Foundation. If you look at the plannic, the requirement, human rights, civil rights, every one of those organizations has been founded by and nurture by professional foundations. Not spin down foundations. Because if you look at what motivates a spin down Foundation People to give money to things its really an attempt to replicate in the Nonprofit Sector, the civic sector, what the achievement that they had in the for profit sector. So they are really looking for a big bang. The problem is you dont get a big bang fast. What we know about the spending of money in a short period of time didnt correlate to what you expect if you put a lot of money in action in work in the short run. Rose music and philanthropy when we continue. Rose funding for charlie rose has been provided by the following and by bloomberg, a provider of multimedia news and Information Services worldwide. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Rose Michael Rapino is here. He is the president and ceo of Live Nation Entertainment with over 80 million attemptedies around the world, live nation served more fans than the nba, nhl and nfl combined. They produced soldout tours from everyone from Bruce Springsteen to beyonce. They found success serving fans because he is a fan himself. Heres what bono says. See michael at a show and its clear what drives him youd think every gig is his first. Pleased to have Michael Rapino at this table for the first time. Welcome. Thank you. Rose congratulations. Thank you. Miles quote from bono. Rose very nice. In fact he sent me an email today saying, i was in for a treat is what he was basically saying. You love music. Yes. Rose where did that start. Just back to bono to tell you what an incredible man he is, we talked earlier. He faced time in the south of england as he was walking about the bbc to do a production for thnew record, he said i heard youre doing charlie rose and his words were charlie rose is like a smooth jazz musician. One of the best in the world. Youll have a great conversation. Thank you. That just says what he is. In between all of those promotions and building his record, he took that time. Hes incredible. Rose live music. Live music, you know. I got real lucky when i was young. Small town, canadian boy. Dont know why but early on i just felt this great love for live music. And there was a character in canada called michael cole the largest brewster in the world. I would read about him and in 1990 he stole the Rolling Stones from bill graham presents which was a legendary steal and became the first global promoter. Sitting in thunderbay reading the globe mail i just wanted to be michael cole, the idea of the man behind the concert was a real job and a sursuit. I was taken. Rose it was more than a business, it was a business that you loved. It was about something you loved. Two hours, rare in the music business. Most music executives are on the record side and they talk about their love for the record. I just love those two hours. I think those two hours of magic when youre back stage and watching the production of the you 2, jay sees or club show and watching it come alive. At the thunderbay i took a 16 hour drive to toronto to see my first big show, robert plant. It touched me really. My passion was just this two hours was magic and then from there i was going to figure out how does one become the business of lives and that was my pursuit from 20 years. Rose and music today is king. Who would have thought. Today were celebrating live nation. We went public 1 years ago. Nobody cared about us 12 years ago. For 30 years, the business was about the record. And snapster and streaming and cds and consumption around the record business and news media. Promotion was you toured to sel records. Then napster came along and digital down load and all of a sudden you started to tour to make money. Rose thats the principal Revenue Source for most artists. For young artists. When youre starting out youre going to make 90 of the money youll make in a year comes from the road. Is road now is not only the best way to connect to fans and those imaginal moments, its paying bills. So the art now, the stream and what you create is magic but the road is where youre going to pay the bills. Rose you said an interesting thing. Is there going to be enough acts for you to put on the road michael. And you said as long as they have to put food on the table theyll be touring. Its a win all around. Because the other thing that has been, if you look at technology and what its done to Entertainment Media companies, really live concerts is the only art form where Technology Enhanced it. It didnt disrupt it. Why . Rose made music better. Made the sound better. Also its not duplicatable. You will not watch u2 at home on your tv and still get those goose bums and Magic Moments with your son or daughter. Rose its a spectacular moment. You see the artist coming out right over you thinking of u2. Its also when you go and people talk about their kodak moments in life, you remember bringing that girl to the first show. You brought your son to see acdc. You brought your wife or your date to beyonce show. The average customer with two shows a year, they are Magic Moments to them. They save, they plan and those are those moments where they will put them in their memory bank. They cant watch that on a dvd at home or streamed on youtube. Its where you go experience it and it comes to life. Rose what are the biggest acts, beyonce has the biggest tour last year. Yes, beyonce is just phenomenal on her own. Grossing tour of the year. T old play right behind them. Rose do they do about the same number of concerts. Yes. Theres been a really big surge in stadium tours. Rose i know. In 2018, its all stadium tours. Five years ago again people would have said oh wheres the next u2, who is going to be the next Rolling Stones. You have taylor swift announcing her stadium tour. You have luke Bryan Country stars doing stadium tours