The two largest live-entertainment and concert companies Live Nation and AEG will be suspending the rest of their tours due to the coronavirus outbreak. Several prominent music festivals such as SXSW and Coachella (which is run by AEG) have been postponed to a later date already or cancelled altogether, alongside prominent tours from artists such as Billie Eilish, The National, Pearl Jam and Green Day.
The two companies alongside CAA, WME, Paradigm and UTA have released a joint statement regarding the outbreak and the precautionary efforts they will be engaging in. These companies also formed a taskforce to discuss the best way to handle the epidemic, which consists of Michael Rapino the CEO and President, Live Nation Entertainment, Dan Beckerman the President and CEO of AEG, Jay Marciano the Chairman and CEO of AEG Presents, Rob Light the Managing Partner and Head of the Music Division of the CAA, Marc Geiger the Head of Music at WME, Sam Gores a chairman of Paradigm, Marty Diamond the Head of Global Music at Paradigm and David Zedeck the Global Head Of Music at UTA
“At this time, we collectively recommend large scale events through the end of March be postponed,” the statement reads. “We continue to support that small scale events follow guidance set by their local government officials. We feel fortunate to have the flexibility to reschedule concerts, festivals, and live events as needed, and look forward to connecting fans with all their favorite artists and live entertainment soon.”
The pandemic has already had major financial effects across the live entertainment industry, as Live Nation stocks reportedly dropped by 50 percent in the wake of the pandemic. SXSW has also suffered major losses, as they cut one third of their 175 employees after the event’s cancellation. The event is also in dire straits as their insurance will not cover the cancellation, leaving the company on the hook for possibly tens of millions of dollars, according to the Staesman.