In late November 2022, Pearl Jam filed a lawsuit against Ticketmaster and its parent company Live Nation for anti-competitive and monopolistic practices related to ticket sales and fees.
Background
Pearl Jam is an American rock band that formed in 1990 in Seattle, Washington. The band became mainstream with their debut album Ten in 1991, which included hit songs like “Alive” and “Even Flow.” Pearl Jam has remained active over the past three decades and still tours regularly.
Ticketmaster is a major ticket sales and distribution company that merged with Live Nation in 2010. Ticketmaster sells tickets online and by phone for concerts, sporting events, theater shows, and more. It charges fees to ticket buyers for its services.
Pearl Jam has had issues with Ticketmaster since the mid-1990s when the band tried to keep ticket prices low for their concerts but clashed with Ticketmaster over excessive fees. This led Pearl Jam to boycott using Ticketmaster for their tours for several years in the 1990s.
Details of the Lawsuit
In November 2022, Pearl Jam filed an antitrust lawsuit against Ticketmaster and Live Nation in a district court in Tennessee. The lawsuit alleges that Ticketmaster abuses its dominance in the ticket sales market to charge excessive fees and stifle competition.
Some key details of Pearl Jam’s lawsuit include:
- Ticketmaster has monopolized the market for major venue ticket sales, with an estimated 70% market share or more.
- Its 2010 merger with Live Nation has further consolidated Ticketmaster’s dominance and reduced competition.
- Ticketmaster charges fees as high as 50% on top of ticket face value, much of which is profit.
- It leverages its position to require venues to use Ticketmaster exclusively.
- Ticketmaster’s unchecked monopoly allows it to overcharge fans without fear of backlash.
Pearl Jam alleges these practices are anti-competitive and illegal under antitrust laws. The band is seeking unspecified damages and hoping to improve competition in the ticketing industry.
Pearl Jam’s Experience with Ticketmaster
Pearl Jam lays out in its lawsuit how Ticketmaster has continued to charge fans excessive fees and hurt bands like themselves even decades after their initial dispute in the 1990s.
Some examples highlighted by Pearl Jam include:
- Fees up to 25% were added to tickets for Pearl Jam’s 2020 tour before it was canceled due to COVID-19.
- Tickets with a face value of $98 had final delivery prices of $128 due to fees.
- Disproportionate fees were charged on cheaper tickets, e.g. $20 fees added to $65 tickets.
- Ticketmaster allegedly refused to let Pearl Jam use another ticketing company.
The band argues the inflated costs and lack of options prevents fair access to tickets for many fans. They say Ticketmaster is an unchecked monopoly.
Ticketmaster’s Response
Ticketmaster has rejected the accusations that they are a monopoly engaging in anti-competitive behavior. Some key points they made in response to the lawsuit include:
- Ticket fees are simply the cost required to run their ticketing business and services.
- Fees have dropped over the past decade when adjusted for inflation.
- Artists like Pearl Jam actually benefit from their services to reach more fans.
- Ticketmaster faces competition from primary marketplaces, secondary resale marketplaces, and event organizers selling direct.
Ticketmaster stated the lawsuit will hurt artists and fans by making it harder for events to happen and tickets to be sold efficiently. They plan to defend against what they view as an unfounded legal attack.
Potential Impacts and Outcomes
It remains to be seen how Pearl Jam’s lawsuit against Ticketmaster will unfold, but some potential impacts include:
- More scrutiny of Ticketmaster’s practices and market dominance.
- Changes to Ticketmaster’s fees, exclusivity deals, or merger terms if violations are proven.
- More bands following Pearl Jam’s lead in pushing back against Ticketmaster.
- Increased awareness and pressure from fans about high ticketing costs.
- No major changes if Ticketmaster prevails legally and commercially.
Ultimately Pearl Jam hopes to reduce Ticketmaster’s dominance in the market and give fans, venues, and artists more ticketing options and lower costs. But changing an entrenched system will likely be difficult and met with plenty of legal and lobbying resistance. The case should lead to more debate on if and how ticketing giants like Ticketmaster should be regulated.
Conclusion
Pearl Jam’s lawsuit against Ticketmaster represents long-running grievances between the band and ticketing giant coming to a head once again. Pearl Jam believes Ticketmaster’s unchecked monopoly power lets them charge unreasonable fees that hurt fans. But Ticketmaster claims the fees simply reflect costs for valuable services in a competitive market. The lawsuit outcome could shift the balance of power in the ticketing industry, shed more light on its inner workings, or maintain the status quo. Either way, it has sparked a renewed debate on ensuring fair access and costs for fans seeing their favorite live shows.