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    The Emails at the Heart of the Government’s Ticketmaster Case

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    Live Nation Entertainment, which owns Ticketmaster, is accused of violating antitrust laws. The Justice Department drew on the concert behemoth’s internal communications in its lawsuit.In its lawsuit accusing Live Nation Entertainment, the concert behemoth that owns Ticketmaster, of being an illegal monopoly, the Justice Department drew on a raft of internal communications that offered a rare behind-the-scenes look at the industry.The Justice Department argued in an extensive complaint filed on Thursday that the merger of Live Nation and Ticketmaster, which went through in 2010, had hurt competition, hindered innovation and resulted in higher ticket prices and fees for consumers. It called for the company to be broken up.In response, Live Nation, which is also the world’s largest concert promoter, has said that it is not a monopoly, and denied that it has the unilateral power to raise prices. Contrary to the government’s argument about its great power, Live Nation says it now faces more competition than ever, and that the Justice Department’s suit “won’t reduce ticket prices or service fees.”Detailing its allegations, the government relied on eye-opening emails that it says were written by Live Nation’s chief executive, Michael Rapino, and other high-powered figures in the concert world.Here are a few of those accusations.A potential rival’s Kanye West concertOne episode from 2021 goes to the heart of the Justice Department’s allegations that Live Nation went to extreme lengths to protect its competitive edge.Late that year, the government says, Live Nation “threatened commercial retaliation” against the private equity firm Silver Lake, which had an investment in TEG, an Australian ticketing and promotions company that was involved in a highly anticipated benefit show by Kanye West and Drake at the L.A. Coliseum. Silver Lake had also invested in Oak View Group, a venue management company with close ties to Live Nation.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Senate Introduces Long-Awaited Bill Promising Changes for Ticket Buying

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      The Fans First Act would require disclosures about fees and the location of tickets, strengthen a law banning bots and set stiff penalties for violations.The United States Senate introduced a long-awaited bill on Friday promising consumer protections for tickets to live entertainment events, after more than a year of complaints about high fees, out-of-control prices and deceptive selling practices in the entertainment world.The bill, called the Fans First Act, would require sellers to disclose the full price of a ticket, including all fees; indicate what seat or section a customer is gaining access to; and say whether a ticket is being offered by its original or “primary” seller, as opposed to a reseller or broker.The bill, introduced by John Cornyn, Republican of Texas, and Amy Klobuchar, Democrat of Minnesota, along with four others, would also strengthen an existing law banning the use of computer bots, a tactic frequently used by scalpers; require ticket sellers to offer full refunds when an event is canceled; set thousands of dollars in penalties for abuse; and require the Government Accountability Office to study the ticketing market and make recommendations.The proposed law comes as ticketing has become a hot-button issue for voters and lawmakers, with prices at record highs and the selling practices of both primary ticketing companies — like Ticketmaster, which tends to represent artists and venue box offices — and resale marketplaces like StubHub and Vivid Seats having come under fire.At a Judiciary Committee hearing in January, two months after Ticketmaster’s system crashed during a Taylor Swift presale, senators from both parties pilloried an executive from Live Nation — which owns Ticketmaster — and called the company a monopoly that harms consumers. Separately, the Justice Department has been conducting an antitrust investigation of Live Nation.At his State of the Union address in February, President Biden said, “We can stop service fees on tickets to concerts and sporting events and make companies disclose all the fees upfront.” And in June, under pressure from the White House, ticket sellers including Ticketmaster and SeatGeek agreed to introduce “all-in pricing” for tickets.That scrutiny has developed as the concert industry had its biggest year ever, with the trade publication Pollstar saying that gross ticket sales for the Top 100 worldwide tours were $9.17 billion in 2023, up 46 percent from the year before, and 65 percent from 2019, before the Covid-19 pandemic disrupted the industry.The new Senate bill proposes steep civil penalties for violations, to be enforced by the Federal Trade Commission and state attorneys general. According to the bill, those penalties could include $15,000 per day during which a violation occurs, along with $1,000 per event ticket advertised or sold; those fines could amount to as much as five times the listed cost of a ticket.