The Perfect Storm for Innovation: Why It’s the Right Time to Build in the Entertainment Industry

Late last year, Four Corners ran a story on Live Nation’s growing footprint in the live music industry (for those who might have missed it). The piece stirred up conversation, but the outrage seems to have overshadowed a far more important signal for the entertainment industry.

Which is this: another piece of the industry has consolidated, creating the perfect conditions for transformative innovation.

Chamath Palihapitiya spoke about consolidation a month back in Episode 202 of the All In Pod:

“Big business is there to eventually grow our GDP so they can then be disrupted by smaller companies.”

He made these comments while addressing calls to break up Google—but the sentiment rings true across entertainment. Consolidation creates the conditions for disruption, and we’ve already seen it happen:

• Movies: Hollywood studios once controlled film distribution, making it nearly impossible for independent creators to reach mainstream audiences. The rise of Netflix and Amazon Prime broke this monopoly, creating direct-to-consumer platforms powered by AI-driven discovery and original content, reshaping how audiences consume films.

  
  

• TV: Major cable networks bundled content into expensive packages, limiting consumer choice. The disruption came from subscription streaming services like Hulu and Disney+, which unbundled content, offered personalized recommendations, and let audiences choose when and how they watched.

  
  

• Sports: For decades, media giants locked up sports broadcasting rights, forcing fans to rely on networks. The shift came with NBA League Pass, F1 TV, and UFC Fight Pass, which bypassed traditional broadcasters, offering direct-to-consumer access, real-time fan engagement, and personalized viewing experiences.

Now, Live Nation’s dominance in live entertainment presents the same opportunity. Just as film, TV, and sports were disrupted by direct-to-consumer models, unbundling, and personalization, the next wave of entertainment technology will challenge the existing structures within the industry.

It’s a moment to rebuild the entertainment ecosystem with fresh ideas, new technologies, and new business models. The industry isn’t just surviving—it’s brimming with possibilities for those ready to step up and shape its future.

One of the Last Pieces of the Puzzle: Live Music

The music industry has traditionally been highly distributed, with a range of independent operators, niche players, and localized businesses. Venues, festivals, artists, production companies, and small to medium businesses have often operated independently, catering to specific audiences and fostering unique subcultures. This decentralized structure has been great for creativity, offering a diversity of experiences and products.

However, this same structure has made it incredibly difficult for technology to be widely adopted, and in turn, true innovation has been stifled. If startups can’t find or access buyers, more don’t follow, and if startups don’t enter the industry, there's very little new investment coming in.

The issue across the industry is twofold right now:

1️⃣ Financial Pressures – Rising costs are making it increasingly difficult for smaller players to compete and continue to deliver the product they once did.

2️⃣ Consumer Expectations – Audiences now demand seamless digital experiences, from ticketing to in-venue engagement. Venues of all sizes are somewhat unprepared for the digital transformation fans now expect. Independent operators who once focused solely on providing a traditional live music experience are now expected to implement advanced technological solutions—an area where they often lack the resources and expertise.

Both challenges can be addressed by achieving scale—something that is nearly impossible in a fragmented, distributed industry. The reality is that the industry needs to consolidate, evolve, and reinvent itself before it can be disrupted and the process starts again.

We are seeing this firsthand in some of our first buyer members who are coming onboard. The industry at the top knows it needs to evolve, grow, expand, and become more efficient. This creates an incredible moment for the music industry and entertainment more broadly. Over the coming five years, entertainment is going to see a huge increase in investment—and we are already seeing it. In a post from Andrew Petcash (founder of Profluence Capital/Sport), he mentioned 29 corporate venture funds that are directly connected to sports. We are going to see this trend continue as entertainment orgs move into direct investment vs LP’ing in a fund.

It makes sooooo much sense!

1️⃣ Find a product
🔍 Spot promising tech or tools aligned with your needs.

2️⃣ Trial the product
🧪 Run a small-scale test to validate value and fit.

3️⃣ Invest in the product
💸 Back the solution early to gain upside and influence.

4️⃣ Implement across the business
🏗️ Scale adoption internally to drive operational impact.

5️⃣ Raise the profile of the product
📣 Share success stories and case studies.

6️⃣ Benefit from implementation + valuation uplift
📈 See returns through efficiencies, outcomes, and rising equity value.

7️⃣ Exit or acquisition
🤝 Realise value through acquisition—yours or someone else’s.

8️⃣ Rinse and repeat
♻️ Repeat the cycle with the next innovation.

So this is a rallying cry for:

🎤 Founders already building in the entertainment industry

🎨 Creatives and entrepreneurs looking to be part of a seismic shift

💰 Investors who have overlooked entertainment startups but now have a reason to pay attention

Of course, there’s still work to do before we see stacks of investable companies in entertainment technology, but the market is shaping up for a massive next five years—and we can’t wait to be at the heart of it.