Today in less than an hour, the world of concerts and ticketing will hold its breath, as the U.S. Department of Justice antitrust division begins its initial hearing in the scheduled merger of Ticketmaster and ClearChannel's Live Nation. Upon further cognition, the consequences of such a powerful combination could be either very bad or very good for the consumer.
On that note, having such control over shows, they could raise their already large (and somewhat arbitrary) "convenience" fees, which would be an economic blow for the common concert attendee. The positive aspect of such a merger is the convergence of big-money technology that will help getting tickets and attending shows easier than ever (which is overly optimistic in nature).
The subcommittee on antitrust, competition policy and consumer rights, chaired by Herb Kohl, D-Wis., will meet at 2:30 p.m. EST in Dirksen Senate Office Room 226. “The Ticketmaster/Live Nation Merger: What Does it Mean for Consumers and the Future of the Concert Business?” will be the label of the hearing, and will hopefully put into spotlight the often borderline-abusive fees and charges, as well as big corporation competition intimidation for which both of these companies are known.
According to Pollstar.com, "It could be a lively session, considering the subcommitte’s membership includes Sen. Chuck Schumer, who has called for an investigation into Ticketmaster’s handling of the recent Bruce Springsteen ticket onsale, and Utah Sen. Orrin Hatch, who has recorded music in his own right and has been an outspoken critic of music piracy."Among the first witnesses scheduled today are Ticketmaster's Irving Azoff, Live Nation's Michael Rapino and Jam Productions’ Jerry Mickelsen. The hope, on this end, is that the DOJ takes the most balanced position between consumer interest and economic consequence. Witnesses listed on the committee’s Web site are Azoff, Rapino, Mickelson and David A. Balto, a senior fellow with the Center for American Progress in Washington, D.C.
What do you think?
-the Majr
2 comments:
If this passes, Clear Channel and Ticketmaster will have taken over the entire music world. Live Nation was Clear Channel's way of avoiding looking like they owned both the radio and concert world to an outsider. And yet they self-promoted the conglomerate on all of their platforms (radio, web, etc), leaving very little room for competition to get their name out there, or really, when you really look at it, artists who weren't touring under Live Nation to really be promoted. Radio contests, ads, everything was Live Nation. If the same people who own most top 40 and rock radio stations, as well as Ryan Seacrest's soul, are combined with Ticketmaster, who only a few years ago started looking like scalpers with the exorbitant fees they tacked on for "servicing you," you won't have a service at all. At least not one that doesn't blow and then charge you for it. These companies are shady and taking advantage of what artists had to learn in the early digital era -- you make money on touring and selling merchandise, not off the music itself. Music is really just the advertisement for the $70 arena tickets, $12 fountain drinks and $20 service charges. And the artists who want to make money to cover the costs of being a musician will bend over for Ticketmaster because there aren't a lot of alternatives. They will cut their own profits just to keep fans coming. Praise goes to indie bands that are able to sell through cheaper and friendlier platforms like Ducat King, but who knows how long that business model will last.
I think this is really sad, to be honest. I worry about the state of music, as it is, in being able to promote talented artists.. and now it may promote even more 'derived talent."
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