Live Nation, Ticketmaster, merger probe
p2pnet news view Music:- A merger between Ticketmaster and Live Nation would not only lead to innovation, more, acts and “new revenue streams’” for artists, it might even keep the music business alive.
That’s what Live Nation boss Michael Rapino wanted the US Senate Judiciary’s anti-trust subcommittee to believe in a hearing which could be the start of an investigation that could take months or longer, says Billboard.
The combined companies wouldn’t hurt music fans or rival businesses. In fact, “This deal would benefit them as we spur competition and innovation,” he said.
“If we don’t make significant changes to the business model and if we don’t build new structures, we may be back here in the future for another hearing on the death of the American music industry,” he told the US Senate Judiciary’s antitrust subcommittee, says the story.
It and independent concert promoters, “who questioned the motives and potential outcome of the proposed merger of the two live entertainment giants,” were hearing the two corporate leaders trying to justify putting their two companies together in what could be the start of an investigation that could take months or longer, it stated, quoting David A. Balto, a senior fellow at the Center of American Progress, as observing Ticketmaster has had the monopoly on ticketing, “for the past 10 years”.
“What compels companies to reduce prices is competition, and both of these firms are dominant firms in the market,” he said. “Nothing after this merger is going to force them to lower prices.”
Balto also suggested the merger would “diminish competition in primary ticket distribution.” Similarly, he said Live Nation Entertainment would shut out new companies from entering into the ticketing business. “It would be extraordinarily unlikely if this merger occurs that we’d ever see entry,” he said.
The hearing was also, “filled with heavy opposition from independent promoters JAM Productions chairman and executive VP Jerry Mickelson and IMP Productions co-owner Seth Hurwitz, who testified that the merger could have a detrimental impact on companies that would compete with the new Live Nation Entertainment,” says Billboard.
“This is vertical integration on steroids,” said Mickelson in the story.
“If this merger is allowed to proceed, the combined entity will have the ability to suppress or eliminate competition in many segments of the music industry, including rival concert promoters, primary and secondary ticketing companies, artist management firms, talent agencies, venue management companies, record companies, artist merchandise, music apparel and licensing companies, and sponsorship companies,” he says in the story.
Bruce Springsteen went public with his anger when the news broke that ticket scalper (sorry, seller) and Live Nation were close to merging, said p2pnet.
He said he was representing his fans after somine of them were, “sent to TicketsNow.com, a Ticketmaster resale site, where tickets for one of his shows were being sold at well over the odds” and because their partnershio woudl mean a consolidation of, “two of the most powerful forces in the music industry under one roof”.
Ticketmaster subsequently said it’d change its sales policies.
Stay tuned.
Billboard – Live Nation-Ticketmaster Merger Grilled On Capitol Hill, February 24, 2009
proposed merger – Ticketmaster, Live Nation – wedding bells?, February 4, 2009
p2pnet – Springsteen angry over Ticketmaster rip-off, February 6, 2009
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February 26th, 2009 at 5:37 pm
“Ticketmaster subsequently said itâd change its sales policies.”
Well, there ya go!
We can all relax now.
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