this year. You have guns and roses and a reunion was magnificent. Overall hiphop urban music is on fire. Law mars, jayz, that is the new rock and roll for a new 19 year old so that is just selling out everywhere around the world. Country. Rose electronic dance music. Theres electronic. Rose is it coming up . I would say its kind of, it had a moment. I think its on a pause. I think it was fueling a lot of the festival business. We have some of the wildest successful ones, electronic music ensome fact electric daisy 400,000 people go to it. Ros what happens in the festival. What is that. A festival which is really a european phenomena for years. In america, you went to the hockey rink or square gardens to see your show. In europe you got to remember they only had football stadiums. They dont have hawksy and basketball arenas. You were a promoter, you created tea in the park in ireland or scottland. This was really the way artists tudor in europe for years is a festival. And then they came to america and they played Madison Square gardens. And over the last ten years ago, give a fellow from california paul in cochessa. Some of these big festivals started to con to market. They are phenomenal. Everything you love about those two hours of magic when youre 21 years old. Now im going to give you 72 hours of that. 72 hours of the great music. Rose are you on the road trying to see the tours live nation is handling. Yes. Rose you go to see the concert. The thing that im the most proud about, 20,000 employees in 40 countries. When we started, we did a few shows. So we i think have the greatest collection of creators, producers and promoters in the world who are very talented staff. And i think the dna of where we came from and where i came from is we believe we work for the artist. Its very different than maybe the record labels and others. So you got to shop. You got to show up on a tuesday night in pittsburgh and see drake. Rose and be there for the artist. Exactly. Its a local business, you know. Its a global in terms of phenomenal. Youve got to be in pittsburgh. This week drake is playing new zealand and australia. Our office is there taking care of them. Were doing, the are staggering. I just like sawing them because a kid from thunder bay when we started this business with such small scale a lot of nation will be Something Like 105 shows a day. Rose 105 shows taking place. Taking place. Im always planning when im traveling where i can stop and see a show, a festival, an artist. Rose what does live nation do are for the artist . The fundamental, an artist, when they go on the road is always going to be, always going to look for a Risk Reduction strategy and the artist is going to say who is going to take the risk when i go on the road for the year. Sofor over time theyve always looked to promoters have been the bank. When live nation started consolidating all of these local businesses and turned it into what we call this Global Business now, the local promoter now became the global promoter. So for the u2s of the world, they mighte used all small promoters historically one by one. Today when you were dealing with a band like u2, wire able to say we can take all hundred of your global days, we can do a global deal for you. Not only could we excuse for anyone else, not only can we pay you better than anyone else from a very secure state but weve got all of these resources to help price it better. Sell more tickets, drive sponsorship, understand the data behind the customer, package the record if you want, help you drive sponsor activation. Really become a full Service Platform that says when you go on the road, now you need the intel intelligence and you need the sponsor to make that come to life. We want to sell every ticket for you we want to make the pot as big as you can. 0 of artists dont sell out. So u2 and beyonce a real sale job for us. Our job 300 days a year is to get those tickets sold at jones beach on a tuesday. Using our Digital Marketing team, our sponsorship and our huge platform. How do we brate it better to the back end of the house so it does sell out in a wednesday in indianapolis. Its really become rose is it also reason the Rolling Stones and Paul Mccartney and others can play well into their 7 0s . They have an audience well into their 70s. I think you look at first of all the business is global now. Thats a real big change. When youre Paul Mccartney, springsteen, anybody now. For 30, 40 years your touring decision was i play america, i play western europe. Thats where the money was. That could support your production and your costs. Today youre making up and youre looking at, i can go to south america, cold play just got off the phone with the manager earlier today. Hes playing all throughout south america. U2 went from columbia to convenient way law. So now you got ten dates in south america, ten dates in asia, ten dates in australia. The can values now is so wide for these artists, the demand is so incredible. Paul mccartneys and etcetera, the demand is far outceding your capacity to ev play. So until you want to hang up that guitar, theres a stadium or arena somewhere in the world who wants you to perform and you havent been to half of these places. Rose how long is a tour. Traditional tour, when an artist is on a cycle, they come and say were going to do a hundred dates. Where should i go. Where is the most efficient economic way. Well take a couple weeks, give them a global map if we do 30 days in america these are the cities, 10 canada, take a month ship your production to europe, root them around the world and after those hundred dates. Were starting at the beginning talking about where is their fan based looking at all our purchase data we have historically. Pricing data. Its become a real science now how do we most efficiently get you on the road. Best cities to play. How do you price the house. And when youre finished how much of the pod is going to coe home. Rose who does well