“The current ticketing system is riddled with problems and doesn’t serve the needs of fans, teams, artists or venues,” Mr. Cornyn said in a statement. “This legislation would rebuild trust in the ticketing system by cracking down on bots and others who take advantage of consumers through price gouging and other predatory practices and increase price transparency for ticket purchasers.”Ms. Klobuchar added, “From ensuring fans get refunds for canceled shows to banning speculative ticket sales, this bipartisan legislation will improve the ticketing experience.”In addition to Mr. Cornyn and Ms. Klobuchar, the cosponsors of the bill include two additional Republicans (Marsha Blackburn of Tennessee and Roger Wicker of Mississippi) and two Democrats (Ben Ray Luján of New Mexico and Peter Welch of Vermont).The new bill joins a number of other proposed laws in both houses of Congress, which would need to be reconciled for any to become law. In July, the Ticket Act, requiring the upfront disclosure of the full price of a ticket, passed the Commerce Committee. In the House of Representatives this week, another bill calling for transparency in ticket prices passed the Energy and Commerce Committee.The new Senate bill has been in negotiations for months, and some activists have privately complained about its compromises. The bill bans “speculative” selling, in which resale brokers list tickets for sale without actually having them in hand, betting that they can fulfill the order later. But it still allows “concierge” services in which brokers charge fans to wait in a digital line for them, a process that consumer advocates say puts ordinary customers at a disadvantage.Still, the bill has broad support throughout the music industry, including from venue and artist groups; the Recording Academy, the organization behind the Grammy Awards; and Fix the Tix, a coalition of many talent and industry groups.Live Nation, which has called for government action to reform the ticket market, also said it supports the bill, saying, “We believe it’s critical Congress acts to protect fans and artists from predatory resale practices, and have long supported a federal all-in pricing mandate, banning speculative ticketing and deceptive websites, as well as other measures.” More

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      Live Nation and Other Ticket Giants Promise Transparency on Fees

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      Live Nation and SeatGeek said they would show customers the full cost of concerts, after the White House’s complaints that “junk fees” for tickets and hotel stays can mislead consumers.Under pressure from the Biden administration, some of the biggest companies that handle ticketing for concerts and other live events announced on Thursday that they will make it easier for consumers to see the full price of tickets they want to buy, including the fees that can often add more than 30 percent to the total cost of an order.Live Nation, the world’s largest concert company, said it would begin introducing “all-in pricing” — showing consumers the full price up front — at the venues it controls, which include more than 200 amphitheaters, clubs and other spaces in the United States. Ticketmaster, which is owned by Live Nation, said it would make this tool available to other venues and promoters as well. Those changes are expected beginning in September.SeatGeek, a major vendor for reselling tickets that also works for major venues and sports teams like the Dallas Cowboys, said it too would begin introducing a feature that would reveal to consumers the full price of a ticket.Those changes come as the Biden administration has stepped up its pressure on the entertainment and travel industries to rein in what it calls “junk fees.” Before beginning a round table at the White House with executives from Live Nation, SeatGeek, Airbnb and other companies on Thursday, President Biden framed the crackdown on surcharges as a way to appeal to the working class — a major theme of his re-election campaign.