Revenue / 02.01.23
Why Live Nation and Ticketmaster Dominate the Live Entertainment Industry
CNBC (01/25/23) Lorsch, Emily
The U.S. Senate hearing on Live Nation Entertainment and the scarcity of competition in the primary and secondary ticketing markets emphasized the monopoly that the Live Nation-Ticketmaster combination holds over the ticketing and live event venues market. The hearing was prompted by fans' fury over the sales of tickets for Taylor Swift's tour, with angry consumers calling for the company's disbandment. The issue under debate is whether Live Nation abuses its monopoly position, to the detriment of artists as well as fans. Singer-songwriter Clyde Lawrence testified at the hearing that Ticketmaster's contracts lock artists into ticketing platforms that they cannot change, with no negotiating power. "In a world where the promoter and the venue are not affiliated with each other, we can trust that the promoter will look to get the best deal from the venue; however, in this case the promoter and the venue are part of the same corporate entity so the line items are essentially Live Nation negotiating to pay itself," he said. Although Ticketmaster faces some competition, experts say the odds are firmly against any other firm becoming a serious contender. "They made a statement that speaks to the market power of Ticketmaster, which is that they used Ticketmaster to ticket Taylor Swift," said Barton Crockett at Rosenblatt Securities.
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Tags: Ticketmaster , Marketing , Live Nation