With festivals and events cancelling around the world, COVID19 is having a drastic effect on the stock market.
Coronavirus is effecting industries around the world, especially music. Musicians and performing artists around the world are seeing gigs and tours cancelled. Beyond that the industry are also being hit as Live Nation have revealed with plummeting share prices.
The entertainment company is affiliated with the promotion and ticketing of many of the world’s biggest events. With associated festivals like the UK’s Glastonbury announcing that they won’t be going ahead this year, Live Nation has seen a drastic effect on their shares.
On Wednesday they saw their share prices fall 31.9% in their first three hours of trading following the blows to major events. Thankfully by the end of the day they had slightly recovered and finished only 13.03% down following an aid package to US taxpayers boosted the market.
Since then the company has seen more recovery though it is clear that this is a shaky time for events companies worldwide. Live Nation told Variety: “Artists and fans will be eager to connect at concerts and festivals when the time is right, and as shows ramp back up our stock will follow.”
Their rep continued: “We’ve had nine consecutive years of growth, which speaks to the growing global demand for live events and our proven business model. Our steady success has set us up with a strong balance sheet and we are ready to adapt to do what’s right for our industry, employees, artists and communities during this time.”
Following Glastonbury festival’s announcement the Eurovision Song Contest announced their first cancellation in 64 years. It’s put pressures on the music industry around the world and is going to leave many artists in a sticky spot.
Some have begun initiatives that they hope will help artists, like Bandcamp who are today relinquishing their fees so artists keep 100% of their sales. We have to hope that governments also step up to perform self employed musicians who rely on touring and gigs for income.