“These hidden charges that companies sneak into your bill make you pay more without you really knowing it initially,” Mr. Biden said. “Junk fees are not a matter for the wealthy very much but they’re a matter for working folks like the homes I grew up in.”As Mr. Biden spoke, a screen showed an example of a “service charge” of $12.99. But for the most in-demand concerts, those fees can be many times higher. For one Drake concert, for example, a screenshot ricocheted around social media in March showing that for two tickets costing $544, three surcharges — service fee, facility charge and order fee — added another $541, nearly doubling the total cost.Ticketing, and questions of competition and consumer fairness in the entertainment industry, became hot-button issues in Washington after a botched presale in November for Taylor Swift’s Eras Tour. Ticketmaster’s system was overrun with bots, and many fans reported that tickets they had selected disappeared from their online shopping charts.At a Senate Judiciary hearing in January, Live Nation came under harsh, bipartisan attack, with senators openly calling the company a monopoly. The Justice Department has separately been investigating Live Nation for potential violations of the consent decree that was a condition of the company’s merger with Ticketmaster in 2010; among the terms in that agreement were that Live Nation cannot threaten venues with retaliation for not using Ticketmaster as their official ticket vendor.But the extent to which the most recent promises by Live Nation and SeatGeek would substantially change the ticket market are unclear. The concert industry is complex, with pricing and fees controlled by various parties that have little incentive to reduce their take — especially with live music rebounding after its near-disappearance during the Covid-19 pandemic, and ticket sales now reaching record highs.The changes by Live Nation and SeatGeek do not lower prices or include any commitment to reduce surcharges, which are often set by venues; those companies are simply promising to disclose fees as part of a ticket’s total cost.After Mr. Biden’s State of the Union address in February — at which he said, “We can stop service fees on tickets to concerts and sporting events and make companies disclose all the fees upfront” — Live Nation proposed federal legislation that, among other things, would mandate all-in pricing.Without all competitors held to the same standard, many executives in the ticketing world say, those that comply voluntarily would be put at a competitive disadvantage, since other venues and ticketing services could lure customers by advertising lower prices, only to reveal surcharges once a customer completes a transaction.Senator Richard Blumenthal, a Democrat of Connecticut who is a sponsor of a bill called the Junk Fee Prevention Act, offered a mixed review of Live Nation’s pledge of transparency.“Live Nation-Ticketmaster’s announcement is a step in the right direction,” Mr. Blumenthal said in a statement, “but no substitute for legislation to provide consumers with transparency and prevent companies from imposing ridiculous junk fees.”Still, Mr. Biden said that all the companies he had gathered for the round table were “voluntarily committed to ‘all-in’ upfront pricing,” and he called it a victory.“This is a win for consumers in my view,” Mr. Biden said, “and proof that our crackdown on junk fees has real momentum.” More

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      Barclays Center Drops SeatGeek and Returns to Ticketmaster

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      The Brooklyn venue replaced Ticketmaster, the industry leader, in 2021 in favor of SeatGeek, a competitor. It is not clear why it changed direction again.In 2021, Barclays Center in Brooklyn made a surprising announcement about its business: After nearly a decade with Ticketmaster, the industry leader, as its ticketing vendor, the arena was switching to SeatGeek, an aggressive upstart.Now, barely a year into what had been a seven-year contract, BSE Global, the parent company of Barclays — the home of the Brooklyn Nets and New York Liberty basketball teams, and a destination for major concert tours — is canceling its partnership with SeatGeek and returning to Ticketmaster.The change was revealed on Friday when Barclays announced a concert by the singer and producer Jackson Wang on May 11 with a link to Ticketmaster. SeatGeek, which remains the ticketer for many events already on Barclays’s calendar, will gradually be replaced by Ticketmaster in coming months as new concerts and sporting events go on sale.The abrupt switch, at a high-profile venue in one of the biggest markets in the world, is head-spinning news in the lucrative ticketing business, where Ticketmaster’s dominance has long been a matter of debate and scrutiny.“It’s very rare for such a cancellation,” said Larry Miller, the director of the music business program at New York University’s Steinhardt School of Culture, Education and Human Development.