With the strengthening of Live Nation Entertainment, concentration in the Colombian entertainment industry grows

Live Nation Entertainment has been in the news in recent weeks. This live entertainment giant entered the entertainment industry in Colombia, after the music segment faced serious difficulties following the confinements decreed in the wake of the Covid-19 pandemic.

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Indeed, the containment measures led it to reduce its infrastructure and migrate its operations to digital technologies.

Surprisingly, three years later, live entertainment was the third industry that moved the Colombian economy the most, according to reports of the National Administrative Department of Statistics (DANE) of 2022.

Against this backdrop, the sale of 51% of the company Páramo Presenta to the U.S. multinational Live Nation Entertainment may make sense to some and surprise others. This was the process of the sale.

The concentration of the Colombian entertainment industry increases after the sale of 51% of Páramo Presenta to Live Nation Entertainment.

In a strategic move, music promoter Live Nation Entertainment has recently acquired a majority stake in Páramo Presenta, the leading live events company in Colombia. With this, it moves forward in the concentration of the entertainment industry in Colombia.

Among the most important events that Live Nation Entertainment will control are the metal festival Knotfest Colombia, the Baum Festival of electronic music and the Estéreo Picnic Festival. The latter hosted close to 173,000 people in 2023 and is one of the largest music events held in the country.

The acquisition of Paramo Presenta was carried out through Ocesa, one of the largest promoters of live events in Latin America, of which Live Nation has been a majority shareholder since 2012.

Although the value of the transaction has been kept under wraps, the partnership is expected to further boost Live Nation Entertainment’s presence in Latin America.

Páramo Presenta is known for being one of the leading concert promoters in our country and has been a relevant player in the Colombian entertainment industry for many years. Its experience and wide network of contacts have contributed to the success of numerous musical and cultural events in the region.

With the acquisition of this majority stake, Live Nation strengthens its presence in the South American market, which by 2019 represented 20% of the live music market in the world, and consolidates its position as one of the leading global entertainment companies.

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The size of Live Nation Entertainment

Live Nation Entertainment’s acquisition of Paramo Presenta is not surprising considering the size and influence the company has achieved over the years. Add to this the challenges faced by the entertainment industry in Colombia in the year of the pandemic and the lags it left behind.

Live Nation, based in the United States, is recognized as the world’s largest promoter of concerts and live events. In 2022, the company’s revenues amounted to USD $16.68 billion.

In addition, the company has experienced significant growth in recent years, driven by its focus on diversification and global expansion. In 2010 Live Nation and Ticketmaster merged to form Live Nation Entertainment.

In Latin America, the company began its expansion process since 2018, when it became the majority shareholder of the Brazilian Rock in Rio festival. In 2021, it acquired a majority stake in Ocesa, the largest music promoter in Mexico, which also has operations in Colombia, and through which it closed the purchase of Paramo Presenta.

In addition to organizing concerts and events, Live Nation also has a presence in other fields of entertainment such as artist management, festival production and ticket sales through its Ticketmaster platform.

This vertical integration has allowed Live Nation to consolidate its position in the industry and reach a net worth of USD $23.05 billion in July 2023.

The concentration of the entertainment industry in Colombia

Live Nation Entertainment’s acquisition of Páramo Presenta highlights the increasing concentration that is taking place in the Colombian entertainment industry.

In recent years, there has been a trend towards consolidation of larger companies in the cultural sector, which has led to fewer independent players in the market.

While consolidation can bring benefits in terms of efficiency and global reach, it also raises concerns about fair competition and cultural diversity because it leads to the formation of monopolies.

In turn, these can limit the variety of options available to consumers and make it difficult for emerging artists and independent promoters to access international stages.

In light of this, some argue that it is essential to establish regulations and promote competition in the entertainment industry to ensure diversity and long-term sustainability.

They also assert that spaces and opportunities should be created to support independent artists and promoters, thus fostering a vibrant and constantly evolving cultural ecosystem.

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