The state’s attorney general has signed on to a lawsuit alleging that Live Nation is engaging in an illegal monopoly of the live entertainment market.
The list of plaintiffs in the suit includes 19 states, as well as the District of Columbia and the U.S. Department of Justice. The complaint, filed in the U.S. District Court, Southern District of New York, seeks a jury trial, and asks the situation be remedied by forcing Live Nation to divest of Ticketmaster, which it wholly owns, by awarding financial compensation to states and fans who bought tickets to a Live Nation show and by prohibiting Live Nation from further stifling competition.
“Live Nation must be held accountable. For too long, New Hampshire’s live entertainment market has been stifled by a lack of competition, leading to exorbitant fees and limited choices for fans. This lawsuit is a step toward ensuring fair play and transparency in the industry, allowing consumers to enjoy their favorite live events without being overcharged,” NH Attorney General John Formella said in a press release. “We are hopeful that this action will lead to a more vibrant and competitive market for live entertainment, not just in New Hampshire but across the country.”
The suit alleges Live Nation has used its dominance to create a marketplace in which fans are overcharged for tickets, artists are forced into long-term promotional contracts, and venues are threatened into exclusive ticketing deals.
Dan Wall, executive vice president of corporate and regulatory affairs for Live Nation Entertainment, denies these charges in a rebuttal published on the corporation’s website.
Wall writes that higher ticket prices are the result of rising production costs and artist popularity, and what the lawsuit describes as monopolistic he casts as “vertical integration.” Wall writes that prices and services are better for the Live Nation–Ticketmaster merger, not worse.
“Ticketmaster in particular is a far better, more artist- and fan-focused business under Live Nation’s ownership than it ever was as a standalone company. But that’s now how the DOJ sees it. They are reflexively antagonistic to vertical integration.”
In the lawsuit, the complainants describe the degree of Live Nation’s dominance in the promotion and ticketing industries. “Live Nation directly manages more than 400 musical artists and, in total, controls around 60% of concert promotions at major concert venues across the country. Live Nation also owns or controls more than 265 concert venues in North America, including more than 60 of the top 100 amphitheaters in the United States. For comparison, its closest rival owns no more than a handful of top amphitheaters,” the suit states. “And, of course, through Ticketmaster, Live Nation controls roughly 80% or more of major concert venues’ primary ticketing for concerts and a growing share of ticket resales in the secondary market.”
The suit describes an industry in which artists must sign with Live Nation as a promoter in order to access their network of venues, venues are compelled to promote shows with Live Nation artists, those venues also are similarly compelled to use only Ticketmaster for ticketing and fans are increasingly encountering a marketplace without competition.
From the suit: “Live Nation’s monopoly, and the anticompetitive conduct that protects and maintains its monopoly, strikes a chord precisely because the industry at stake is one that has, for generations, inspired, entertained and challenged Americans. Conduct that subverts competition here not only harms the structure of the live music industry and the countless people that work in that industry, but also damages the foundation of creative expression and art that lies at the heart of our personal, social and political lives.”
‘Jewel’ of the region
Live Nation is likely known locally as the owner and operator of Bank of NH Pavilion, formerly known as Meadowbrook, an 8,500-capacity amphitheater that is regularly honored as one of the best outdoor venues in the country.
Scott Dunn, town administrator for Gilford, said the town has enjoyed a positive working relationship with the venue, which is as true today as it was when it was owned by the Harding family.
“Even though it’s sort of corporate owned by Live Nation and has been for several years, we deal with Mr. R.J. Harding, as we have for many years,” Dunn said.
Harding continues to manage the venue under Live Nation ownership. “We consider the Bank of NH Pavilion one of several jewels in our town and are very proud to be the host community.”
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