In recent months, Ticketmaster has faced intense scrutiny over its dominance in the ticketing industry. The company has been accused of monopolistic practices and exploiting fans through exorbitant fees and dynamic pricing. This culminated in a Congressional hearing in January 2023, where Ticketmaster executives were called to testify about the company’s business practices.
The Ticketmaster Controversy
Ticketmaster is the largest ticket sales and distribution company in the United States. According to some estimates, they sell tickets for 70% of major concerts and shows across the country. They own many major ticketing platforms including Ticketmaster.com and Ticketweb.
In mid-2022, Ticketmaster came under fire when they secured exclusive rights to ticket sales for Taylor Swift’s upcoming tour. When tickets went on sale, Ticketmaster’s website crashed due to overwhelming demand. Many fans were unable to purchase tickets, even after waiting hours in online queues.
This debacle highlighted some of the main complaints against Ticketmaster:
- Their hold on much of the ticketing market limits options and competition
- Technical issues on their platforms prevent fans from accessing tickets
- High fees and “dynamic pricing” inflate costs for consumers
There were calls for investigations into possible antitrust violations and anti-consumer practices by Ticketmaster. Some musicians and politicians accused the company of having an illegal monopoly over the ticketing industry.
The Congressional Hearing
In January 2023, the Senate Judiciary Committee’s Subcommittee on Competition Policy, Antitrust, and Consumer Rights held a hearing to investigate Ticketmaster. The hearing was titled “That’s The Ticket: Promoting Competition and Protecting Consumers in Live Entertainment.”
The subcommittee heard testimony from:
- Joe Berchtold – President and CFO, Live Nation Entertainment
- Amy Howe – Chief Operating Officer, Ticketmaster
- Sean Parker – Founder and Chairman, Parker Foundation
- Clyde Lawrence – Singer-songwriter
Live Nation Entertainment owns Ticketmaster, so Berchtold and Howe represented the company at the hearing. Sean Parker and Clyde Lawrence offered testimony as third-party witnesses.
Ticketmaster Testimony
Joe Berchtold defended Ticketmaster’s practices and domination over ticketing. Some key points from his testimony:
- Ticketmaster does not set initial ticket prices, the artist or event organizer does
- Fees cover costs of operating their platform and are in line with other digital marketplaces
- They do not prohibit competitors from entering the ticketing market
- Their market share has declined in recent years with new competitors
- They are committed to innovating and improving for fans
Amy Howe provided more detail on Ticketmaster’s technical issues, customer service efforts, and how they determine fees. She stated that Ticketmaster does not actually have an illegal monopoly but rather competes vigorously in an open market.
Overall, Berchtold and Howe denied allegations of antitrust violations, emphasizing that Ticketmaster serves fans by providing technological ticketing services. They positioned the company as an innovator operating fairly in a competitive landscape.
Third-Party Testimony
Sean Parker and Clyde Lawrence offered very different perspectives as third-party witnesses. Parker is a tech entrepreneur and philanthropist, while Lawrence is an independent musician.
Parker asserted that Ticketmaster effectively has a monopoly, saying “Ticketmaster is like a scalper with an army.” He argued that their market dominance stifles innovation and harms consumers. Parker suggested proper regulation and oversight could improve competition.
Meanwhile, Lawrence spoke from firsthand experience about Ticketmaster’s impact on music artists. He stated that high ticketing fees often place tickets out of reach of an artist’s own fans. Dynamic pricing also allegedly prices out artists’ core supporters in favor of wealthy buyers. He accused Ticketmaster of exploiting artists and fans.
This testimony from Parker and Lawrence directly contradicted Ticketmaster’s stance. They painted the company as an entrenched monopoly misusing its power at the expense of consumers, artists, and innovation.
Outcome of the Hearing
The Congressional hearing shone a public spotlight on criticism of Ticketmaster’s business practices. However, it did not immediately lead to concrete action against the company.
Senators did indicate they would continue investigating potential antitrust issues in the ticketing industry. There are also bipartisan efforts underway to increase oversight and transparency for ticket sales.
For now, Ticketmaster remains the dominant player in event ticketing. But public sentiment against their monopoly could build momentum for reforms and changes to come.
The hearing provided a high-profile forum for grievances against Ticketmaster. It offered the company a chance to defend itself. Ultimately, it kicked off a larger conversation about ensuring fair competition and consumer protection in the ticketing marketplace.
