All posts by Andrew Kilman

I really like Jersey Mike's Subs and playing golf at a veryyyyyyy casual level.

Government Resource Proposal

Clayton Act, Section 7

I am using this government resource to help describe why Live Nation is unethical for the U.S. Live Music industry. Live Nation has seen phenomenal growth over the past 10 years, and through the merger with Ticketmaster, Live Nation is certainly a forced to be reckoned with. Other related companies, such as Atlantic Records or Warner music, fear Live Nation may use its large market cap and competitive position to extend their services into A&R, recorded music, etc. Although Michael Rapino, in an interview with fortune magazine, noted he did not wish to extend the services of his companies into recorded music, acquiring Atlantic Records may be an incredible investment.

A white paper examining the anti-trust issues of the merger between Live Nation and Ticketmaster referenced a possible violation of Section 7 of the Clayton Act, so I wanted to know what the act actually said. Section 7 of the Clayton Act prohibits mergers and acquisitions where the effect “may be substantially to lessen competition, or to tend to create a monopoly.” So then I looked to Live Nation’s competitors—their biggest competitor was Caesar’s entertainment group and Liberty Media group, who still host live events, but have vastly different offerings. For example, Caesars’ may draw revenue from every aspect of their casino (food, drink, hotels, and live music), while Live Nation draws revenue from artist management, ticket sales, venue management, and sponsors. There wasn’t a single competitor who had similar market offerings at a similar market cap, so it is safe to say Live Nation violates section 7, since it has a monopoly.

“The Antitrust Laws.” Federal Trade Commission. Federal Trade Commission, n.d. Web. 11 Dec. 2014.

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.

Business Resource Proposal

The Live Nation 10K identifies the key financial statistics and goals of the business, as well as their current market position. Live Nation identifies itself as the leading live music producer in the world. “Globally, Live Nation owns, operates, has exclusive booking rights for, or has an equity interest in 148 venues.”

Live Nation also owns Ticketmaster, which is the world’s largest ticketing and marketing company. Ticketmaster is one of the largest eCommerce websites, and combined with Live Nation, provide a strong distribution channel for funding and promoting the concerts. Users will travel to Ticketmaster, the #1 place to buy tickets, and purchase tickets for concerts promoted and produced by LiveNation.

Live Nation considers their assets to be their fans, their artists, distribution networks, employees, and sponsors. These assets drive revenue for their businesses.

Through these listed assets we can see how a company like Live Nation drives revenue: 1. Revenue from concerts, as they own or lease each venue they produce a concert in. 2. Revenue from promoting the concert, as they chop off a percentage of the tickets they sell. 3. As a venue operator, they draw a profit from concessions. 4. As a festival operator, Live Nation books artists to attract fans. 5. Live Nation uses their ticketing site, Ticketmaster to get a cut from the tickets sold. Live Nation also draws revenue from managing the artists and working with sponsors at their event.

This resource taught me the basic business model of Live Nation and its company operations, in order to further analyze how these operations affect other companies in its industry, as well as the industry as a whole.

Live Nation Inc. 2013 10-K Report. Live Nation Inc., 31 Dec 2013. Web. 11 Dec. 2014.

Swimming Downstream: The Ethics of Spotify


Recently, I was jamming heavily to some Maroon 5 in my room with my friends using the online streaming program Spotify. The mood was awesome—great times, even better people, awesome music, and wonderful conversation. But then the music stopped. We all heard the jingle we hate the most: “O, O, O, O-Reilly…Auto Parts!” The room went silent. I awkwardly remarked: “That killed the mood.” I then considered, as I do almost daily, whether I wanted to sign up for a $5 a month student subscription to Spotify. Or maybe I could just buy my songs on iTunes and support the artist? Or, would I go against everything I stood for as an aspiring musician and businessman and go back to illegally torrenting my songs? Artists are rich anyway—do they really need my money when most of their revenues are made on touring? In this essay, I will argue that Spotify, the semi-free streaming application, is an ethical company that reaps benefits for all major players in the music industry. I will use a utilitarian analysis to demonstrate Spotify’s ideal appropriation of benefits and reduction of suffering against other forms of music consumption, and as it pertains to the future of the music business.

Continue reading Swimming Downstream: The Ethics of Spotify

BC Report on “What’s In Your Name?”

Professor Comas and I had a scintillating conversation about the posts from this week. It was interesting to learn about the origin of everyone’s names–as a result I feel closer to all my peers, as we have all shared a piece of our personal history. Continue reading BC Report on “What’s In Your Name?”

Andrew Kilman! Cool Name Right!?!?


Kilman is actual an Americanized version of Kielman, meaning “man from Kiel” in German. Kiel is a small city in North Germany where my family is from.

My family is predominately German, and although Kilman is a short name, it is actually very uncommon…being unique is fun!

As for my first name, Andrew, my mom wanted all her kids to be virtuous human beings so naming us was a good place to start. Andrew was one of the apostles in the bible!

It’s funny– no one calls me Andrew at this school– as you can see by the last blog council awards, all my friends call me Kilman. I don’t mind it at all. It’s just funny because I went by “Drew” in middle and high school, and decided I was going to go by Andrew in college, which clearly backfired.





-Me making any plans to become cooler usually backfires

Jason DeRulo Talks Dirty to Me

I actually got to meet Jason DeRulo after the concert last week– we talked ethics for a hot sec.

Do you think your goal as an artist is to be the most profitable tour or to express yourself and bring the most joy to your fans? Continue reading Jason DeRulo Talks Dirty to Me

John Mayer

Wow, a very open ended blog post! I love it. I like how this blog is evolving in terms of content and style.

I would have dinner with John Mayer. If you know me at all, this is extremely believable. Despite the flak I may receive from my peers, I stand by my statement. But why John Mayer? Continue reading John Mayer