What happens to concert ticket prices when Live Nation and Ticketmaster merge?
As Billboard magazine put it at the time: “With master strategist Azoff as CEO of Ticketmaster Ent.—and all the leverage as manager of some of the top touring acts in the world—the battle between titan rivals Live Nation and Ticketmaster has become infinitely more interesting.”
But the “battle of the titan rivals” was already heated.
Live Nation, saying it no longer wanted to be beholden to Ticketmaster’s service charges and fees spent a year developing its own ticket system, which was launched in January.
It lasted roughly four weeks before the Live Nation/Ticketmaster merger plans were announced. Which begs the question: If the world’s largest concert promoter was unable to compete with Ticketmaster, how will smaller promoters fare when taking on the two of them combined?
For Live Nation’s part, getting rid of the fees wasn’t going to be easy. The industry is addicted to them, and quitting cold turkey would be difficult, if not impossible.
Though Ticketmaster receives the bulk of the ire on the service charge and fee front, nearly everyone involved in a show has their pocket lined: the venue, the promoter, Ticketmaster, the credit card companies and the bands.
“The bands are now wanting to get money from fees and basically use Ticketmaster as the big bad bully,” says Agnew, whose R5 Productions uses Ticket Web, a subsidiary of Ticketmaster. “Ticketmaster will get all this shit and the people buying the tickets won’t ever realize it is the band inflating the fees. That’s been getting more popular recently.”
Ticketmaster has long been happy to play foil. Why not? It keeps the acts coming back, and keeps them happy. Last year Ticketmaster made $1.1 billion in revenue based on service charges alone. Carp though they may, fans continue to buy.
Also getting more popular: sponsorship deals on shows, which have grown so ubiquitous in the last few years that “Chevrolet Presents: A Nokia Night With Jonas Brothers at Susquehanna Banks Center” barely evokes a blink.
In the abysmal first quarter report from Live Nation, one thing Rapino actually did have to smile about was his company’s sponsorship revenue: It was up 17 percent, despite what’s generally regarded as a slowdown of advertising revenue across the board.
“We are starting to get presented with sponsorship opportunities at the Church,” says Agnew, noting the irony. “Tasteful stuff that’s not too crazy, but I’m starting, for the first time ever, to at least consider it.”
Agnew says, “The bands are asking for it. Five years ago bands were making money off of records, and bands definitely want to be paid more than they did five years ago. Sponsorship helps with that.”
Azoff is already having dreams of what the merger might yield in terms of sponsorship dollars. “There’s going to be an incredible credibility to go to American Express or Coca-Cola and say, ‘Invest the money in this process with this artist,’” he told Rolling Stone in its July 9 issue.
Couple unchecked sponsorship with Rapino’s plan to “increase margins” on beer and concession sales and what you could be facing a future concert experience that looks like this: 1) Pay more for tickets for 2) a show with more annoying signage than ever (“This next song … is brought to you by Geico!” screens around the arena flash) all the while 3) spending more on beer and food and afterward 4) spending more on souvenirs.
In a potential bid for good PR, Live Nation has been pretty proactive about discounted tickets for certain summer shows. This season they’re offering all-in tickets, lawn seats for all shows at Susquehanna Bank Center in Camden where $29.99 will gain you entry and get you a hot dog and soft drink. (Bring a flask.)
They’ve also dropped all service fees for tickets purchased on Wednesdays throughout the summer.
This is all part, one would think, of the type of thing Rapino had in mind when, in 2006, he told Pollstar’s annual Concert Industry Consortium in Las Vegas that if they only “listen to the fans,” they couldn’t go wrong.
Reading through Rapino’s conference calls to shareholders, countless interviews, his testimony to the Judiciary, his grilling on Capitol Hill, etc., it’s apparent he has a wealth of phrases he feels comfortable dipping into. “Listen to the fan” is one that is frequently found floating on top. “The industry is broken/needs changing” is another.
Thing is, “the industry” has been “broken,” or needed “change,” in Rapino’s mind, ever since he got in it.
Rapino, now 43, has been in the business of concert promotion since he was in college. Live Nation pays him $8.5 million a year for the privilege.
You may recall that earlier this year, as we reported, Live Nation abruptly ended its involvement with the third annual Popped! Festival, which was planned to happen last month at FDR Park in South Philly and feature a slew of big name bands (it wound up being a far more modest affair, folded into the [...]
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1. Rebecca said... on Jul 15, 2009 at 07:41AM
“This is one of the biggest reasons why I go to maybe one concert a year, if I'm lucky. Hell, even new CD's / MP3 downloads (iTunes gift cards) are limited to birthday and holiday gifts.
My husband and I are big fans of local rock and punk music, but when even the small, no-name club shows are selling tickets for over $30, who can afford to even go, let alone buy a CD and T-shirt?
I'm already not going to shows, so I can't boycott any more than that, but I wish I could.”
2. Frumpy Jones said... on Jul 15, 2009 at 08:08AM
“If people would just wake up and stop being a slave to their entertainment needs, this whole thing would stop.
Do you know why baseball players get 13 milli0on a year to play? because you idiots are willing to pay the outragous prices (World champs be damnned).
Same for concerts. If you could all just be strong and choose NOT TO GO because of the high cost, the prices would drop.
But you all have this "I can't miss it" attitude. It's sad. It's pathetic. And anyone who complains WHILE BUYING A TICKET is not helping the solution, only the problem.”
3. just a phan said... on Jul 15, 2009 at 08:39AM
“wonder if it's possible to create a new ticketing system for indi promoters, wonder why indi promoters are forced to use ticketmaster at a certain level?? or are the indi promoters forced to use ticket web and that is how they're forced to tangle with ticketmaster?
It is terrible that smaller promoters have to turn over (and pay to do it) their customer info should the merger go through. it used to be just feeding the beast was heinous, now smaller promoters will be charged to feed the beast...
Underlying all this is greed and continuation of the class system...a higher more powerful/wealthy class will now charge you more for entertainment while lowering your wage at work and reducing your benefits, while gambling your retirement savings and increasing the costs of requisite goods and services.
obama's justice dept won't stop this and it's unfortunate that his administration is just another spin on the Establishment merry-go-round. I really expected more based on his rhetoric.”
4. Anonymous said... on Jul 15, 2009 at 09:26AM
“It's pretty interesting that Don Henley cried so loud, but it was the Eagles who first charged the $100 ticket. Their manager, Irving Azoff, is the head of Ticketmaster now...and they are, of course, hooking up with Live Nation.
So the loudest artist is in the same band, and managed by the same guy who charge the prices. And who promotes Eagles' tours?”
5. Anonymous said... on Jul 15, 2009 at 09:57PM
“R5 Productions is the only honest entertainment promoter in this city. Sean knew this was going to happen. We, as music and sports fans, should stay away from Ticketmaster and Live Nation, and only support small indie promoters like Sean and R5.”
6. Anonymous said... on Jul 16, 2009 at 08:04AM
“Bastards are now even charging service fees to but tickets AT the box office.”
7. kbot215 said... on Jul 16, 2009 at 12:27PM
“Can't believe this isn't drawing more commentary....I honestly haven't gone to a concert in years. I like very few bands that I'd pay more than $50 to see.
This sounds like a perfect situation for a boycott but as said above, this problem only exists because the market is willing to bare the cost.
I'm also surprised that no "indy-ticketing" system has been created to undercut ticketmaster/web. I'm sure there is good reason, does anyone now why?
I mean hell....a venue like The Troc could afford to build/operate a ticket sales portal online linked to its own box office.
Has anyone ever tried? i'm 32. I can't remember a time when "ticketmaster" didn't exist.
Anyone interested in taking on these f**kers?
You'd need at least 1 large venue to play ball and prove the concept.
Anyone know if venue box offices are held to exclusively use "ticketmaster" for ticket sales? Can't imagine any venue would be willing to abandon TM altogether just to try this.....
”
8. R5 said... on Jul 16, 2009 at 12:32PM
“We are likely to be leaving TicketWeb because of this merger.....”
9. kbot215 said... on Jul 16, 2009 at 12:35PM
“Ok...so....you can use Tix.com, etix.com or intickets.com to cut TM out of the game, not to mention StubHub. These services allow you to do everything TM does.
