Justice Dept. Should Block Live Nation TicketBastard Merger

[LoungeMachine]

Irving Azoff and Michael Rapino talk up advantages of a union of the firms.

By Randy Lewis

February 12, 2009

One of the biggest challenges facing the architects of the Ticketmaster- Live Nation merger is making a case that the union can benefit fans and not just the companies' stockholders.

They'll have to argue that point to the Justice Department, which on Wednesday announced it will conduct an investigation to make sure the merger of the world's largest ticket seller with the biggest concert promoter and facility operator doesn't result in an illegal monopoly of the concert business. But they'll also have to persuade those ticket-buying fans to whom Ticketmaster represents one of the evils of the modern world.

"Calling the new company Live Nation Entertainment is a big statement," Live Nation Chief Executive and President Michael Rapino said in an interview Tuesday. "Let's make sure we send a strong message from the first investor call. . . . There's no way around it, we've got to build a better mousetrap to compete in today's times."


"The government is saying, 'If our economic stimulus plan works, this is what will happen,' " he said in a separate interview. "If our plan happens . . . it can, should and will result in lower ticket prices in the primary market. If that plan fails to come to pass, artists, consumers and the industry will not be the better for it."

Azoff, whose Front Line Management stable of superstar acts is part of the new company, goes so far as to say that the worst thing that can happen for musicians and fans is for the two companies to do nothing.

"The system is broken," Azoff said. "This is about being in the music business -- not just the record business, not just touring, not just ticketing. With the almost complete collapse of the ability to monetize recorded music, we think this model will allow artists to control their fate along several product lines within the music business."

The executives spoke of their industry's failure to keep up with the technological changes that have radically reshaped the music landscape.

"The first question is, if we don't do something, where will the innovation come from?" Rapino said. "I'm not saying I have four silver bullets that will make everybody happy. But the model has got to change."

As things stand, 40% of concert tickets on average go unsold, the executives noted.

"We're not looking to gouge the public with higher ticket prices," Azoff said. "We want to sell more tickets and have the full dollars [from sold-out shows] available to distribute."

Added Rapino: "In my business, the cheaper the ticket price the better. I'd love for more consumers to walk into an amphitheater, park, have a beer and eat a hot dog. There's no advantage to me to have anything but sold-out shows."

Both executives want to explore new methods to keep tickets in the hands of fans rather than scalpers. Airline tickets, for example, cannot be resold. But, noted one concert industry veteran, "the airline business is a regulated industry; ours is not."

For AC/DC’s recent concert at the Forum in Inglewood, Ticketmaster tried a ticket-less system in which fans got into the arena not with a ticket but by swiping the ID they used to buy the ticket.

Azoff and Rapino speak of the new company's giving them greater flexibility to allow consumers to create customized packages with whatever products or services they want from a given artist: concert tickets, merchandise, music downloads, ring tones, special access at concert sound checks or meet-and-greet parties.

It's not out of the realm of possibility that some of these ideas might pay off for fans.

"There are obvious synergies between Ticketmaster and Live Nation," said Alan Krueger, an economics professor at Princeton University who has done extensive research on the concert industry, in an e-mail. "I think a combined company could be much more innovative in distributing music and pricing tickets.

"They could combine digital downloads of music (both live and recorded) with concert ticket promotion," Krueger said. "They could also use the vast market information that Ticketmaster acquires to target locations for concerts and the number of concerts (as Bruce Springsteen did in New Jersey on his last tour). This would be a blow to scalpers but probably help fans who want to buy tickets in the primary market."

randy.lewis@latimes.com


http://www.latimes.com/entertainment/news/music/la-et-concert12-2009feb12,0,6050152.story

[FORD]

So now the two companies that have fucked up concert ticket prices, and made it nearly impossible for fans to get the best seats want to merge into ONE company?

FUCK THAT.

Existing antitrust laws need to be enforced, and the ones that either Reagan, Clinton, or Bush canceled need to be reinstated.

[LoungeMachine]

indeed.

:gulp:

[sadaist]

I just hope that when people finally stop paying the huge prices for tickets with these guys and they go broke....that we don't bail them out because they are too big to fail.

[LoungeMachine]

Any corporation "too big to fail" should be deemed TOO BIG TO EXIST, in my opinion.

This is worse than ClearChannel.

:gulp:

[sadaist]

Any corporation "too big to fail" should be deemed TOO BIG TO EXIST, in my opinion.

This is worse than ClearChannel.

:gulp:

Fuckin' A!

[FORD]

This IS Clear Channel. Unless Live Nation has completely separated from them by now?

