The Government Takes On Ticketmaster
6Digest
The Department of Justice is suing Live Nation Entertainment, the parent company of Ticketmaster, for monopolizing the live music industry. The lawsuit alleges that Live Nation uses its power as a concert promoter to force venues to use Ticketmaster, its ticketing platform, and that it uses its ownership of venues to pay artists less. The DOJ argues that Live Nation's dominance has resulted in higher fees for consumers and a worse ticketing experience. The lawsuit seeks to break up Live Nation by separating Ticketmaster from the rest of the company. Live Nation denies the allegations, arguing that it does not have a monopoly and that the company's size is not a problem. The company also argues that the lawsuit is politically motivated. The DOJ, however, believes that Live Nation's dominance stifles creative expression and the ability of artists to reach their fans, which is a central question of democracy.
Outlines
Introduction
This Chapter introduces the topic of the lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, for monopolizing the live music industry. It highlights the widespread frustration among music fans with Ticketmaster's high fees, fast sellouts, and website issues. The chapter also mentions the infamous Taylor Swift presale incident that brought Ticketmaster's power into the spotlight.
The DOJ's Case Against Live Nation
This Chapter delves into the details of the Department of Justice's lawsuit against Live Nation. It explains how Live Nation's dominance in the live music industry, encompassing concert promotion, ticketing, venue ownership, and artist management, has created a monopoly that harms both fans and artists. The chapter highlights the Attorney General's personal anecdote about attending a Bonnie Raitt concert in college, emphasizing the importance of live music for both fans and artists. The DOJ argues that Live Nation's monopoly has resulted in higher fees for fans and lower pay for artists.
Live Nation's History with the DOJ
This Chapter traces the history of Live Nation's relationship with the Department of Justice, starting with the 2009 merger of Live Nation and Ticketmaster. The chapter explains how the DOJ initially approved the merger with conditions but ultimately allowed it to go through. It then discusses how Live Nation continued to grow its footprint in the live music industry, becoming a dominant force. The chapter provides statistics on Live Nation's size, including the number of tickets sold, venues owned, and artists managed.
Live Nation's Alleged Tactics
This Chapter focuses on the specific allegations made by the DOJ against Live Nation. The chapter explains how Live Nation allegedly uses its power as a concert promoter to force venues to use Ticketmaster, its ticketing platform. It also discusses how Live Nation allegedly uses its ownership of venues to pay artists less. The chapter includes a detailed account of a Kanye West and Drake concert in 2021, where Live Nation allegedly interfered with a competitor, TEG, and prevented fans who bought tickets on StubHub from attending the show.
Keywords
Live Nation Entertainment
Live Nation Entertainment is a global entertainment company that is the parent company of Ticketmaster. It is the largest concert promoter in the world, owning or operating over 250 venues and managing hundreds of artists. The company has been accused of monopolizing the live music industry, using its power to force venues to use Ticketmaster and pay artists less.
Ticketmaster
Ticketmaster is a leading online ticketing platform that is owned by Live Nation Entertainment. It is the dominant ticketing provider for major concerts and events in the United States. Ticketmaster has been criticized for its high fees, fast sellouts, and website issues. The Department of Justice is suing Live Nation for monopolizing the ticketing market.
Department of Justice
The Department of Justice (DOJ) is the federal law enforcement agency responsible for enforcing the laws of the United States. The DOJ's Antitrust Division is responsible for investigating and prosecuting companies that violate antitrust laws, which prohibit monopolies and other anti-competitive practices. The DOJ is suing Live Nation for violating antitrust laws by monopolizing the live music industry.
Antitrust
Antitrust law is a body of law that prohibits monopolies and other anti-competitive practices. The goal of antitrust law is to promote competition and protect consumers from unfair business practices. The Department of Justice is suing Live Nation for violating antitrust laws by monopolizing the live music industry.
Monopoly
A monopoly is a situation in which a single company or group controls an entire market. Monopolies can harm consumers by raising prices, reducing quality, and limiting innovation. The Department of Justice is suing Live Nation for monopolizing the live music industry.
Concert Promotion
Concert promotion is the business of organizing and promoting live music events. Concert promoters work with artists to book shows, find venues, and sell tickets. Live Nation is the largest concert promoter in the world.
Venue
A venue is a place where concerts, events, and other performances are held. Live Nation owns or operates over 250 venues, including amphitheaters, stadiums, and arenas.
Artist Management
Artist management is the business of representing and managing musicians and other performers. Artist managers handle a variety of tasks, including booking shows, negotiating contracts, and promoting their clients. Live Nation manages hundreds of artists.
Ticketing
Ticketing is the process of selling tickets to events, such as concerts, sporting events, and theater performances. Ticketmaster is the dominant ticketing provider for major concerts and events in the United States.
Scalping
Scalping is the practice of buying tickets to events, such as concerts, and reselling them at a higher price. Scalpers often use bots to buy up large quantities of tickets, making it difficult for fans to get tickets at a fair price.
Q&A
What is the Department of Justice suing Live Nation for?
The Department of Justice is suing Live Nation for monopolizing the live music industry, alleging that the company uses its power to force venues to use Ticketmaster and pay artists less.
How does Live Nation allegedly use its power to force venues to use Ticketmaster?
The DOJ alleges that Live Nation uses its big artists and tours as leverage to force venues to use Ticketmaster, threatening to route tours around venues that don't use the platform.
How does Live Nation allegedly use its ownership of venues to pay artists less?
The DOJ argues that Live Nation's control over many venues gives them leverage to pay artists less because artists have fewer options for where to play their concerts.
What is the DOJ seeking to achieve with this lawsuit?
The DOJ wants to break up Live Nation by separating Ticketmaster from the rest of the company, aiming to disrupt the cycle of Live Nation's self-reinforcing power.
What is Live Nation's response to the lawsuit?
Live Nation denies the allegations, arguing that it does not have a monopoly and that the company's size is not a problem. They also argue that the lawsuit is politically motivated.
What are the broader implications of this case?
The DOJ believes that Live Nation's dominance stifles creative expression and the ability of artists to reach their fans, which they argue is a central question of democracy.
What is the DOJ's stance on the role of antitrust law in the economy?
The DOJ believes that antitrust law can be a more expansive tool to address problems in the economy, particularly in response to the growing power of large companies.
What is the DOJ's argument about the impact of Live Nation's monopoly on consumers?
The DOJ argues that Live Nation's monopoly has resulted in higher fees for consumers and a worse ticketing experience.
What is Live Nation's argument about the factors contributing to high ticket prices?
Live Nation argues that high ticket prices are driven by factors such as artist-set prices, high demand, and scalping, not necessarily their own actions.
What is the DOJ's argument about the impact of Live Nation's monopoly on artists?
The DOJ argues that Live Nation's monopoly has resulted in lower pay for artists, as they have fewer options for where to play their concerts.
Show Notes
Over recent years, few companies have provoked more anger among music fans than Ticketmaster. Last week, the Department of Justice announced it was taking the business to court.
David McCabe, who covers technology policy for The Times, explains how the case could reshape America’s multibillion-dollar live music industry.
Guest: David McCabe, a technology policy correspondent for The New York Times.
Background reading:
- The government is accusing Ticketmaster’s corporate parent, Live Nation Entertainment, of violating antitrust laws.
- Here’s a guide to the emails at the heart of the government’s case.
For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.
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