So why aren't venues taking advantage? Do concert goers really care where their e-ticket is emailed from? How hard is it for the Troc to link to its own ticket portal instead of "The Troc page on Ticketmaster".
I realize this doesn't solve the larger "live nation" problem......and shows put on by "Live nation" would likely require TM ticket sales. And other promoters/venues using other systems just couldn't afford to pay what TM/LN does.
Ok, yup, monoploy. why is it even being discussed. put a bullet in it!”
10. shiticketmaster said... on Jul 16, 2009 at 06:00PM
“A lot of events here in the Northwest use these guys:
http://www.brownpapertickets.com/”
11. Anonymous said... on Jul 17, 2009 at 11:57AM
“Another reason to not attend shows. When I moved here, you could go to the box offices and get tickets at face value. Now that Live Nation took over every venue, they charge you $5 to hand the tickets through the window to you. It is the biggest racket ever.
Don't attend shows if it pisses you off. It's the easiest way t get the point across. Maybe influence your favorite bands to boycott larger venues and use small clubs. Sure, they will lose some cash by doing that but they might get a bigger turnout and sell out small places.”
12. James Babb said... on Jul 17, 2009 at 12:56PM
“Taxpayers are fleeced to pay for stadiums, then politicians award monopoly contracts to companies like Ticketmaster in exchange for kickbacks.
Still, it sounds like an opportunity for a rival to offer a more cost effective promotion service, at least for the private venues.”
13. Anonymous said... on Jul 18, 2009 at 01:19PM
“In defense of the Dirty Projectors: this time around they actually were offered nearly twice as much money by Live Nation to play at the World Cafe Live, which they turned down. They already have reached this juncture in their career and made the noble decision to play an R5 show in the basement of the church.”
14. Chris Oberlin said... on Jul 20, 2009 at 12:43AM
“I've been obsessed with live music for most of my adult life, and I always buy tickets before the day of show at the box office of the venue, if at all remotely possible. I realize I am partly to blame by continuning to buy tickets with outrageous prices and service fees up the ass. But come on! The TLA now charges a $2 fee if you buy in CASH at the box office before the day of show! World Cafe Live adopted this practice the day it opened. That was the first time I'd ever paid a service fee on a cash ticket at the venue - they initially didn't even mention service charges on their website. I had exact change for the ticket I was buying & the guy at the box office actually paid the service fee for me (a mere $1 at the time), I can only guess because he realized I was being hosed. At least now they're up front about it. Hell, Ticketmaster is now charging $3.50 to mail your ticket to you, which used to be free. And even if you print it yourself, there's still a fee! Christ!”
15. JJ Anthony said... on Jul 21, 2009 at 09:37AM
“great research, the connections to the president are very interesting. as a concert goer for the first time here in the area, I was quite surprised to see the cost of tickets, now I can't even imagine what they'll be.”
16. popa said... on Dec 23, 2009 at 02:36AM
“http://designmylaptop.ro/inscrieri/022e4fbffba40d302f1b0225f1c9d611/”
17. wojo4hitz said... on Dec 23, 2009 at 12:17PM
“wait, so... according to everyone here, the only way to fight this is to stop going to shows, and thus to stop supporting your favorite artists who - as a result of labels ripping them off - make no money off of their own albums and earn most of their livelihood from ticket and merch sales at their live shows? i'm glad commenter #2 thinks it's "sad and pathetic" that anyone would ever consider doing such a thing. true, boycotting would hurt TM and Live Nation, but guess what it would do to the people making the music? i don't know what the solution is here, but that is NOT it...”
18. JTull said... on Dec 26, 2009 at 03:52PM
“I last saw The Stones in 1997 when top ticket prices were $65. Four years later they go out on the road and top ticket prices were $350 or $450, yet they sold-out almost every venue.
That is only the fault of the public. Its like Field Of Dreams in reverse, Stop Paying And Prices Will Drop.”