[LoungeMachine]

They have.

:gulp:

[kwame k]

Yup, bringing over-priced, homogenized radio and concerts since..........Looks like XM and Sirius might be going bankrupt........pull a Ted Turner and buy the whole enchallida.......Corporate Media/Entertainment still suck!

[FORD]

Not completely separate though. Clear Channel's Lowry Mays (friend of Chimpy) is still on the Live Nation board of directors, as is Randall Mays (his son)

More troubling, in the context of the current justice department doing anything about this, is that Ari Emanuel (brother of you know who) is also on the board. Will Eric Holder risk the wrath of Rahm and do what is right?

[WACF]

Yup, bringing over-priced, homogenized radio and concerts since..........Looks like XM and Sirius might be going bankrupt........pull a Ted Turner and buy the whole enchallida.......Corporate Media/Entertainment still suck!

It is going to a do or die year for sat radio.

I hope it survives...it still beats the crap out of what I can get here.

http://dealbook.blogs.nytimes.com/2009/02/11/sirius-xm-holds-talks-with-liberty-media/?partner=rss&emc=rss

Sirius XM Holds Talks With Liberty Media

Liberty Media, the media company controlled by John C. Malone, is in preliminary talks with the satellite radio giant Sirius XM Radio, people briefed on the negotiations told DealBook.

A deal between Liberty and Sirius XM could throw a wrench in takeover plans by EchoStar, the television satellite company that has been acquiring Sirius XM’s debt.

The high drama comes at a critical time for Sirius XM, which faces $175 million in debt payments that will come due on Feb. 17. The company is unlikely to be able to meet those obligations.

Mel Karmazin, Sirius XM’s chief executive, has been locked in talks with Charles W. Ergen, his counterpart at EchoStar, these people said. The two men are said to not get along, and Mr. Karmazin has rebuffed Mr. Ergen’s advances before.

While EchoStar’s proposal to Sirius XM is unclear, it may be no better for the satellite radio’s company’s bondholders than a bankruptcy filing, people close to the company said. Sirius XM hired advisers several weeks ago to prepare for a potential bankruptcy filing, which could come within days, these people said.

It is not clear how advanced the talks between Sirius XM and Liberty are, but any potential deal between the two could spark a bidding war with EchoStar. Because EchoStar holds a large portion of Sirius XM’s debt — a majority of the $175 million due on Feb. 17 and part of a $400 million tranche that comes due in December — it may have an upper hand in any such negotiations.

[kwame k]

Fuck I agree........this sucks....I haven't had Sat Radio in 2 years and was thinking about getting it again, for the drive across country in two weeks......fuck! Better load up the MP3 player......

[WACF]

Fuck I agree........this sucks....I haven't had Sat Radio in 2 years and was thinking about getting it again, for the drive across country in two weeks......fuck! Better load up the MP3 player......

If you have an old radio to activate it might be worth a listen...after the merger it is kinda hot and cold for me...still beats terrestrial though.

I would not buy any new radios until they clear a few of their hurdles...

[kwame k]

If you have an old radio to activate it might be worth a listen...after the merger it is kinda hot and cold for me...still beats terrestrial though.

I would not buy any new radios until they clear a few of their hurdles...

I still have the Road Ready II (?) XM one......yeah, I might for the road trip.

[GAR]

The economies-of-scale argument didn't work for ATT!

[hideyoursheep]

LiveNation and TicketMaster have to "build a better mousetrap"?

Fuck

That.





I hope they crumble.

Greedy fucks.

[ELVIS]

'If our economic stimulus plan works

:lmao:

I had to stop reading right there...


:elvis:

[ELVIS]

If my math is correct, if you have a trillion dollars ($1,000,000,000,000) that comes out to $50,000 a year for 20,000,000 years, or 20,000,000 people could each have $50,000 for one year or 30,000,000 people could each have $33,333 for a year...

Amazing!

So my point is that "If our economic stimulus plan works" doesn't sit too well in my mind or my gut or my heart...

And how much has Iraq cost So far... Somewhere north of THREE TRILLION DOLLARS ??

Incredible...and I could go on and on, as most of my friends on this board could as well...

As much as I like to push some of your buttons, call names and poke fun, most of you are smarter and way more informed than just about anyone I know or hang out with in real life...

Usually whenever I bring some of this type of information up in a conversation (usually after I hear some Obama praise) I either get a deer in headlights stare, disbelief, or the smart-asses call complete bullshit even if I can produce facts...

Not many average working class people have a clue about whats just around the corner regarding the economy and I believe that's what the government is banking and betting on...

