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Live Nation Ticketing Starts Rolling; Rapino Pumps Wall Street

Thursday, January 08, 2009
by  presnikoff

Live Nation is now rolling the first phases of its homegrown ticketing service, part of a major shift away from Ticketmaster.  Live Nation has been putting various pieces together for months, including a retail sales relationship with Blockbuster.  The initial, soft rollout happened over the holidays, and the first wave involves roughly 50, mostly-smaller venues controlled by Live Nation.  Bigger venues appear to be tied to existing Ticketmaster deals, set to expire shortly.

The aggressive move creates a major competitor for Ticketmaster, though Live Nation is still charging aggressive service fees.  On Thursday, Rolling Stone encountered a "ticket fee" of $13.50 on a $29.50 show in Denver, and the same fee on a $49.50 Pretenders show in New York.  Ticketmaster is no stranger to onerous fees, though fans are never enthusiastic about surcharges.

Meanwhile, Live Nation chief executive Michael Rapino attempted to downplay fears of softening attendance in 2009.  During an investor presentation, Rapino pointed to sales of 2.91 million tickets during 2008, down from 2.95 million in 2007.  Despite the mild drop, the company gained revenues, thanks to higher ticket prices.  The Rapino optimism prompted a rally on Wall Street, leaving Live Nation (LYV) up 15.9 percent to $6.27.



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