For those not in the know, let me give you a little background on the two companies. Live Nation is a concert promoter and owner of large amphitheaters across the country. Live Nation has brokered deals with huge acts such as Madonna and U2 for exclusive rights to promote their concerts at only their venues. Referred to as "360 deals" gives the company handles all aspects of an artist's career, recording, concerts and merchandise.
Ticketmaster is the well known ticketing agency that has been criticized by fans and artists alike for their extreme processing fees that pile up on top of ticket prices.
What does this mean for you, the concert goer? Well, if we thought ticket prices were high before just wait a few years. In my opinion, this company is getting dangerously close to having a monopoly over the concert industry.
This deal is still waiting for the approval of government officials. I, personally, am hoping it does not go through. Yes, Ticketmaster is known for its price mark-ups. But, Live Nation was the closest thing to competition for the giant. If they combine ticket prices are going to skyrocket. Concert tickets are already obscenely high. We do not need this to continue. Competition is the best way to keep prices under control.
Vertical integration was disbanded in the movie industry as a monopolizing practice. Warner Bros., for example, used to own theaters as well as make movies and Warner theaters (often the only local theater) would only show Warner Bros. pictures. The government intervention led to distribution companies and privately owned theater chains.
ReplyDeleteThere is legislation on the books to prevent such practices. Live Nation is looking to fight an uphill battle.