strategic business proposal -...

Strategic Business Proposal 1 of 32

Strategic Business Proposal

for

For: Live Nation Entertainmentwww.livenationentertainment.com

Prepared On: September 20th, 2018

Prepared By: Morgan HappsLisa-Marie Tombulca

Instructor Name: Annie QualieMyke Fakir

Strategic Business Proposal of 32

ContentsIntroduction............................................................................................................................................................3

Executive Summary............................................................................................................................................3

1. Organizational Challenges & Proposed Solution................................................................................................3

Organizational Challenges..................................................................................................................................3

Proposed Solution..............................................................................................................................................4

2. Environmental Scanning.....................................................................................................................................5

Internal Analysis.................................................................................................................................................5

External Analysis.................................................................................................................................................9

3. Strategy Formulation.......................................................................................................................................12

Operations........................................................................................................................................................12

Sales, Marketing, & Distribution.......................................................................................................................13

Legal .................................................................................................................................................................16

4. Proposal Budget & Projections.........................................................................................................................18

Sales Projections...............................................................................................................................................18

Project Budget..................................................................................................................................................19

5. Strategy Implementation.................................................................................................................................20

Timeline and Key Milestones............................................................................................................................20

6. Future Plans.....................................................................................................................................................22

Long-Term Opportunity and Development Plans.............................................................................................22

7. Appendices and References.............................................................................................................................23

References........................................................................................................................................................23

Appendices.......................................................................................................................................................29

Appendix 1: U.S. Virtual Reality Market Growth by Component.................................................................29

Appendix 2: Financial Results of Live Nation from 2013 to 2017................................................................29

Appendix 3: Key Operating Metrics.............................................................................................................30

Appendix 4: Virtual Reality Revenue Growth Projection.............................................................................30

Appendix 5: Competitive Analysis Chart......................................................................................................31

Appendix 6: Organizational Chart Based on Proposal.................................................................................31

Appendix 7: Comparision of Customer Benefits Using VR for Events..........................................................32


Appendix 8: Projected Finance Overview Based on Proposal.....................................................................32

IntroductionExecutive Summary

Have you ever wanted to be in 2 places at once? Did you ever miss concerts from your favorite artist because of geographical, physical or monetary reasons? Would you enjoy a concert more when sharing the experience with a friend that lives far away from you? Virtual reality will solve all these problems for you!

Virtual reality is an interactive user experience that allows the user to enter a virtual environment. Live Nation the world's leader in the entertainment industry, producing and promoting over 30,000 events annually. The company’s mission is to maximize the live concert experience globally. Recently Live Nation partnered with NextVR to create live streaming content for the virtual reality devices, allowing users to virtually stand on-stage next to the artist performing live in a venue.

The proposal is asking Live Nation to innovate this concept through additional features, while simultaneously developing their global concert venues to provide access to anyone from anywhere. The vision is to globalize the entertainment industry with innovative features to create emotional connections by sharing unique and effortless experiences.

The virtual reality technology is in high demand and will continue to increase over the next decades, creating various opportunities ranging from content to the extension of world wide access. Live Nation’s existing resources and partnerships would support this enterprise, generating a total net profit increase of 1006% from 2019 to 2021.

1: Challenges & Solutions Organizational Challenges Implementing Virtual Reality (VR) technology into the music industry is all about combining art and technology for the use of enhancing the consumer experience and setting the music business on a path of revolution and expansion. However, the VR industry is in serious need of further technical development. In a *survey of 653 respondents conducted by Upload and Perkins Coie, 38% said the biggest challenge with mass adoption of VR technology is the user experience, 20% said the biggest challenge was technical limitations, and 32% cited costs as the biggest obstacle (Durbin, 2016). These systems have multiple flaws, including a short battery life, lacking a natural field of view, and missing 3D sensing capabilities. These systems do not provide the consumer with a complete and immersive experience like they so desire. Unfortunately, there are currently not enough VR companies in the industry to provide solutions for more enhanced technology.


Price is a differentiating factor for the projected target market, as they are of the younger generation and don’t have a reliable source of income. In fact, the younger the consumer is, the more likely they are interested in using VR for live events. “We’ll see this market grow as these younger generations grow as well,” stated Alexis Macklin from Greenlight Insights (Live Concerts Take…, 2017).

Referring back to the survey as mentioned above, a lack of content is seen as a huge deterrent for the virtual reality industry by 37% of respondents (Durbin, 2016). Due to the necessity of further technical development to improve certain characteristics, and the concern for the cost along with the deficiency of material, reluctance by consumers and businesses to embrace VR technology is a detrimental trend that has the power to influence the future relevance of virtual reality.

It has been noted that use of virtual reality with concerts raises concern for the decrease in ticket sales. Jordan Zachary, Chief Strategy Officer of Ticket Sales at Live Nation, disagrees with this concern, making the statement, “The company’s data shows that consumption of live content increases a fans desire to attend the concert (Liao, 2017).” Experts at Livestream.com have compiled statistics about live video streaming. One piece of data gathered states “67% of livestream viewers are more likely to buy a ticket to a concert or event after watching a livestream of that event or a similar one (Golum, 2017).” In fact, in a survey of 400 mid to senior level event marketers, it is believed that event technology can help increase event attendance by 20%, and 20% of marketers believe VR will impact events the most (Bizzabo, 2017). VR live concert streaming is meant for those who are incapable of physically attending the event, whether it be due to a disability or financial reasons. Because the full exciting experience and atmosphere of a concert cannot be fully replicated digitally, virtual reality is meant to be an alternative to concerts, not a replacement.

*Percentages may not add up to 100% due to respondents were invited to select more than one answer and rounding.

Proposed SolutionThe proposed solution for Live Nation will generate a wider market, increase virtual reality (VR) usage rate, and create awareness through exclusive digital content. In order to achieve these objectives, Live Nation will have to apply additional features to the already existing customer technological experience.

The virtual reality industry is set to be fully developed by 2025 (Figure 1 in Appendices), the time frame creates the opportunity of constructing, developing and testing future content ("Virtual Reality Market Size Growth & Analysis | VR Industry Report 2025," n.d.). In 2025 it is said that the VR devices will be in higher demand due to the amount of available content and the decrease in retail price for the equipment. The proposal requests Live Nation to take this opportunity to modernize their business model to thrive for a successful future.

Live Nation currently owns 56 venues in North America, by implementing virtual reality technology in these locations, allows the company to stream original and featured content ("Global Sites and Venues: Live Nation Entertainment," n.d.). This will also reduce future legal challenges, as the VR technology is being used in their own venues meaning that the amount of contracts and insurances are reduced.


