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Thursday, January 19, 2023

Reflecting on a 30 year old Article on Ticketmaster's Anti-competitiveness

In fall 2022, Ticketmaster was in the headlines after its website were flooded with Swifties attempting to get tickets to their favorite singer, Taylor Swift.

This led to two lawsuits filed alleging Ticketmaster engaged in "fraud, price-fixing, and antitrust violations" and "anticompetitive and misleading conduct."

This is nothing new for the ticket giant. In 1994, a congressional subcommittee brought in those in the music industry who testified on Ticketmaster's anticompetitive ticket pricing and service charges without considering an artist's input. 

Music critic Dave Marsh wrote a column highlighting the subcommittee hearing in the November 1994 issue of PLAYBOY magazine, which he attended and represented ticket buyers.

In the column, he explained 90's alternative rock band, Pearl Jam, filed a complaint with the Justice Department's antitrust division regarding how Ticketmaster "had prevented them from touring... by refusing to meet the band's ceiling price for tickets at $18, with a service charge of $1.80." Equivalent to $40 (2022).

He continued, "Their complaint centered on both a major business matter -- the rising cost of concert tickets -- and important First Amendment issues. From an artistic point of view, if there are no alternate venues or competing tour sites, there is no free expression. Whoever owns the stage calls the shots," and adds, "Ticketmaster has an ironclad cartel."

Ticketmaster's counsel argued that it doesn't set the ticket price or service charges and... "They are determined through negotiations with Ticketmaster's clients."

Dave Marsh does raise a good point that still resonate today. We are customers and we should have a say in pricing. However, because of Ticketmaster's strong hold in the market, the people's voice is not heard.

Unfortunately, I feel nothing has changed in terms of congressional oversight over this matter. Like 30 years ago, I bet they will consider this more of a business dispute. Dave said it best in his column, "Getting tickets to the public at a fair price isn't just a business issue. Pop music is entertainment, but it's also culture. For a lot of us it's the most important culture, the only kind that speaks both to us and for us. By running up service charges, Ticketmaster, along with the venues and promoters that are its partners, are restricting access to this culture to those who can pay high premiums." 


Sources:

Marsh, Dave. "Ticket to Ride?" PLAYBOY, vol. 41, no. 11, November 1994, p. 52.

https://pitchfork.com/news/taylor-swift-fans-file-second-lawsuit-against-ticketmaster-over-eras-tour-debacle/

https://pitchfork.com/news/taylor-swift-concert-ticket-demand-culminates-in-ticketmaster-canceling-public-on-sale-date/

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