“Ticketing platform deals with venue owners are not of short duration,” Mr. Miller added. “I can’t think of a time over the last decade where a major venue has dropped a ticketing platform early on in the deal cycle.”The reasons for the change at Barclays were not immediately clear. Neither BSE Global nor SeatGeek would comment about whether there were any problems with ticketing that may have prompted a switch.In a statement, a spokeswoman for BSE Global said that SeatGeek “provided our fans with a first-class game day ticketing experience, and we’re appreciative of the time and energy they put into our work together.”The president of SeatGeek, Danielle du Toit, expressed no upset at Barclays’ change of direction. “It’s never easy to part ways with a client,” she said in a statement, “but as we look to the future, SeatGeek is grounded in our strategy and road map that are geared towards solving the challenges that plague the live entertainment experience.”Since its founding in 2009, SeatGeek has positioned itself as an industry disrupter. Initially just a resale platform, it has sought to challenge Ticketmaster’s dominance in the so-called primary market — sales directly from a venue’s box office, on behalf of sports teams or performing artists. When BSE Global announced its SeatGeek deal, which took effect in October 2021, the venue company praised its new partner’s “best-in-class mobile platform.”SeatGeek’s clients include major sports franchises like the Dallas Cowboys and the New Orleans Saints, as well as Jujamcyn Theaters, one of Broadway’s major theater owners.But SeatGeek, and other ticketing companies, all still lag far behind Ticketmaster, which sold 485 million tickets in 2019, the last year of business unaffected by the Covid-19 pandemic, an amount that swamps its competitors. Regulators have been monitoring Ticketmaster’s market share since it merged in 2010 with the concert giant Live Nation in a deal that critics suggested would damage competition in the ticketing industry, a consequence that Live Nation has denied.As a condition for its approval of the merger, the Justice Department entered into a regulatory agreement with Live Nation that, among other things, prohibited it from retaliating against venues that do not sign with Ticketmaster by withholding shows it controlled. The agreement, known as a consent decree, was extended by five years in 2020 after federal regulators found that Live Nation had “repeatedly” violated it. At the time, Live Nation did not admit to any wrongdoing, and said that extending the decree was “the best outcome for our business, clients and shareholders.”In an interview, Joe Berchtold, the president of Live Nation, acknowledged that the company is always under scrutiny for its actions in the marketplace. In recent weeks, for example, lawmakers have expressed concern over Ticketmaster’s botched ticket sale for Taylor Swift’s latest tour, and the company was widely condemned for its mishandling of a Bad Bunny concert in Mexico City.But Mr. Berchtold was unequivocal in stating that the company did not break any of its regulatory guidelines with Barclays Center.“I can absolutely confirm,” he said, “that there was no retaliation at Barclays for not using Ticketmaster, in terms of the routing of any concerts.”Tracking the blips and dips in tour dates for concert venues can be an inexact science. But data from Pollstar, a trade publication that covers the live music business, shows that Barclays Center received 13 Live Nation-promoted tours in the year after SeatGeek took over the venue’s ticketing business — a drop for Barclays, which in the years before the pandemic had tended to get about two dozen Live Nation events annually.However during the same period, from 2016 through 2019, the data also indicates the venue hosted fewer shows from independent promoters — those not associated with Live Nation or its major competitor, AEG Presents — from an average of more than 50 a year to less than 20 in the year after SeatGeek took over.SeatGeek and BSE Global declined to comment on the data.Barclays Center competes with Madison Square Garden, as well as the Prudential Center in Newark and the new UBS Arena in Elmont, N.Y., for major concert tours to fill out its schedule. Since 2019, BSE Global has been owned by Joseph Tsai, a Taiwanese-born tech billionaire, who bought out its previous owner, the Russian mogul Mikhail Prokhorov. More

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      A Broadway Theater Owner Rethinks Post-Pandemic Ticket Selling

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      #masthead-section-label, #masthead-bar-one { display: none }At HomeExplore: A Cubist CollageFollow: Cooking AdviceVisit: Famous Old HomesLearn: About the VaccineAdvertisementContinue reading the main storySupported byContinue reading the main storyA Broadway Theater Owner Rethinks Post-Pandemic Ticket SellingJujamcyn, which operates five of the 41 Broadway houses, said that when theater returns it will use SeatGeek instead of Ticketmaster.In a sign that some theaters are rethinking how they will operate when Broadway reopens, Jujamcyn Theaters is overhauling its ticketing practices.Credit…David S. Allee for The New York TimesMichael Paulson and Jan. 29, 2021As many live performance venues rethink their operations in anticipation of a post-pandemic reopening, one of Broadway’s major theater owners has decided to overhaul its ticketing practices.Jujamcyn Theaters, home to the musicals “Hadestown,” “Moulin Rouge!” and “The Book of Mormon,” said Friday that it had reached an agreement with SeatGeek, a disruptive newcomer to the marketplace, to handle of all its ticketing. It had been using Ticketmaster, the dominant platform for concerts and other live events.The agreement is SeatGeek’s first on Broadway; the company, which is based in New York, works primarily in the sports industry in the United States, but also has theater clients in London’s West End.