Major upheaval in the music industry due to expansion of antitrust lawsuit against Live Nation

The music industry is facing a massive shift as the antitrust case against Live Nation and its subsidiary Ticketmaster gathers momentum. In a recent development, attorneys general from an additional 10 states have joined the U.S. Department of Justice (DoJ) in its ongoing litigation to end the live music giant's so-called hegemony over the sector, bringing the total number of states involved in the litigation to 39, including one district.

Growing litigation

The lawsuit was originally filed in May 2023 and accused Live Nation of exercising a monopoly position by stifling competition within live music services.

• The Justice Department's allegations suggest that Live Nation-Ticketmaster's market dominance has led to higher ticket prices and little prospects for innovation and growth.
• This lawsuit involves not only several states, but also consumer groups who have filed another class action lawsuit representing millions of ticket buyers across the country.

On August 19, 2024, the Justice Department filed an amended complaint that provided further details of the company's anticompetitive conduct. The allegation is that Live Nation directly manages over 400 musicians, controls approximately 60 percent of concert promoters at major venues across the country, and owns or controls 60 of the 100 largest amphitheaters in the country. In addition, Ticketmaster is reported to dominate more than 80 percent of primary ticket sales at major concert venues, as well as an increasing percentage of the secondary resale market. In addition, many of the musicians managed by Live Nation have regularly appeared on the iTunes Top 100 charts, heightening concerns about the company's overarching influence on the music industry.

Live Nation's Defense

These allegations were vehemently denied by Live Nation long before and after the lawsuit was filed. The company says its profit margins are not as high as those of most monopolies and that a split between Live Nation and Ticketmaster would therefore not necessarily result in lower ticket prices for customers. Ticket pricing has always been done by artists, clubs or promoters, not by ticket sellers, as Ticketmaster claims.

In response to this lawsuit, Live Nation published a blog in March 2024, explaining that the high ticket prices were due to factors such as rising production costs, artist popularity, and online scalping, which were ignored by the Department of Justice. It further pointed out that the service fees charged by Ticketmaster are only a small percentage, and compared its commission rates to those of Airbnb and Uber, where it pointed out that its commission was low at 5%.

Impact on the music industry

The outcome of this legal battle could have far-reaching consequences for the music business, particularly for concertgoers, artists and indie promoters. If Live Nation and Ticketmaster were to be broken up following a successful lawsuit, it would usher in a new era of competition, potentially leading to lower ticket prices and more opportunities for innovation and participation in the iTunes album charts in the sector.

As this case develops, it will likely continue to be at the center of discussions about the future of the music industry, especially as more states join what is perceived as an oppressive monopoly. This could be another major turning point for an industry already revolutionized by streaming services and platforms like Itunes Top 100. Everyone from industry insiders to fans themselves will be watching the next steps in this legal battle with bated breath.