|
Tickmaster and Live Nation just bent us over...
|
View this Thread in Original format
| apple country |
Live Nation, Ticketmaster Merger Gets Approval
The U.S. Justice Department will allow the creation of ticketing and promotions mega-company.
By Gil Kaufman
Views1,050
The two biggest names in the concert business are about to become one gigantic one. The U.S. Justice Department on Monday approved the merger of ticketing giant Ticketmaster and concert promoter Live Nation, creating a live entertainment conglomerate the likes of which has never been seen before in the music industry.
Live Nation Entertainment, as the company will now be called, is expected to begin merging its operations as early as Wednesday, and experts predict that the combined forces of the two companies could alter the live music landscape.
According to the Los Angeles Times, the controversial $889 million merger, in the works for nearly a year, came with a number of major concessions to address concerns that the combined companies would possibly have an unfair near-monopoly on ticket sales, with an ability to book concerts, sell tickets and merchandise, and manage such major acts as the Eagles, Christina Aguilera, Guns N Roses and Aerosmith.
Among the concessions was the order to create a pair of rivals in the $4.8 billion ticketing industry to ensure a competitive market for ticket sales, which have been strong even as record sales continue a nearly decade-long decline. The provisions call for Ticketmaster — for nearly two decades the dominant ticket seller in the country — to give Live Nation rival AEG Live access to its ticketing technology so that it can create its own ticketing service. Before announcing plans to merge last year, Live Nation had attempted to launch its own rival ticketing agency, with mixed results.
Ticketmaster also has to divest in a subsidiary called Paciolan that provides software for venue operators to sell their own tickets. The sports division of Comcast Corporation has signed a letter of intent to purchase Paciolan. Finally, Live Nation — the largest venue owner/operator and promotions firm in the world — agreed that it will not retaliate against venue owners who leave to sign up with its rivals.
After the surprising announcement about the intended merger was made last February, consumers, artists and competitors cried foul, citing concerns that Ticketmaster's increased power and control over the concert industry could lead to price increases and decreased competition. Ticketmaster sold more than 141 million tickets worth more than $8.9 billion in 2008, grabbing an 83 percent share of the market for major venues, with the next-biggest competitor holding just under 4 percent of that market.
"While we appreciate the efforts of the DOJ to extract meaningful concessions from the parties, we remain concerned that these two companies, with a history of anti-consumer behavior, will abide only by the letter and not the spirit of the settlement agreement," said Sally Greenberg, executive director of the National Consumers League.
Ticketmaster CEO Irving Azoff has long said that the merger will actually help the moribund music industry by helping to smooth the efficiency of delivering music and music-related merchandise to fans, the Times reported. The Department of Justice said the initial filing for the merger did contain anti-competitive elements, which is why the concessions were ordered before final approval was given.
Under the new deal, some major acts could conceivably have their merchandising, ticketing and management under the control of the same company that owns the venues they perform in, a first for the music industry.
Despite the grumbling that a merger could give consumers less choice and lead to higher prices, the companies have argued that their combined power will be good for customers. "It will give us greater flexibility in how we promote, market and sell tickets to events," Azoff told the Senate Judiciary Committee in February. "It will give us a pathway to alternative pricing and fee structures."
http://www.mtv.com/news/articles/16...126/story.jhtml
Im taking anything "good" about this with heaping mounds of salt. |
|
|
| Joss Weatherby |
| Another reason to support independent musicians, independent record labels, independent ticket sellers (not scalpers!), and independent venues. |
|
|
| idoru |
| quote: | Originally posted by Joss Weatherby
Another reason to support independent musicians, independent record labels, independent ticket sellers (not scalpers!), and independent venues. |
This. |
|
|
| Boomer187 |
| quote: | Originally posted by Joss Weatherby
Another reason to support independent musicians, independent record labels, independent ticket sellers (not scalpers!), and independent venues. |
Their music sucks though. |
|
|
| get nyce |
| quote: | Originally posted by Joss Weatherby
Another reason to support independent musicians, independent record labels, independent ticket sellers (not scalpers!), and independent venues. |
support small business owners coughcoughcough |
|
|
| Simon_N |
| ^^^^ Haha. Nicely done. |
|
|
| Schadenfreude |
Even with this merger, the market will dictate the pricing policies as it always has. It is why certain shows are more expensive in certain areas than others, even if the venue size is essentially the same.
You can't really blame them if they try and make as much money as possible for their services if the demand is there.
Ticketmaster is essentially the middle man, the venue will dictate more in terms of the accessibility to the product according to it needs and goals. I know people that work for one of the largest entertainment promotions companies in Canada, and I can tell you with certainty that they set conditions more than any ticket outlet does.
There are rare instances in which the management groups/artists essentially rent out the venue for a lump sum and take full control of everything from pricing to production costs (UFC, Madonna, U2 and a few others come to mind off the bat), but they are really in the minority.
I could be wrong as this merger concerns mostly the US, but my gf works in this industry for a large touring company, and more times then not the pricing is venue specific and has little to do with companies like ticketmaster. (who live and die mostly with the service charge)
It is just like when a venue does not sell out, ticketmaster does not do the "papering" (give free tickets to make the place seem more full), the venue does. |
|
|
| woscar |
| quote: | Originally posted by apple country
According to the Los Angeles Times, the controversial $889 million merger, in the works for nearly a year, came with a number of major concessions to address concerns that the combined companies would possibly have an unfair near-monopoly on ticket sales, with an ability to book concerts, sell tickets and merchandise, and manage such major acts as the Eagles, Christina Aguilera, Guns N Roses and Aerosmith.
|
:stongue: :stongue: :stongue: |
|
|
| jupiterone |
| quote: | Originally posted by woscar
:stongue: :stongue: :stongue: |
WELCOME TO THE HOTEL CALIFORNIIIAAAA |
|
|
| woscar |
I HATE THE ING EAGLES MAN!!!
 |
|
|
|
|
