Live Nation reported significant losses during its first quarter. The decline is the result of lackluster tours and increased operational expenses.

Live Nation CFO Alan Ridgeway noted during a conference call that first-quarter (ended March 31, 2007) treks from the Who, Josh Groban, Bob Seger and Dolly Parton “did not perform as strongly” as 2006’s first-quarter lineup of U2, Coldplay, Billy Joel, Aerosmith, Depeche Mode and others.

The concert business is a seasonal and cyclical business with a cycle of generally 1 to 3 years,” Live Nation president/CEO Michael Rapino said in a statement.

The concert business is cyclical to an extent. But, generally speaking the concert business won’t be as healthy as it was since record sales continue to decline and the ageing stars continue to die off. This problem isnt going away. Hence, another solution needed.