Live Nation and Ticketmaster: A Deep Dive

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Justice Department and 30 Attorneys General Sue Live Nation and Ticketmaster: A Deep Dive

Introduction

The Justice Department and 30 state and district attorneys general have filed an antitrust lawsuit against Live Nation and Ticketmaster¹. This legal challenge comes after years of regulatory scrutiny of the company’s sprawling footprint across all avenues of the live events industry. The lawsuit aims to address alleged anticompetitive practices and restore fair competition in the space.

Background

Live Nation and Ticketmaster are major players in the live entertainment industry. They merged in 2010, creating a powerful conglomerate that controls various aspects of concert promotions and ticketing.
Live Nation operates over 265 concert venues in North America, giving it significant influence over the live music scene.
The merger allowed Live Nation to control roughly 60% of concert promotions at major venues across the country and approximately 80% of primary ticketing for major concert events⁴.

The Allegations

The Justice Department accuses Live Nation and Ticketmaster of engaging in various tactics to eliminate competition and monopolize markets:

Exclusive Contracts: The companies allegedly locked concert venues into long-term exclusive contracts, preventing them from working with rivals.
Retaliation Threats: Live Nation and Ticketmaster reportedly threatened retaliation against venues that collaborated with competitors.
Self-Reinforcing Business Model: They followed a “self-reinforcing” business model. Here’s how it worked:

Capture revenue from concertgoers through fees.
Use that revenue to sign artists to exclusive deals.
Leverage their cache of live content to secure venues into long-term ticketing agreements.
Repeat the cycle⁴.

Implications

Ticket Prices: The lawsuit aims to lower ticket prices for fans by breaking up the company. If successful, this could give consumers more options on where to buy tickets and potentially make tickets more affordable.
Quality of Service: Increased competition might lead to higher-quality service. With more players in the market, companies would be incentivized to improve their offerings.
Industry Impact: The lawsuit’s outcome could reshape the live music industry, benefiting artists, fans, and everyone involved in the ecosystem⁴.

Public Reaction

The public has expressed outrage over Live Nation’s hold on the entertainment and ticketing industries. Notably, the mishandling of ticket sales for Taylor Swift’s tour prompted significant outcry.
The Justice Department’s action represents a step forward in making live music more accessible for fans and supporting artists and the industry⁵.

this lawsuit has far-reaching implications for the live entertainment landscape. By addressing monopolistic practices, it aims to create a fairer environment for concertgoers, artists, and industry stakeholders.

Amy H.