Key Takeaways
Here are some of the main takeaways from the Congressional hearing on Ticketmaster:
- Ticketmaster executives denied allegations of antitrust violations, arguing they face competition and do not set initial ticket prices.
- Third-party witnesses Sean Parker and Clyde Lawrence criticized Ticketmaster for stifling innovation and exploiting fans and artists.
- The hearing amplified criticism of Ticketmaster but did not directly lead to punitive actions against the company.
- It spurred further investigation into Ticketmaster’s dominance and calls for oversight of the ticketing industry.
- Scrutiny of Ticketmaster’s business practices will likely continue in the public and political spheres.
Who Else Has Criticized Ticketmaster?
Beyond the Congressional hearing witnesses, Ticketmaster has faced widespread criticism from various stakeholders in the music industry.
Musicians and Bands
Many prominent musicians have condemned Ticketmaster’s practices, including:
- Pearl Jam – Testified to Congress about Ticketmaster’s monopoly in 1994
- Bruce Springsteen – Spoke out against high Ticketmaster fees for his 2016 tour
- Metallica – Called out Ticketmaster for high resale prices seen with their concert tickets
- Kid Rock – Bashed Ticketmaster and promoted his own $20 tickets in 2013
- Garth Brooks – Divested himself from Ticketmaster to sell tickets himself in 2009
These artists have protested Ticketmaster’s monopoly power, service fees, and impact on accessibility for fans. Some have taken direct action by leaving Ticketmaster to handle their own ticketing.
Venues and Promoters
Many independent music venues claim Ticketmaster’s dominance makes it impossible to avoid their services. Some promoters have also accused Ticketmaster of threatening to cut off access if a venue works with competitors.
AXS and Eventbrite are two newer ticketing companies trying to break into the industry. But they still have limited market share compared to the Ticketmaster juggernaut.
Fans and Consumer Groups
Fans and consumer rights groups have long protested Ticketmaster’s fees and seemingly arbitrary restrictions. Some common complaints include:
- Fees averaging 25-30% that drastically increase ticket prices
- Difficulty accessing tickets, even if tickets are “available”
- Changing or inconsistent ticket release times and prices
- Arbitrary ticket purchase limits
- Predatory practices benefiting resellers over fans
These complaints were front and center during the uproar over Ticketmaster’s handling of the Taylor Swift tour pre-sale. Fan frustration will likely continue motivating calls for reforms.
What Happens Next With Ticketmaster?
In the wake of the Congressional hearing, there are a few possible paths forward regarding Ticketmaster:
No Meaningful Changes
There is a scenario where the heightened scrutiny leads to no major changes. Ticketmaster remains dominant and continues business as usual. This would require overcoming political will and public opinion against the company.
Self-Imposed Reforms
Ticketmaster could enact voluntary reforms to address some grievances. This might include reducing certain fees, improving queue systems, or enhancing fan-friendly policies. The extent of reforms could be limited to avoid threatening profits.
DOJ Investigation and Action
The Department of Justice (DOJ) may open a formal antitrust investigation into Ticketmaster. Potential outcomes could include a major settlement or even breaking up the company. However, antitrust challenges are lengthy processes with uncertain outcomes.
Legislative Reforms
Congress could pursue broader legislative reforms targeting anti-competitive practices in ticketing. This might include increased fee disclosures, protections against threats to venues, and prohibitions on restrictive ticket practices. But partisan gridlock could obstruct major reforms.
Most likely, a combination of changes driven by public pressure, legal action, and legislation will alter Ticketmaster’s business. However, unraveling their entrenched dominance in ticketing will be difficult. The company will likely remain a major target of criticism and debate for the foreseeable future.
Conclusion
The Congressional hearing on Ticketmaster provided an important examination of the company’s much-maligned ticketing monopoly. While the hearing itself did not lead to immediate action, it elevated criticism of Ticketmaster’s practices to the national stage. Political leaders, music artists, and the general public will likely keep pressure on Ticketmaster to reform its business model and end perceived anti-consumer behavior. However, significantly reforming or disrupting the company’s dominance in ticketing will be an uphill battle. Ticketmaster’s stranglehold on the ticketing industry has already persisted for decades. Their sheer scale and integration across live events gives them formidable advantages against competitors and critics. Ultimately, meaningful change to improve competition and accessibility in ticketing may have to come through a combination of political, legal, and technological challenges to the Ticketmaster empire.