Ticketmaster is at the heart of a US antitrust lawsuit against parent company Live Nation
The United States Department of Justice and 30 state attorneys general filed a lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, for alleged monopolistic practices.
Live Nation and Ticketmaster merged in 2010, creating a dominant entertainment machine that controls the majority of ticket sales and venue bookings in the country. But Taylor Swift fansā experience buying tickets for the Eras tour in late 2022 was so horrific that legislators took a closer look at the entertainment giantās control over the industry ā the presale was riddled with glitches and hours-long wait times, while the public sale was canceled due to high traffic.
āLive Nation suffocates its competition using a variety of tactics, from acquisitions of smaller regional promoters and venues, to threats and retaliation to agreements with rivals,ā said U.S. Attorney General Merrick Garland in a press conference on Thursday.
This isnāt just a Swiftie problem ā rather, the pop starās cultural ubiquity shed a brighter spotlight on the frustrations people have with Live Nation-Ticketmaster. From punk bands to podcast hosts, poor experiences with Ticketmaster have made the company loathsome to fans. In April, when the Dungeons & Dragons actual play show Dimension 20 put tickets on sale for its performance at Madison Square Garden, Ticketmasterās dynamic pricing structure made ticket prices so astronomically high that they were unattainable for most fans. Dropout, the company that produces Dimension 20, later stated that dynamic pricing ā which automatically raises ticket prices based on demand ā was not explained to them before ticket sales.
Live Nation executive vice president Dan Wall published a statement responding to the allegations in the Department of Justiceās lawsuit.
āThe complaintāand even more so the press conference announcing itāattempt to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry,ā the statement says. āIt blames concert promoters and ticketing companiesāneither of which control ticket pricesāfor high ticket prices. It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the publicās willingness to pay far more than primary tickets cost.ā
Wall goes on to compare Ticketmasterās 5% take rate with that of companies like Twitch (50%), StubHub (37%), Uber (25%) and several more. But with the exception of StubHub ā a resale platform ā the comparisons are not quite one-to-one. Ticketmaster also charges various kinds of service fees, which exceed 5%. The fact remains that itās difficult for younger companies to disrupt Live Nationās hold on the industry, since the vast majority of American venues are in business with them.
Garland claims that the public frustration with Live Nationās alleged monopolistic behavior is more acute in America than in other countries.
āIn other countries, where venues are not bound by Ticketmasterās exclusive ticketing contracts, venues often use multiple ticketing companies for the same event, and fans see lower fees and more innovative ticketing products as a result,ā Garland said.