I think centralization (e.g. one player having almost all of the primary supply in the marketplace) is a big issue. The issue of venues/arenas etc. as mentioned, is another. I think an underrated issue most don't bring up here is that the demand is extremely concentrated too.
Most people want to see a tiny number of musicians/entertainers/shows (i.e. there's only one Taylor Swift, Beyonce, Kevin Hart), and there are extremely few venues that can accommodate those huge shows. That supply is further constrained by the artist's time and need for physical presence, meaning it's impossible to expand supply.
This makes it extremely hard to break into the market because you need to get one of extremely few, extremely demanding customers on board.
The dynamic almost approaches that of defense contractors, where your only potential customers are a few governments in the world.
Most people want to see a tiny number of musicians/entertainers/shows (i.e. there's only one Taylor Swift, Beyonce, Kevin Hart), and there are extremely few venues that can accommodate those huge shows. That supply is further constrained by the artist's time and need for physical presence, meaning it's impossible to expand supply.
This makes it extremely hard to break into the market because you need to get one of extremely few, extremely demanding customers on board.
The dynamic almost approaches that of defense contractors, where your only potential customers are a few governments in the world.