data, IES, ESPN.com
Where we make our money:
U.K.
16%
North America
68.4% Ireland
5.8%
Australia
3.3%
Norway
2.3%
Sweden
Denmark 1.9%
1.9%
92
Enter new geographic markets to expand our
footprint
Expansion Opportunities
Millions of Tickets
TM Current Markets
TM Target Markets
93
Move international tickets on-line and to our
sites
Target
Phone
14%
11%
10M tix
Outlet
Processed
22%
25% Retail Internet
19M tix 61% 67%
45M tix
► $15M opportunity from selling more of current ► $1M opportunity for every 2% gain in internet share
tickets through our retail channels
94
Secondary: Capture the secondary market
without direct participation
► Traffic/referral fees
► Barcode verification
95
Core challenges / opportunities + 250M tickets
Challenges Opportunities
► Improve international
efficiency by moving
tickets online
96
eCOMMERCE
July 15, 2010
BUSINESS MODEL = 4 LEVER EVENT MODEL
Tickets Attendance
Clients Markets/Venues
Products Events
Royalty Costs
Event /
Concert
Management = Sponsorship =
9% Tickets 16%
Talent Costs
Marketing Costs
Clients Fans
28 Markets = LNE Profit Online Traffic
1 24,510,000
2 9,800,000
3 6,525,000
4 4,530,000
5 4,250,000
6 4,100,000
7 3,500,000
8 2,775,358
9 2,774,237
10 2,470,116
$M
Ticketmaster 18.1%
$B
Business Model
(2009 Revenue)
Upsells
31% License Fees
(Non-Ticketing
products in cart)
37%
($0.50 / ticket)
Sponsorship Online
18% Advert.
(Online
components of
14%
(Ad sales, custom
sponsor. deals)
programs)
103
eCommerce Strategy
104
We have a large opportunity to improve customer
experience
The service fees are too high 10.6 11.2 10.5 10.2 9.9
The final total cost is higher than I had budgeted 9.0 9.6 8.8 8.6 8.3
It's difficult to find the true total cost before buying 8.9 9.6 8.8 8.4 8.4
I can't pick my own seats 7.8 7.3 7.8 7.9 7.4
I am being rushed by a timer when buying tickets 7.4 7.6 7.2 7.5 6.3
I can't get the seats I expected 7.3 6.5 7.3 7.4 7.8
I am placed in an online waiting room to buy tickets 6.1 5.7 6.1 6.1 5.6
I have to pay extra for secure and express delivery 5.7 6.0 5.6 5.5 5.9
I can't reach customer service 5.3 5.5 5.7 5.4 4.8
I don't fully understand the service fees 4.7 4.9 4.7 4.7 4.7
I have to visit multiple websites to find the best tickets 4.0 3.9 4.1 4.5 3.9
I have to pay for my whole group in advance 3.4 3.3 3.5 3.5 3.0
I can't easily find the show on the ticketing website 3.2 3.1 3.2 3.3 3.6
I worry my tickets won't be delivered 3.1 3.3 3.0 3.3 3.3
I can't get confirmation from my friends quickly 2.8 2.7 2.8 2.6 3.4
My friends won't agree on price/seat location 2.8 2.6 2.8 2.5 3.1
It's inconvenient to buy at the box office, retail outlet or by phone 2.7 2.4 2.7 2.9 3.4
It's difficult to find info on a show 2.1 2.0 2.1 2.2 2.8
I don't really like the venue 1.7 1.5 1.7 2.0 2.0
It's difficult to find out if an artist is touring 1.6 1.5 1.6 1.8 2.6
105
Improve Customer Experience: Fan Guarantee
Launch July 2010
Additional Policies
(July 2010)
••Refund
Refund fees for canceled or
postponed events (1)
(1)
••Allow
Allow fans to refund tickets 3 days
after purchase for LN venues (2)(2)
(1) Does not include express shipping and in-store pick-up fees for retail outlet location.