“We’re always scanning the landscape for what is new and what is possible, but the shutdown really changed what we were looking for,” said Jordan Roth, the president of Jujamcyn, which operates five of the 41 Broadway theaters. “There are capabilities that SeatGeek has built that speak directly to the now, and also, I think, to the future.”Roth would not describe the financial details of the arrangement, but said he had been impressed by the company’s technological flexibility, as well as its use of historical and comparative pricing to help customers assess ticket value. He said that beyond selling tickets, its technology could be used to allow customers to order food and drink, arrange transportation, purchase merchandise and get other information. SeatGeek will also allow tickets for Jujamcyn shows to be resold through its platform.The deal is a coup for SeatGeek, which began in 2009 as an aggregator of listings on the secondary ticketing market but has become a significant competitor to Ticketmaster in selling tickets directly on behalf of theaters and sports teams. SeatGeek sells tickets for the Dallas Cowboys, the Cleveland Cavaliers and a number of Major League Soccer teams.Danielle du Toit, the president of SeatGeek Enterprise, the company’s primary sales platform, said the Jujamcyn deal would showcase innovations like allowing patrons to order a glass of Champagne to be delivered to their seat at intermission.“For the average Joe,” du Toit said, “the idea is that it’s easy, it’s intuitive, it’s fast, it’s enjoyable.”The shutdown of live events during the pandemic has dealt a blow to all venues and ticketing companies. But behind the scenes, it has also sped up some changes that had been bubbling through the business for years, like contactless concessions sales and the transition to mobile, paperless ticketing. Roth said Jujamcyn had not yet determined whether paper tickets would still be used post-pandemic.Some venues and sports teams have also used the pause to rethink their ticketing alliances; in November, for example, two Houston soccer teams, the Dynamo FC and its affiliated women’s club, the Dash, signed with SeatGeek.When events return, many venues and ticket sellers say they expect extensive safety protocols that may even be embedded into the ticketing process. Late last year, Ticketmaster said it was considering implementing plans like confirming a patron’s vaccination status through a third-party smartphone app. A Ticketmaster spokeswoman said this week that the company was still awaiting federal and state guidance about reopening; Ticketmaster said on Friday it had no comment about losing Jujamcyn as a client.Du Toit said that the slowdown of events gave SeatGeek the opportunity to develop the kinds of features that are part of its Jujamcyn deal.“We’ve used this downtime to dig deeper into our technology,” she said.“The Book of Mormon,” “Hadestown” and “Moulin Rouge!” were all selling strongly before the pandemic and plan to return once theaters can reopen. Two other musicals housed in Jujamcyn theaters, “Frozen” and “Mean Girls,” have announced that they will not resume performances post-pandemic, so the company has two vacant houses to fill.SeatGeek becomes the third major ticketing services provider on Broadway; many theaters use Telecharge, which is owned by Broadway’s biggest landlord, the Shubert Organization; Jujamcyn had used Telecharge until switching to Ticketmaster in 2016. Ticketmaster continues to work with the Nederlander Organization, another major Broadway landlord. Of course, many consumers purchase tickets not through the primary ticket sellers, which handle direct sales online and at the box office, but also through brokers, resellers, or intermediaries like TKTS and TodayTix.The average Broadway ticket cost $121 last season. It remains unclear whether prices will change when Broadway reopens, although many producers expect less premium pricing (those are the highest-priced tickets for the hottest shows; for example, before the pandemic “Hamilton” was regularly selling many of its seats at premium prices of $847 each), at least in the short-term, as the industry seeks to rebuild.AdvertisementContinue reading the main story More