Following the U.S. Department of Justice's investigation into Ticketmaster's parent company, Live Nation, Live Nation is preparing to file an antitrust lawsuit as early as May 2024. The study was conducted in November 2022 following the sale of Taylor Swift's Ellas Tour.
When tickets for Swift's tour went on sale, fans encountered hour-long lines, frozen screens and crashed Ticketmaster websites. Bots were able to overcome these barriers, but fans were left stranded. The tickets eventually sold on resale sites for more than $10,000 each.
Use the Ticketmaster controlRin Live Nation, which accounts for 70% of the live event and concert ticketing market, was ill-prepared for the anticipated level of demand and had not invested appropriately in the ticket-buying experience for its customers.
In 2010, the Department of Justice authorized the merger of Live Nation and Ticketmaster, resulting in the creation of Live Nation Entertainment. After the merger, Ticketmaster agreed to measures to improve competition, including licensing its ticketing software. The Justice Department also prohibited Live Nation from “retaliating against venue owners who choose to use another company's ticketing services or another company's promotional services.”
In 2019, the Department of Justice accused Live Nation of violating its contract and appointed a monitor to ensure Live Nation complied with guidelines.
However, Live Nation's main concern is that it engages in anti-competitive behavior and dominates the market. Ticketmaster controls 70% of ticket sales, stifling competition and harming consumers.
From high ticket prices to bots weaving through lines, the ticket buying process has become a stressful and difficult process. Even fan-verified pre-sales have become outdated.
Ticketmaster and Live Nation say they are not responsible for ticket prices, but rather the artists and their teams. Live Nation promoters are a major part of an artist's team when it comes to touring and live events. These promoters advise artists on pricing and negotiate with venues. 78% of major venues use Live Nation's ticketing services.
Venues are incentivized by Ticketmaster and Live Nation to charge higher fees for their services. The venue will propose a service fee during contract negotiations. Ticketing companies such as Ticketmaster then make bids for the contract. As part of the agreement, the ticketing company receives a portion of the service fees charged. By charging more, Ticketmaster is more likely to bid on contracts in which it receives a larger share. With little competition in the ticketing industry, venues don't have much of a choice but to settle with Ticketmaster.
Claims that Ticketmaster is leveraging its power in the live entertainment industry are nothing new. In 1995, Pearl Jam tried to cover Ticketmaster's exorbitant service fees. The Department of Justice has asked Pearl Jam to file an antitrust complaint against Ticketmaster. In their complaint, they alleged that Ticketmaster controls the market by entering into exclusive agreements with venues that allow them to use Ticketmaster only for ticket sales, and by charging excessive fees. This leaves consumers and artists with no choice but to use Ticketmaster.
Currently, artists are also trying to lower ticket prices and scalpers. Maggie Rogers recently announced her “Don't Forget Me” tour. “From April 13th to April 20th, in every city where I play in arenas this fall, go to your local box office to select your seat and purchase a special ticket ticket,” Rodgers said in the announcement. Please.''Price is per person. Ahead of his 'We'll All Be Here Forever' tour, Noah Kahan decided to make tickets non-transferable to prevent scalpers looking to resell them.
Live Nation claims it is not a monopoly and cannot control ticket prices, but it does have significant power in the industry. Their influence and dominance in the market has led venues to prioritize big companies over the artist and fan experience.
Catherine Valler can be contacted at: [email protected]