106
(2) Up to 1 week before event date
Improve Customer Experience: 100% Refund
Cancellation E-mail
E-mail
with Special Offer
No Charge
108
Improve Customer Experience: One Price
Today’s Fees
Today’s All-in Ticket Price
All-in
109
Improve Customer Experience: Shopping Cart
••Enables
Enables sale of music, merchandise and
venue add -ons with every event
add-ons
••Integration
Integration with non -ticketing inventory
non-ticketing
systems
MusicToday, 3rd
((MusicToday, rd parties)
••Better
Better user experience
110
Improve Customer Experience: Checkout
““My
My Cart
Cart”” Page
Abandoned Inventory
••List
List fan’s
fan’s previously abandoned inventory if still available
Nearly $200M of inventory abandoned per year
••Nearly
Personalization
Favorite acts on tour, recommendations, recently viewed
••Favorite
••Personalized
Personalized listings convert 2X better
““Bill Friends”
Bill My Friends”
••Send
Send requests to friends to make group
purchasing easier
111
Improve Customer Experience: Seat Maps
••27%
27% of fans said the maps contributed to them
buying more and/or more expensive tickets(3)(3)
••500+
500+ to be rolled out by EOY
17%
(1) ISM EDP to purchase page conversion of 4.7% vs. non-ISM 3.4% (April 2010)
(2) Year-over-year comparison between 2009 and 2010 for Jan-May for NBA teams with ISM
(3) Post-purchase survey of 30,679 customers
112
Improve Customer Experience: Search
Search Suggest
••Improve
Improve search effectiveness by suggesting search
results as request is typed
••45%
45% of home page visits use search box and convert
3X higher than average visit
••11%
11% of searches are currently unsuccessful
113
Improve Customer Experience: Social
Fan Reviews
(Launched)
••Over
Over 850k reviews; 2,000 per day
••More
More than 3,800 artists and 70% of artist
page view include reviews
Fan Photos
(Launched)
••Over
Over 2k artists and 57k photos
•Future integration onto home page and
•Future
events pages
““Who’s
Who’s Going”
Going”
••Allows
Allows fans to RSVP and post to Facebook
••Drives
Drives user engagement, visits, and orders
••Drives
Drives event discovery
Up-Sells
(YTD 2010)
Ticketmaster
Average Order
Value
$170
% of
Revenue eCommerce
from Industry
Upsells
Average Order
Value
$72
1%
Ticketmaster Amazon
TM Up-Sell Data through May, 2010. Amazon quoted by GetElastic (2006 information); ; Internet Shopping eMarketer and ComScore 115
Product Expansion: Drive incremental revenue
around ticket purchase
► 1M+ orders in 2010 (1) ► 600k orders in 2009 (2) ► Music: 40k orders (2) ► Fans travel out of town
• 4.7% attach rate • 13% attach rate • 26% attach rate for live events (3)
• Offered on 23% of orders • Offered on <1% of orders • 81% of concert buyers
►At 1/10 only available in • 65% of sports buyers
UK, Netherlands, ►Requires venue ►Merch: 92k orders (2)
Sweden participation • 14% attach rate ► Out of town fans use
• Offered on <3% of orders travel services (3)
• >50% stay at hotels
►Fan Clubs:105k orders(2) • ~40% buy a flight
• 7% attach rate
• Offered on <7% of orders
116
Expanding into new distribution channels to
drive sales
► Overhauled Live Nation ► Ticketmaster partner ► Walmart outlet roll out on track
API now able to • Currently 500+ stores
and Ticketmaster
mobile applications integrate with strategic • 1,100 before Q4 2010
3rd parties
► Launching Q4 2010 ► Over 100 kiosks in operation
► Will enable transactions with other partners
across the web and
mobile devices
117
ACCELERATING SPONSORSHIP
GROWTH
July 15, 2010
BUSINESS MODEL = 4 LEVER EVENT MODEL
Tickets Attendance
Clients Markets/Venues
Products Events
Royalty Costs
Event /
Concert
Management = Sponsorship =
9% Tickets 16%
Talent Costs
Marketing Costs
Clients Fans
28 Markets = LNE Profit Online Traffic
On-Site Online
Ticketmaster 23.2 M
duplicates -2.5M
TOTAL 28.4M
Source: Live Nation Attendance Totals - 10-K; 2009 MLB, NBA, NHL and NFL Attendance Totals - ESPN.com; Source: Comscore March 2010
2009 UK Soccer Attendance Totals - WorldFootball.net; 2009 Broadway Attendance Totals - The Broadway *Includes LN.com, HOB.com, Music Today, artist sites, etc.
League; Elias Sports Research
121
…and a growing rich database enabling
sponsors and advertisers to directly connect
with a highly desirable consumer base.
On-site Online
Database
• 52.1M Annual Audience
• 80M Opt-in Users
122
Live Nation Entertainment has created the
most comprehensive music marketing network
in the world…
DATABASE
123
…attracting VALUABLE PARTNERS.
