Spotify, Apple, and Amazon’s Ticket Negotiations
Spotify, Apple, and Amazon have been in discussions with Ticketmaster Live Nation regarding Presale Access for Super-Premium subscribers.
Michael Rapino, the President and CEO of Live Nation, confirmed this development during a call on Thursday (February 20), addressing inquiries about recent agreements with labels and DSP (KO) that could pave the way for super-prime options.
“We have collaborated with all three companies (Spotify, Apple, and Amazon) to identify a model that benefits both us and them, and we anticipate they are engaging with others as well,” said Rapino.
Potential Benefits of Super-Premium Subscription
This confirmation follows a report by Bloomberg that suggested Spotify’s long-anticipated “Super Pro” tier may debut this year, potentially offering early access to concert tickets among other perks, such as AI remix features and enhanced audio quality.
The report indicates that Spotify is considering a price increase of around $5.99 per month for this premium subscription tier, which is currently priced at $11.99 in the USA after the last price hike in June 2024. This could lead to a total cost of $18 per month for the combined premium subscription and the Super Pro add-on.
In response to a question from David Kargan about the role of live music in these proposals, Rapino discussed the inventory available for ticket access and the potential involvement of sponsors.
“Regarding our recent discussions with Spotify, Apple, and Amazon, all three approached us, and we explored ideas about their interest in ticket inventory. There is a cost associated with this.”
Michael Rapino
According to Rapino, “Live Nation’s objective is to effectively utilize the inventory acquired from artists and optimize it through current sponsorships.”
On the potential for streaming services to access presale inventory as part of a higher-tier subscription, Rapino elaborated: “We manage numerous presale programs; you’ve seen Verizon, Citigroup, etc. Our goal is to explore and collaborate with artists to find ways to optimize inventory for both business and consumer benefits.”
Live Nation’s 2024 Financial Outlook
As previously mentioned, Live Nation announced its earnings for the fourth quarter and the 2024 financial year on Thursday, with Rapino expressing enthusiasm for 2024 as “The Last Year of Living Music.”
The company reported revenue of $23.1 billion in 2024, reflecting a 3% year-over-year increase in constant currency.
Concert attendance also rose by 4%, with 151 million fans attending 50,000 Live Nation events last year.
During an investors’ presentation, Rapino stated: “2024 was the largest year for live music, as artists toured worldwide, attracting record numbers of fans. The upcoming year looks promising with a robust concert pipeline and numerous stadium shows scheduled.”
He further noted the company’s commitment to enhancing live music experiences and supporting artists, having doubled its investments in the past five years.
As highlighted earlier this week, early access to concert tickets could be a significant draw for Spotify’s Super Premium tier, especially given the high demand for concerts from artists like Taylor Swift, Beyoncé, and others.
Spotify has previously tested direct ticket sales to fans through their Spotify tickets site in the summer of 2022.
In a statement, Spotify representatives indicated that the ticket sales trial might or might not be expanded following the initial test.
“At Spotify, we consistently explore new products and ideas to enhance user experience,” they stated. “Some of these may evolve into broader offerings, while others simply provide valuable insights.”
However, Spotify has dialed back its ticket ambitions earlier in 2024.
Bloomberg reported days ago that Spotify “secured rights from many of its partners” in preparation for expanding features within “Music Pro.”
Despite this progress, Bloomberg indicated over the weekend that Spotify “still lacks rights to Sony,” although it has resumed licensing deals with Warner Music Group and Universal Music Group.
The news of UMG and Spotify’s updated licensing agreements coincides with Sir Lucian Grainge’s announcement about the arrival of a new era termed Streaming 2.0, emphasizing artist-focused innovations and enhanced subscription models tailored for “superfans.”