Applying this method will also create convenience by eliminating the process of removing and relocating the digital system.

The proposal is promoting the innovation of Live nations venues through VR to allow access to anyone in the world. Using this method will create a major advantage, increasing the usage rate of virtual reality for live event streaming is based on the wider customer range. The target audience will include fans that are not able to attend events due to geographical or financial limitations, as well as people with certain disabilities. Virtual reality creates opportunities for people that don’t have the ability to access the event venue, being able to enjoy the live event experience through exclusive virtual content and wider access of the venue.

As Live Nation is already working with other companies to thrive for a virtual reality experience for their users, this proposal is suggesting additional features and sponsors that support the development and user engagement in a more sustainable and exclusive manner. Other features include the process of buying a VR live event ticket, seat selection for actual attendees and connecting Live Nation customers through social interactions. Applying the suggested proposal will flourish Live Nation’s mission to maximize the live concert experience for customers globally through ticketing, sponsorship and event operation services.

The proposal is set for long-term success through the demand of VR devices, therefore it entails the customers to already have the VR equipment. Using virtual reality for buying tickets over Ticketmaster creates a new customer experience, when a customer owns a VR device but wants to physically attend the event, the user is given the option to select seats through a 360 VR image to preview the view of the preferred location. Additionally, customer can purchase live virtual reality event tickets through the Ticketmaster website or on the NextVR platform, which can be directly linked to their Facebook account. The user has the option to add friends that attend the same VR event to share the experience by viewing their avatar throughout. Due to the existing partnership with Facebook, the consumer can also share their VR experience with the live Facebook feature or share it after.

Overall, the proposal is aiming for an enhanced partnership in the virtual reality event experience, by allowing customers worldwide to view and share their digital participation.

2: Environmental ScanningInternal Analysis

Company OverviewLive Nation’s mission is to maximize the live concert experience, by providing a range of ticketing, artist management, sponsorship and event operation services, with a view to putting on interesting and entertaining events and festivals for consumers worldwide. The company states, “Our core business is producing, marketing and selling live concerts for artists via our global concert pipe” ("Joint press release issued by Live Nation, Inc./Ticketmaster Entertainment, Inc," n.d.).


The Company also utilizes mobile channels to sell tickets, through its Live Nation Ticketmaster apps, and sells tickets through retail outlets and call centers. Live Nation operates a network of offices across 32 countries, through which it is able to serve clients locally ("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.). Live Nation’s business segment is organized into four variables that include concerts, ticketing, artist nation and sponsorship/advertising ("Company Live Nation Entertainment | Cleverism.com," n.d.). The company’s key resources are its online ticketing system and software, the IT infrastructure, its network of venues, the portfolio of manages artists, the network of partners and sponsors, and its personnel ("Company Live Nation Entertainment | Cleverism.com," n.d.). The company also owns and distributes intellectual property worldwide, which is protected under trademarks, brands, copyrights, and patents ("Company Live Nation Entertainment | Cleverism.com," n.d.).

Financial StandingsIn 2017, Live Nation reported $30 billion in gross transaction value from primary and secondary ticketing ("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.). The most recent stock price as of September 2018 is set at $49.68 with an increased percentage of +0.59% ("LYV Income Statement | Live Nation Entertainment, Inc. Stock - Yahoo Finance," n.d.). The stock price of the company has increased year-over-year, going from $30.79 in the first quarter of 2017, to $46.99 at the fourth quarter ("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.). As of February 2018, there were a total of 3,608 stockholders. Figure 2 in the appendices represents the financial results of Live Nation from 2013 to 2017, including income and balance sheet data ("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.). Based on the Figure, the total revenue of Live Nation in 2017, resulted in $10.4 billion, increasing 25% from 2016 at which it was $8.36 billion. The operating income was down 53% year-over-year to $91.4 million and its adjusted operating of $625 million was down about 2% over the same time frame. As of December 31 (2018), the company had $1.8 billion in cash and $3.2 billion in total assets.

Figure 3 in the appendices presents the key operating metrics, focusing on concerts and ticketing. The chart shows an increase in ticket sales from 2015 to 2017, with a total of around 500,000 tickets sold in 2017 ("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.).

Live Nation’s Concert segment is its largest revenue generator, recording approximately $5 billion in annual revenue, representing around 68.5% of the Company’s total for the year ("Company Live Nation Entertainment | Cleverism.com," n.d.). According to the Consumer Technology Association, virtual reality headsets are projected to become the overwhelming leaders in year-over-year growth (Lauren deLisa Coleman, 2017). The global virtual reality industry revenue is presented in Figure 4 in the Appendices, stating that it will reach a total of $75 billion by 2021 (Roettgers, n.d.).

Overall, the financial situation of Live Nation has shown a positive trend. The company’s revenue increases consistently every year, which causes the stock price to also rise with it. The reason why the company generates more income each year is mainly due to their concert and ticketing segment. According to an interview with Michael Rapino (CEO of Live Nation) he stated, “Given our plans to further monetize our fan relationships, I expect this will translate into continues strong growth in


concerts operating results in 2018” (Billboard, 2018). He also mentioned that music has accounted for about 80% of Ticketmaster’s GTV growth, he estimates that 80 artists utilized Ticketmaster’s platform, which grew 25% overall and 5% in the first two months of 2018 (Billboard, 2018).

Organizational StrengthsMultiple strengths arise when analyzing Live Nation Entertainment Inc. The company has been applauded for their customer satisfaction rate and have recently identified ‘Fans’ as a top strong point. It was noted in a recent statement “During 2017, we connected over 580 million fans to their favorite live event. Our database of fans and their interests provide us with the means to efficiently market our shows to them (United States Security and Exchange Commission, 2017).” As well as the fans, Live Nation has a substantial relationship with their artists. “In 2017, we promoted shows or tours for over 4,000 artists globally. In addition, through our artist management companies, we manage more than 500 artists (United States Security and Exchange Commission, 2017).”

With a global distribution network of promoters, venues and festivals, Live Nation has a strong presence in the live entertainment industry. As of the end of 2017, they have offices in 36 countries worldwide, as well as owning, operating, exclusive booking rights for or equity interest in 222 venues located across 12 countries, making them one of the top operators of music venues in the world (United States Security and Exchange Commission, 2017).

