Live Nation has lost significant market value and plans to pause upcoming tours amid the coronavirus pandemic.
While COVID-19 has already shut down festivals like Ultra Music Festival and postponed others like Coachella and most recently Beyond Wonderland SoCal, even the biggest corporation in the industry is not immune to this public health crisis. Live Nation, which hosts some of the biggest concert tours in the world, has seen over $2 billion disappear from their market cap this week. The future is bleak as they’ve just announced that their upcoming tour shows will most likely not occur.
Earlier today, Billboard reported that the company told employees that current tours will be postponed through at least the end of the month. With large events being cancelled and governments calling for a ban to mass gatherings, it was only a matter of time before this announcement occurred. Some select shows will take place over the next few days, but most concerts will be postponed.
Additionally, Live Nation employees were instructed to work from home for the rest of March. Once April comes around, the company will re-evaluate the situation with the goal of resuming tours in May or June.
The cancellations follow a single-day loss of $1.8 billion in market value on Wednesday, with Live Nation losing 50% of its value in the last month.
While Live Nation and its employees will surely be hit hard by this pandemic, Coronavirus is going to have a lasting impact on the lives of artists, production crews, venue staff, and countless others. In the age of streaming, concert and festival revenue is the main source of income for most. The concert industry was previously projected to top $29 billion in 2020.
Live Nation handles the biggest tours in the world for artists like Lady Gaga and Green Day and manages major venues like Aragon Ballroom in Chicago and The Fillmore in San Francisco. With the Coronavirus pandemic just getting started, the live concert industry will surely continue to be affected.
It’s already been announced that companies like AEG, Paradigm, and United Talent Agency are all working together to develop best practices. Stay tuned as this story continues to develop.