Live Nation Entertainment, the behemoth that owns Ticketmaster, has an ironclad control over the U.S. live music trade. This comes after their merger in 2010, deeply controversial at the time, that increased their power. The corporation has since come to dominate the country ticket sales and venue rentals. This past year, it has bought up 150 venues and sunk $1 billion to open 18 new live music locales. Its dominance has increasingly caused some consumers and regulators to worry about its impact. This intense scrutiny has led to a sudden flood of lawsuits from state attorneys general.
Likewise, the 2010 merger between Live Nation and Ticketmaster was so overwhelmingly harmful to competition that the U.S. Yet Live Nation and Ticketmaster’s dynamic pricing strategies allow ticket prices to increase thousands of dollars. Most consumers think it’s boneheaded and unacceptable. The recent ticket sales for Taylor Swift’s Eras tour broke the internet. Inaccessibility, due to prohibitive costs and practical obstacles, incensed fans and the general public alike.
In a huge potential legal blow, 26 of the nation’s 30 AGs have banded together to sue Live Nation. New York Attorney General Letitia James is currently leading the charge. The lawsuit addresses concerns over the company’s market control, with James asserting that the settlement with the U.S. Department of Justice (DOJ) “fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers.” Washington Attorney General Nick Brown, whose office brought the case against CSV, expressed his excitement at the settlement. He announced that it “fails to fully remedy” the problems.
The scrutiny surrounding Live Nation intensified further when CEO Joe Rapino made comments interpreted as a “veiled threat — maybe not-so-veiled threat” against the Barclays Center. He floated the idea that continuing Live Nation vs local promoter beefs could mean more cancelled concerts at the venue. This is a huge potential win for the local music scene.
Even with these controversies, Live Nation continues to be the most powerful company in the industry. The most recent investment in new venues proves this company’s heavy hand. It’s a strong signal of their commitment to growing their footprint in the competitive, dynamic live music market. All these moves lure talent to work closely with Live Nation. On the other hand, its unique reach and resources make collaboration all the more important.
The DOJ’s recent Live Nation trial went for less than a week before the company caved to a settlement. Critics of this resolution argue that it does little to address the competitive imbalance created by the Ticketmaster merger. They call for greater regulation to even the playing field. The need for continued legal challenges further demonstrates an almost two-decade long struggle of consumer interests versus corporate power in the ticketing industry.