Ticketmaster and Live Nation are two of the biggest players in the live entertainment and ticketing industry. They have a long and intertwined history that has led to their current relationship status today.
The History of Ticketmaster
Ticketmaster was founded in 1976 as a means to centralize and computerize ticketing services. In its early days, it mainly served larger venues and promoters in the live entertainment industry. It initially started as a pay-by-phone ticketing service and eventually moved its operations online as the internet grew.
Throughout the 80s and 90s, Ticketmaster acquired many of its competitors like Ticketron and Vista ticketing. This allowed it to expand its services into more venues and regions around the US. It was able to establish exclusive deals with major concert promoters like Live Nation (which was spun off from Clear Channel Communications in 2005).
This helped Ticketmaster secure its stronghold over primary event ticketing and become the dominant force it is today. Currently, Ticketmaster sells tickets for over 500,000 events across 30 countries each year. It has a client roster of venues, theater productions, sporting teams/leagues, and music festivals.
The History of Live Nation
Live Nation originated as a spin-off of media conglomerate Clear Channel Communications in 2005. It was established as a subsidiary focused solely on the company’s live entertainment assets. This included promoting and operating major tours and festivals like Ozzfest.
After the spin-off, Live Nation embarked on an aggressive acquisition strategy to grow its portfolio. It acquired notable companies like theatrical producer Broadway Across America and global event promoter TNA Entertainment Group.
In 2007, Live Nation signed a landmark $120 million deal with U2 that gave them the exclusive rights to the band’s tours, merchandising, and website operations. This was just the start of similar 360-degree deals the company would make with major artists like Jay-Z, Madonna, and Shakira.
Live Nation further expanded in 2010 when it merged with the world’s second largest concert promoter, Ticketmaster. This $889 million deal combined the two live event titans and dramatically reshaped the industry.
The Merger of Live Nation and Ticketmaster
In 2009, Live Nation and Ticketmaster announced plans to merge in a deal reportedly worth $2.5 billion. This brought together Live Nation’s concert promotion abilities with Ticketmaster’s ticketing platform and artist relationships. It allowed the companies to offer integrated concert experiences from artist relations to event promotion to ticketing services.
The merger did receive pushback on anti-trust grounds from government agencies and consumer groups. Critics argued it would create a monopoly in live entertainment given Ticketmaster’s over 80% control of major event ticketing.
However, the merger was ultimately approved in January 2010. Since then, the combined Live Nation Entertainment has continued to dominate the industry. It recently reached a milestone of selling 500 million tickets through Ticketmaster.
Key Benefits of the Merger
- Combined Ticketmaster’s ticketing services and debuts with Live Nation’s concert promotion abilities
- Provided one integrated platform for venues, concert promoters, and artists
- Gave Live Nation access to Ticketmaster’s extensive client roster and vice versa
- Allowed cross-promotion opportunities between Ticketmaster events and Live Nation tours/festivals
- Expanded ticketing, promotions, and events into more venues and markets globally
The Current Relationship Between Ticketmaster and Live Nation
Currently, Ticketmaster and Live Nation operate as subsidiaries under the merged parent company Live Nation Entertainment. However, they still largely function as separate entities.
Ticketmaster continues to provide its ticketing services and technology to over 500,000 events annually. It serves clients across music, sports, arts, and theater. Live Nation owns, operates, or exclusively promotes around 40,000 live events every year. It oversees major global tours, festivals, and venues.
Under the Live Nation Entertainment umbrella, the two companies can closely coordinate and cross-promote their events and services. Some key aspects of their current relationship include:
Exclusive Ticketing Agreements
Ticketmaster remains the exclusive ticketing service for Live Nation owned or operated venues and festivals. Any event that Live Nation promotes must use Ticketmaster for its ticketing. This guarantees business for both companies.
Combined Resources and Leverage
With Live Nation’s industry clout and Ticketmaster’s technology, they can negotiate better deals with vendors, venues, and artists. Their combined power gives them more leverage compared to competitors.
