Yes, Live Nation Entertainment does own Ticketmaster. In 2010, Live Nation merged with Ticketmaster to create the Live Nation Entertainment company that exists today.
The History of Live Nation and Ticketmaster
Ticketmaster was founded in 1976 as a ticketing service for live events. It initially started by selling tickets for concerts promoted by Bill Graham in the San Francisco area. As Ticketmaster grew, it began selling tickets for major concert tours and sporting events across the United States. By 1982, Ticketmaster was selling over 60 million tickets per year.
Live Nation was formed in 2005 after Clear Channel Communications split its live events division from its radio broadcasting division. The new company Live Nation became the largest promoter of live concerts in the world. In its first year, Live Nation promoted over 22,000 events for 1,500 artists in 57 countries.
As the two largest players in live event ticketing and promotions, Ticketmaster and Live Nation frequently worked together. However, there was also increasing competition between the two companies. In 2009, Live Nation signed a long term deal with AEG to handle ticketing for its venues, moving away from Ticketmaster. This increased competition prompted Ticketmaster and Live Nation to merge together.
The Merger of Live Nation and Ticketmaster
In 2009, Ticketmaster and Live Nation announced plans to merge together in an all-stock deal valued at $2.5 billion. The combined company would be named Live Nation Entertainment. It would promote live events, sell ticketing services, and manage artists. The deal helped consolidate the live music industry, bringing together ticketing sales, promotions, artist management and venue operations under one roof.
The proposed merger raised anti-trust concerns with the U.S. Justice Department. In 2010, the Justice Department approved the deal but only under certain conditions. Live Nation Entertainment was required to license its ticketing software to competitors and was prohibited from retaliating against venues that partnered with other ticketing companies. The Justice Department felt these conditions would prevent Live Nation Entertainment from having a monopoly over live event ticketing.
Despite the regulatory scrutiny, the merger was completed in January 2010. Although initially structured as a merger of equals, the combined company was essentially built around Live Nation’s executives and business models. The CEO of Ticketmaster at the time, Irving Azoff, became the CEO of Live Nation Entertainment.
How the Merger Impacted Consumers and the Industry
The merger of Ticketmaster and Live Nation into the Live Nation Entertainment conglomerate has impacted consumers and the music/live events industry in the following ways:
Higher Ticketing Service Fees
In the wake of the merger, Ticketmaster service fees have increased substantially for events. Service fees, which include items like order processing charges and facility fees, can add 25% or more to the base ticket price. Live Nation Entertainment has received considerable criticism from consumers about excessive service fees since the merger.
More Bundling of Services
Live Nation Entertainment has frequently bundled its services together when working with artists and venues. For example, the company may only promote an artist’s tour if that artist also uses Ticketmaster for ticketing and Live Nation for management services. This makes it more challenging for competitors to work with artists and venues without being shut out from Live Nation Entertainment’s vast industry footprint.
Other Ticketing Companies and Promoters Remain
While dominant in the industry, Live Nation Entertainment does still face competition. Other major ticketing companies like AEG and StubHub continue to rival Ticketmaster for selling tickets. Smaller independent promoters also operate in certain live event niches not served by Live Nation. However, competitors undoubtedly face a much harder path competing against Live Nation Entertainment’s stacked suite of services.
Ongoing Regulatory Oversight
As part of the Justice Department’s conditions, Live Nation Entertainment’s actions are still subject to regulatory oversight to prevent anti-competitive practices. For example, in 2019 the Justice Department reviewed Live Nation’s practices related to bundled services and ordered the company to amend its concert promotion contracts. However, some consumer advocates argue the regulatory oversight has not gone far enough in addressing Live Nation Entertainment’s industry power.
Financial Performance Since the Merger
Despite some ongoing criticism and regulatory constraints, Live Nation Entertainment has achieved strong financial results since the merger:
| Year | Revenue | Operating Income |
|---|---|---|
| 2010 | $5.06 billion | $69.5 million |
| 2018 | $10.79 billion | $306.5 million |
| 2021 | $6.26 billion | $-252.8 million |
As shown in the table, Live Nation Entertainment’s annual revenue grew from $5 billion in 2010 following the merger to over $10 billion by 2018. Operating income also rose substantially, going from $69 million to over $300 million. While the Covid-19 pandemic severely impacted Live Nation’s business in 2020 and 2021, the company still reported over $6 billion in revenue in 2021.
Some key factors driving Live Nation’s growth since 2010 include:
- Expansion of concert promoting into new markets and arenas
- Higher ticketing sales and service fees
- Increased revenues from artist management and sponsorships
- Growth in Live Nation venue operations
The merger with Ticketmaster provided Live Nation with the ticketing platform, artist relationships, consumer data, and operational infrastructure to accelerate growth and innovation in the concert promotion business. The combined company has proven adept at using its end-to-end industry presence to drive higher revenues.
Live Nation Entertainment’s Current Business Structure
Today, Live Nation Entertainment operates through the following key divisions:
Ticketmaster
Ticketmaster is one of the largest primary and secondary ticket marketplaces in the world. It provides ticketing services for over 500,000 live events each year. Consumers can purchase tickets online, on mobile devices, and at Ticketmaster outlets.
Live Nation Concerts
Live Nation Concerts promotes over 20,000 live entertainment events annually across all music genres. The company owns, operates, has booking rights for, or has an equity interest in 172 major concert venues worldwide. Live Nation Concerts’ artist management division represents over 500 artists.
