Look what you made them do, Taylor Swift. ‘Them’ being the politicians on the US Senate Judiciary Committee who chose yesterday’s ticketing hearing to crowbar in lyrical references when questioning Live Nation’s Joe Berchtold and other witnesses.
“Ticketmaster ought to look in the mirror, and say, ‘I’m the problem, it’s me,” said Senator Richard Blumenthal (aged 76). “You can’t have too much consolidation — something that, unfortunately for this country, as an ode to Taylor Swift, I will say, we know ‘all too well.’” said Senator Amy Klobuchar (62).
“Karma is a relaxing thought, aren’t you envious for you it’s not?” added Senator Mike Lee (51). If nothing else, it proved age is no barrier to joining the Swifties. But once the shoehorns were put away, there was serious business to discuss, and as expected, the hearing was not a comfortable chat for Berchtold and his company.
There are a number of detailed reports on the session: we’d point you to Variety, TechCrunch, CNN and (if you have subscriptions) Billboard and Rolling Stone for a patchwork picture. But here’s our summary and analysis of the main dynamics at play.
A number of the politicians made it clear that they see Live Nation-Ticketmaster as a monopoly that – despite the approval of their 2010 merger – needs to be broken up. And, indeed, that the consent decree that was the key condition of that approval has not been effective in ensuring a competitive ticketing market.
Talking breakup is easy, actually doing it is another thing entirely. That would likely hinge on any conclusions from the US Justice Department investigation that was reported to have been opened last year.
Yesterday, Klobuchar acknowledged that when talking about possible actions. “Some of them are smaller things that can be done right away,” she said. “Some of them are things that the Justice Department may order.”
However, it’s important to understand that the hearing (and the discourse around it) is not just about Live Nation and Ticketmaster’s power, but about the challenges posed by scalpers and bots.
Ticketmaster faces criticism here too. “You told me yesterday you block about 90 percent of the bot attacks that you get, and that’s a failing grade,” Senator Marsha Blackburn told Berchtold during her questioning. However, there is also concern – from the politicians and from Ticketmaster alike – that the existing legislation in the US – the 2016 BOTS Act – is not being enforced rigorously enough.
Live Nation’s argument is that the chaos around Taylor Swift’s onsale last year was a valiant struggle against industrial-scale bots and scalpers that needs more backup, rather than a sign of a complacent monopoly being caught out for a lack of innovation.
Neutrals will point out that these are not necessarily mutually exclusive: that the healthiest possible ticketing market is one where legislation tackling bots and scalping is strengthened AND enforced properly, and where competition for the biggest companies in the sector can thrive.
We’re still at the start of a long road towards thrashing out whether that requires a breakup of Live Nation-Ticketmaster – a debate that is partly a re-run of the arguments for and against the merger’s original approval in 2010, but informed by the realities of the ticketing market in 2023.
Yesterday’s hearing was merely an opening skirmish to spur the companies and their critics alike to continue marshalling their arguments for the bigger, longer fight that lies ahead.
