Monopoly feared by Live Nation/Ticketmaster merge
Carly Hansford
Issue date: 2/3/10 Section: News
Whether fans approve or not, Live Nation and Ticketmaster will soon be joining forces. According to www.mtv.com, the board of directors for each organization and the U.S. Justice Department announced Monday, Jan. 25 that merging into one company, Live Nation Entertainment, will benefit both music fans and the corporations involved.
With Live Nation as the world's largest concert promoter and Ticketmaster selling the most tickets to its events, some fear a monopoly may occur once the merger is put into action. Ticketmaster.com states that in 2008, they sold more than 141 million tickets valued at more than $8.9 billion on behalf of its clients.
The merger will undoubtedly decrease competition between ticket-selling companies, which is already causing consumer fear of rising prices. However, the opposite was stated by Ticketmaster CEO Irving Azoff on www.mtv.com, he told the Senate Judiciary Committee last February, fans shouldn't worry about prices changing.
"It will give us greater flexibility in how we promote, market and sell tickets to events," Azoff said. "It will give us a pathway to alternative pricing and fee structures."
Consumers have heard both sides of the story, but uncertainties are still present.
"I think if they truly mean what they say about alternative fee structures benefiting the consumer, then I'm all for it," said junior Mike Goldstein. "However, the lack of competition makes me nervous."
While there are mixed thoughts about the new agreement, this decision was not made by the flip of a coin. Rather, after being discussed for one year, the Justice Department has come up with terms and conditions Ticketmaster must follow under the merger.
These conditions, according to www.nytimes.com, include: "divest[ing] itself of one of its ticketing divisions and license its software to a competitor. In addition, for 10 years the combined company will be subject to what the Justice Department called 'tough anti-retaliation provisions' to prevent abuse of its power over concert tours, artist management, ticketing and theaters."
With Live Nation as the world's largest concert promoter and Ticketmaster selling the most tickets to its events, some fear a monopoly may occur once the merger is put into action. Ticketmaster.com states that in 2008, they sold more than 141 million tickets valued at more than $8.9 billion on behalf of its clients.
The merger will undoubtedly decrease competition between ticket-selling companies, which is already causing consumer fear of rising prices. However, the opposite was stated by Ticketmaster CEO Irving Azoff on www.mtv.com, he told the Senate Judiciary Committee last February, fans shouldn't worry about prices changing.
"It will give us greater flexibility in how we promote, market and sell tickets to events," Azoff said. "It will give us a pathway to alternative pricing and fee structures."
Consumers have heard both sides of the story, but uncertainties are still present.
"I think if they truly mean what they say about alternative fee structures benefiting the consumer, then I'm all for it," said junior Mike Goldstein. "However, the lack of competition makes me nervous."
While there are mixed thoughts about the new agreement, this decision was not made by the flip of a coin. Rather, after being discussed for one year, the Justice Department has come up with terms and conditions Ticketmaster must follow under the merger.
These conditions, according to www.nytimes.com, include: "divest[ing] itself of one of its ticketing divisions and license its software to a competitor. In addition, for 10 years the combined company will be subject to what the Justice Department called 'tough anti-retaliation provisions' to prevent abuse of its power over concert tours, artist management, ticketing and theaters."
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