Testimony updates from the US hearing involving Ticketmaster

Testimony involving Live Nation Entertainment and Ticketmaster is underway as the U.S. Senate questioned Joe Berchtold, President, and CFO, as he defended the company's position and policies involving the debate on its domination and monopolistic position in the live entertainment industry. During Tuesday's hearing, lawmakers and witness testimony gave insight into Live Nations' domination as the prime leader in the NBA. NFL, NHL, and the most significant player in concert venues, artistic content and ticket supplier in the country. Issues around Ticketmaster having a stronghold on the entertainment market has been an issue for decades that only aspirated when Live Nation Entertainment and Ticketmaster merged in 2010 — now exercising power in multiple markets such as owning venues, promoting the artists and ticket sells. When announcing the hearing date for testimony in Ticketmaster and Live Nation's business practices, U.S. Senator Amy Klobuchar made the following statement. "The issues within America's ticketing industry were made painfully obvious when Ticketmaster's website failed hundreds of thousands of fans hoping to purchase tickets for Taylor Swift's new tour, but these problems are not new. For too long, consumers have faced high fees, long waits, and website failures, and Ticketmaster’s dominant market position means the company faces inadequate pressure to innovate and improve." "During the hearing, (we) will examine how consolidation in the live entertainment and ticketing industries harms customers and artists alike. Without competition to incentives better services and fair prices, we all suffer the consequences." On Tuesday, Jan. 24, Capital Hill heard testimony opposing Ticketmaster's position and market power from Jack Groetzinger, CEO, SeatGeek a New York-based ticketing platform, Jerry Mickelson, CEO, and President of JAM Productions, a Chicago-based concert promoter, 50 years in the industry and Sal Nuzzo, Senior Vice President, of The James Madison Institute a Florida-based free-market think tank. In addition, Kathleen Bradish, Vice President for Legal Advocacy American Antitrust Institute, presented to Congress and Clyde Lawrence, singer, and songwriter for the band Lawrence. Opposing testimony debating Live Nation's business practices circled around bullying competition tactics and a clear monopoly in the industry, especially when the two companies merged. With support from Jerry Mickelson, Jack Groetzinger's testimony to Congress stated Live Nation's dominance entails any venue that uses a competitor will endure repercussions of less artistic content, meaning fewer performers and ultimately reducing revenue. Since Live Nation now owns a large percentage of venues, including promoting the top prominent performers and has now implemented decade-long contracts to secure total power over the market. Clyde Lawrence, from the band Lawrence, testified to the hidden fees when performing at Live Nation venues or through Ticketmaster ticket sell platforms, which Berchtold defending his position, stated that the venue determines the price. To counter, Lawrence said he had asked every venue what that fee is, and every venue stated it was a "Ticketmaster thing," the debate on this issue on Capital Hill went in circles so no one could determine where the fee comes from. The Taylor Swift ticket fiasco only revealed a longstanding problem, Jerry Mickelson, CEO, and President, of JAM Productions, said, adding when the tickets were placed on sale, Ticketmaster knew the demand and how they were sold drove up prices intentionally with more concern over the corporate bottom line. Kathleen Bradish's legal testimony was to the point and expressed concerns about Live Nation's bullying tactics in the industry and the fear-based concerns for individuals to speak up in response to retaliation resulting in lost revenue due to their stronghold dominance. When lawmakers asked what she thought should be done, she replied, "Obvious violations have occurred, and Ticketmaster-LiveNation is a monopolist company whose conduct needs to be supervised. A structural remedy should be implemented that includes a spin-off and disintegration of the vertical integration." Laws to protect vertical merges and strong anti-trust laws to support the existing laws and other laws to clarify the antitrust policies to change the industry's inconsistency." This is a developing story; check back for updates.

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