Scary stuff...


:elvis:

[LoungeMachine]

I hate it when ELVIS makes posts like this....

it makes me like him.

:gulp:

[ELVIS]

LMAO!


:biggrin:

[FORD]

Elvis is making too much sense this week. I think he's been replaced by an "evil twin" from an alternate universe.

Think "South Park", not "Star Trek", where the "evil" Cartman was actually the "good guy".

[LoungeMachine]

I'm hoping it's just a phase he's going through since they adjusted his meds.

But I like this version of him, and that pisses me the fuck off

:gulp:

[ELVIS]

Ok...I want to make you guys happy...

Send me a PM of what you would like me to say and I will cut, paste and sign it...


:biggrin::elvis:

[Coyote]

Y'all might not care about this, but you should've seen the media blitz here a few days ago...

Madonna's ticket sales were a complete fiasco.

Some schmuck got the brilliant idea of involving the local 7-11's with "ticket machines".
With 80,000 tickets up for grabs (with classifications)...
The ticket machines jammed everywhere, the lines were busy, the internet dead. And yet, somehow all the tickets disappeared before noon only to re-appear on eBay and such for a minimum of 285 euros, and a max of... over 1000 euros.

Retail price being 99/119€.

(Unfortunately, I can't find any links to stories about this in American...)

Live Nation has apparently spread out to Europe, too.

[ELVIS]

I'm sorry you couldn't get your Madonna ticket...:(

[FORD]

They have 7-11 in Finland? Who knew??

Can you get vodka Slurpees there? :guzzle:

[Coyote]

I'm sorry you couldn't get your Madonna ticket...:(

I'd tell you to fuck off, but since you apparently don't have all your pistons firing, I'll just say "piss off, elvis"...

[Coyote]

They have 7-11 in Finland? Who knew??

Can you get vodka Slurpees there? :guzzle:

Allow me to specify a bit.

"sort-of-7-11's"

No Slurpees, but there's porn mags in plain view...

[hideyoursheep]

I'd tell you to fuck off, but since you apparently don't have all your pistons firing, I'll just say "piss off, elvis"...
:biggrin:


Wait 'till he blows a gasket!:hee:

[Coyote]

:biggrin:


Wait 'till he blows a gasket!:hee:

Nah, I'll wait 'til his fuel pump's busted... :D

[kwame k]

EAST RUTHERFORD, N.J. – Ticketmaster agreed Monday to change its online sales process after it directed people seeking Bruce Springsteen tickets to a subsidiary that charged up to 50 times the face value.

Ticketmaster reached a settlement with New Jersey, where the Springsteen concert in question had been scheduled, said state Attorney General Anne Milgram. The changes apply to all Ticketmaster sales nationwide, she said.

Ticketmaster said in a statement Monday that the problem over the May 21 and May 23 concerts at East Rutherford's Izod Center was caused by a software glitch. The "voluntary agreement" with the attorney general just formalizes changes the company had already implemented, the company said.

Ticketmaster did not return telephone calls seeking comment.

When the tickets went on sale Feb. 2, Springsteen ticket seekers were redirected from the main Ticketmaster site to TicketsNow, a subsidiary. Milgram said at the time that redirecting them might have violated the state's consumer fraud act.

Springsteen said on his Web site that he and the E Street Band were "furious." A spokesperson for the musician did not immediately return a call seeking comment Monday.

Ticketmaster did not admit wrongdoing but agreed to pay the state $350,000, Milgram said. The company will also compensate ticket holders who complained and change how it handles secondary sales, she said.

Milgram says she plans to further investigate the resale market — largely dominated by ticket brokers who buy in bulk and resell at higher prices.

"What is critical is that consumers understand what is happening on any Internet site during a sale of tickets," Milgram said. "The (Ticketmaster) Web site suggested that consumers could continue their search on TicketsNow, making it seem there was no difference in the two markets when, in fact, of course there is."

Milgram said her office received about 2,200 complaints from people unable to buy Springsteen tickets for a face-value price of $65 or $95. They were instead directed to TicketsNow, where tickets retailed for $200 to $5,000 apiece.

Connecticut Attorney General Richard Blumenthal said he was studying Monday's settlement but would continue an independent investigation into Ticketmaster sales of Springsteen tickets in Connecticut.

The settlement comes as Ticketmaster faces scrutiny for a proposed merger with the concert promotion giant LiveNation. The merger will be the subject of congressional hearings Tuesday in Washington.

