This could be good news for the music industry, which suffers from steadily declining record sales and stands to benefit from more ticket sales for live performances. Or just another last-ditch measure to save itself from an inevitable death and rebirth.
According to Paidcontent, Live Nation and Ticketmaster have entered into a definitive agreement to merge into an entity called Live Nation Entertainment.
From the release:
The companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $2.5 billion. Under the agreement, Ticketmaster shareholders will receive 1.384 shares of Live Nation common stock for each share of Ticketmaster they own, subject to certain adjustments defined within the agreement. Live Nation and Ticketmaster shareholders will each own approximately 50 percent of the combined company. The new company anticipates generating approximately $40 million of operating synergies through the combination of their ticketing, marketing, data centers and back-office functions.
Ticketmaster specializes in online ticketing whereas Live Nation focuses on concert promotions. They will still have to go through regularly review before the merger can be completed, and as Paidcontent points out, there will be those in the music industry that create stiff resistance to this consolidation of power (especially with Ticketmaster’s reputation for monopolizing ticket sales on its own).
Eliot Van Buskirk from Wired suggests that the merger “could lead to a dramatic change in how event tickets are sold: from the fixed price norm that often results in quick sellouts for popular shows to an auction-based model that legitimizes what scalpers have always done.” The rationale:
If Live Nation and Ticketmaster merge, the combined entity could bypass the primary ticketing system partially or completely, forcing fans to bid against each other for tickets in Ticketmaster’s TicketsNow secondary market rather than selling them at a fixed price in the primary ticket market, the way they have done in the past.
This is not the first time Live Nation and Ticketmaster will have worked together. According to Barry Diller, who’s Chairman of Ticketmaster, “It was less than two months ago that Ticketmaster ended its 10-year partnership with Live Nation.”
The Wall Street Journal first reported that the two companies were close to making a merger announcement early Monday morning.
How on earth are they going to get this merger past the monopoly/antitrust review?
Great, just what the music industry needs, more consolidation to drive up ticket prices even more to piss off even more music consumers who will pirate even more.
Well done! Brilliant strategy!
Anjali Sen
How does ticket sales = pirating music; I rarely see people pirating concerts videos like music
The Bush Administration never saw an anti-competitive merger it didn’t like. Let’s hope Obama’s watchdogs are a bit more serious and put an end to this deal.
They are not. This will get shut down. If it doesn’t, it will be shameful.
I don’t see any anti-trust issue with entertainment. People choose to be entertained.
This is unlike other required service or product which the government does tend to make sure there’s not anti-trust violation.
Wow, good for them. Fortune has smiled upon me today.
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People are insane. Good luck ticketmaster.
The music industry tries to keep an obsolete business model alive. While the popularity of music is higher then ever, they are simply finished. This is just another step on the long march to the deadpool of record companies.
Good for the “music industry.” Bad for the rest of us.
Eddie Vedder to the rescue! No merger! We need multiple ticketing options.
Have we gotten word of the breakdown of organizational structure yet? Is Azoff on top?
Could this development lead to new entries into the market? Let the LN/TM merger take the arena acts and let the startups focus on everything below. some startup needs to get to work..
Great, another company too big to fail. Let’s keep the bail out money warm.
well i dont’ really buy music anymore except for vinyl because with vinyl i feel like i’m getting something more. now, i’ll have a harder time going to shows because the prices are going up.
good stuff.
Yeah, TM has been struggling for a few years, so no shock here. Joining up with another company is always a good strategy to stay alive. This probably isn’t good news with ticket prices for music lovers though.
The music industry needs our prayers. With a merger like this, the next concert I go to will be in my backyard with my ipod as I close my eyes an imagine the concerts that were and affordable tickets.
Sweet. One giant online ticket site is less than two. This is a step in the right direction (that is to say, toward zero.) Most of my worst purchasing experiences have involved one of these two companies, and I get the feeling a lot of people are in the same boat.
if the phish ticket sale fiasco was any indication, this is horrible for the fan.
Here’s a recap of said fiasco…
http://jamtopia...-ticketing-ceo/
now a ticket to see the stones will be $34,500 as opposed to $1,500. this is truly great for the music biz. hopefully the four “majors” will merge next and we can all listen to miley cyrus ’round the clock.
Oh god I hate both companies with a passion.
These guys are pure scammers. I bought 4 x $100 tickets last night and ended up paying $470. I really just want to know what these “service charges” actually cover!
You are buying the tickets from them. They have the right to charge as much as you are willing to pay. If you don’t like, you don’t have to pay for it.
I would like to pay $5 to watch WWE at Acro Arena, but no one is selling to me at that price, so I don’t buy and don’t get to see.
Quit complaining. Don’t like the price, don’t buy. No one is forcing you …
This is entertainment for god sake!
Well put. anyone that’s actually bought tickets from these MFs knows the experience sucks and the service charges can eat a d*ck.
There has to be competition in this arena – no?!
The future:
Concert Ticket: $25
Service Charge: $200
You’ll be able to buy your favourite band’s live concert CD for less than the service charge to buy a ticket to see the same concert.
THIS IS OUTRAGEOUS! CONSUMERS LOSE BIG TIME.
These blood suckers taking more of our money is the only way the music business can make a profit?? So concerts get even more unaffordable? I will drive an hour out of my way to buy a ticket direct in an attempt to avoid TM. Less competition is better here? Some one help. Some one PLEASE innovate.
With the economy in the toilet who is goign to pay $150 to see a concert?
Not that many. In fact this is very good for the business for 2009 will be BAD year for concerts. People are sick of the price to see a show and that will impact the numbers.
This will also open up room for a start-up to come along and eat their lunch.
Anyone want to start a ticket company?
I have a great idea on how to make this work for the Bands, the fans and the venues.
wrong. madonna sold in minutes. concert biz is very recession resistent–its cheaper to hit a concert that travel cross country, stay at hotel…etc.
Hey MonkeyButt,
Madonna is the exception not the rule – She owns the rights to her shows. What about the hundreds of other touring acts? Is $100 for a show too much for The Raconteurs or Katy Perry? $60 ticket, $12 service charge, $3 cc charge fee, $8 venue fee + $5 FuckYou fee. = $78 + parking +$20 and you’re at $100 for a 1.5 hour show.
Fuck that
I wouldn’t go to a Madonna concert even if people pay me.
I have used ticketmaster in the past, but never heard of LiveNation. This seem like another “smart” money invention to bring value down and flush money down the drain.
It’ll be interesting to see what anti-trust has to say about all this. While the music industry has been progressive in a lot of ways lately by working on/with offerings such as mtvmusic, youtube, last.fm, etc., it seems like they continue to be reactive every once in a while to changes in music economics instead of setting bold new visions that make sense in the changing tech landscape.
Merger-based leverage & cost-cutting may be able to create some short-term value for these folks, but in and of itself it doesn’t provide anything new that will help the industry retain and increase engagement with its audience in the long term.
I CAN’T WAIT TO PAY MORE!
But seriously, can’t some cool startup show up that bands and venues can sign up with that would kill “Live Master”? What’s the MP3 equivalent of concert promoters?
Bought six tickets to a touring act here in Seattle. New act, so price was $25 each, plus $7.50 service charge from Ticket Master. Drove downtown and bought the tickets at the venues office.
That Ticketmaster can get away with such a ridiculous uplift for adding no substantive value in the transaction is a clear indication of non-market factors at work.
Music industry has a lot to change, and I can’t see this being a step in the right direction.
forgot to mention that there was no service charge at the sales office, so I saved $45 on $150 worth of tickets.
If you’re looking for comprehensive coverage of the Live Nation Ticketmaster merger, head on over to Satan’s Box Office…
http://jamtopia...ans-box-office/
It’s updated daily with information and analysis plus more links than you can shake a pitchfork at.
Take care,
TL
now they charge even for viewing concert information online…
TM is joke, they charge for printing ticket on my own printer…how are they getting away with ridiculous fees like that
i heard they signed up contracts with venues with kickbacks and all kinds of nasty stuff….and milk money from music lovers
Tickets? $500 each.
