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The U.S. Department of Justice is expected to file a lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, alleging anticompetitive practices in the ticketing industry. Live Nation's control of more than 80% of the market for primary ticket sales in the US has raised concerns about limited competition and increased pricing. The lawsuit is anticipated to focus on Ticketmaster's exclusive contracts with concert venues and Live Nation's dominance over live performance tours. Live Nation has denied setting high fees and ticket prices, attributing pricing decisions to artists and venues. The lawsuit follows a years-long investigation into Live Nation's merger with Ticketmaster in 2010, which aimed to prevent monopolistic behavior. This legal action is part of the Biden administration's broader efforts to address monopolization and antitrust issues in big businesses. Follow Amanda Newman to stay up to date with technology. https://lnkd.in/ddfjxEWF

Dusting off my ticketing hat, here's what you should know about Live Nation Entertainment / Ticketmaster getting sued by the government: * The government created this. In 2009, the Justice Department approved a merger that led to...exactly what they're saying happened now. That wasn't really all that long ago, and it was pretty obvious at the time where this would go. The DOJ knew this, made a stern face at both companies and made them promise not to misbehave if they approved the deal. * Breaking up TM and LN won't affect consumers the way you might imagine it will. Neither fees nor ticket prices are driven by TM/LN's "monopoly" power. I could write a whole piece about that, but I've already written that piece a half dozen times over the years so...pass. * A breakup would create changes inside the industry. Some new opportunities will shake loose for smaller competitors. Independent venues might have a little more leverage. The market for paying acts will change in some ways that are a little hard to foresee. * The two parts of the organization probably should be broken up. No good can come of the biggest promoter and one of the biggest venue owners and the biggest ticketing system living under the same roof. If the breakup happens, expect Ticketmaster to grow faster and be more profitable on its own. I'll let you figure that one out yourself. Let's see what happens. https://lnkd.in/gFs2F_BD

AEG CEO Jay Marciano Calls Live Nation A Monopoly, Predicts DOJ Victory in Lawsuit https://ift.tt/Dex5FaN AEG chairman/CEO Jay Marciano says Live Nation acts like a monopoly and agrees with the U.S. Department of Justice’s effort to break the concert giant and Ticketmaster up, according to an email Marciano sent out to employees on Friday (May 31). In the memo, the executive accuses the company of “preventing other businesses from competing” and “leaving consumers to suffer the consequences.” In the two-page email, Marciano said the lawsuit was an important milestone for addressing alleged monopolistic behavior in the concert business, noting “the entire ecosystem of our industry” is at stake as the case winds its way through the U.S. legal system. Related To Understand Live Nation's Real Antitrust Issue, Look to Microsoft 05/31/2024 “Notwithstanding its claims about its profit margins or its market share, it is a monopoly, and it uses its monopoly power to impose its will on the live entertainment business,” wrote Marciano of Live Nation, later writing, “We strongly believe that DOJ’s lawsuit will succeed and ultimately bring sweeping changes.” Billboard obtained a copy of the email, which can be read in full below. An AEG spokesman did not respond to a request for comment regarding the letter. Live Nation had not responded to a request for comment at press time. From: Office of Jay Marciano No doubt all of you are closely following the ongoing media coverage in the wake of the Department of Justice lawsuit against Live Nation and Ticketmaster. As I mentioned in my note from last week, we spent the last few days carefully reviewing the DOJ filing, as well as Live Nation’s subsequent response to the complaint. AEG has long maintained that Ticketmaster has a monopoly in the U.S. ticketing marketplace and uses that monopoly power to subsidize Live Nation’s content businesses, preventing other businesses from competing in those areas and leaving consumers to suffer the consequences. This lawsuit is not simply DOJ suing to break up a monopoly; at stake is the entire ecosystem of our industry, one that has long suffered from a badly broken ticketing model. As you know, the cornerstone of Live Nation’s monopoly is Ticketmaster’s exclusive ticketing contracts with the vast majority of major concert venues in the United States. These agreements block competition and innovation and result in higher ticketing fees, denying artists the ability to choose who will ticket their shows and how much their fans should pay. Following the DOJ filing, Live Nation issued several public comments in service of its ongoing strategy to maintain its dominance – unfairly blaming others for industry problems they have created, making false and misleading statements, and dismissing the significance of the case. Artists, venues, and brokers are not responsible for the broken live entertainment business model in this country – that res...

The US government did not mince words yesterday: Live Nation and Ticketmaster need to split. The Department of Justice (DOJ) and 30 state and district attorneys general sued Live Nation, which refers to itself as the “largest live entertainment company in the world,” lodging a 120-page complaint that it purposefully stifles competition, hurts consumers, and unfairly jacks up ticket prices. The suit alleges that Live Nation threatened to retaliate against venues that didn’t use its ticketing service and that artists who don’t use Live Nation’s tour promo services can’t perform at any of its venues. The DOJ said the company controls over 70% of ticket sales at major concert venues in the country. Plus, Live Nation controls 265 venues in North America and 60 of the top 100 amphitheaters in the US. “This is a travesty!” Cried the Justice Department, which allowed the merger to happen 14 years ago. Industry pros had begged the DOJ to prevent Live Nation from buying Ticketmaster, warning of the same concerns the DOJ now cites in seeking to break them up. Then came Taylor Swift… The Eras Tour’s ticket-buying process was such a mess that a bipartisan group of senators brought Live Nation execs to Capitol Hill last year to grill them on the company’s practices. The DOJ’s investigation was announced shortly after the Swiftie debacle, though the agency claimed it had already been investigating the company. Live Nation called the lawsuit “baseless.” In a company blog post, an executive claimed that the suit ignores price factors like artists’ popularity and scalpers. The post also says that Live Nation’s net profit margin was only 1.4% last year, too low to indicate a monopoly. A long road ahead…the whole thing is expected to take years to move through the courts, especially since the suit requests a jury trial (which is unusual for this type of case).—MM https://lnkd.in/eesSYA8b