Shared Client Bases
Ticketmaster provides ticketing services for many of the events that Live Nation promotes. This shared client base makes cross-promotion and collaboration easier.
Integrated Promotions
Live Nation and Ticketmaster can bundle various offerings when packaging tours, festivals, and live events. This can include integrated ticketing, travel packages, merchandise, and artist access experiences.
Shared Consumer Data
With their combined reach, Live Nation Entertainment can gather immense amounts of consumer data. This allows deeper insights into ticketing patterns, concert attendance, and fan preferences.
Criticisms of the Live Nation-Ticketmaster Relationship
The tight relationship between Live Nation and Ticketmaster has received a fair share of criticism ever since the merger. Some of the common anti-trust issues raised include:
Lack of Competition
With no comparable ticketing rival, critics argue Ticketmaster has no incentive to innovate or improve services. Its market dominance also makes venues and promoters heavily dependent.
Higher Fees
Some blame Ticketmaster’s exorbitant services fees charged to consumers on its stranglehold over major event ticketing. Its exclusive deals mean less pressure to keep fees competitive.
Unfair Advantages
The data sharing and bundled offerings give Live Nation advantages over competing concert promoters. Smaller players argue they cannot match Live Nation’s integrated offerings.
Anti-Competitive Behavior
Live Nation has been accused of anticompetitive practices like block booking. This requires venues to book a bundle of Live Nation shows if they want to secure major concerts.
Barriers to Entry
The high cost of ticketing technology and Live Nation’s locked up concert pipeline make it very hard for new players to enter and compete in the market.
Government Responses to Criticisms
US and foreign government agencies have investigated allegations of anticompetitive practices and consumer harm stemming from the Ticketmaster-Live Nation relationship. Some actions taken include:
DOJ Investigation (2018 – 2020)
The US Department of Justice launched an investigation into possible antitrust violations by Live Nation Entertainment in 2018. It looked into complaints of unfair pricing and barriers faced by competitors. In early 2020, the DOJ recommended tighter restrictions without pursuing a breakup.
Congressional Hearings (2009, 2021)
US Congressional Subcommittees have held hearings criticizing the merger and calling for separation of Ticketmaster and Live Nation. These occurred in 2009 before the merger and again in 2021 as concerns grew.
UK Market Investigation (2015 – 2017)
The UK’s Competition and Markets Authority spent over two years investigating Live Nation’s dominance in British live music. It found insufficient competition but did not recommend a full breakup.
Italy Antitrust Ruling (2019)
Italian regulators ruled in 2019 that Live Nation leveraged unfair advantages over competitors in live music promotion and ticketing in that market.
The Future of the Ticketmaster-Live Nation Relationship
Despite ongoing criticism and government scrutiny, Ticketmaster and Live Nation remain tightly intertwined companies. Their exclusive partnership is set to continue for years to come.
Some possible future developments include:
- Pressure leads to gradual loosening of exclusive deals between the companies
- Tighter regulations are imposed around joint data sharing and promotional bundling
- Fee caps or transparency requirements are mandated by regulators
- Scrutiny deters future M&A deals, preserving the current duopoly
- Alternate ticketing platforms slowly chip away at Ticketmaster’s share in niche markets
- The status quo remains with Live Nation-Ticketmaster dominating the industry
In summary, the two companies clearly benefit greatly from their symbiotic relationship. Despite ongoing criticism, any wholesale structural changes seem unlikely given the immense entrenchment. The integrated live entertainment ecosystem created from their merger will likely endure going forward even in the face of regulatory challenges. Their strategic partnership has fundamentally shaped the industry as we know it.
Conclusion
Ticketmaster and Live Nation have an extensively intertwined history culminating in their recent merger. Ticketmaster’s ticketing dominance combined with Live Nation’s promotion expertise has created a powerhouse in live events. However, their relationship has continuously faced heavy criticism and antitrust allegations. Government agencies have imposed some restrictions but widespread structural changes seem doubtful. The extensive integration between these two giants will likely persist to give them unmatched reach across live entertainment.