Live Music Industry in 2025: What Should We Expect?

Before we dive into 2025, let’s take a moment to reflect on the previous year. Just a few weeks ago, Live Nation Entertainment, the US-American ticketing company, released its annual performance review. The summary? 2024 “was live music’s biggest year yet, as artists toured the world and fans turned out in record numbers”.’ According to Live Nation, of course.

The report showed several record-setting achievements. Around 151 million people worldwide attended nearly 550,00 Live Nation events, which marked a 4% year-over-year (YoY) increase. Financially, Q4 2024 saw a 3% YoY increase in revenue to $23 billion, an operating income of $825 million, and an adjusted operating cash flow of over $2.15 billion. Adjusted operating income for concerts was also at an all-time high, up by 65% to 530 million with margins of 2.8%.

Do these numbers suggest that the live music industry was booming last year? Well, yes and no. Live Nation’s review only showed one side of the coin. While the ticketing company was thriving, the independent music scene faced significant challenges. Rising costs and intense competition from mega-tours and large-scale events made survival difficult for smaller players in the business, including artists, venues, promoters, and festivals.

In fact, ever since the Covid-19 Pandemic, navigating the live music landscape has been especially tough for independents. There are many reasons for that. For one, inflation has driven up the costs of touring essentials like gas, tour buses, hotels, and flights. Supply chain issues also caused shortages in stage equipment and instruments, inflating demand and expenses.

Additionally, shifts in consumer behavior posed further challenges. Factors like the “Netflix effect,” where audiences prefer staying home, along with the shift to remote work and budget constraints, have reduced spontaneous spending on live shows. “People will pool their resources to go out to a big show they want to go to, whereas before they may have stopped somewhere on the way home from work to get something to eat and see live music,” said Holly Hagermann, co-founder of Amptup, a live music booking platform.

Well, and then there is Live Nation with Ticketmaster and other subsidiaries, whose business practices have impacted the independent scene significantly. And not in a positive way. Over the years, Live Nation Entertainment has faced considerable accusations of unlawful practices, including impromptu dynamic pricing, hidden fees, mishandling ticket sales for highly popular events, negligence leading to injuries and deaths at their events, and anti-competitive behaviour. Critics across the industry have raised concerns that the company operates as an “unchecked monopoly.”

Just for reference, according to its annual report, Live Nation has controlling interests in 338 venues worldwide. Meanwhile, Yale University indicates that Ticketmaster alone has controlled over 70% of the ticketing market and more than 80% of live concerts since 1995.

Its monopolistic practices and possible antitrust violations have led to several legal disputes brought against the ticketing company. Most notably, in May 2024, the U.S. Department of Justice, together with thirty-nine states and Washington, D.C, filed an antitrust lawsuit against Live Nation, calling for the sale of Ticketmaster.

Independent music representatives from major music US cities have highlighted specific unfair and unethical practices that have harmed local scenes, including:

• Purchasing and closing competing venues.

• Subdividing their larger venues to book smaller capacity shows that would otherwise have gone to smaller independent spaces.

• Pressuring local venues to exclusively use Ticketmaster’s software platform for their events to continue booking Live Nation shows.

• Forcing artists to sign proximity and exclusivity agreements, limiting where and how often they can perform.

• Offering local promoters and indie artists to use the Live Nation spaces, but at above-market inflated prices.

These tactics strengthen Live Nation’s monetary situation and control over the global music ecosystem, limiting opportunities for independent artists and venues, while aggravating the persistent financial and logistical challenges.

Beyond financial concerns, many industry insiders worry about the long-term impact on artist development. Small and independent venues have traditionally served as breeding places for emerging talent. “Without smaller spaces for artists to grow, what does that mean for the future sustainability of the industry?,” asked Jim Lucchese, CEO of Sofar Sounds, a company known for hosting intimate, secret gigs in unique places. Sofar Sounds has hosted more than 100 Grammy nominees early in their career, including Billie Eilish and her brother FINNEAS, as well as Boygenius members Lucy Dacus and Julien Baker.

Now that we have gained insight into 2024’s live music industry and the challenges independent artists have faced over the past few years, let’s explore the outlook for this year.

In recent years, ticket pricing has become a hot topic of discussion, with terms like “dynamic pricing” and “effective pricing” dominating the discourse. Many industry experts believe this trend will persist, as the days of simple ticketing structures—with just one price for seating and another for standing, or a front-versus-back model—are long gone. Today, pricing strategies are increasingly driven by data analysis, algorithmic pricing, economic modelling, and artificial intelligence.

Dynamic and effective pricing, as well as hybrid approaches, are likely to remain central to the industry. Live Nation, which we’ve already talked about plenty and will talk some more, has been frequently associated with dynamic pricing, and unless their methods are deemed unlawful, the company is expected to continue using this strategy, particularly in the USA. As a consequence, this practice, which adjusts ticket prices based on real-time demand, will keep shooting up prices for major music events, where market demand fluctuates significantly.

On the other hand, effective pricing appears to be the go-to strategy for labels, agencies, and smaller promoters. Kirk Sommer, senior partner and global co-head of music at WME—representing artists like Hozier and Adele—describes the method as “creating enough entry points so that fans at every socioeconomic level can find a way to participate.”

For that reason, a ticket sale implementing effective pricing often includes a wide range of pricing tiers, such as multiple VIP packages, as seen during Adele’s exclusive performances in Munich last summer. While intended to offer variability and accessibility, this approach has also contributed to rising ticket costs. According to Billboard Boxscore, the average ticket price for the top 100 tours of 2024 increased more than 20% compared to 2022. Whether the current pricing structure, including the least expensive and least desirable seats—from a visibility and proximity-to-stage standpoint—truly reflects the financial realities of many fans remains an open question.

Something that concert industry insiders believe may benefit customers moving forward is the implementation of new regulations banning drip-pricing. These rules legally force businesses to display “all mandatory fees or charges” upfront in advertised prices, providing more transparency. While the regulations don’t standardize ticket prices or limit the fees companies can impose, they are expected to make it easier for fans to compare prices across different platforms and potentially save money.

Rising ticket prices, along with shifts in listener behavior, are reshaping the way people approach live performances. Concerts, once a relatively routine entertainment expense, are increasingly considered a luxury. For that reason, many music fans have become more selective about where they spend their money.

However, the past two years—dominated by blockbuster tours—have also demonstrated that audiences are still willing to spend money on live music, provided it offers unique value. Taylor Swift’s Eras Tour took the world by storm and became a cultural phenomenon, spanning 149 concerts in 2023 and 2024. Beyond its musical appeal, the tour fostered a sense of community and inclusivity, making the experience as valuable as the performance itself. Countless articles were reporting about the unprecedented demand for tickets and the astonishing amounts of money people were willing to spend, whether through official ticketing platforms or resellers. According to the New York Times (NYT), the average ticket price for the Eras Tour in 2023 was $1088. This reinforced the idea that fans are eager to pay for moments that feel special.

Swift’s tour reignited stadium tours with never-before-seen scale and grandeur, demonstrating that music fans—particularly Gen Z, according to the NYT—still crave the energy of live events, regardless of their economic circumstances. And this trend is expected to continue in 2025. Artists who can craft meaningful, immersive live experiences will likely see strong support from their fans.

That said, industry insiders suggest that impactful live music doesn’t have to come in the form of 3-hour-long stadium spectacles, accompanied by elaborate choreographies, and beaming lights. Smaller-scale performances—such as album listening parties or concerts in unique locations—can also offer memorable, exclusive-like experiences that keep live music relevant and valuable.

The rise of massive global tours and grandiose stadium shows is undeniable. Swift’s Eras Tour redefined the scale of what a world tour can be, inspiring a whole new generation of musicians to attempt similarly ambitious productions.

An agent from a prominent music agency has reportedly noted that “any given year we might have 2 to 3 stadium tours. This year [2024] we had 18.” Predictions for 2025 suggest similar or even a higher number, considering ongoing and newly announced tours.

According to Steve Davidson, chief operating officer at the Sunderland AFC stadium, which has hosted concerts by Beyoncé, Pink and others, a key driver behind these large-scale events is the financial incentive. “The cost of putting on these big worldwide tours is enormous, so they [artists] have to sell out bigger venues in order to make it pay,” he explained. Stadium tours also offer a more efficient touring schedule, allowing artists to play fewer cities and venues while maximizing revenue—provided the tour is a success.

However, Liam Boylan, Wembley’s stadium director, highlights the risks involved. “There's a lot of pressure. It's a big gamble for promoters because everything's bigger: More trucks, more crew, more equipment. Promoters will say 'I'm going to guarantee you so much money', but if a show doesn't sell, they're liable,” he told BBC.

Risks or not, stadium tours and massive music performances show no sign of slowing down. As long as fans continue coming to these shows, paying staggering ticket prices and covering ever-increasing production costs, major artists have little reason to abandon the trend.

That said, this direction further deepens the gap between mainstream stars and independent artists, who often lack the resources to put on such large productions. Yet, as we emphasized earlier, a show’s impact and value aren’t necessarily determined by size. In fact, not all music fans enjoy big stadium concerts. Many prefer the intimacy, comfort, and sound quality of smaller venues, where tickets are easier to secure, and hour-long entry lines are rarely an issue.

Technological advancements have significantly reshaped the live music landscape, and the rise of live-streaming—accelerated by the COVID-19 pandemic—has been a clear testament to this shift. Not only has technological innovation provided digital alternatives to in-person concerts when physical gatherings were impossible, but it has also introduced new, interactive ways for fans to engage with live music, opening an entirely new creative space for artists to explore.

Immersive experiences, such as augmented reality (AR) and virtual reality (VR), have been enhancing audience engagement, offering unique and dynamic concert experiences. A prime example of this is the video game Fortnite, which has hosted live virtual events since 2018, featuring commercially-prominent artists like Marshmello, Karol G, Diplo, and Eminem.

Beyond innovation and fortified audience engagement, virtual concerts have also removed traditional barriers that once kept or limited some fans from participating in live music events. Regardless of geographical distance from a concert venue, mobility challenges, or personal preference for at-home concert viewing, fans now have more opportunities to experience live music on their own terms.

For those reasons, looking ahead to 2025, live-streaming and virtual concerts are expected to grow even further. Artists will be able to connect with audiences in new ways, expand their reach beyond geographical limitations, experiment with performing styles, and explore new monetization opportunities. This trend isn’t limited to mainstream artists—indie musicians are also exploring various virtual concert platforms and venues, designed to mimic the atmosphere and vibes of live spaces while leveraging digital and technological capabilities.

We’re circling back to where we started—to Live Nation and Ticketmaster. After a strong performance in 2024, the ticketing company is not shy about their prospects for this year. “2025 is shaping up to be even bigger, thanks to a deep global concert pipeline, with more stadium shows on the books than ever before,” said Michael Rapino, Live Nation’s CEO.

However, one topic the company has been less vocal about is the ongoing antitrust lawsuit filed by the Department of Justice (DOJ), which we’ve previously covered. While the trial is anticipated to begin in early 2026—though no date has been set yet—the chances are some developments in the case could already emerge this year. Live Nation’s executives have previously expressed hope for a shift in the federal administration’s approach to antitrust action, optimistic that a resolution with the DOJ could be reached without going to trial.

For now, though, the DOJ shows no sign of having a change of hearts. In January 2025, Live Nation petitioned a federal judge to exclude 27 states from participating as plaintiffs in the antitrust lawsuit, arguing that they lack the standing to seek damages for residents. Nevertheless, despite the company’s effort to reshape and influence the case in its favor, it hasn’t reached much success on that front.

What’s more, Live Nation is simultaneously facing a consumer lawsuit, accusing the enterprise and its subsidiary, Ticketmaster, of artificially inflating ticket prices. The company requested a district court to delay the proposed class action to focus solely on the government’s lawsuit, but the judge denied the request.

With these legal challenges looming, it’s safe to say that Live Nation’s path to another record-breaking year may not be without any bumps on the road. If the DOJ wins the antitrust lawsuit, proving that Live Nation Entertainment holds a monopoly in the live events sector, the company could be forced to sell Ticketmaster. This is a scenario that presents rather negative prospects for the future. However, with no final decision expected anytime soon, the battle is far from over.