19. L Block said... on Dec 26, 2009 at 08:25PM
“I have attended over 500 concerts in my life, beginning with Sly and the Family Stone at Madison Square Garden around 1971. Used to be that you would go to a show for $10-$15 and if you were lucky the headline act would play for 3 hours. Now everything is planned to the minute. Classic rock shows cost $150 and up for real good seats. I think it was Clapton and The Eagles that started the trend of high priced seats. I saw Cream at The Garden a couple of years ago and like a fool paid about $350 for a great seat(box office price). The group members were obviously just going through the motions for a big pay day. Seems Clapton always comes up with a new gimmick to charge outrageous prices (now playing NY with J Beck for $250 a seat). Used to be outdoor shows cost much less for the same great acts(Shafer Music Festival in Central Park). Tickets there would be $3 when indoor shows were $10--$15. That went out the door too. Simple answer that I have learned--STOP GOING and supporting them.”
20. Anonymous said... on Dec 28, 2009 at 01:40PM
“...obviously the answer is to march in Washington”
21. Richie said... on Dec 28, 2009 at 04:25PM
“Support the small venues that are local for you and don't rob you with service charges. Unfortunately, there appear to be enough people willing to pay whatever is asked of them to get a seat at a show. Bill Graham Presents, which unfortunately completely died several years back when Clear Channel bought the name. Now the name has changed because so many of us hold Bill Graham and what he brought to music that Clear Channel became a hated entity. They now own(?) venues or at least control them.
They make cash off our tickets, the venues and even charge a venue fee for many shows. Now we can't even buy tickets without being charged to have the tickets mailed. What crap! The best service they provide is when they email us news of what shows are coming up. They don't list any shows that they do not control though.
We are not able to deal with these jerks ruining the music except by boycotting, and that hurts the artists. What a conundrum....”
22. missing live music said... on Dec 29, 2009 at 10:02AM
“The first concert I ever went to was in 1995, Pearl Jam at Soldier Field. That was back when they tried to fight Ticketmaster and we actually had to buy our tickets over the phone through a different company. I still have that ticket somewhere, it looks awesome (no marketing crap!) and was all of $23.00 I believe! Oh, and it was for general admission on the actual field! Now, you try to get tickets online and are lucky to get a nosebleed seat for much more $. Has anyone looked into how Stubhub and all those scalpers get SO many of the good seats?!?”
23. mark said... on Dec 29, 2009 at 01:12PM
“L Block, I remember those days too, plus the Academy of Music on 14th St and tickets being $2.75”
24. vir2ul1 said... on Dec 31, 2009 at 11:12AM
“Hey L.Block and mark, whatever the ticketmaster issue (which sucks) you're bringing back some great memories. I was at the same Sly show at the Garden in '71 too. He had amazing control over the crowd. Incredible electricity. Then the Who at Forest Hills right when "Who's Next" came out. And Edgar Winter's White Trash in NJ (can't remember where) to hear their classics plus Frankenstein. There were many, many others but those stand out. The shows were less contrived too. There were always surprises in the performances and the encores were for real.
I don't begrudge the artists today for wanting to charge more for tickets---the opportunities to make money off recordings are fading, so they need to do it through live performances. But I hate the parasites---Ticketmaster, LIve Nation---- who have no talent themselves, who have never created anything but schemes to make a buck off the hard work and talent of others. They will kill rock n' roll in the process if they can.”
25. john brower said... on Jan 15, 2010 at 10:39PM
“In 1968 I was chastised in the Toronto Star newspaper for charging the highest ticket price in local concert history other than The Beatles when I charged $4 a ticket for The Doors. I guess I started this whole mess. In reality one name has been left out of this articel...Michael Cohl. If you do your research you'll find his Concert productions International pioneered scalping, fraud on the consumer by charging taxes on tickets and not paying the government, (his excellent lawyers beat that in Federal court) and inflating merchandise well towards its present day ridiculousness. Since he scampered away with The Stones in 1985 he hasn't looked back and found a willing partner in Mick Jagger who would sell his mother's underwear if anyone would buy them. Michael Rapino studied at the feet of Michael Cohl, the latter of whom I less than fondly refer to as The Meyer Lansky of rock. Lansky must look up from Hell and wonder why he never thought of getting Frank Sinatra fans to be so dumb.”