Organizational WeaknessesLive Nations revenue depends mainly on the success of the events they produce. This can be problematic when targeting a rather young audience, one who may have a quite unpredictable income source. In the event of an economic decline, consumers are likely to stop spending money, in time, affecting the revenue stream of the company. Live Nations products and services currently depend on factors such as, their financial stability, and their relationship with the artists and their fans. Acknowledging the unpredictability and ephemeralness of these factors, Live Nation admitted “We cannot provide any assurance that we can maintain our competitive position against current and potential competitors, especially those with significantly greater brand recognition, or financial, marketing, support, technical and other resources (United States Security and Exchange Commission, 2017).”

Live Nation worries that the barrier to enter the promotion services business are “low” and are concerned with the uprising of local promoters. They fear some of these local promoters may have a stronger presence in certain markets which may “enable them to gain a greater competitive advantage (United States Security and Exchange Commission, 2017).” Perhaps if Live Nation were to further invest in technology already being utilized to help develop and create new features, they could find a way to integrate themselves into the smaller niche markets, so they don’t lose that market share. Right now, their investment in technology does not meet the vision of the company. With plans of expansion into different and new geographies, new technology would be beneficial for the development of the company.


CustomersThe customer landscape of the proposal consists of those in the Millennial and Generation Z age groups, 19-29 years old. “Millennials are most likely of all age groups to attend live events (Crawford, 2017).” They are mostly single, white males, who are currently college students or have a bachelor's degree or higher and have an average annual income between $30,000 and $40,000 (Attract Your Music Festival’s Most Valuable Fans, n.d.). The proposal also targets those who are disabled, lack the financial funds, and are generally outside of the geographical area in which an event may occur, impeding on their chance to attend the event in person.

Greenlight VR conducted a 2,000-person consumer study in the U.S. in collaboration with Touchstone Research. Information attained in this study includes that Generation Z is the most excited and willing to use Virtual Reality technology. “An overwhelming majority of Generation Z (79%) feel positively towards VR (Leibach, 2017).” Virtual reality technology for live concerts is suitable for the young Generation Z in the sense that experiencing a concert from the comfort of their home is a lot safer than attending the event amongst a huge crowd of people. In comparison, 73% of Millennials show interest in VR (Leibach, 2017). Another recent study found that “69% of U.S. males intend to purchase a VR device (The 10 Virtual Reality…, 2017).”

CollaboratorsLive Nation collaborates with a number of partners throughout the course of its business, including sponsorship and advertising partners, alliance and strategic partners and technology partners ("Company Live Nation Entertainment | Cleverism.com," n.d.). The proposed solution relates to the technology and strategic partnerships. Compromising technology companies that help to enhance the live event experience and provide innovations for the company's online services. Strategic partners encompass a range of companies and organizations with which the Company collaborates on joint projects and shares tools and resources ("Company Live Nation Entertainment | Cleverism.com," n.d.). Live Nation created a partnership with Citi and NextVR to establish a virtual reality event customer experience.

NextVR is the world’s leading virtual reality platform for delivering live sports and music in virtual reality to fans globally ("Citi, Live Nation & NextVR Unveil Slate of LIVE Virtual Reality Concerts," n.d.). The company launched in 2009 and has multiple patented technologies that deliver an unparalleled virtual reality experience and providing users with exclusive access and profound immersion. The business has decades of experience in 3D stereoscopic imaging, compression technology and VR broadcasting ("Citi, Live Nation & NextVR Unveil Slate of LIVE Virtual Reality Concerts," n.d.).

Citi is the leading global bank, with around 200 million customer accounts, operating in over 160 countries ("Citi, Live Nation & NextVR Unveil Slate of LIVE Virtual Reality Concerts," n.d.). The company provides consumers, corporations, governments and institutions with a variety of financial products and services, such as wealth management and investment banking ("Citi, Live Nation & NextVR Unveil Slate of LIVE Virtual Reality Concerts," n.d.).

In 2017, the three companies partnered, creating cutting-edge technology allowing the customer to be transported into a revolutionary concert experience. The VR customers are given rare access to


behind-the-scenes footage, as well as being provided with up-close-and-personal access. Through the VR system, the user also has the possibility to walk on the stage, while a live event is taking place, creating a unique and personalized experience for the customer. The Global Consumer Chief Marketing Officer of Citi mentioned, “Without a doubt, we are taking the concert experience to the next level.” ("Citi, Live Nation & NextVR Unveil Slate of LIVE Virtual Reality Concerts," n.d.).The proposed solution will request the collaboration with “Wowza Media Systems”, a company that lets customers power and custom their streaming contents. The company currently works with over 22,000 organizations, including Facebook, Vimeo and Sony ("Product Pricing & Plans | Wowza Media Systems," n.d.). The Wowza Streaming Cloud service is the industry’s leading live-streaming global cloud platform and API. The company provides different service packages, the most significant one is the “Live Event Starter Plan” for $49 per month, for simplified global streaming, cost-effective live event streaming to multiple online platforms ("Product Pricing & Plans | Wowza Media Systems," n.d.). The company promises to configure professional streams in minutes to any size audience, anywhere and leverage advanced features such as 4K streaming.

External Analysis

CompetitorsThe competition in the live entertainment industry is intense. Live Nation faces competition from promoters and venue operators, nevertheless, the company believes that their advantage is the expansion of their brand across the geographic scope of their operations, to enhance their brand.

Live Nations main competitors in the live music industry include Anschutz Entertainment Group (AEG) and C3 Presents (United States Securities and Exchange Commission, 2017).

The main challenge that Live Nation is facing with AEG based on this proposal is their past investment in developing virtual reality venues. According to Forbes, the Chief Digital Officer of AEG stated that, “The right pieces have come together to test VR for a major live event.”, he also mentioned that AEG has also been working with Facebook’s Oculus division (Forbes, 2018). This will result in a very competitive environment, as Oculus is working with NextVR, who is also already partnered with Live Nation. Due to this, it will create additional future legal threats between AEG and Live Nation, as virtual reality laws on copyright and patents have not been clarified.

C3 Presents is another direct competition to Live Nation. C3 Presents is a concert promotion, event production and artist management company based in Texas. As Live Nation is the industry leader, it uses competition to grow and create new opportunities. In 2014, the company paid $125 million for a 51% stake in C3 Presents ("Live Nation Completes Deal for C3 Presents," 2014). As soon as Live Nation recognizes indirect competition, they commonly create partnerships to expand their brand and create new possibilities. When the company acknowledges direct competition they also either create a partnership with them or buy stake in order to control the industry environment.


