Society Resource Proposal


White Paper on Ticketmaster – Livenation

This white paper was very useful, because it is an in depth look at one of the topics I will discuss in my paper, the ethics of Live Nations perceived monopoly. I am attempting to figure out whether Live Nation is ethical and good for the music industry, and this paper raises many concerns about its merger with Ticketmaster. Perhaps most importantly to the author: “The most problematic of these from an antitrust perspective is primary ticket sales, where Ticketmaster and Live Nation are horizontal competitors and, by far, the two leading firms in the market.” Live Nation used to book all the concerts and own all the venues. By merging with Ticketmaster who may have had some previous leverage in the price and marketing of tickets, they in a sense have complete control over all ticket prices.

Since this is the case, the resource also considers the barriers to entry in the market. “This vertical integration would effectively frustrate new entry because, as a practical matter, it would require firms seeking to compete seriously against Live Nation Entertainment to enter the industry on several levels at once.” So essentially, the barriers to entry in this market are extremely high, and with LiveNation extending its services beyond ticket and venues, it presents itself as extremely unethical.

This proposal also provides key statistics showing the negative, monopolistic effect LiveNation may have on Ticket Sales: “Between 1996 and 2003, revenue per show increased by 60%, the super-star artists performed 18% fewer shows, and the total number of tickets sold by the industry declined. The increase in revenue per show results from both an increase in the number of tickets sold per show and an increase in ticket price.”

Live Nation is also so powerful that other players in the industry fear Live Nation’s growth into other markets Many members of the recording industry believe that, after the merger, Live Nation Entertainment will go beyond Live Nation’s current emphasis on superstars and undermine the recording companies’ relationships with its own artists.

Considering that Live Nation monopolizes the venue management industry, and there already are players in the booking and recording industry, is Live Nation powerful enough to overtake these companies?

James B. Hurwitz. “Commentary: Ticketmaster – Live Nation” The American Antitrust Institute.4-28-2009. The American Antitrust Institute.12-11-14. http://www.antitrustinstitute.org/files/TICKETMASTER%20Revised.4.28.09_043020092221.pdf

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