The ticket cartel is a term used to describe the perceived monopolistic practices of major ticketing companies in the entertainment industry, namely Ticketmaster and its parent company Live Nation, as well as StubHub and ViaGoGo. These companies face widespread public criticism and political scrutiny[1] for high fees, limited ticket availability, false advertising and the use of bots to purchase large numbers of tickets for resale.

Criticisms and lawsuits at the address of Live Nation-Ticketmaster inline with cartel activities:

• Monopolizing Markets: In May 2024, The Justice Department filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its wholly-owned subsidiary, Ticketmaster LLC (Live Nation-Ticketmaster) for monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry.[2]

• Collusion: In October 2018, Ticketmaster and parent company Live Nation Entertainment were sued for unlawful and unfair business practices.[3]

• Extortion: In May 2018, federal government study found Ticketmaster added on average 27% to the stated ticket price.[4] [5]

• Anti-Competitive Practices: Critics argue that dominant ticketing companies such as Ticketmaster engage in anti-competitive behavior, such as exclusive contracts with venues, to limit competition and maintain high prices.[6]

• Lack of Consumer Protection: Many consumers feel that their interests are not adequately protected by current regulations and industry practices.[7]

• Ethical Concerns: The use of bots and other tactics to manipulate ticket sales raises ethical questions about fairness and accessibility.[8]

Key issues associated with the ticket cartel:

• High Fees: Excessive fees are often added to the base price of tickets, significantly increasing the final cost for consumers.

• Limited Availability: Tickets for popular events can be scarce, with many selling out quickly, often due to bots.

• Scalping and Reselling: Tickets are frequently resold on secondary markets at inflated prices, often facilitated by the same companies that initially sold the tickets.

• Lack of Transparency: The complex nature of the ticketing industry, with multiple intermediaries and dynamic pricing, can make it difficult for consumers to understand the true cost of tickets.[9]

• Ticket Fraud: The practice of selling counterfeit or duplicate tickets, often facilitated by the complex nature of the ticketing industry.

Efforts to address the issue:

• Government Regulation: Various governments have implemented regulations to address issues like ticket scalping and bot use.[10]

• Fan Advocacy Groups: Organizations such as FanFair Alliance have been advocating for fairer ticketing practices and consumer protection.[11]

• Live Music and Event Industry Initiatives: Associations such as NIVA and coalitions with lobbying programs Fix the Tix have been pushing US Congress to pass the Fans First Act, legislation aimed to protect fans from price gouging, deceptive practices, and the use of bots to buy up tickets.

• Alternative Ticketing Platforms: companies like DICE, See Tickets, AXS and OPEN have emerged offering alternative ticketing solutions with a focus on transparency and fairness.

While efforts are being made to address the issues associated with ticket cartels, the problem persists. As the demand for live events continues to grow, it is crucial to find solutions that protect consumers and ensure a fair and transparent ticketing market.

The term 'ticket cartel' in reference to Ticketmaster was first used on November 4th, 2022 on X. In 2024 the use of the term has increased, particularly by concert goers, artists, promoters and venue owners online, in an effort to harness and channel their frustration and dissatisfaction with ticketing companies following the Oasis debacle.[12] [13]

Notes & References

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  1. ^ "Here's a running list of clashes between Ticketmaster, fans and artists". PBS News. 23 May 2024. Retrieved 23 May 2024.
  2. ^ Office of, Public Affairs (23 May 2024). "Justice Department Sues Live Nation-Ticketmaster for Monopolizing Markets Across the Live Concert Industry". U.S. Department of Justice. Retrieved 23 May 2024.
  3. ^ Wang, Amy X. (1 October 2018). "Ticketmaster Faces Class-Action Lawsuit After Scalping Report". Rolling Stone. Retrieved 1 October 2018.
  4. ^ Clements, Michael (14 May 2018). "Event Ticket Sales: Market Characteristics and Consumer Protection Issues". U.S. Government Accountability Office. Retrieved 14 May 2018.
  5. ^ Cush, Andy (14 October 2024). "This One Weird Email Helps Explain the Horrible State of Concert Ticketing". Hearing Things. Retrieved 14 October 2024.
  6. ^ Long Decter, Rosie (25 April 2024). "'The Current System is Broken': 250+ Artists Sign Letter Calling Out 'Predatory' Ticketing Practices". Billboard. Retrieved 25 April 2024.
  7. ^ Morris, Chris (23 May 2024). "'It is time to break up Live Nation–Ticketmaster': Justice Department takes on entertainment antitrust battle". Fortune. Retrieved 23 May 2024.
  8. ^ Halliday, Josh (4 September 2024). "European Commission to examine Ticketmaster's 'dynamic pricing". The Guardian. Retrieved 4 September 2024.
  9. ^ Jones, Rhian (17 July 2023). "Swiftly resolved? The problems in concert ticketing – and how to fix them". The Gaurdian. Retrieved 17 July 2023.
  10. ^ Trewn, Pranav (6 November 2024). "We Outside: The Reselling Market Is Broken – Can Anything Replace It?". Passion Weiss. Retrieved 6 November 2024.
  11. ^ Long Decter, Rosie (25 April 2024). "'The Current System is Broken': 250+ Artists Sign Letter Calling Out 'Predatory' Ticketing Practices". Billboard. Retrieved 25 April 2024.
  12. ^ Izundu, Chi Chi (5 September 2024). "⁠Oasis ticket row: How Ticketmaster's owner has grip on UK live music scene". BBC. Retrieved 5 September 2024.
  13. ^ Tencer, Daniel (10 October 2024). "Ticketmaster hit by 'billions' of bots in Oasis ticket sale, and 3 other things Michael Rapino said at Bloomberg's Screentime event". Music Business Worldwide. Retrieved 10 October 2024.

See also:

Live Nation Entertainment

Ticketmaster

Scalping

Bot