Interesting read if you want to understand the true nature of the how the industry works and the role that Ticketmaster doesn't play. The best line that sums up the truth about ticket prices is, "What Beyoncé charges has nothing to do with whether Ticketmaster or SeatGeek serves the venues she chooses to play"

Being sued by the federal government couldn't happen to a better company! • Monopoly that controls 80% of US concert ticketing without an alternative for 60% of US event venues. • Average 28% premium for privilege of buying through their exclusive channel without adding value. • Encourages and profits from repeated fees through third-party resale (scalping) where audiences pay inflated prices, artists see no additional revenue, and ticketing scammers double or triple profits. • Gatekeeping of ticket access through opt-in groups leads to monetization of communities and vast dissemination of personal data through data brokers. • Demand-based pricing penalizes fans who purchase early to support their favorite artists. Probably time to do something about some of this. #TicketHostage #Fees #Artists #Venues #Concerts U.S. Department of Justice Ticketmaster Live Nation Entertainment

Rep. Bill Pascrell (D-NJ) released some information from a report investigating Ticketmaster/Live Nation practices that suggest they were fudging the numbers they reported to artists and vendors basically reporting low profit to them while reporting high profits to investors: Among the allegations: "Live Nation/Ticketmaster negotiated third-party expenses, like rental costs with venues, directly with vendors in exchange for exclusive financial gains not disclosed to the artists or their agents, managers, or independent co-promoters in the form of “rebates.” "Live Nation/Ticketmaster has insulated its profit through these “rebates” which are based on volume, while artists, agents, managers and co-independent promoters are compensated on “value” of ticket sales." "Live Nation/Ticketmaster’s business model allows them to show “loss” or low “promoter profit” to its vendors and partners, including co-independent promoters, while reporting profit or higher income to regulators and shareholders." https://lnkd.in/gcVpECGW

In May, we talked about the impending antitrust lawsuit leveled against LiveNation and its subsidiary, Ticketmaster by the U.S. Department of Justice (DoJ) – and now, the details of the suit have been released. This week’s #musicindustry breakdown explores… Quick recap: In April 2024, the DoJ announced a major antitrust lawsuit against Ticketmaster’s parent company, LiveNation, following a two-year probe investigating the company for evidence of a monopoly held over the industry since the two companies’ merger in 2010. At the time, critics warned that a merger between the two entertainment giants would essentially put the ticketing and live events industries into a collective chokehold, to the detriment of entertainers, competitors and fans alike. And surprise surprise – it did. Since the merger, ticket costs have risen drastically for consumers who frankly didn’t have many options for ticket providers – why? Well, LiveNation owns/operates 250+ international concert venues, the majority of which use Ticketmaster exclusively for ticket sales. Hmm… 🤔 The antitrust suit filed claims that Live Nation exploited its position as “the gatekeeper for the delivery of nearly all live music in America today” to drive down competition, drive up prices & levy rampant fees & pressure venues into compliance (allegedly). Now, the DoJ has released details on the allegations against LiveNation. Here are just a few: → Retaliating Against Potential Entrants → Threatening & Retaliating Against Venues that Work with Rivals → Locking Out Competition w/Exclusionary Contracts → Blocking Venues from Using Multiple Ticketers → Restricting Artists’ Access to Venues → Acquiring Competitors & Competitive Threats If you’d like to read the complaint in full, you can find it here: https://buff.ly/4bs6Bei For their part, LiveNation maintains that “Ticketmaster has more competition today than it has ever had,” and denies the existence of a monopoly. Moreover, the company claims that the lawsuit will not reduce ticket prices or fees – and that there’s a bigger issue… In one article, Dan Wall, Live Nation Executive Vice President of Corporate and Regulatory Affairs stated that the lawsuit against the company only “distracts from real solutions that would decrease prices and protect fans - like letting artists cap resale prices.” The lawsuit is ongoing, and we’ll be sure to keep up with developments as they occur. In the meantime we’re curious – do you think the suit will stand up in court? If so, what major changes do you expect to see in the ticketing and live entertainment industry?

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

"Rapino said that, since Live Nation took over Ticketmaster some 14 years ago, the company has been “obsessed” with making Ticketmaster’s platform the one that venues, sports teams and artists want to work with. He said Ticketmaster’s “secret sauce advantage” is giving venues, artists and sports teams access to the data it collects from ticket sales. “[When] we took Ticketmaster over, it was a closed platform that didn’t give data away. Today, it’s an open platform, it lets you take the data.” Equally importantly, Ticketmaster offers its ticketing clients a suite of tools that makes using the platform easier than other options, Rapino said, comparing Ticketmaster to the types of enterprise solutions offered to businesses by Microsoft or Salesforce – a product that can integrate with a venue or sports team’s entire operation, and that’s easy for employees to use." Is this true? Data has gotten way more important over the years... I remember introducing the Cognos Business Intelligence into Ticketing in 2007 for the Eventim.Inhouse product for cultural entities. That was certainly a first back then... https://lnkd.in/e9-ENYRg