Sponsorship and Advertising
Live Nation Entertainment sells sponsorships and provides online advertising services on its ticketing platforms and at venues/events. This division enables corporate brands to market to Live Nation’s audience of over 86 million concert fans and ticketing platform users.
Live Nation Venues
Live Nation owns, operates or has booking rights for more than 60 clubs and theaters. These venues help expand Live Nation’s concert promotion capabilities into small-to-midsize markets.
Key Acquisitions Since the Merger
To diversify and strengthen its live event ecosystem, Live Nation Entertainment has made the following notable acquisitions since merging with Ticketmaster in 2010:
| Company | Year Acquired | Business |
|---|---|---|
| LN-HS Concerts | 2010 | Concert promotion in Holland |
| Cream Holdings Limited | 2012 | Concert promoter and festival operator based in the UK |
| Hard Events | 2012 | Electronic dance music concert promoter |
| CTS Eventim | 2013 | Ticket seller based in Europe |
| Front Line Management Group | 2013 | Artist management company |
| Rams Head Group | 2013 | Operator of clubs, bars and live music venues |
Through targeted acquisitions, Live Nation Entertainment has strengthened its operations and footprint in key markets like Europe while also expanding into additional live event capabilities like artist management.
Key Executives Leading Live Nation Entertainment
The following executives lead the management team at Live Nation Entertainment:
- Michael Rapino – President and CEO
- Joe Berchtold – Chief Operating Officer
- Michael Rowles – General Counsel
- Kathy Willard – Chief Financial Officer
- Russell Wallach – President of Media and Sponsorships
- Bob Roux – President of US Concerts
Michael Rapino has served as Live Nation’s CEO since 2005. He led the merger with Ticketmaster and has overseen the company’s expansion strategy over the past decade. Other top executives like Joe Berchtold and Kathy Willard provide operational and financial management experience.
Recent Controversies and Criticisms of Live Nation Entertainment
Despite its business success, Live Nation Entertainment has faced ongoing controversies and criticisms from regulators, consumers, and artists. These have included:
Allegations of Anticompetitive Practices
Competitors and consumer groups have accused Live Nation Entertainment of anticompetitive tying and bundling of services that make it difficult for other players to rival their platform. These complaints have led to regulatory actions against Live Nation.
Service Fee Increases
Customers have complained about the high fees Ticketmaster charges on top of ticket prices. Class action lawsuits have been filed claiming these fees are excessive and abusive of Live Nation’s industry power.
Difficulties for Venues Using Other Ticketing Companies
Some independent music venues have claimed they faced retaliation from Live Nation for using other ticketing service providers. There are allegations Live Nation has pressured venues by threatening to refuse to book shows if they do not use Ticketmaster.
Deceptive Ticket Resale Practices
Investigations into Live Nation’s Ticketmaster resale division have uncovered deceptive practices that make it appear tickets are scarce when they are not. This artificially drives up secondary market prices.
Artist Backlash Over Service Fees
High profile artists like Bruce Springsteen and Pearl Jam have criticized Live Nation Entertainment for the fees it charges on ticketing. These artists claim the fees hurt fans and have tried alternative ticketing models to get around Ticketmaster.
Potential Changes Facing Live Nation Entertainment
Going forward, some key developments that could shape Live Nation Entertainment’s future position include:
More Scrutiny of Acquisitions
Regulators may ramp up reviews of Live Nation’s acquisitions of concert promoters, venues, ticketing companies, and artist management firms to prevent further industry consolidation under their control.
Push for Splitting Up Business Units
There are calls to break up Live Nation Entertainment into separate concert promotion, ticketing, and artist management businesses to reduce conflicts of interest and anti-competitive concerns.
Emergence of Rival Platforms
Companies like AEG, SeatGeek, and Dice are trying to build all-in-one live event platforms to rival Live Nation. Their future traction could reduce Live Nation’s industry dominance.
Vertical Integration into Streaming
Live Nation is partnering with streaming services like Amazon to broadcast and monetize virtual concerts. Deepening connections between live events and streaming could expand its business model.
More Flexible Ticket Distribution
Tools that let artists sell tickets directly through their own stores and websites could undermine Ticketmaster’s grip on primary ticket sales.
Conclusion
In summary, the 2010 merger of Live Nation and Ticketmaster combined the two most powerful players in live entertainment into the conglomerate Live Nation Entertainment. While the merger helped Live Nation accelerate its concert promotion capabilities and achieve strong revenue growth, it also raised competitive concerns and criticisms over high ticketing fees and industry power.
Live Nation Entertainment continues to face regulatory constraints and public complaints as it dominates concert promotions, ticketing sales, venues, artist management, and related live event services. However, the company has proved adept so far at expanding its business through acquisitions, higher ticket prices, and bundling its services to squeeze out competitors. Looking ahead, Live Nation Entertainment may face more challenges if regulators or competing platforms curtail its industry influence and control over key live event distribution channels.
In the music business, the ongoing debate over Live Nation Entertainment’s power and business practices will help shape the future economics and structure of the live entertainment industry. Consumers and artists are pressing for more transparency and options, while Live Nation tries to leverage its vertical size to strengthen its market position. Ultimately the push and pull between the conglomerate and its critics will determine if Live Nation Entertainment can maintain its far-reaching grip over live event ticketing and promotions.