Joe Patti’s Post

You may have seen the news yesterday that, in a landmark decision, regulators have ruled that Ticketmaster must be broken up due to its monopolistic practices. While the case will likely take years to sort out, here are some of the lessons that others can learn from what Ticketmaster did (and didn't do): ABUSING THEIR MARKET POSITION: By leveraging their market domination, Ticketmaster was seen as stifling the competition, making it nearly impossible for new entrants to thrive. NOT CONSUMER CENTRIC: High service fees and limited ticket availability frustrated consumers, demonstrating a blatant disregard for customer experience. LACK OF TRANSPARENCY: Their opaque pricing structures and exclusive agreements with venues left fans and competitors in the dark, leading to widespread dissatisfaction and legal scrutiny. POOR REGULATORY MANAGEMENT: Not enough proactive and ongoing management of regulations and government relations.

NEWS FLASH! A long overdue lawsuit is about to begin. Both content providers and consumers will be far better served if the Department of Justice succeeds in breaking up Live Nation Entertainment and Ticketmaster.  https://lnkd.in/gHy_hSa9 The first half of my career included 15 years working as a senior ticketing specialist for NBA, Olympic, and Tony Hawk properties / events, as well as the Vancouver Aquarium (one of Western Canada’s largest attractions). I’ve also worked adjacent to ticketing specialists while involved in FIFA and the MLS.  My original foray into startups began with a five year stint supporting FTS|authenTICKET. The company created a third-party ticket authentication platform to combat $1 billion+ in fraudulent ticket trade, allow live event owners to regain full transparency over their customers, completely enhance real-time engagement for fans “in-venue,” and limit the amount of ticket revenues misappropriated by “unauthorized” resale platforms. (To be clear, there are many properties that can use all the extra revenues available to sustain their business model.  As one example… in my last year working for an NBA franchise… a league-wide financial report indicated that only 5 out of 30 teams were reporting profitable operations.) FTS|authenTICKET was only one innovator that tried to bring a new solution to the event ticketing market for the benefit of both content providers and consumers. My tenure with authenTIKCET ran between roughly 2012 and 2017.  We may not have been the best “mouse trap” out there.  Our ultimate failure to launch could easily have been attributed to any number of other variables.  But we successfully raised $1.5 million (approx.) in private equity investment.  So there was certainly belief in our model.  And we had advocates representing multiple sport leagues, the Olympics, and a range of music properties. But it became clear that TM/Live Nation represented a major obstacle in the market’s ability to test and adopt alternative ticketing solutions due to its vertical monopoly position facilitated by its merger in 2010.  Since then, TM has issued upwards of 75%-80% of high-demand tickets in North America (estimate).  Live Nation was (and still is?) the single largest global promoter.  That represents a stranglehold from an innovation perspective.  Competition breeds better solutions every day.  TM and Live Nation actively obstruct industry innovators as best as I’ve been able to determine in my own modest evaluation. I’m no longer in the field.  Instead, my experiences with FTS|authenTICKET have driven me to become a specialized advisor and growth modelling expert in the Canadian startup eco-system. But I am pleased to see the DoJ make a move.  Again, this is long overdue in the markets.  For those who love a live event experience, I’d encourage you to support this action. #ticketfraud #tickettech #startups #monopolies #innovation

The latest in a series of aggressive #antitrust enforcement efforts by DOJ to combat anticompetitive practices. Excellent blog post related to the #Ticketmaster #LiveNation lawsuit by my colleagues Xan Wolstenholme-Britt and John McKnight. Thanks to Danya R. for leading the ongoing discussions on this matter.

New Post: US Department of Justice to sue TicketMaster owner - https://lnkd.in/gMJ-tgRt The US Justice Department (DOJ) is set to file a competition lawsuit against entertainment giant Live Nation as early as Thursday, multiple sources familiar with the matter confirmed to the BBC's US partner, CBS News. Prosecutors are expected to challenge the Ticketmaster parent company's business practices, the sources said.In many instances, when the DOJ sues over competition issues it seeks to force a firm to split off parts of its business or change how it operates.The DOJ declined to comment when approached by the BBC. The BBC has also requested comment from Live Nation.The federal government will be joined in its legal challenge by numerous state attorneys general, CBS News said.The move comes after an investigation by DOJ's anti-trust division that spanned years. In 2022, CBS News reported that the Justice Department was looking at the company and its Ticketmaster unit.Live Nation Entertainment was created by the merger in 2010 of US-based events promoter Live Nation and ticket sales and distribution company Ticketmaster.Live Nation Entertainment has faced growing criticism from fans, lawmakers, artists and competitors. The company has been accused of having too much influence over live entertainment events in the US and around the world.In November 2022, Ticketmaster angered Taylor Swift fans when its website crashed during a pre-sale period for the Eras Tour.After news of the DOJ case was reported, Live Nation's shares fell by more than 6% in after-hours trading in New York. #Department #Justice #sue #TicketMaster #owner

