This is a common question that many consumers have when purchasing tickets for live events. On the surface, Ticketmaster and Live Nation appear to be separate companies, but their business relationship is complex and interconnected.
The History of Ticketmaster and Live Nation
Ticketmaster was founded in 1976 as a ticketing service that partnered with venues and promoters to sell tickets to events. Over the years, it grew into the dominant primary ticket seller in the United States. Live Nation was formed in 2005 after Clear Channel Communications spun off its live events division as a separate company. Live Nation promoted and operated tours for music artists and owned, operated or booked over 150 entertainment venues.
In 2009, Ticketmaster and Live Nation announced plans to merge into one company. This created a vertically integrated powerhouse that controlled ticketing, promotions, venues, and artist management. The proposed merger raised anti-competitive concerns and was opposed by some musicians and politicians. As a compromise, the U.S. Department of Justice approved the merger in 2010 on the condition that Ticketmaster sell subsidiary Paciolan, a ticketing service for college sports.
Current Corporate Structure
Today, Live Nation Entertainment is the official parent company of Ticketmaster and Live Nation. Live Nation Entertainment owns Ticketmaster and all its ticketing subsidiaries. Live Nation is now a subsidiary of Live Nation Entertainment that handles promotions, venues, sponsorships and artist management.
So in essence, Live Nation and Ticketmaster are owned by the same parent company, Live Nation Entertainment, but operate as separate divisions.
How the Businesses Interact
As subsidiaries of Live Nation Entertainment, Ticketmaster and Live Nation have an interconnected relationship:
- Ticketmaster is the exclusive ticketer for the majority of Live Nation’s owned and operated venues.
- Live Nation companies like House of Blues and Fillmore use Ticketmaster for all their ticketing needs.
- For Live Nation promoted tours and concerts, Ticketmaster gets the exclusive rights to be the primary ticketer.
- Ticketmaster sells tickets for Live Nation owned venues like The Gorge Amphitheatre and Shoreline Amphitheatre.
- Live Nation subsidiaries like Ticketmaster Resale (secondary ticketing) and TicketWeb (smaller indie shows) also power ticketing.
This setup gives Live Nation Entertainment and its companies control over ticketing, venues, promoters, artist management and ticket resale. Ticketmaster and Live Nation benefit from cross-promotion and shared resources. However, the relationship has also drawn criticism and accusations of antitrust violations.
Anti-Competitive Concerns
Consumer advocacy groups opposed the Ticketmaster and Live Nation merger, claiming it would create a monopoly in live entertainment. Critics argued the combined company suppressed competition by locking up artists, venues and ticket distribution.
After attempting to modify the consent decree several times, Live Nation Entertainment settled with the Justice Department in 2019. They agreed to extend the monitoring of their anti-competitive practices until 2025. Many still consider the merged company too dominant in the industry.
venues Locked into Ticketmaster
According to an investigation by the New York Times in 2018, Ticketmaster’s use of long-term exclusivity clauses prevents venues from choosing another ticketing company. Many venues are locked into Ticketmaster for a decade or longer.
In one example, Ticketmaster threatened to blacklist the Greek Theatre in Los Angeles after the venue considered using a competitor. Greek Theatre cancelled its plans to use the other ticketing service and remains captive to Ticketmaster.
Ticketmaster Service Fees
One of the chief complaints against Ticketmaster is their unpopular service and processing fees that get tacked on to ticket purchases. These can equal 25-30% of a ticket’s face value.
Critics allege Ticketmaster has no incentive to lower service fees when they have a captive audience thanks to exclusive ticketing deals. The lack of competition allows them to charge exorbitant fees that hurt consumers.
Some Promoters Opt Out of Live Nation-Ticketmaster
While many major venues and artists are locked into Live Nation-Ticketmaster, some promoters and festivals have found ways to bypass their ticketing services:
- AEG operates its own ticketing platform called AXS instead of using Ticketmaster. They service big events like Coachella.