Figure 5 in the appendices represents a competitive analysis chart of Live Nation, AEG and C3 Presents. As one can notice, Live Nation is the industry leader based on all statistical variables, such as amount of events, revenue, number of employees and locations of operation.

Business ClimatePolitical & Regulatory

The online ticket selling industry is regulated by the Federal Trade Commission (FTC) and the State Attorney general (AG) ("Text - S.3183 - 114th Congress (2015-2016): BOTS Act of 2016," 2016). The FTC and AG changed their law on ticket sales in 2016, due to technology enhancements. The new law that states that one can only buy a maximum of 200 tickets was formed due to fraud. Other online ticketing sites have violated Ticketmaster by using software that buys almost all tickets as soon as released to then sell them for a higher price on their own platform (Steven J. Horowitz, n.d.). Many fans were not able to attend concerts due to no available tickets or high prices.

Economic

The virtual reality industry is set to grow rapidly over the next few years, it is projected to become the global leader in year-over-year growth (Lauren deLisa Coleman, 2017). In 2017, location-based VR generated approximately $222 million worldwide, by 2021 that amount is projected to increase to $1.2 billion (Lauren deLisa Coleman, 2017).

Social & Cultural

The National Center of Biotechnology Information quoted Beard and Ragheb saying, “Social motives to attend leisure activities generally stem from two necessities: the desire for interpersonal relations and the need for esteem from others (Charron, 2017)”. By posting about the event on social media, produces marketing in the form of word-of-mouth, one of the most powerful forms of marketing. “24% of marketers believe that social networks will impact events the most (Sang, 2018).” Social media plays a big part in the everyday life of the target audience. In a study done by the Pew Research Center, Facebook is the most popular social media platform to date, with about 1.15 billion daily active users. 75% of Facebook users are male and 88% are between the ages of 18 and 29 years old.

Social trends related to the proposed solution include personalization, where Tom McGee of Forbes has stated “Millennials want a customer-centric experience in which they feel wanted and valued,” (McGee, 2017). The personalized experience is described as, “one which speaks directly to them, making them feel like they as individuals are important to the business (Denny, 2018).”

Technological


The Technological industry in the entertainment industry is currently investing in developing projects such as the implementation of virtual reality (VR) in events. The software segment is anticipated to dominate the component arena in terms of size by 2025 ("Virtual Reality Market Size Growth & Analysis | VR Industry Report 2025," n.d.). This technology trend can be characterized to the increasing economies of VR hardware component sales, which would reduce the cost of acquisition by the end of the forecast interval. Virtual reality device fabricators are constantly enhancing and developing the technology to integrate it with consumer-grade devices, including digital tablets and smartphones to result in a lower unit cost and to make it more sophisticated ("Virtual Reality Market Size Growth & Analysis | VR Industry Report 2025," n.d.).

The VR technology is also currently being improved in the 3D audio, which creates a virtual world for the users, making them think that they are part of the VR content scene ("Virtual Reality Market Size Growth & Analysis | VR Industry Report 2025," n.d.). The 3D audio allows users to talk to one another, they can then even determine from which direction the voice is coming from.

Industry Trends Promoters remain eager to tap into that growth with new events, but there are signs of over-saturation (Kennedy and Brown, 2017). As stated by the concert industry-tracking publication company “Pollstar”, “Each year we seem to be adding more and more festivals, and the pool of talent to headline or play isn’t growing anywhere near as fast as the number of events.” (Kennedy and Brown, 2017). The live event market is saturated, and the competition is fierce, but attendees are always demanding a more unique experience (The Future of Festivals, n.d.).

One way to capitalize on this desire for a one-of-a-kind experience is to utilize the trend of hybridization. Hybridization is the creation of a new cultural form as a response to bringing together a variety of entertainment platforms, such as partnering with sponsors in different media segments. Implementing a hybridized event will broaden its appeal, resulting in a wider range of audiences. Additionally, this method will generate a larger variety of sponsors for the event.

Business Opportunities

In a recent study done by Statista.com, the Virtual Reality industry generated $3.7 billion globally in 2016. The same study indicates predictions of the VR industry to increase their revenue to $21.5 billion by 2020. “Rising number of private investments in developing VR technologies witnessed in past few years are likely to boost the virtual reality market. Growing number of startups are creating market competitiveness and huge investments for the enhancement in VR technologies (Global Virtual Reality Market…, 2018).” Featured enhancements to be made could include the application of Gesture Recognition technology (GRT) in virtual reality, as GRT is receiving a lot of positive feedback from consumers.

Virtual Reality is currently being used mainly for video game purposes, but according to a survey conducted by MarketingWeek.com, the ability to travel to different cities proves to be the most popular VR application at 56%, with being in a crowd at a concert following at 52%. Of those surveyed,


41% said they would like to see VR content from Broadcasters like BBC and Channel 4, while 29% said they would prefer to see VR content on on-demand services like Netflix and Amazon Prime. On the other hand, 33% said they were unsure of where would be the best to consume VR content. This uncertainty provides an opportunity for content producers to claim the market. The current end-use consumption segment is mainly constituted by the gaming community and technology enthusiasts ("Virtual Reality Market Size Growth & Analysis | VR Industry Report 2025," n.d.). Marketing and retail also pose promising growth sectors, specifically for wearable devices in promotion and advertisement as well as during new product or service launches.

Business Threats

Oversaturation in the live event industry is a threat to the company. With the substantial growth in attendance seen at events over the last several years, promoters are jumping at the chance to try and create another option for fans. Jeff Cuellar, VP of strategic partnerships for AC Entertainment, told Business Insider, “Our biggest challenge, more or less, is the fact that there’s so much competition out there right now (Peoples, 2018)”. With more events popping up, they’re eventually going to hop on all the same bandwagons as their predecessors, thus eliminating any uniqueness the event may have held.

The Virtual Reality industry is also encountering threats, mainly relating to the lack and slow pace of the technical development. The two main factors which are obstructing the expansion of the VR market is the current lack of technical proficiency and the high cost of the device itself (Global Virtual Reality Market 2018..., 2018). Additionally, the deficiency of awareness among customers is also hampering the VR industry.

3: Strategy FormulationOperations Organizational Impact

Live Nation already established a partnership with NextVR and Citi to stream virtual reality content for events. Currently, the companies are testing the live streaming of their content, instead of providing customers with prerecorded material. Nevertheless, Live Nation will increase costs by implementing this technology just for certain shows in which only the user will be visible, instead of allowing further access to the user’s friends and placing the technology in owned venues. Within the partnership of the companies are other organizations working individually with one of the businesses to innovate their service and products.