The Department of Justice's (U.S.) antitrust investigation into LiveNation and its desire to break up the merger that allowed Ticketmaster and LiveNation to become one may be more than what it looks to be. Just like one person's behaviour (alleged) created the "Me Too" movement and was, as I said the morning that news broke, "the tip of the iceberg," so too is this shot across the bow. The entertainment industry has been rife with all kinds of business arrangements that defy anti-trust concepts. Conflicts of interest, much like in the startup world, where one day you are the enemy, and the next day the best friend, so too do those types of relationships exist, often masked by "attorney-client privilege, " "confidentiality agreements," "hush money" or "NDAs." Ticketmaster has forever been the bane of all venues. Few may even remember Ticketron, its ancient rival that it ground down out of existence through a sale first to Carlyle Group and then Ticketmaster. Even fewer likely remember the days of "hard tickets" that were in place before the digital era. Even fewer likely knew that (some) venues shared in the "service fee" paid by patrons to the "remote" locations. Those "remotes" were originally a minor portion of ticket sales for sporting events and concerts, but as technology rose, so did the convenience of going to the local department store or merchant with a terminal to make a purchase. The major money came through the venue's box office (remember the lines for concerts that would form nights before for the Grateful Dead?) or the local ticket brokers who bought blocks of tickets or were consigned even more. As Ticketmaster rose in strength and power, the brokers died off, the remotes became Ticketmaster locations, and the lines dwindled at arenas and stadium box offices over time. So, as the DoJ digs in, this will be part fishing expedition, part hunting lesson, but one thing is for sure: The more they dig, fish, and hunt, the more that will come out, and when that does, don't be surprised at what becomes public. Peter Csathy Tony Loiacono Charlie Lico #concerts #sports

The DOJ's antitrust lawsuit against Live Nation and Ticketmaster highlights Oak View Group (OVG) 73 times, alleging collusion to stifle competition in the live entertainment sector. In fact, OVG which operates both London's Budweiser Gardens and is overseeing the upcoming 'Hamilton Arena Project' has its own line in the Department of Justice complaint/document. So why does this matter to smaller markets of independent venues such as Kitchener or those who do not use Ticketmaster or have a massive purchasing department for live entertainment? 1. OVG ceded the tour promotions business to Live Nation, and Live Nation returned the favour, ceding the arena development and consultancy business to OVG and its OVG (Arena) Alliance. In plain words - not our arena or venue, not your show to have. 2. OVG’s presence in the venue world enables it to steer Live Nation content to its venues, whether owned or merely operated, and impose the use of Ticketmaster on those venues through a 2022 deal between the two parties that made Ticketmaster the official ticketing provider of OVG. Although OVG is not directly sued, its close relationship with Live Nation raises questions about its role and potential indirect consequences from the case. Consequences that small communities with independent venues not using Ticketmaster (or its subsidiaries such as TicketWeb or FrontGate Tickets) feel directly (or indirectly) with re-routing tours or events away from such venues or communities drawing profits to the OVG, or Live Nation owned subsidiaries. #kitchener #ticketing #livenation #liveentertainment https://lnkd.in/gedb6JR7

Why is someone finally waking up to breaking up this monopoly? Why disrupt the thrill of being extorted and paying exorbitant prices loaded with hidden fees? Isn't that the essence of enjoying live events these days? Jokes aside, there should never have been a Ticketmaster; there should only be a Ticketserver—a true server to the fun-loving people. #BreakUpTheMonopoly #ConcertFairness #LiveNation #Ticketmaster #Antitrust #FairTicketing #FanRights #JusticeDepartment #MusicFansUnite #EndTheMonopoly #ConcertIndustry #TransparentTicketing #TicketServer #LiveMusicFairness #ConsumerRights

The Department of Justice suing Live Nation Entertainment for antitrust violations is for politics and optics and it is not legit. Here's why: 1. The standard for an antitrust violation is: Are prices higher for consumers? In this case: NO. Concert ticket fees have gone *down*, relative to inflation, since the 2010 merger. 2. Ticket prices are not set by Ticketmaster. 3. Because of Live Nation's powerful monetization apparatus and Ticketmaster's scale, their fees are, on average, lower than other ticket brokers. 3. There's been many references to Taylor Swift in this reporting. She’s had dates promoted by AEG. None by Live Nation. What are we doing here, people. 4. Again, ticket prices are not set by Ticketmaster!! It's an election year. The administration is trying to fight inflation with these "look, we're protecting the consumer" stories. See: the airline industry. There's nothing to see here. This is political, the DOJ is not going to win this, and they know it. #musicindustry #musicbusiness #touring #livemusic #livenation

Last week, the Federal Ticket Act was unanimously passed by the US House of Representatives. This is progress that we greatly welcome and is an important, much-needed step towards making ticketing fairer and more transparent for fans in the US. The new legislation mandates that organisers and ticketing sites must clearly display ‘all in’ ticket prices and disclosures over ‘speculative listings’, and includes a ban on ‘deceptive’ websites. Reflecting on the news, SECUTIX US General Manager, Michael McDermott said: "I firmly believe that the introduction of the Federal Ticket Act is a crucial step towards ensuring fairness and transparency in the ticketing industry. For over a decade, SECUTIX has pioneered direct-to-fan ticketing solutions across Europe, partnering with leading sports and live entertainment organisations to prioritise fan experience and eliminate unnecessary intermediaries. “With our proven track record in Europe, it's clear that the time has come for the United States to follow suit and deliver fair and transparent pricing to fans. SECUTIX is poised to leverage our expertise and innovative technology to support the implementation of such regulations, empowering both organisers and fans alike with greater control and transparency over ticketing transactions." Discover more here 👇 https://lnkd.in/disfR97N