Why the US government is intervening in the live music business and could break up Live Nation Entertainment – a music industry scholar explains
The U.S. Justice Department, along with 29 states and the District of Columbia, have filed an antitrust lawsuit against Live Nation Entertainment, the parent company of Ticketmaster.
The lawsuit alleges that Live Nation “engaged in a variety of tactics to eliminate competition and monopolize markets,” which, according to U.S. Attorney General Merrick Garland, has allowed the entertainment giant to “suffocate the competition” through its control of ticket prices, venues and concert promotion.
In response, Live Nation said that the antitrust suit “ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost.”
The Conversation U.S. asked David Arditi, a University of Texas at Arlington sociologist and former professional drummer who has researched the livelihoods of musicians, to explain what’s behind the government’s decision to intervene in the ticket-selling business.
The government alleges that Live Nation Entertainment’s sprawling business model is choking off competition and that the company is punishing venues that rely on other ticketing services.
Live Nation, the country’s largest concert promoter, and Ticketmaster, the nation’s biggest ticket seller, had long been major players in the music industry. After the Justice Department approved a merger in 2010 between the two enterprises, the new company, Live Nation Entertainment,........
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