How Taylor Swift Could Impact Ticketmaster's Future
In a world of differences, certain topics have the power to bring us together rather than pull us apart. Whether it's a love for ice cream, admiration for Caitlin Clark, or the shared frustration of someone holding up the airport security line, there are common threads that connect us all. Discover how Taylor Swift's influence may shape the fate of Ticketmaster in the eyes of the law.
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In our country, despite our differences, there are still things that bring us together more than tear us apart. Ice cream, Caitlin Clark, and the shared desire to publicly call out the person who wasn't ready to remove their shoes at airport security are just a few examples.
Thursday's government complaint against Live Nation serves as a reminder of a common frustration shared by many Americans - the unpleasant experience of purchasing tickets for major concerts or sporting events. The Justice Department places the blame on Live Nation and its subsidiary, Ticketmaster, accusing them of abusing their dominance in the live entertainment industry. Prosecutors claim that these companies have stifled competition, increased prices for fans, and exerted pressure on artists and venues to use their services.
Attorney General Merrick Garland stated at a news conference on Thursday that Live Nation has unlawfully monopolized markets in the live concert industry in the United States for too long. He emphasized the need to dismantle the company.
It is important to highlight the extensive control Live Nation has over live entertainment in America, especially since its acquisition of Ticketmaster over ten years ago.
Per the DOJ complaint:
Live Nation manages more than 400 musicians, bringing in $22 billion in revenue per year.
It handles 60% of the promotions at major venues.
It also directly owns 265 venues in North America, including more than 60 of the top 100 amphitheaters.
Through Ticketmaster, Live Nation controls 80% of venues’ primary ticketing for concerts.
No rival even comes close.
There’s a fine line between vertical integration and all-out monopoly, and Live Nation is, at minimum, very clearly toeing it.
One nation, under Swift
None of this is new. Since Live Nation and Ticketmaster merged in 2009, artists, fans, and venues have been voicing complaints about them.
However, it was the passionate outcry from the Swifties that caught the attention of Congress and sparked bipartisan support for federal intervention.
ICYMI: Two years ago, Ticketmaster faced major issues with ticket sales for Taylor Swift's Eras Tour. This led to Live Nation's president and CFO being questioned by the Senate. Senator Richard Blumenthal even praised them for uniting both Republicans and Democrats on a common cause.
Fast forward to 2024, the Eras Tour has become the highest-grossing tour ever. The federal antimonopoly case against Live Nation has now commenced. Attorney General Garland, who is a big Taylor Swift fan, announced the complaint on Thursday. He emphasized that the issue is not just about inconvenience or frustration, but about anti-competitive and illegal behavior.
Anti-competitive behavior
The Department of Justice (DOJ) has filed a lawsuit against Live Nation, raising concerns about several tactics. The two main issues to be aware of are 1) Live Nation's exclusive contracts with venues and 2) its aggressive tactics towards potential competitors.
If you decide to partner with a different promoter or ticketing service instead of Live Nation-Ticketmaster for your venue, the Department of Justice warns that you could face significant financial consequences.
According to the DOJ complaint, Live Nation may not directly threaten venues, but they still manage to deter them from working with competitors. The risks involved in choosing another ticketing service are widely recognized in the industry.
(From left) Anna Mason, Emily Lind, and Kristen Robinson show their Ticketmaster queue, which displays over 2000+ people ahead of them, from the parking lot outside of the Taylor Swift concert at Lincoln Financial Field in Philadelphia, Pennsylvania on May 13, 2023. The friends drove up to Philadelphia from Washington D.C. in the hopes that they could find last minute tickets to the show.
Anna Mason, Emily Lind, and Kristen Robinson are shown waiting in the Ticketmaster queue outside the Taylor Swift concert at Lincoln Financial Field in Philadelphia on May 13, 2023. There are over 2000+ people ahead of them. The friends drove from Washington D.C. to Philadelphia hoping to snag last-minute tickets to the show.
Rachel Wisniewski/Washington Post/Getty Images
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The major Ticketmaster lawsuit may have implications for you. Live Nation has responded to the Department of Justice's allegations by calling them "baseless." They also stated that the lawsuit will not address the concerns fans have regarding ticket prices, service fees, and access to popular shows.
Adam Wolfson, a lawyer specializing in antitrust law at Quinn Emanuel, mentioned that the Department of Justice's requests for relief target Live Nation's strong position in ticketing and promotions, particularly their exclusive agreements with venues. If these deals are disrupted by the government, it could open up opportunities for smaller competitors like SeatGeek and Eventbrite.
However, improvements in the ticket-buying process may not happen quickly.
Live Nation, according to Wolfson, is expected to take strong action. He mentioned that a motion to dismiss is likely to be filed next, followed by a back-and-forth briefing process that could span over several months. It may take up to a year, two, or even three years before a final ruling is made.
Editor's P/S:
The Justice Department's lawsuit against Live Nation is a welcome step toward addressing the concerns raised by artists, fans, and venues regarding the company's dominance in the live entertainment industry. Live Nation's extensive control over the ticketing and promotion of live events has stifled competition, increased ticket prices, and limited consumer choice. The lawsuit's allegations of exclusive contracts with venues and aggressive tactics towards potential competitors highlight the urgent need to break up Live Nation's monopoly.
The Swifties' passionate outcry over the Ticketmaster fiasco during Taylor Swift's Eras Tour played a significant role in sparking bipartisan support for federal intervention. It is encouraging to see the government taking action against corporate giants that abuse their power and harm consumers. The lawsuit is a testament to the importance of collective action and the power of public outcry in holding corporations accountable.