The organizational chart (Figure 6 in the Appendices) explains how the companies are set up for this proposal to result in success. NextVR is also providing the customers with an application, in which the user can download and schedule Live Nation’s VR content. The company also is responsible for transmitting existing content to broadcasting/streaming material.


Citi is a bank that has been working with Live Nation in the past, allowing their customers to access tickets before they go on sale for the public and supplying the users with discounts and offers ("Citi Cardmember Offers - Presale Concert Tickets and Fan Packages," n.d.). The proposal is focusing on the sponsorship and financial investment department, as well as the virtual reality backstage access.

Ticketmaster will act as an additional tool for users to buy their VR live event ticket. The company’s service allows new promotion strategies and sponsorships, enabling customers to be linked to virtual reality device providers. When the user chooses to buy their VR ticket on the Ticketmaster platform, they will receive the chance of purchasing the next ticket before the public. This reward method is currently being used between Ticketmaster and the Citi bank for ticketing promotions. Therefore, the departments that will be influenced through this is the Ticketmaster website developer segment and the company’s public relation to NextVR.

As the organizational chart presents, the Wowza Streaming Cloud is linked to Facebook. Facebook is using this streaming service, allowing their users to share live videos, 360 films and other digital content onto the platform. The high-quality content is possible through the Wowza Streaming Cloud, which can be transformed to any device at any time. The department within Facebook that will be part of the proposal is the virtual reality and live streaming segment.

Another department that is going to play a significant role for this proposal is NextVR’s application division. The application developers will have to create and change content in order for certain innovations to be processed. Some of these changes include the link to Facebook, admitting the user to view what friends will access the same event also over virtual reality. Consequently, the customer can experience the virtual event with Facebook friends from all over the world.

Staffing Needs

Some of the companies included in the organizational chart will need to hire new employees through the Human Resource departments. The only additional staffing needed are virtual reality installation experts for Live Nations venues, which will directly work together with the equipment providers.

Other Needs

Live Nation will have to work with NextVR and Wowza Stream Cloud to install the virtual reality equipment in their venues. Facebook and Ticketmaster already have all the resources and staff to fulfil this proposal. The purpose of the partnerships within the organizational chart is to reduce the amount of money that the companies would spend for the innovation process, to rather thrive for the success together using existing and sustainable assets.

Sales, Marketing, & DistributionUsing virtual reality technology, we have the ability to deepen the relationship between the fan and the artist, while also providing access to the live experience to those who cannot physically attend the concert. This product is exclusive to Live Nation and can be purchased on Ticketmaster or NextVR.com.


Through forms of traditional and online advertising, guerrilla marketing, and public relations, this product will be marketed towards Millennials and Generation Z’ers.

Marketing MixPrice

The price of the service is going to be determined by the different features provided, as well as the change in market size. NextVR has stated on their official website that there is no current cost for the application and that “pay-per-view” will likely follow depending on audience growth and the maturing of technology ("NextVR," n.d.). NextVR has tested the live event ticketing sale by applying it to NBA games in 2017. The customer had the option to stream the virtual reality NBA content for 14% of the actual average ticket, resulting in $7 per game, which received great success and positive feedback ("NextVR - Virtual Reality Concerts and Sports - Nanalyze," 2017). The advantage of selling virtual admissions, is that there is no limit on the amount of tickets one can sell.

A study done by Touchstone Research, found that 60% of internet users want to spend between $200 and $400 for VR gear and content (UnfoldLabs, 2018). Figure 7 shows a comparison chart of the VR event benefits for consumers. The market size of VR users in the U.S. is increasing rapidly, from 22 million people in 2017 to 49 million by 2019 (Roettgers, n.d.).

Considering the mentioned factors, the price of a live virtual event ticket is going to use the pay-per-view method. The proposal suggests a 10% charge of a live VR event ticket, compared to the actual overall average ticket price. This percentage is going to increase based on the demand, market size and technology development.

Product

The product/service that this proposal is focusing on is based on innovating Live Nations venues to allow access to anyone in the world, using virtual reality technology. As Live Nation already works with this technology, the proposal is aiming to create new opportunities for users and sponsors. In order to pursue these opportunities, the Live Nation customers will have to purchase virtual reality equipment, which Facebook’s “Oculus” provides.

There are several features when it comes to the process of buying a ticket. When the customer owns a virtual reality device and wants to buy a normal event ticket, the consumer has the option of selecting their seat through the Ticketmaster platform. The platform provides the customer with a VR 360 image of the venue, when selecting a seat the buyer can view the area and perspective of the location.

Live Nation customers can purchase live virtual reality event tickets through the Ticketmaster website or on the NextVR platform. When purchased, the user has the option to directly link their account with Facebook to view which VR events their Friends are attending. The customer then has the option to add their friends to their VR experience, allowing them to see the other person’s avatar during the event. Another option that is provided through the Facebook partnership is the live streaming of the VR experience.


During the event, Live Nation already provides the service to their customer of being able to access it through VR, however the access and navigation is limited. To give customers the full experience, the new installed virtual reality equipment allows the user a wider access of the venue, creating a more defined experience. Features that Live Nation already implemented will stay the same, such as backstage access and other exclusive content. After the event, the user has the option to re-watch the experience and share it on Facebook. If the customer has purchased the ticket over Ticketmaster, rewards will be distributed such as access to buying VR event tickets before they go public.

Distribution

This service will be available for purchase through Ticketmaster, NextVR website and application. The content will be streamed through downloading the event on the NextVR application, in which the user can also access previously bought VR event tickets from Ticketmaster. The virtual reality headsets are provided by Oculus, which is already being promoted through the NextVR platforms and will additionally be added to Ticketmaster. The customer can purchase Oculus headsets online or at brick-and-mortar stores.

Promotion

This product can be promoted through multiple mediums, including, but not limited to: Social media ads and TV commercials including exclusive digital content, demo kiosks where users can preview the product, as well as press kits and professional reviews.

Social media ads would be effective in the sense that the target market for the product is highly active on social media. The social media ads, as well as TV commercials, would consist of short video clips portraying an example of what the user might see when utilizing the product, as well as explaining how the product works and how the consumer can purchase it. A Snapchat face lense demonstrating what the VR experience will be like will also be utilized to market this product. Kiosks would also be set up on college campuses near the different House of Blues venues across the United States, where customers can actually use VR headsets to preview a pre-recorded event to get a glimpse of what the real experience using this product would be like. Also, an exclusive VR station would be setup at Live Nation venues during an event. The VR activations would be equipped with multiple VR headsets, in which the attendee can test the product and gain knowledge of the technology to improve the chances of future usage rates.