Sen. Charles Schumer, D-N.Y., has said he thinks the merger would violate antitrust rules by giving Ticketmaster a near-monopoly on the concert ticket market. Schumer said Monday that he welcomed the New Jersey settlement.

"While we are pleased Ticketmaster has acknowledged its mistake ... giving Ticketmaster near total control over the distribution of concert tickets here in New York and across the country is a recipe for disaster," he said.

___

Associated Press writer David Collins in Hartford, Conn., contributed to this report.

Link (http://news.yahoo.com/s/ap/20090223/ap_en_mu/ticketmaster_probe;_ylt=Ai7J6yu2vE5XTLU52zU3eyaVEh kF)

[kwame k]

So they get a $350,000.00 slap on the wrist and have to admit no wrong doing. Please!

[sadaist]

To be honest, prices aren't my main gripe with concerts. In the early through mid 80's, me & some buddies would camp out overnight at Tower Records to be 1st in line when tix went on sale. Always got the first 5 rows...ALWAYS! We earned it. Kickin' it on cement for 12 hours in December earns you the prime spot compared to the guy snug in his bed with the alarm clock set for 8 am. We even had a small bookstore in Coronado that sold tickets and no one knew about. So when Tower already had people in line we went there instead.

But then they changed it to random numbers drawn....no matter where in line you were. Made no difference if you were there 5 minutes or 10 hours. They said they did it due to scalpers hiring bums to sit in line & buy tickets. We did run into the vagrants, and if needed bribed in front of them with a couple extra beers. Their scalper bosses would never know. But in today's day & age, even 1st in line you're lucky to get lower level near the stage. First 10 rows? You're dreaming.

So if you're going to charge me $175 to see VH, DAMMIT! give me a shot a some decent seats. I promise I'll work for my spot in the front of that line.

[bueno bob]

Unfortunately, I have to admit I've been buying tickets to Ticketmaster shows; fortunately, I'm proud to admit I've avoided any band selling tickets through Live Nation like the plague.

Best part of all of it, most of the bands and shows I'm into music-wise are $10 at the door (at best) and played in crummy little hovels to 20 people or so. I'll have no problem boycotting going to super-band concerts at $120.00 a ticket in the future...

[FORD]

Every now and then, I have to put on the DVD of "Fast Times at Ridgemont High" and watch the part where the kids are complaining about Damone charging the outrageous price of $20 each for Van HALEN tickets.

Well that and Phoebe Cates tits in the swimming pool scene.

Thank God there's no such thing as "TitMaster" or they would fuck that up too. :pullinghair:

[chefcraig]

Never failing to fully grasp any opportunity to display just how out of touch he is with reality, Edward Van Halen sides WITH the proposed merger. http://www.easyfreesmileys.com/smileys/free-ashamed-smileys-721.gif (http://www.easyfreesmileys.com/Free-Sexy-Smileys/)

Rock stars Van Halen, Seal, Shakira support Live Nation-Ticketmaster merger

NEW YORK, Feb 23 (Reuters) - Live Nation Inc's planned acquisition of Ticketmaster Entertainment Inc has received support from rock stars including Van Halen, Seal and Shakira ahead of a U.S. antitrust hearing on Tuesday.
The companies said they have received supportive letters and emails from these artists, even as others including Bruce Springsteen and Senator Charles Schumer have opposed a combination of the world's biggest concert promoter and largest ticketing company.
Ticketmaster Chief Executive Irving Azoff and Live Nation Chief Executive Michael Rapino will tell a Washington antitrust hearing that the merger will help save jobs in the beleaguered music industry by forming a strong American company that can fend off foreign takeover threats, according to prepared testimony seen by Reuters.
"This is a great American industry. It's an important part of our culture and our history and it's at a very important crossroads," Azoff said in an interview. "The current music industry is broken."
U.S. recorded music sales are down more than 50 percent since peaking in 2000, hurt first by piracy then by digital music services such as Apple Inc's iTunes, which sell much fewer albums.
"We're certainly not anti-record company but the labels tried to fight technology and look where it got them," said Azoff.
Live Nation has been trying to diversify its concert promotion business to boost thin profit margins. In the last 18 months, it has moved into ticketing and signed high-profile stars like Madonna and Jay-Z to multiple rights deals to include merchandising.
Ticketmaster has also diversified into artist management by buying Azoff's Front Line Management and making him CEO of the combined company.
With the latest merger, some music industry insiders have complained that the company -- with control over many artists, venues and ticket sales -- would have access to business-sensitive information of competitors.
But Azoff, one of the world's leading artist managers, and Rapino said they had received letters of support from artists, small venues and promoters with whom they work.

