Live music stocks weather market turmoil

Live music stocks are riding the waves of the worldwide market as the fallout from Donald Trump’s sweeping tariffs continues. And in comparison to many other industries, the business is holding its own.

The week’s first few moments of trading saw the S&P 500 fall 3.4%, the Dow Jones drop 3.1% and the Nasdaq dip 4.1%, only for all three indexes to later rally more than 5% in minutes – apparently sparked by now debunked rumours that the US president was considering a 90-day pause on the tariffs.

Live Nation’s share price was reflective of the swings, fluctuating between $113.81 and $123.48, but was down less than 1% at press time. The company’s stock has dropped around 8% in the last five days, outperforming the market’s near 10%.

Shares in streaming service Spotify were up 3% to $517.26 (-6%), and Madison Square Garden Entertainment was fairly flat at $29.54 (down close to 10% in the last five days). Sphere Entertainment was down 1% to $26.35 (-20% in five days), amid concerns over spending levels in Las Vegas – casino and resorts company Las Vegas Sands also slipped almost 5% today and nearly 18% over five days.

Frankfurt Stock Exchange-listed CTS Eventim stock slipped 1% to €88.90 (-5%), but outperformed the MDAX stock index, which fell 3% and 11%, respectively.

Elsewhere in Europe, the FTSE 100 index decreased 4.4% for the day and France’s Cac 40 tumbled 4.7%.

In addition, MENA streaming service Anghami, which owns Dubai-based event management company Spotlight Events, slipped 6% (-20%).

By comparison to US and European stocks, shares in K-pop companies have proved more resilient. SM Entertainment has climbed more than 2% in the last five days but is down 5% today in line with the Korean stock market. Similarly, Korea’s JYP Entertainment was marginally up in the past five days but down close to 6% today, while HYBE declined almost 6% today and 2% in the last five days.

The turbulence follows American president Donald Trump’s 2 April announcement of a “baseline” 10% tariff on all imports into the US, which have prompted fears of a global trade war. The EU faces a 20% tariff, with higher rates of up to 50% to be imposed on dozens of other countries. The president has also threatened China with an extra 50% levy if it does not drop its 34% retaliatory tariffs.

IQ spoke to a number of touring figures last week about the likely impact of the tariffs for the business, with a common concern being the prospect of higher ticket prices and a reduction in disposable income for consumers. There were also fears of a decline in international touring.

And despite the received wisdom suggesting that live entertainment is recession-proof, economist Chris Carey of Media Insight Consulting believes that is no longer the case.

“The old assumption that live music market at large will see any sort of a boost from an economic downturn is likely to be obsolete in 2025”

“Historically, live music has proven itself recession-proof, demonstrated in Will Page’s 2008 paper Recession and Royalties,” he tells IQ. “In those times it played the role of an affordable luxury and a suitable substitute for larger spend, like a holiday. However, the likelihood is that times have changed.

“When you consider the pricing at the top end of the live music market now it means that the biggest live music tickets have actually moved into that luxury category, so won’t feel the boost of displaced spend. And it’s not just the ticket cost, but the cost of the whole event that exaggerates the impact. Leaving the house to enjoy live music – travel, drinks, dinner and tickets, maybe a babysitter – is so much more expensive than streaming from the sofa.”

He continues: “Importantly, that isn’t to say that demand for these exceptional moments won’t be met – unmissable talent remains rare, oversubscribed and unmissable – but the old assumption that live music market at large will see any sort of a boost from an economic downturn is likely to be obsolete in 2025.”

Ticketing expert Tim Chambers agrees there are no guarantees and discusses the knock-on effects for the business.

“From an event production perspective, if retaliatory tariffs are introduced, then artists could expect higher shipping/customs fees, increased visa and performance tax issues, restriction on cross-border collaborations,” he contends.

“Also, merchandise is typically mass produced in the Far East or South America and could also be impacted, and in the medium-term instrument costs could increase due to the global supply chain of components.”

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