Live Nation - Ticketmaster

February 9, 2009 by Joe-Cohen
Filed under: Industry, Music 

Last week the Wall Street Journal reported that the world’s largest promoter, Live Nation and the world’s largest ticketing company, Ticketmaster Entertainment are set to merge.  The combined company would control in excess of 70% of the US concert industry and a vast swath of the business in the UK, Holland, Sweden and Denmark. 

It would bring together a company that has exclusive rights to Madonna, U2 and Jay-Z with the exclusive ticketing company of the O2 Arena, MEN Arena and Wembley Stadium - under no circumstances would the deal benefit consumers in any way.

The global concert ticket industry has growth by over 12.5% CAGR from 1995 - 2007, the majority of this growth coming from increasing ticket prices. 

This fact coincides with the timing that Live Nation, then SFX, consolidated the promoter industry from over 20 companies into one while Ticketmaster acquired:

  • Admission
  • TicketWeb
  • Paciolan
  • TicketsNow
  • 2B Technolgies
  • TickTackTickets
  • Ticket Service Netherlands
  • SLO, Frontline Entertainment and others

into the market leader it is today.  Ticketmaster’s business has also gown over 14% CAGR since 2003 largely on the increase in prices to fans.

So recent history indicates that consolidation in these businesses has coinciding with rising consumer prices.  The only conclusion one can make about a combination of these businesses is a continued increase in prices for fans.  Even the Boss thinks it’s a bad idea. 

However we should take a measured view.  Let’s all ask Ticketmaster and Live Nation what they think the benefit to consumers will be from their merger…

…(that’s the sound of tumbleweed)

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Comments

One Comment on Live Nation - Ticketmaster

  1. Sanjiv on Thu, 19th Feb 2009 6:08 am

    2. I agree, Joe. By the way I find you site to be extremely simple to use. Congratulations!

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