TM - LN Merger, con’t…
This Tues., the CEO’s from Live Nation and Ticketmaster (along with several others) testified before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights. If you’ve got a free couple of hours its worth the price (free) to watch the posturing, positing, dissembling and downright lies being told around the room.
Bob Lefsetz has a good review of the hearing although I have to disagree with his analysis that the live music industry is broken and we have to “take this chance.”
There’s fear mongering about “foreign” interests which are sweet coming from a Canadian
Michael Rapino, President and CEO of Live Nation, told the Senators. “Our stock has declined by nearly two-thirds. Our real estate holdings have been gutted. Our hard work is not producing the rewards it should. We face the very real possibility that if we don’t find a solution, we could ultimately be bought by a foreign-owned entertainment conglomerate like the majority of record labels.
Posturing (Seth Hurwitz):
“If this merger is allowed to happen, my biggest competitor will have access to all of my sales records, customer information, on sale dates for tentative shows, my ticket counts, they can control which shows are promoted and much more,”
As an aside, everyone in this industry is nutz about data and who has access and controls it. In reality the most sophisticated use of data in ticketing is to load emails into a CRM system and send people offers to buy Metallica tickets because they once bought AC/DC tickets for their nephew.
And the whoppers:
“Scalping should be illegal,” Azoff continued. “I wouldn’t have bought it [TicketsNow].”
from a person who’s been in negotiations for the past two years on a broker rollup plan.
This show ain’t gonna end anytime soon and if these companies needed anything to pull themselves out of a slump they should be selling tickets to the hearings.
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