Taylor Swift’s record-breaking Eras Tour has come to an end, but its economic impact will be felt for a long time. The tour has been accused of unleashing “absolute legal hell” on Ticketmaster and Live Nation, with the Justice Department suing the companies for abusing their power as the nation’s biggest concert promoter.
The lawsuit claims that Live Nation stifled competition, forced fans to pay more, and bullied artists and venues into using its services. The company’s stock has surged 50% this year, thanks to high demand for concerts and festivals. However, investors are betting on a sure thing, as many musicians and their fans have limited choice when it comes to ticketing services.
Live Nation controls 80% of venues’ primary ticketing for concerts and directly owns 265 venues, including 60 of the top 100 amphitheaters. The company also invests in several food and beverage brands sold at its venues, further limiting competition.
Analysts expect a change in antitrust enforcement under the new administration, which could lead to a drop in the lawsuit. However, dropping the case would also deprive President-elect Donald Trump of an easy PR win, as 40 state attorneys general signed on to support the DOJ’s case. Antitrust lawyer Adam Wolfson says it’s unlikely that the Trump administration will drop the case, citing Gail Slater, who leads the DOJ’s antitrust division.
As the investigation continues, fans and musicians are left wondering what’s next for Live Nation and Ticketmaster. Will the Justice Department succeed in breaking up the companies, or will they find a way to navigate the changing landscape of live music?
Source: https://edition.cnn.com/2024/12/10/business/taylor-swift-eras-tour-ticketmaster-nightcap/index.html