In a 2,071-person survey done by Fortune and Morning Consult, 71% of those between the ages of 18 and 29 said they have interest in trying a VR device before they purchase one (Morris, 2016). Referring back to Greenlight VR and Touchstone Research’s 2,000-consumer study, 81% claim to tell their friends and family about the experience once they have tried VR. “The mere participation in virtual reality is consistent with viral traits like retention and can lead to increased word-of-mouth activity (Leibach, 2015).” In short, seeing is believing. Brands that engage first-time VR users with exclusive content are ensured to generate captivating marketing efforts.

In relation to the word-of-mouth form of advertising, industry professionals would receive a press kit including details about the new product, and would be invited to test the product, and then follow up


with a review of their experience for the public to see. This will guarantee people talking about the product, thus supporting word-of-mouth, as well as validate the product in the eyes of the consumer. An industry professional’s opinion can also be used to provide feedback for those in the virtual reality industry who may need reviews of the technology to take into consideration when developing further.

Sales StrategyThis product will be sold digitally, through the Ticketmaster and NextVR website and application platforms. The consumer will make a one-time purchase for a ticket for each event they wish to virtually attend.

Legal

Legal FactorsThe three variables that need to be considered for legal purposes include the virtual reality technology itself and the equipment, the content, and the users. By innovating technology for a large amount of people, legal issues will arise with no doubt, especially due to the lack of current involvement of virtual reality. The main reason of implementing the virtual reality in just North America venues, is not only to test the legal issues that will appear, but also due to the lack of legal knowledge on VR in other regions.

The virtual reality technology is mainly focused on the disputes of ownership. To legally prepare for this, the proposal will require patents, copyright, trademarks, contracts and the designation of origin. The content of virtual reality in the legal aspect will involve copyright, trademark, laws, and the right of publicity. The third variable will target the user’s legal participation, this entails the terms of service and the legal issues of users towards the VR technology. One factor that needs to be considered is based on the VR experience of users, many legal claims have been made about the conflicts of customers being injured.

Regulations

Due to virtual reality being a new type of technology, regulations are being established when conflicts arise. Oculus went through major legal conflicts with other companies due to the lack of legal knowledge, causing them to pay their competitor “Zenimax” $500 million (Moore, 2017). According to the Washington Post, Mark A. Lemley, a Stanford law professor mentioned that it’s too early in the development of commercial VR to create laws ("Opinion | Law, virtual reality, and augmented reality," 2017). Currently the government regulations are trying to adapt to the new technology, however they create laws when conflicts arise.

General government regulations that also apply to the virtual reality technology include the federal trademark anti-dilution act. The act implies that nationally known brands can sue if the use of their trademark by others in advertising/branding a product “tarnishes” or “blus” the trademark (Moore, 2017). Overall claims will mainly stem from theories of negligence, nuisance, aiding and abetting trespass by users.


Contracts

Contracts apply in each of the three variables, including the technology, content and user engagement. Establishing a contract based on the virtual reality technology in relation to events and further features will hinder future conflicts. Based on the current situation of legal arrangements in the entertainment industry, the most effective binding agreement is based on “implied-in-fact contracts” (Moore, 2017). One of the legal threats in the contract segment is the ownership of VR and the existing contracts that were drafted before this technology was even contemplated. Therefore, it will be crucial to draft contracts with scalpel-like precision to allocate exactly who owns what virtual reality rights (Moore, 2017). Consequently, theft might be another factor that will affect the different contracts. Theft in this case considers users that hack the system, steal data, violate digital protection anti-circumvention laws, or breach the terms of service (Moore, 2017). Other claims that will be considered include interference with contract, interference with prospective business advantage, and unfair competition.

Insurance

Insurance is another division which hasn’t completely adapted to the use of virtual reality in the event industry. Going forward, there are going to be various claims by users against VR companies, specifically based on personal injuries. When using virtual reality, the customer required to wear a headset that doesn’t project the actual environment they are in, leading to possible dangers of the consumer getting hurt while moving in the virtual environment. Other dangers for VR participants relate to internal health problems such as heart attacks and nausea, caused by the visuals not aligning with body movements. There also have been cases in which the virtual world can traumatize users. Therefore, insurance is needed as legal suits for negligence and product liability against VR companies and the supplier of any hardware, software, and content will take place.

Apart from requiring insurance for the user engagement, Live Nation and the partnering companies will also have to consider the standard actions for violating privacy, data mining laws and damages of hacking personal information. To limit the overall liability claims, binding terms of service for users that cover all these issues, including mandatory arbitration and class action waivers (Moore, 2017). The method that should be used, is based on requiring the user to accept the terms and conditions on the Ticketmaster and NextVR website when purchasing a ticket. .Intellectual Property

The intellectual property that this proposal is focusing on is the virtual reality technology and streaming process, the content and the ticketing method.

The trademark law protects against the unauthorized use of a trademark. For example, when Zenimax sued Oculus for trademark infringement there were no damages for this claim, as it was unclear what trademark Oculus was using in the first place (Moore, 2017). To hinder these types of situations, it is significant to claim trademarks in the VR entertainment industry.


Another concept related to trademark is a claim for false designation of origin of the product. Oculus had to pay $250 million because the company held itself out as the creator of the invention and did not attribute ownership to Zenimax (Moore, 2017). According to the U.S. patent law, the first person to apply for a patent has a monopoly on that invention for twenty years. Forbes mentioned that there will be endless disputes over whether a specific VR patent is being infringed by other VR technology, which will depend on how fast VR technology is evolving (Moore, 2017).

Under the U.S. Copyright act, anyone that creates an original work in a tangible medium is entitled to prevent anyone else form copying or using that work for 95 years or life plus 7 years (Moore, 2017). The copyright act also implies that if there is a similar invention which was independently created without the knowledge of the original work it will not be prevented. Oculus had to pay an additional $50 million to Zenimax for infringing copyright in its VR software (Moore, 2017).

If a user, and not the virtual reality company, inserts unauthorized copyrighted material into a metaverse, only that user should be liable for infringement and not the VR company (Moore, 2017). The companies providing VR are protected by the safe-harbor provisions of the Digital Millennium Copyright Act (DMCA) (Moore, 2017). Nevertheless, this act does not protect the companies from trademark claims, but rather from contributory infringement claims, in which the company is not aware of the conduct.

4: Proposal Budget & ProjectionsSales Projections The sales projection for this proposal is determined by future predictions on the virtual reality industry. Based on the suggested proposal, the focused revenue stream is the increased virtual reality ticket sales, through adding innovative features to existing resources. To find the predicted net sales, the method is based on data forecasts and customer demands, in consideration of a three-year time frame.

Figure 8 shows the total net sales from 2019 to 2021, measured through the unit price and unit volume. The unit cost section is empty due to no expenses for supplying the content to one customer alone, the service is a pay-per-event packaged cost for Live Nation. All the costs will be accounted for in the net profit based on sales and operation expenses.

The unit price in 2019 is based on Ticketmaster’s average price, which is set at $47.30 in 2018. Previous VR live event ticket sales charged customers approximately 10% of the actual event ticket (Keith Nelson Jr., 2017), therefore 10% of $47.30 results in $4.73 (rounded up to $5). The unit volume is the total annual amount of VR ticket sales, this is based on the estimated customer market size and the predicted VR concert attendance. In 2019, there will be a total of 17 million VR users (Roettgers, n.d.), of which 67% are forecasted to use this technology to attend live events, resulting in a total of 11.39 million ("VR Survey: More interest in travel, videos than gaming –," n.d.). Due to the lack of data, the proposal is considering that the 67% will attend the Live Nation VR events. The target market is willing


to spend around $300 annually on live entertainment, allowing them to spend this amount on a total of 60 VR concerts (Terdiman, 2015). The total ticket sale revenue results in $3.42 billion, due to the amount of customers attending a minimum of 60 concerts and pay $5 for each.

In year two the unit price is set at $10, due to the increase in demand and supply. In 2020 there will be a total of 82 million VR users, 28 million of that are predicted to engage with live VR streaming events ("Forecast augmented and virtual reality software users by segment 2020-2025 | Statistic," n.d.). By 2020, the target audience accounts for 63.5% of the population, on average the customers are said to spend around $400 for live entertainment, allowing the user to attend 40 VR concerts annually (Terdiman, 2015). Therefore, the unit volume is 1.12 billion with a unit price at $10, resulting in a total net sale of $11.2 billion in 2020.

The third year of the proposals operation is generating that largest net sales due to the inflammation of the virtual reality industry. By 2021 there will be a total of 75.5 million virtual reality users in the entertainment category alone ("VR Survey: More interest in travel, videos than gaming –," n.d.) . 58% of the total users are predicted to attend live streaming events, this accounts for a total population of 43.9 million ("VR Survey: More interest in travel, videos than gaming –," n.d.). The average targeted customer is willing to spend around $875 on innovative technology and live entertainment, which would equal to 35 VR concert attendances per person (Terdiman, 2015). The unit price in 2021 is $25, due to the growth in the VR market, ticketing sales, and the high demand of the service by consumers. Based on these statistics, the total net sale revenue compensates to $38.42 billion in 2021.

Project BudgetThe project budget based on the proposal, includes the expected costs of the first three years of implementation. The total expenses in the first-year entails marketing, legal, and operation costs. The marketing segment has a total liability of $444,210,000, this is based on the regular business revenue spending percentage of 13% ("How Much Should You Be Spending on Marketing?," n.d.). The legal expense encompasses the 40% Tax rate, artist contracts (including ticketing revenue percentage) and insurance, resulting in a total of $1,366,800,000. The last expense category is the operation costs, which incorporates VR equipment and installment in venues, as well as the software development. The proposal requests to apply at least two VR 360 cameras in each of the six venues by 2019. The operation of VR installment in a venue is approximately $200,000 per unit, generating an expense of $4,800,000 (Lang, 2014). The software development in the first year has the least liability of only $100,000, due to the existing resources. Overall, the total expense in the first year (2019) amounts to $ 2,670,160,000.

The second year of the proposal has increased expenses due to the expansion of asset distribution. The expense categories used in 2020 are the same as in 2019, involving marketing, legal, and operation costs. Based on the revenue generated in 2020, 13% is suggested for further marketing expenses, having a total expense of $1,456,000,000. The legal segment considers the 40% tax costs, artist contracts, and the expansion of insurance, due to the virtual reality implementation extension, accounting for $1,366,800,000. The operation costs are based on the additional 50 venue VR installments containing 200 cameras, resulting in $40,000,000. Software development has a consistent


expense, due to the existing resources and it being the least labor intensive. The total expense for the second year of operating equals to $8,776,100,000.

The third year of the operation of the proposal shows an increasing expense trend, due to the globalization of the project. In 2021, the project requires Live Nation to expand and develop the VR concept throughout all of their 214 venues. The categories that make up the total expense are marketing, legal, operation, and transportation/shipping. The marketing expenses. The marketing expense is 13% of the net sale revenue, resulting in $4,994,307,500. As this is the third year of operation, the project is going to be implemented in additional 158 venues, which will result in 25% of the revenue to be invested in legal sectors, this will add another $9,604,437,500 to the expense. The 40% tax cost is equal to $15,367,100,000. Operations include an additional 700 VR tools at a cost of $140,000,000, while software development is $50,000,000 due to the global extension. Last but not least, due to the worldwide venues, the VR equipment will have to be transported, which will result in an estimate cost of $1,000,000. In 2021, the total expense cost is set at $30,155,945,000.

Figure 8 in the appendices presents a graph with the overview of the projected finance situation through this proposal. Live Nation will generate a total net profit of around $747 million in the first year of operations, followed by $2.42 billion in 2020 and $8.26 billion by 2021.

5: Strategy ImplementationTimeline & Key Milestones Virtual reality camera installation and website development will begin January 15st, 2019, and the product will be set to launch on July 1st, 2019. The first step for implementing this proposal is to acquire all of the correct patents, copyrights, trademarks, the designation of origin, and any insurance required, as well as altering any already established contracts between Live Nation and any partners involved, as the next step is to initiate a collaboration with Wowza Streaming Cloud in order to utilize their streaming processor software. Experts in installation of 360 cameras may need to be hired through NextVR. NextVR and Ticketmaster’s website developers will need to apply any features regarding the proposal to their applications and websites, while in the meantime the marketing strategy will be executed up until the scheduled launch date.

Between January 15th, 2019, and July 1st, 2019, virtual reality equipment will only be installed in the 12 House of Blues venues owned by Live Nation across the United States. After a year of this product being on the market, we will then install the VR equipment into the remaining 44 venues Live Nation owns throughout the United States. Finally, year 3 will be completed with VR technology being placed in the remaining 158 Live Nation venues globally.