on grammies and who does well on tours or people just do good on tours and whether they have a record and going to win a grammy is another matter. There used to be a better correlation. Its changed over the years. In you look at now who is on the road. Again, most of these artists on the road may not have singles, may not be top ten hits. Urban hiphop pop music which is always going to be top of the charts doesnt mean youre rose mop pop is going to be at the top. Hiphop is coming up. Rose is it exceeding it, about to, seed do you think. I think its about to exceed if it hasnt exceeded yet technically on a global basis. Drake biggest stars in the world now. Any one of those three now. I think drake is the number one streamed artist in the world. Right up there with this week taylor swifts got a new album, she may top it for a day. Theres a complete surge on urban hiphop music thats come to the top. And translated to touring. But you look at the tour now, you look at a typical Madison Square garden 12 month calendar jones beach, youre going to have half of thats going to be, lets call them legendary, iconic artists. Havent had a single in a long time. Rose james taylor. James taylor. Bunch of great artists. Hall and oaths. Del leopard. And performers get out there. Why do we go live . We get to relive with that community. That tribe. We get to talk about 76. Rose how about country music. Country music, in america its on fire. Rose is it gaining an International Audience or slow. Slow. And its, you know id like to tell you i know why but it is an exception. It really has replaced rock in many ways. Country has become the storytelling music that rock used to be. You go to a look brain or Kenny Chesney or jason neldine show its a rock show of the past. The challenge with those artists look bryan can sell out 60 stadiums in america. If you bring them over to london you might be playing a theatre or small arena. So it hasnt tranlated yet outside rose you say yet. You think it might be i think it has become lets call it closer to mainstream i think it now has a chance to truly become the next kind of rock music for the international listener. Rose when you think about live nation, do you think beyond the business youre in in terms of concerts which has been your life blood. Does it make sense for you to represent artists . Well again, its something im proud about. If you had said to us 12 years ago when we started live nation that we would one tee have an Artist Management division. I would have said thats very unique. Nagement company in the world. T we have an Artist Management division of over 300 artists that we manage over 90 artist managers in a division called artist nation. And again im very proud of that decision. Why . Because the dna of live nation that wakes up and says we work for the artist. So think about it. Tist, im going to do a dealis with live nation. And that artist is going to say but isnt it the guy that writes the check for the tour. Is that a conflict or is that good for us . And that idea that that manager, you might not get the bestdeal. But that manager when we sit down and i explain to him thousand we can help him grow his management business. Help the manager do a better job for him. Ultimately that artist got to do the right thing for his business live. Now hopefully live nations the right answer and were going to fight hard to tbeft that. But if its a competitor well do that also. And that trust that these artists now in this division, we started this artist Nation Division with probably the two artist mentors in my life has been bono and jayz. We started rock nation ten years going and watching that grow. Rose why is jayz so entrepreneurial. I always got this question about what mentors you have in the world of business. And i always remind them that you like at these artists. They are the greatists ceos you ever met. You look at mick jagger and the Rolling Stones one of the greatest brands in history. Its the Rolling Stones lips that sells a billion dollars in ms. Rose did their streaming service work well. I think he did what i think was a revolutionary idea that the artist would kind of form that relationship. I think they realize thats an arms race when youre fighting the big boys. Its not easy. But again i think in any business pulled a left turn and found sprint. In many ways i think again he swung. May not have come out the other end on title but overall if you look at the rock nation jayz empire, hes an entrepreneur, taken many swings, his clothing line, his vodka. He called me one day and said i want to be in the sports business. Rose just like that. Geez, a lot of big boys. Next thing i know hes signing kevin durant. Now we have an incredible sports agency. Hes a rare exception, and truly one, and he delivers what he says hes going to deliver which is a great trade of a ceo. Rose if you do music, could you do sports . You know, again, we dabbled in sports. Other than with jayz, i would say that most of the sports relationships we have is on the ticket master side we own. We just renewed our nfl deal and nba. Most of the dealings are with the owners and the buildings and msg. But you know, the irony is what is every billionaire that owns a sports team and venue want is to sit down with us and talk about can we get ten more shows in my venue. Rose we have these three dates. What can you fill up the crowd with. Exactly. We always say to an owner you probably got your hockey dates and basketball dates and im going to bring you 60 dates. Lets talk about how that can work together. We always believed the 29,000 shows were going to do this year. The more shows we do, the more relationships well have with the sports owners about putting it in their venues. But well kind of stay in the content live business for now. Rose what business, okay. You may have answered that. When you, where will live nation be ten years from now other than bigger. Other than bigger. I think the int