Convenience charge? $20.
Printed Tix? $10.
Shipping? $20.
Will Call? $20.
Print at home? $15.
Parking? $20.
Seats? $200.
Music? $100.
A View? $75.
A view of someone actually sitting down in front of you? $100.
Unsucky opening act? $147.
Oxygen? $45.
Ability to sit in traffic when the concert lets out? $Free!
The concert experience: Priceless.
Good grief. As if tickets weren’t expensive enough at this point. Surely, the FTC will shut this down. The ticket market was abysmal before this merger, and will be absolutely monopolistic after.
Auction-based ticket market is the only effecient way to go for producers, artists and even customers. With auctions, customers will only pay the fair price for their tickets. And what is fair price? Well, what ever price the market is willing to pay. Stock market class anyone?
This is good news for the industry and terrible news for fans. Great. Bidding on ticket prices? wtf…
I understand that quick sell outs mean the tickets are under-priced in the market, but seriously, who wouldn’t pay $200 to see their favorite band?
This could jack ticket prices so freaking high that I’m scared.
People have an emotional attachment to music. Putting a high price on something so emotional is a crime to me.
And yes, I use to be a friggin’ hippy. $50 bucks for a Phish ticket, kiss my ass.
Ticketmaster is a big scam.
This merger is much more than just growing two existing opportunities (ticketing, promoting artists). It’s about increasing the new company’s presence into markets that up to know haven’t been touched. Guarantee that the Pandora’s, iPod, iMeem’s, reverbNation’s, and others are now formally on notice — nevermind the labels.
This is a big big news for the US music industry!
When has a big business merger ever worked?
David Hyman, You’re in position to do something here. Opportunity knocks.
This is part of the continuing trend in the music business to focus on maximizing the remaining value (only dinosaur age rock and pop stars can fill up seats) instead of using innovation to build the next superstars that can have sustained success and not just one hot summer then vanish. The old school is worried about the last dollar of the past while the new school is focused on bringing back proper artist development and sound business solutions that bring back value in new music discovery.
Ugh monopolies.
Is it now Ticket Nation or Live Master?
Do any of the major labels own any part of Live Nation or Ticketmaster
(Fictitious) headline of the day:
“Live Nation to acquire Ticketmaster for $2.5 billion, plus $700 million in convenience charges.”
I think this blog has an odd interpretation of the deal. Ticket master had monopoly power by being the only seller of many venues, often more or less bribing venue managers for explicit rights and often taking half of the ticket price as profit. How much sense does that make for those actually doing the work-the artists etc.? On the other side, bidding against each other will not make a lot of them comfortable. Whatever the new system is I’d be checking This* security site to make sure the process is safe.
I’m definitely in the minority, but I’m pretty convinced this merger is going to be a good thing for both consumers and the industry.
In short, all promoters and venues now have an incentive NOT to do business with Ticketmaster, as by virtue of doing so, they’re supporting their competition – which means more ticketing options and lower ticketing fees.
I go into detail on my company blog if you want to read more… http://bluehaze...tion-good-thing
It’s a great time to own a ticketing business.
Well, If this merger happens, they will control 95% of the ticketing industry. ticketmaster currently charges a 10 DOLLAR “service” fee on all tickets. I MEAN ALL TICKETS! I wanted to go to a 10 dollar concert and it cost me 20 bucks. I hope they merge and the the government busts up the new company into VERY VERY VERY VERY VERY VERY SMALL PIECES!!!
pearl jam that is
FWIW, Pearl Jam did not “go after ticketmaster.”
The band’s help was solicited by the Justice Department who were already doing an investigation — at least according to Jim DeRogatis…
http://blogs.su...ation_meet.html.
Turkeys voting for Thanksgiving?
I would imagine the the TM lock on tickets is good for the acts. They don’t care about convenience charges – they just want to sell out*. At least you can say that TM ticket-selling process is efficient, even if it is bilking the fans in the process.
* – Sell out their concerts, just to be clear.