Pre-LaunchDuring the 6-month time frame of the pre-launch phase, we will start on January 15th, 2019, by obtaining all of the necessary legal documentation and insurance information, as well initiating the collaboration between Live Nation and Wowza Streaming Cloud. Estimating all the requirements to


move forward will be available by February 20th, we will begin installing the appropriate virtual reality equipment into the 12 House of Blues venues in the United States. During this time, NextVR and Ticketmaster will be updating their websites and applications to fit the need of the proposal. March 15th will begin the social media marketing campaign, with targeted ads being placed on Facebook and Instagram, as well as we will start the process for creating a “Coming Soon” themed TV commercial to promote the product.

May 1st will begin the set-up of VR demo kiosks on college campus’ surrounding the different House of Blues locations. Selected colleges include: California Institute of Technology, Berklee College of Music, Illinois Institute of Technology, Cleveland Institute of Music, The Art Institute of Dallas, University of Houston, University of Nevada Las Vegas, Coastal Carolina University, Louisiana State University, University of Central Florida, and University of California San Diego.

June 1st we will air the “Coming Soon” TV commercial campaign, and that will run until June 30th. June 1st will also be the beginning of creating a “Now Available” themed TV commercial. A face lense on Snapchat simulating the VR experience will be utilized from June 20th to June 30th to bring attention to the upcoming launch date.

July 1st is the official launch date of the featured service at all 12 House of Blues venues across America. During Live Nation events being produced in any of the 12 House of Blues, we will also have demo kiosks setup, similar to the ones for the college campus’, for any attendee to test out the product to incentivize a future purchase. On this date, we will also air the first “Now Available” TV commercial, and that will be on the air until July 31st.

Year 1Year one will begin on July 1st, 2019 with the launch of the VR technology in the 12 House of Blues venues. In January of 2020 we will begin surveying those who have used our product to gather information on the user experience, we will then make changes to the product accordingly. After gathering the necessary data, reviewing the customers feedback, and making all the essential improvements, we will then implement this product in the remaining 44 Live Nation venues in the United States starting in February, as well as continuing the social media marketing campaign with targeted ads on Facebook and Instagram. During this time, NextVR will be developing the interface for mixed reality (the combination of augmented and virtual reality) where the customer can create an animated avatar on their profile on the NextVR application, then they can connect with their Facebook friends who also have a NextVR avatar and interact with them at the concert via virtual reality.

Year 2Beginning on July 3rd, 2020, we will launch the final product of VR installation in the remaining 44 Live Nation venues across the United States, in addition to the 12 House of Blues venues. Accompanying this technological debut will be on-site activations at all Live Nation promoted events, highlighting the newest addition to Live Nations innovating culture.

We will continue to market this product throughout the year, using content created from year 1. While social media and demo kiosks will still be heavily used, our main marketing focus will be the 2021 Super Bowl, which will be hosted in Tampa Bay, FL, on February 7th, 2021. For the Super Bowl, starting in


August of 2020, we will create multiple different commercials to be aired throughout the game, promoting the product and displaying its use. In June of 2021 we will begin marketing this product on a global scale, as we prepare to launch it in all Live Nation venues worldwide. July 1st will start VR installation on a global level.

Year 3VR equipment will be installed in the remaining 158 venues worldwide, one country at a time starting in July of 2021. When one countries venues are complete we will start installation in the next, and so on and so forth. While the setup process is taking place, NextVR and Ticketmaster will be applying updates to their platforms to fit the needs of worldwide users. Our marketing strategy will also expand to a global scale, with more targeted social media ads and more diverse TV commercials. Also, in the cities where Live Nation venues are located, we will introduce projection mapping, where pre-recorded content showing use of the product will be portrayed on the side of buildings in highly populated areas. By July of 2022, installment of VR equipment in the remaining 158 venues will be complete.

6: Future PlansLong-term Opportunity & Development Plans

The virtual reality demand among innovative content creators has increased from $453.6 million in 2015 to $35 billion in 2021, representing a compound annual growth rate of 133% (Business Insider Intelligence, 2017). In 2025, 75% of VR consumers will use their device for the live event streaming feature, which is predicted to become a $4.1 billion industry ("Infographic—The Future of VR (virtual reality) by 2025 | Architosh," n.d.). The engineering industry is estimated to have $4.7 billion devoted to VR by 2025 (Business Insider Intelligence, 2017). Among the companies that have invested in this technology, 99% stated that the strategy plans are set to be flexible, while 51% haven’t developed a plan at all ("What is the Future of Augmented and Virtual Reality? | Jabil," n.d.). Virtual Reality has enormous potential and significant impact on a large scale of industries, engineers have been in high demand as companies want to own their own assets based on the technology to eliminate legal consequences.

While other companies are waiting to implement the technology, the proposal suggests that Live Nation should take a risk and turn it to an opportunity before VR becomes mainstream. The vision of the virtual reality enterprise is to create a convenient environment that allows the world to connect and adapt to a unique culture. The technology will innovate the entertainment industry, granting ascending creativity and productivity, generating endless opportunities within the corporation to deliver customers and clients with exclusive service.

Future virtual reality projects will focus on Live Nations client marketing, ticketing based on VR access area and using the technology within the corporation itself. Marketing with virtual reality content can be created by combining it with augmented reality. When the user is at a live VR event, anything from digital billboards to hologrammed banners will be available, the reason this is not a topic currently is the previously slow rate of development. The ticketing method of allowing a VR customer to have


options of prices, can be implemented after the first three years, causing higher usage rates and initially providing customers with a more personalized event. Last but not least, Live Nation should implement virtual reality for employees to create a sustainable workforce. Using the technology for events can support clear visions through visuals, reduces travel expenses and time consumption. Applying this technology in the right departments will turn challenges into opportunities.

7: Appendices and References

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AppendicesFigure 1: U.S. Virtual reality market growth by component

("Virtual Reality Market Size Growth & Analysis | VR Industry Report 2025," n.d.)

Figure 2: Financial results of Live Nation from 2013 to 2017

("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.)


Figure 3: Key Operating Metrics

("Live Nation Entertainment, Inc. - AnnualReports.com," n.d.)

Figure 4: Virtual Reality Revenue Growth Projection

(Roettgers, n.d.)


Figure 5: Competitive Analysis Chart

Figure 6: Organizational Chart based on Proposal


Figure 7: Comparison of customer benefits using VR for events

("Why Live VR will save Live Entertainment," 2017)

Figure 8: Projected Finance Overview based on Proposal

strategic business proposal -...

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