Rich Fiscus
12 Feb 2009 15:01
Concert promotion giant Live Nation and ticketing juggernaut Ticketmaster are planning to merge into a single company. The new company, which they intend to call Live Nation Entertainment, would arguably be the single most powerful force in the US live music business. And that is why it wlil be getting an enourmous amount of attention from the Federal Governmment before they allow it to happen.
Ticketmaster's near-monopoly of ticket sales in major US concert venues in the 1990 was the subject of more than a little controversy. During that time Pearl Jam famously boycotted Ticketmaster-served venues in protest of the service fees they charge for each ticket.
More recently Bruce Springsteen has railed against the company for allegedly redirecting ticket buyers to the website of a subsidiary, which then charges an additional markup beyond the standard price.
In the last few years Live Nation has managed to become a serious competitor in the ticketing business. Last year they also made headlines by sgning Madonna to a so-called 360 deal, which involved a three album deal with Live Nation owning the albums as well as all merchandise rights and tour profits in exchange for $120 million.
Springsteen recently issued a statement saying "the one thing that would make the current ticket situation even worse for the fan than it is now would be Ticketmaster and Live Nation coming up with a single system, thereby returning us to a near monopoly situation in music ticketing."