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|LYV||LIVE NATION ENTERTAINMENT INC.||81.39||-2.74||-3.26%|
The refund plan update along with a recent investment from the Saudi Public Investment Fund that’s equivalent to a 5.7 percent stake in the concert promoter was enough to make Live Nation’s stock jump 9 percent Monday, according to FOX Business’ Liz Claman.
In an interview with Live Nation President Joe Berchtold, Claman got the inside scoop on why the company has implemented a refund plan for customers.
“We understand the challenges that everyone is going through right now, we don’t want tickets to be a part of that challenge,” Berchtold explained. “We’ve had over 50,000 shows globally impacted. It’s more than we’ve had in the last 10 years combined – in one month. So, we’ve had to just go through the process and show-by-show.”
As to why it takes time for refunds to make it to customers who purchased tickets from Live Nation or its subsidiary Ticketmaster, the answer is simple.
“Ticketmaster is a platform. So, it had to go get cash back from the venues where it turned that money over to,” Berchtold stated. “Thus far, we already refunded over 30,000 shows, returned over $400 million to fans and what we wanted to do is come out with a very specific plan that we were clear.”
Live shows that are canceled will result in an automatic refund. Shows that are postponed will provide customers an open window for an optional refund.
“The reality is that 97 percent of the fans that bought tickets to the show, right now globally, are keeping those tickets. They want to go to the concert,” Berchtold added. “Another big demonstration of the fan demand there continues to be for our shows. We want people to have the choice.”