- Bands like Pearl Jam and Louis C.K. refuse to use Ticketmaster and handle their own ticketing.
- Independent venues partner with ticketing competitors like Eventbrite or Brown Paper Tickets.
Though these acts of rebellion are piecemeal, it demonstrates that alternatives to the Live Nation-Ticketmaster complex do exist in the industry.
U.S. Government Takes Notice
The concern over lack of competition in ticketing reached Congress in 2009. Sens. Richard Blumenthal and Charles Schumer held hearings on Ticketmaster’s practices and dominance in the market.
Various proposals have been floated to promote fair competition and transparency in ticketing:
- The BOSS ACT – Banning Of Scalper Bots
- The BETTER OVERSIGHT Of Secondary Sales and Accountability In Concert Ticketing Act
- Break Up Ticketmaster Act
So far, none of these attempts to regulate the industry have gained enough traction. But they demonstrate an increasing awareness of the anti-competitive issues with the Live Nation-Ticketmaster merger.
Alternatives Are Gaining Traction
Despite the challenges, alternative ticketing platforms continue working to disrupt the Live Nation-Ticketmaster stranglehold. Companies like AXS, SeatGeek and Universe provide viable ticketing options outside their ecosystem.
New technologies like mobile ticketing and blockchain could also open up competition. The biggest threat may come from major tech companies like Amazon, Facebook or Google deciding to enter the lucrative ticketing sphere.
Conclusion
In summary, Ticketmaster and Live Nation are connected under the same parent company, Live Nation Entertainment, but operate as separate entities.
Their mutually beneficial relationship has made them a dominant force in live entertainment. Critics argue their effective monopoly allows them to charge excessive fees and hinder consumer choice.
Though locked into long-term contracts, some venues and promoters manage to circumvent Live Nation-Ticketmaster. Fan discontent and government scrutiny continue to put pressure on their anti-competitive practices.
The joining of these two industry giants unlocked huge synergies but also created an environment lacking competition. How this struggle gets resolved will significantly shape the future of ticketing and live events.
Company | Ownership | Primary Business |
---|---|---|
Live Nation Entertainment | Publicly traded company | Parent company and live events promoter |
Ticketmaster | Owned by Live Nation Entertainment | Primary and secondary ticket sales |
Live Nation | Owned by Live Nation Entertainment | Concert promotion, venue operations, sponsorships |
The table above shows the ownership structure between Live Nation Entertainment, Ticketmaster and Live Nation. It illustrates how Ticketmaster and Live Nation operate as subsidiaries under the Live Nation Entertainment parent company.
Key Events in Ticketmaster-Live Nation Merger
Year | Event |
---|---|
2009 | Ticketmaster and Live Nation announce merger plans |
2010 | U.S. Department of Justice approves merger with conditions |
2018 | Justice Department investigates compliance with consent decree |
2019 | Live Nation Entertainment settles antitrust allegations, agrees to extend consent decree |
This timeline table highlights some of the major events around the Ticketmaster-Live Nation merger and resulting antitrust enforcement actions.
Service Fees as a Percent of Ticket Price
Event | Advertised Ticket Price | Total Ticket Price w/ Fees | Fees as % of Ticket Price |
---|---|---|---|
Houston Astros at Boston Red Sox | $75 | $98.10 | 31% |
Harry Styles Concert at United Center | $99.50 | $128.95 | 30% |
The Weeknd Concert at Soldier Field | $29.50 | $49.90 | 69% |
This table shows examples of Ticketmaster events where the fees added 30-69% to the base ticket price. It illustrates how service and processing fees substantially increase the cost for consumers.
Key Takeaways
- Ticketmaster and Live Nation are subsidiaries owned by parent company Live Nation Entertainment
- Their tight business relationship allows Ticketmaster to control ticketing for Live Nation venues and events
- Critics argue their effective monopoly leads to high fees and lack of consumer choice
- Some venues and promoters manage to bypass Ticketmaster, but most are locked in
- U.S. government has taken notice of anti-competitive concerns but no major regulations yet