This episode features Zack O'Malley Greenburg, a music industry expert and contributor, who dives into the dynamic shifts in the live music scene. The discussion reveals how rising ticket prices impact both artists and fans. He examines the successes of major tours like Taylor Swift's and highlights the challenges facing mid-tier talent. Furthermore, Zack explores notable comebacks, including Post Malone's genre shift and Nicki Minaj's triumphant return, emphasizing the resilience and evolution of artists in a rapidly changing landscape.
AEG Presents capitalized on the success of Taylor Swift's Eras Tour, reinforcing its dominance in the evolving live music market.
Post Malone and Nicki Minaj's comebacks illustrate the importance of adaptability and strategic reinvention in the contemporary music industry.
Deep dives
AEG Presents: A Live Music Winner
AEG Presents emerged as a significant winner in the live music sector, largely due to its successful promotion of Taylor Swift's Eras Tour, which is recognized as the biggest tour of all time. This success not only highlights AEG's prowess in the live music industry but also demonstrates the value of promoting high-profile tours, despite the lower profit margins associated with promotion compared to ticket sales. Furthermore, AEG's acquisition of Cardenas Marketing Network, a company known for its work with artists like Bad Bunny, signifies its growing influence in Latin America and the global live music market. This positions AEG as a key player in an evolving landscape where the demand for live performances continues to rise, particularly for major artists.
The Struggles of Live Music Festivals
The podcast sheds light on the challenges faced by major music festivals, particularly focusing on Coachella and the broader festival landscape in the U.S. Increased ticket prices driven by inflation and high demand for star performers have made it difficult for the average music fan to attend such events, leading to a decline in attendance and even cancellations of many festivals. The rise in costs means that audiences are now more selective in their concert-going habits, often prioritizing big-name acts over lesser-known artists. This trend has led to the cancellation of numerous festivals, as promoters struggle to book artists who once would have filled their lineup without trouble.
M&A Developments and Catalog Sales
In the realm of mergers and acquisitions, the Michael Jackson estate stood out as a significant winner after selling half of Jackson's catalog for approximately $600 million, marking it as one of the highest valuations for an individual music catalog. This sale underscores the continuing value of historic artists' catalog sales, especially in an era where newer trends in music distribution and consumption dominate. Conversely, Sony emerged as a notable loser in this landscape, with $2 billion spent on acquiring catalogs from Queen and Pink Floyd, which raises concerns about their long-term return on investment given current streaming trends. As the marketplace stabilizes, the future viability of such high-stakes acquisitions is being questioned amid shifting consumer preferences.
Post Malone and Nicki Minaj's Comebacks
Post Malone and Nicki Minaj are highlighted as the comeback players of the year in the music industry. Post Malone's transition into the country genre with his new album has garnered significant acclaim, marking his first number one album since 2019, bringing him back into the mainstream conversation. Meanwhile, Nicki Minaj's highly successful Gag City World Tour grossed over $108 million, making it the fourth highest-grossing hip hop tour, showcasing her resilience and ability to draw massive audiences despite prior setbacks. Both artists exemplify how adaptability and strategic shifts in their music careers can lead to revitalization and success in a competitive landscape.
Here’s Part 2 of the winners and losers of 2024 in streaming, artist, and record label with Zack O’ Malley Greenburg. We talked about the shifting terrain of the music industry, down to the decline of festival headliners and the emergence of “Peak Superstar”. Hope you enjoy!
02:00 Live music - winners and losers
08:22 M&A - winners and losers
24:38 Comeback players of the year
28:13 Honorable mentions
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