Live Nation CEO says live music is ‘a very scarce commodity’

Live Nation CEO Michael Rapino told CNBC’s Jim Cramer on Tuesday that the nature of live music keeps it in demand, which helps the business stay strong — even though some consumer-oriented companies report a pullback due to inflation.

“It’s a very scarce commodity,” he said. “If you want to see Ben Folds tonight, who’s playing here, you have to come tonight. Whereas you may just, you know, delay your Disney trip.”

Live Nation, which also owns Ticketmaster, has its hand in many aspects of the industry. It serves as a promoter and ticket vendor for entertainers, owns venues and manages artists across genres. The U.S. Department of Justice in May sued the company for violating antitrust laws, but it denied such allegations.

Live Nation shares jumped more than 4% Tuesday after the company posted earnings and reported its most successful summer concert season to date.

Rapino claimed that 2025 would likely be “a record year” with a lot of stadium performances, adding that Live Nation has already sold more than 20 million tickets. He said there’s an “urgency” consumers feel when it comes to seeing their favorite artists. Consumer behavior has shifted over the past several years, he added, with people spending on “experiences” more so than products.

According to Rapino, wider access to music has also changed fans’ spending behavior. For example, he said, the average teenager with “Spotify in his pocket” knows so many more musicians than younger fans from previous generations who might have been exposed to only the most popular artists.

“This consumer is a new consumer,” he said. “The amount of music available to the consumer today has just propelled this idea that they want to see the live show.”