Concert ticket costs have become a national crisis — so much so that the Department of Justice has filed alawsuit to break up Live Nation, which owns Ticketmaster.
Twenty-seven state attorneys general are still pursuing a legal course to break the two companies up.
At this stage, that’s just overkill.
I have a simple solution to resolve the issue. But to understand that solution, you must first try to understand the problem.
I have been doing just that after being involved in the music industry, and now providing financial advice to many clients in the industry.
Theproposed breakup of Live Nation, which controls many concert venues, and Ticketmaster, which is used for most venues to issue their tickets, appears to be a standard antitrust action against a monopoly.
But separating the two entities, at this point, may be nearly impossible.
Live Nation makes a small percentage on promoting concerts. That percentage is always negotiable, but most of the ticket price goes to the venue and the artist.
The way the company makes its money is on ticket fees — Ticketmaster. If you review that company’s financial statements, which can be done on the Internet, they actually lost money two of the last three years on their concerts.
Moreover, thoughLive Nation controls a sizable portion of the promoters’ market, that may not be the worst thing for the public. In days past, concert promotions were left to individuals who were often unscrupulous.
Source: California Post – Breaking California News, Photos & Videos
