Insights #011: Ticketmaster's Monopoly: DOJ Takes Legal Action Against Live Nation

Ticketmaster is the world's largest ticket-selling platform and operates across 29 countries. The company allows its clients to pick how many tickets get sold. Instead of charging venues, they charge customers extra fees to make revenue. Since the business controls so much of the ticketing industry, it has raised multiple concerns and has even prompted the Department of Justice to take legal action against the corporation.?

The DOJ has announced plans to sue Live Nation, the parent company of Ticketmaster. This investigation first started in November of 2022 following the unsuccessful launch of Taylor Swift's, "Eras tour.” Since then, the DOJ has identified several issues with Live Nation regarding monopolistic behaviors and violations of consumer rights. These issues have gained enough traction to prompt the DOJ to push an antitrust lawsuit against the Company regarding these issues.

Ever since Live Nation and Ticketmaster merged in 2010, they have managed to accumulate and control over 70% of the ticketing and live event venue market. With this control in the industry, they have gained substantial pricing power. This has allowed the company to dictate terms to both consumers and event organizers. Because it controls the channels via which tickets are distributed, Ticketmaster can levy non-negotiable service fees and hidden fees onto the customer. Doing so can dramatically increase the total cost of tickets for buyers leaving them with very few other options. Live Nation’s unfair treatment of customers has caused violations of consumer rights.

The investigation has revealed excessive fees and pricing practices by Live Nation/Ticketmaster, resulting in inflated ticket prices and additional charges for consumers. One customer noted, "I went in today to the general audience sale and every single ticket was a "verified resale ticket" for 300-400% more than what I saw in presale.” Ticketmaster often holds back the vast majority of tickets from the general public for the resale market, where they are mostly bought by professional ticket brokers using bots. Brokers then flip those tickets on the secondary market for a huge mark-up. This often also includes increased service fees for the customer. According to the Medium, “The average service fee per ticket is 10% of the ticket price.” Depending on how popular an artist is these fees can reach upward of 25% of the original ticket cost. These practices have been criticized for their lack of transparency and fairness leaving audiences no choice but to purchase higher-priced tickets than face value. Customers often feel trapped because they aren’t able to purchase on other sites.

Live Nation signs exclusive deals with venues, artists, and other companies whereas Ticketmaster manages the distribution, sale, and management of tickets for events. Many venues might feel compelled to continue working with Ticketmaster because failure to do so could result in loss of access to revenue-generating artists that Live Nation represents and vice versa for artists. Since Ticketmaster is the largest and most partnered in the ticketing market, artists feel confined to the company because leaving most certainly means fewer concert sales and a fall in revenue. Ticketmaster also partners with Verizon, one of the biggest telecommunications providers. Through their partnership, wireless members at different tiers on contracts with Verizon get perks within their “App” which include early access to exclusive discounted ticket sales and/or giveaways on the providers' associated Ticketmaster platform.?

Due to Ticketmaster’s dominance in the ticketing market, many questions have arisen about monopolistic behavior and abuses of consumer rights. Limiting customer alternatives and creating an unfair market environment, Ticketmaster controls the channels through which tickets are distributed. The company's exclusive agreements with performers and venues solidify its position as the industry leader. Regulatory intervention is crucial to address these issues, protecting consumers, and the integrity of the ticketing industry. Getting rid of monopolies in the music industry promotes democratization and the growth of new pillars we can champion in hopes of creating a better future for consumers.