<\/p>\n
In today\u2019s CEO Daily:<\/strong> Diane Brady on the $200 billion opportunity in music.<\/p>\n<\/div>\n<\/li>\n The big story:<\/strong> Trump thinks he is close to ending the war in Gaza while U.S. government shutdown looms.<\/p>\n<\/div>\n<\/li>\n\n Plus:<\/strong> All the news and watercooler chat from Fortune.<\/p>\n<\/div>\n<\/li>\n<\/ul>\n Good morning. My favorite event of this event-filled week was watching Iggy Pop, Jack White, and Johnny Marr perform at the CBGB Festival on Saturday. Held under the Brooklyn Queens Expressway in New York, the crowd featured punks old enough to be grandparents and fans who weren\u2019t even born when the bands they came to see first sang their hits. Goldman Sachs estimates that global music revenue will double<\/a> to $200 billion over the next decade, with live music doubling to more than $67 billion. And that\u2019s just a subset of live entertainment space.<\/p>\n While CEOs understand the power of entertainment to delight people they\u2019re trying to reach, they might not appreciate the business case\u2014and how it\u2019s shifting. Dave McKay of RBC told me he\u2019s never been more popular than when the bank sponsored Taylor Swift\u2019s Eras tour. It also helped RBC add more than 600,000 clients to its Canadian banking business last year. Here are some insights from CEOs shaping the next wave of live entertainment.<\/p>\n Create a multigenerational experience.<\/strong> It\u2019s not just mother-daughter Swifties. In organizing the CBGB event, entrepreneur Phil Sandhaus created a \u201cYoung Punk\u201d category of $73 tickets, along with a separate stage area of younger acts that was buzzing with energy\u2014and the sponsors who wanted to associate with that. He also livestreamed the key mainstage acts.<\/p>\n \u201cWe want to appeal to people who grew up with this music but make it accessible to a younger generation,\u201d Sandhaus told me. \u201cDifferent price points and experiences let us go after different sponsors and brands. We\u2019re not trying to gouge people; we\u2019re here for the long run.\u201d<\/p>\n Pick a committed partner.<\/strong> As Terrapin Station Entertainment CEO Jonathan Shank notes, with ticket prices often starting at 10x what they were a generation ago, an experience needs to \u201cbe first class in order to cut through.\u201d That means investing in technology\u2014ABBA pulled in $2 million a week<\/a> from a concert that featured their avatars\u2014and the right partner. A pioneer in bringing intellectual property from Bob Marley to Disney<\/a> to the live stage, Shank knows the importance of partnering on a franchise that matters to the owner. \u201cIf it\u2019s a prioritized project within the studio, you have everybody going down the river in the same direction and at the same time,\u201d Shank said. \u201cIf it\u2019s not a huge priority, you can find yourself out on an island\u201d and the project suffers.<\/p>\n Create an ecosystem. <\/strong>Brooklyn Sports & Entertainment CEO Sam Zussman is proud of what he\u2019s built around the Brooklyn Nets and New York Liberty, but his goal is to turn the Barclays<\/a> Center into a destination for the community. (The latest example is the Brooklyn Basketball Training Center.) That vision is a big reason why Brooklyn Nets owner (and Alibaba Chairman and cofounder) Joe Tsai chose Zussman. \u201cSam came in as an outsider and saw BSE Global as a venue-based entertainment business with IP that\u2019s proprietary to us,\u201d Tsai told me recently. \u201cI was looking for someone who can create an ecosystem.\u201d While Zussman says the goal is to \u201cbuild generational fandom,\u201d the BSE CEO views sports as \u201ca vertical of entertainment\u201d with talent, partners and facilities that let him woo a world of other customers.<\/p>\n Contact CEO Daily via Diane Brady at diane.brady@fortune.com<\/a><\/p>\n