124
Our deals range from local to regional to
national…
2005 2010
Regional 10% 8%
125
Global Sponsorship / Online AOI GROWTH
* Sources: Global Online Ad Spending via Pricewaterhouse Coopers; Global Sponsorship Spending via IEG Sponsorship Report 127
Sponsorship and Online Success Measurement
Sponsorship
Online
130
North America: How We Make Our Money
131
How We Make Our Money
Venue Only Sponsor Example: Nikon
132
How We Make Our Money
Online Advertiser Example: Motorola
133
How We Make Our Money
Strategic Partner Example: Coca-Cola
134
How We Make Our Money
Festival Only Sponsor Example: Vodafone
135
Global Sponsorship and Online:
2010 Health Check
136
Our future is bright with significant GROWTH
opportunities…
Online Ad Sales
Forecast to continue double digit growth to a Social Media
$96B global advertising industry by 2014** Forecast to be $3B advertising industry in the U.S.
… LNE growth via rich media, video, user alone by 2014 **** …presents significant opportunities
generated content and continued innovation to integrate sponsors into LN Social Media platforms
Database Mobile
Forecast to be $7.6B global advertising industry by
Monetize our database for direct marketing 2014**, integrate sponsors into LNE WAP site, mobile
channels…a $165B industry in North America *** application and other mobile marketing initiatives
Source: IEG Sponsorship Report. **Source: Pricewaterhouse Coopers ***Source: Jack Meyers Media Report 137
**** Source: Forrester Research Interactive Advertising Forecast (US only)
ARTIST NATION
JULY 15, 2010
CONNECTING ARTISTS WITH THE FANS
139
139
OVERVIEW
Proforma AOI*
$70.0 0.9%
R +2 ► Artist Management
G $67.4
$60.0 CA $64.2
$50.0
► Artist Services Including:
$48.3
• Merchandise
$40.0 • Website and Fan Clubs
$37.1 • VIP Fan Experiences
$30.0
$30.0 • Brand Marketing
$20.0
$10.0
$-
2005 2006 2007 2008 2009
*Includes Pre-Acquisition Periods for Signatures (1/08) and Front Line (10/08) 140
ARTIST MANAGEMENT
141
ARTIST SERVICES
4%
5% Tour Merchandise (51%) Tour Merchandise (27%)
19% Brand Marketing and Other 43% Brand Marketing and Other
(5%) (4%)
142
FUTURE GROWTH
143
THANK YOU
APPENDIX
145
Non-GAAP Financial Measures and Reconciliations
This presentation contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each
such measure to its most directly comparable GAAP financial measure, together with an explanation of why management
believes that these non-GAAP financial measures provide useful information to investors, is provided below.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that the company defines as operating
income (loss) before acquisition expenses (including merger bonuses, payments under the Azoff Trust note and merger-
related severance), depreciation and amortization (including goodwill impairment), loss (gain) on sale of operating assets
and non-cash compensation expense. The company uses AOI to evaluate the performance of its operating segments. The
company believes that information about AOI assists investors by allowing them to evaluate changes in the operating
results of the company’s portfolio of businesses separate from non-operational factors that affect net income, thus
providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented
in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic
costs of certain amortizing assets used in generating revenue in the company’s business. Accordingly, AOI should be
considered in addition to, and not as a substitute for, operating income (loss), net income (loss) and other measures of
financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies;
thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.
Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) less
maintenance capital expenditures, less net cash interest expense, less cash taxes, less net distributions to minority interest
partners, plus distributions from investments in nonconsolidated affiliates net of contributions to investments in
nonconsolidated affiliates. The company uses free cash flow, among other measures, to evaluate the ability of its
operations to generate cash that is available for purposes other than maintenance capital expenditures. The company
believes that information about free cash flow provides investors with an important perspective on the cash available to
service debt and make acquisitions. Free cash flow is not calculated or presented in accordance with GAAP. A limitation of
the use of free cash flow as a performance measure is that it does not necessarily represent funds available for operations
and is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash flow should be considered in
addition to, and not as a substitute for, operating income (loss) and other measures of financial performance reported in
accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented
herein may not be comparable to similarly titled measures of other companies.
146
Non-GAAP Financial Measures and Reconciliations (cont.)