SCHUMER URGES SCRUTINY

In one letter seen by Reuters, rock star Seal, who has no relationship with Live Nation or management relationship with Ticketmaster, said he was in full support of the merger.
"Anything that can strengthen the link between music creators and music lovers has my support," Seal said in the letter to be presented to the U.S. antitrust committee. "I believe the combined company will achieve that by aligning resources, talent and services."
Other names of support include Eddie Van Halen and his son Wolfgang, 1970s rock act Journey and Colombian pop star Shakira, who signed to a $70 million multiple rights deal with Live Nation last year.
The companies also had letters of support from owners of small venues and a few independent promoters around the country.
However, some lawmakers and consumer groups said the merger will lead to higher ticket prices and limit artist choices.
"This merger would give a giant, new entity unrivaled power over concert-goers and the prices they pay to see their favorite artists and bands. It must be viewed skeptically and scrutinized," Schumer said in a statement on Monday.
Rapino said fans are frustrated with the lack of transparency in ticket sales that lead to scalpers and resellers charging exorbitant prices for the best seats.
The merger would aid ticket price transparency, boost sponsorship revenue, and help small venues discover "the next Bruce Springsteen," Rapino and Azoff said.
Springsteen came out against the merger after Ticketmaster's website appeared to redirect fans to buy tickets to one of his concerts at TicketsNow.com, the website of a subsidiary where prices were much higher.
Azoff, seen by many as one of the most powerful players in the global music industry for more than 40 years, said he has personally apologized to Springsteen.

http://www.guardian.co.uk/business/feedarticle/8371967

[kwame k]

Geez, if VH does keep it together and can make an album.....I wonder who they'll sign with:umm:

[GAR]

I notice Irving Azoff is CEO of Ticketmaster.

Huh! He wouldn't have put EVH up to supporting this, would he?

NAHHH...

[Satan]

I know Azoff managed Van Hagar's Velveetapalooza Trainwreck 2004 tour, but I thought he was only on board for that, and that it was Hagar that brought him in for that, not Eddie.

Did Irving have anything to do with the 2007-08 Van HALEN tour?

[chefcraig]

I'm unclear of what role Azoff plays into the Van Halen management brain trust, in comparison with High Profile media. One thing is certain: Azoff was and is an integral part of Tiger Woods' annual "Tiger Jam" charity event, which was part of the 2008 tour itinerary.

http://vegasblog.latimes.com/vegas/2008/04/tiger-jam-with.html

[LoungeMachine]

the Van Halen management brain trust,





:lol:

:lol:

:lol:

:lol:

:lol:

[Coyote]

Van Halen management brain trust

Folks, here you see a band name and three words that are completely incompatible with each other...

A triple oxymoron too, i think.

[Kristy]

Next to Al Qaeda (sp?) Ticketmaster is the only other organized evil in the world.

[Guitar Shark]

Between Kristy and chan_bkny, I'm thoroughly enjoying reading posts by the new female contingent at the Army.

[LoungeMachine]

Agreed.

:gulp:

I only wish I hadn't wasted all my Thanks today on dumb ass posts :D

[kwame k]

No shit! Great posters and kinda equals out the fucking rush on trolls we've been having.

[ODShowtime]

EAST RUTHERFORD, N.J. – Ticketmaster agreed Monday to change its online sales process after it directed people seeking Bruce Springsteen tickets to a subsidiary that charged up to 50 times the face value.

Milgram said her office received about 2,200 complaints from people unable to buy Springsteen tickets for a face-value price of $65 or $95. They were instead directed to TicketsNow, where tickets retailed for $200 to $5,000 apiece

What really, REALLY pisses me off about this is the juice going to the "ticket brokers" right after the show went on sale.

Ok, so the cheapest tickets cost $65 and were going for $200 right after the show went on sale. Forget about whatever fraudulent activity occurs to allow these "brokers" to even get a chance to buy the $65 tickets that we never see. It's most likely simply kickbacks to the TM or LN executives.

What I want to know is, what value are these "brokers" adding to the product that they can charge a 207% premium? What are they adding to the product? Not a god damned thing! They're just leaches sucking the blood of what was once my passion, my favorite activity in the world, rock concerts. And that's on top of the 40% "convenience fees" ticketmaster charges. It's convenient for them not to have to operate an actual ticket outlet, but we pay the fee?

I didn't mind paying high prices to make the artist rich. But we are just paying for swindlers and leaches and it makes me sick.

It looks like we have some new emoticons, this one seems to articulate how I feel about it. :pullinghair: