First, if you’re looking for some clever graphics illustrating the scale of plastic bottle waste, Visual Capitalist has obliged.

Bloomberg – Concerts Are More Expensive Than Ever, and Fans Keep Paying Up – Lucas Shaw 9/9/19

It’s not your imagination: Concert ticket prices are going through the roof.

And not just for the super wealthy who pay thousands of dollars to see the best acts from the front row. Fans of all types are paying more to see their favorite musicians.

The average price of a ticket to the 100 most popular tours in North America has almost quadrupled over the past two decades, from $25.81 in 1996 to $91.86 through the first half of this year, according to researcher Pollstar. Along with pro sports and Broadway shows, concert prices have far outpaced inflation.

Some of that increase was out of necessity. As piracy eroded music sales, artists began to lean heavily on concerts. Stars like Beyonce and Taylor Swift can make more in a couple nights onstage than they can from a year of album sales. But something else was going on, too. Ticket sellers like Ticketmaster and AEG’s AXS began adopting technology that showed fans would pay almost any price for their favorite acts, especially stars who only come around every few years.

“We all undervalued tickets for many, many years,” said Joe Killian, who runs a media consulting firm and founded a concert series in New York’s Central Park.

Higher prices have been good for the concert business. The live-music industry surpassed $8 billion in revenue in 2017, and is on pace for another record in 2019. Live Nation Entertainment Inc., which owns Ticketmaster, touts its ability to charge higher prices.

It’s not just tickets, either. Music fans also face skyrocketing prices for food, beverages and merchandise. The average fan spent $20 at events in 2016 staged by Live Nation, the world’s largest promoter. This year, that figure is expected to reach $29, an increase of almost 50%.

If artists’ growing reliance on live music has led to any guilt about appearing greedy, the rise of ticket resale sites like StubHub took care of that. For years, entertainers watched as scalpers vacuumed up tickets and resold them for far more on such exchanges. Agents took this as proof that tickets were underpriced — and their artists underpaid.

Ticketmaster and others have since developed the ability to change pricing at any moment, enabling artists to charge more upfront and keep more of the dollars that went to scalpers. They can also reduce prices closer to show time if tickets aren’t selling, or create special windows for true fans.

Not every artist has embraced the new philosophy. Ed Sheeran booked the highest-grossing tour of all time while charging less than $100 a ticket, making him one of the cheapest of the top tours. He is adamant that his show be affordable to all his fans.

Hope that you all had a nice 4th of July.

Worthy Insights / Opinion Pieces / Advice

Economist – At any given time in their lives, people have two dozen regular haunts 6/28

Economist – America Inc and the rage against Beijing – Schumpeter 6/28

FT – Lex in depth: Why WeWork does not deserve a $20bn price tag – Elaine Moore and Eric Platt 7/2

“WeWork’s steep valuation depends on a blinkered faith in its originality despite a crowded market of competitors. If the company’s equity value was based on the same multiple of sales as flexible workspace peer IWG (formerly Regus) it would be worth less than $3bn.”
“The company’s pitch is scale. WeWork envisions a world in which offices are so attractive that workers will choose to spend more time in them. Eventually, it pictures global cities of We-flats and We-offices, where members work out at We-gyms, learn at We-schools and network at We-events — all the while tracked by the We-operating system.”
“WeWork’s valuation comes courtesy of the deep pockets of Japan’s SoftBank and the Saudi-backed $100bn Vision Fund , which led a $3bn investment last year. That came with an additional $1.4bn raised for WeWork’s Asian subsidiaries. The fundraising round transformed WeWork into one of the world’s top 10 most valuable start-ups. Further financing from the Vision Fund, valuing WeWork at $35bn, has been mooted. This would exceed the value of SpaceX, Elon Musk’s space technology company.”
“In the meantime, WeWork needs financing. It is likely to require at least $2bn from investors in the next two years. To plug future outflows, it may seek far more. A successful initial public offering will require WeWork to convince investors that its value is based on more than giddy markets and a millennial-friendly aesthetic.”
“Unfortunately for WeWork, costs are growing just as steeply. Some look extravagant. Last year the group spent an additional $6.5m on events that included a weekend summer camp. The company justifies this as the price of growth.”
“However, WeWork’s valuation is based on its growth potential. Airbnb might therefore be a better comparison. It is valued at a higher $31bn. Yet even this is a more sober reflection of business than WeWork’s. The value is equal to 12 times trailing sales versus 20 for WeWork.”
“For now, WeWork is far from self-sustaining. The company lost nearly $1bn last year. Office occupancy at 82% is higher than IWG’s 75%. However, average membership fees are falling. There is little reason to think the decline will reverse while expansion is driven by Asia, where rates are lower.”
“Funding rounds were the only reason the company ended 2017 with cash of $2bn on the balance sheet. On FT estimates it is likely to need about $2bn more by the end of 2019.”

Markets / Economy

WSJ – Daily Shot: Deutsche Bank – US-Europe monetary policy divergence 7/3

WSJ – Where is Joblessness the Lowest? Hint: Cities With College Students and Tourists – Sharon Nunn 6/28

Real Estate

Bloomberg Businessweek – Startups Front Cash to Homebuyers in Bidding Wars – Noah Buhayar and Patrick Clark 6/28

“FlyHomes’ ability to turn clients into cash buyers exploits a quirk in the capital markets that’s arisen since the housing meltdown: Consumers are being put through more rigorous standards when they apply for a mortgage. Meanwhile, it’s comparatively easy for companies—even those with new, barely tested ideas—to get buckets of money from banks, venture capitalists, and other institutional investors.”
“Redfin CEO Glenn Kelman says these new ventures are part of a shift in how homes will be bought and sold. ‘There is just money coming out of every possible part of the world, and it isn’t going toward the consumer,’ he says. ‘It’s going toward real estate businesses who charge the consumer for access to that money.’”

Bloomberg – U.S. Retail Vacancy Rate Jumps on Toys ‘R’ Us Store Closings – Jordan Yadoo 7/2

Considering the headwinds of retail over the last few years, I’d say things are doing not too shabby considering it took the closure of Toys ‘R’ Us to push the absorption rate negative (granted local situations vary).

Bloomberg – Manhattan Homebuyers Demand Bargains, Walk Away-Anything But Overpay – Oshrat Carmiel 7/2

Environment / Science

Bloomberg – Stemming the Tide of Plastic Pollution – The Editors 7/2

Asia – excluding China and Japan

FT – Samsung finds unlikely ally in stance on worker safety – Song Jung-a 7/2

“S Korea commerce ministry backs view that transparency may compromise tech secrets.”

FT – South Korea to cap working week at 52 hours – Song Jung-a 7/2

“Cut from 68-hour maximum aims to improve life balance for country of workaholics.”
“The country is home to the longest working hours and highest suicide rate in the developed world. South Koreans put in an average of 2,024 hours in 2017, the second-most after Mexico among members of the Organization for Economic Cooperation and Development (OECD). But the long hours have not translated into better productivity, with the country’s per-hour productivity ranking near the bottom.”

WSJ – Go Home Already! South Korea Pulls the Plug on Overworked Desk Warriors – Timothy W. Martin and Yun-Hwan Chae 7/1