LNE
Year Ended December 31, 2009 $ 445 $ 41 $ (3) $ 68 $ 286 $ 9 $ - $ 44
Year Ended December 31, 2008 $ 407 $ 59 $ 1 $ - $ 234 $ 1,364 $ - $ (1,251)
Year Ended December 31, 2007 $ 415 $ 42 $ (21) $ - $ 172 $ - $ - $ 222
Year Ended December 31, 2006 $ 398 $ 11 $ (10) $ - $ 176 $ - $ - $ 221
Year Ended December 31, 2005 $ 352 $ 22 $ 5 $ - $ 113 $ - $ 55 $ 157
Year Ended December 31, 2004 $ 281 $ 24 $ 1 $ - $ 107 $ - $ - $ 149
Year Ended December 31, 2003 $ 295 $ 1 $ (1) $ - $ 121 $ - $ - $ 174
Live Nation
Year Ended December 31, 2009 $ 165 $ 17 $ (3) $ 36 $ 158 $ 9 $ - $ (52)
Year Ended December 31, 2008 $ 149 $ 35 $ 1 $ - $ 140 $ 270 $ - $ (297)
Year Ended December 31, 2007 $ 121 $ 29 $ (21) $ - $ 107 $ - $ - $ 6
Year Ended December 31, 2006 $ 103 $ 3 $ (10) $ - $ 114 $ - $ - $ (4)
Year Ended December 31, 2005 $ 103 $ 1 $ 5 $ - $ 51 $ - $ 55 $ (9)
Year Ended December 31, 2004 $ 90 $ 1 $ 1 $ - $ 51 $ - $ - $ 37
Year Ended December 31, 2003 $ 124 $ 1 $ (1) $ - $ 50 $ - $ - $ 74
147
Non-GAAP Financial Measures and Reconciliations (cont.)
Ticketmaster
Year Ended December 31, 2009 $ 224 $ 10 $ - $ 32 $ 88 $ - $ - $ 94
Year Ended December 31, 2008 $ 241 $ 22 $ - $ - $ 87 $ 1,094 $ - $ (962)
Year Ended December 31, 2007 $ 294 $ 13 $ - $ - $ 65 $ - $ - $ 216
Year Ended December 31, 2006 $ 295 $ 8 $ - $ - $ 62 $ - $ - $ 225
Year Ended December 31, 2005 $ 249 $ 21 $ - $ - $ 62 $ - $ - $ 166
Year Ended December 31, 2004 $ 191 $ 23 $ - $ - $ 56 $ - $ - $ 112
Year Ended December 31, 2003 $ 171 $ - $ - $ - $ 71 $ - $ - $ 100
Frontline
Year Ended December 31, 2009 $ 56 $ 14 $ - $ - $ 40 $ - $ - $ 2
Year Ended December 31, 2008 $ 17 $ 2 $ - $ - $ 7 $ - $ - $ 8
148
Non-GAAP Financial Measures and Reconciliations (cont.)
Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss)
LNE
Year Ended December 31, 2009 $ 445 $ 42 $ (3) $ 68 $ 286 $ 9 $ - $ 43
Year Ended December 31, 2008 $ 407 $ 59 $ 1 $ - $ 235 $ 1,364 $ - $ (1,252)
Year Ended December 31, 2007 $ 415 $ 40 $ (21) $ - $ 173 $ - $ - $ 223
Concerts
Year Ended December 31, 2009 $ 100 $ 9 $ (3) $ 1 $ 130 $ 9 $ - $ (46)
Year Ended December 31, 2008 $ 110 $ 24 $ - $ - $ 120 $ 234 $ - $ (268)
Year Ended December 31, 2007 $ 78 $ 17 $ (26) $ - $ 93 $ - $ - $ (6)
Artist Nation
Year Ended December 31, 2009 $ 64 $ 15 $ - $ - $ 50 $ - $ - $ (1)
Year Ended December 31, 2008 $ 24 $ 3 $ - $ - $ 17 $ 36 $ - $ (32)
Year Ended December 31, 2007 $ 2 $ 2 $ - $ - $ 3 $ - $ - $ (3)
Ticketing
Year Ended December 31, 2009 $ 229 $ 4 $ - $ - $ 94 $ - $ - $ 131
Year Ended December 31, 2008 $ 227 $ 9 $ - $ - $ 89 $ 1,094 $ - $ (965)
Year Ended December 31, 2007 $ 283 $ 5 $ - $ - $ 66 $ - $ - $ 212
Sponsorship
Year Ended December 31, 2009 $ 97 $ - $ - $ - $ - $ - $ - $ 97
Year Ended December 31, 2008 $ 96 $ 1 $ - $ - $ - $ - $ - $ 95
Year Ended December 31, 2007 $ 90 $ - $ - $ - $ - $ - $ - $ 90
E-Commerce
Year Ended December 31, 2009 $ 41 $ 1 $ - $ - $ 9 $ - $ - $ 31
Year Ended December 31, 2008 $ 39 $ 1 $ - $ - $ 3 $ - $ - $ 35
Year Ended December 31, 2007 $ 40 $ - $ - $ - $ 3 $ - $ - $ 37
Corporate / Other
Year Ended December 31, 2009 $ (86) $ 13 $ - $ 67 $ 3 $ - $ - $ (169)
Year Ended December 31, 2008 $ (89) $ 21 $ 1 $ - $ 6 $ - $ - $ (117)
Year Ended December 31, 2007 $ (78) $ 16 $ 5 $ - $ 8 $ - $ - $ (107)
149