Over almost three hours, Senate Judiciary Committee members questioned business consultants and executives — together with Joe Berchtold, president and chief monetary officer of Live Nation — about whether or not a 2010 merger between Live Nation and Ticketmaster allowed the corporate to unfairly develop its market share, and whether or not that dominance is hurting artists and customers. The listening to comes a couple of months after the problem took heart stage throughout a mad rush for Taylor Swift tickets late final yr that resulted in scores of followers strolling away annoyed and empty-handed.
The business has “a lot of problems,” mentioned Berchtold, including that Live Nation has “an obligation to do better.”
But he rejected the notion that Live Nation is a monopoly, saying that competitors has elevated since its merger with Ticketmaster. Instead, he blamed the corporate’s current woes on the proliferation of scalping and bots.
In November, hundreds of thousands of Swift’s followers, dubbed Swifties, flocked to Ticketmaster to safe tickets to the pop celebrity’s first tour in years — however many walked away empty-handed after ready hours on Ticketmaster’s glitching web site. Their ire turned to Ticketmaster, which has lengthy been criticized for wielding outsize power over ticket gross sales and the dwell leisure business, as the corporate apologized for the failure, citing unprecedented demand. Both Republicans and Democrats expressed outrage and questioned whether or not the corporate dealt with the rollout appropriately.
On Tuesday, some Senators and witnesses argued that, with its market dominance, Live Nation has failed to innovate and enhance, main to failures such because the Swift ticket meltdown. Executives from rivals, who testified alongside Berchtold on the panel, argued that Live Nation has locked out rivals by securing long-term ticketing contracts with main venues. If arenas and different efficiency venues select one other ticketing firm, Live Nation won’t deliver them fashionable acts, rivals alleged.
“Their biggest fear is if they leave Ticketmaster, they will lose content,” mentioned Jerry Mickelson, president and chief government of dwell leisure producer Jam Productions, saying that the menace is probably not specific however is “implied.”
One of the phrases of the merger between Live Nation and Ticketmaster was that the corporate wouldn’t retaliate in opposition to venues that select another ticketing service. In December 2019, the Justice Department accused the company of violating those terms. The firm subsequently agreed to prolonged court docket oversight.
Berchtold denied that his firm makes use of threats and retaliation to hold its grip on the business. “It’s not our business practice,” he mentioned. “It goes against our fundamental focus on alignment with the artists.”
Federal authorities final yr opened a brand new investigation into the corporate, though its scope is unclear.
Some senators didn’t mince phrases when referring to Live Nation’s market power, akin to Sen. Josh Hawley (R-Mo.), who accused the corporate of using its power in dwell ticket gross sales to additionally dominate ticket reselling.
“You’re using your monopoly on the front end to create a monopoly in the resale market, where you’re forcing everybody in the resale market to come into your ecosystem effectively,” he mentioned.
Sen. Ted Cruz (R-Tex.) requested each witness whether or not Ticketmaster is a monopoly. Almost everybody mentioned it was. Berchtold mentioned his firm was not.
“So are they just making it up?” Cruz requested Berchtold. “Why does everyone else perceive you as a monopoly?”
The panel explored methods to enhance the ticketing business, together with methods to curb scalping and bot assaults. But some senators and witnesses argued that the one means to repair the business to pressure main modifications on Live Nation.
“The only way to restore competition in this industry is to break up Ticketmaster and Live Nation,” mentioned Jack Groetzinger, the chief government of SeatGeek, a Ticketmaster rival.
While Tuesday’s listening to meandered via the thorny subject of antitrust regulation, it was additionally awash in Swift track references. Sen. Amy Klobuchar (D-Minn.), one of the lawmakers who known as the listening to, mentioned that she is aware of “all too well” that many industries are seeing a couple of corporations more and more dominate their markets — a reference to Swift’s 2012 track “All Too Well.” Blumenthal informed Berchtold that his firm “ought to look in the mirror and say, ‘I’m the problem, it’s me,’” a lyric from the track “Anti-Hero,” off Swift’s most up-to-date album “Midnights,” whose reputation broke a number of information.
November’s system issues resulted in frozen queues and damaged checkouts on-line for followers hoping to purchase tickets to Swift’s upcoming “Eras Tour” — together with many individuals who had signed up for presale codes. Many would-be consumers spent hours on the damaged web site, solely to stroll away with out tickets. Ticketmaster halted gross sales and mentioned unprecedented visitors, together with from bots, contributed to the breakdown.
Responding to the chaos on Instagram, Swift wrote she empathized with followers, likening their expertise to “going through several bear attacks.”
After the Swift issues, the corporate got here underneath fireplace once more in December after its system broke down throughout reggaeton artist Bad Bunny’s live performance in Mexico City, leading to ticket holders being denied entry. The firm blamed an “unprecedented number” of pretend tickets bought.
Across the road from the Hart Senate Office Building on Tuesday morning, a small group of protesters rallied with indicators.
“There’s just so many problems that need to be addressed and I think the only way is for [Ticketmaster] to be completely broken up,” mentioned Jennifer Kinder, a Texas-based lawyer who began the fan-led lawsuit in opposition to Ticketmaster and helped manage the gathering of about half a dozen individuals. “I don’t see how they can remedy the problems.”
Karina Elwood contributed to this report.