Major shake-up in music industry as extensive antitrust lawsuit against Live Nation

The music industry is on the cusp of a sea change as the antitrust lawsuit against Live Nation and its subsidiary Ticketmaster gathers momentum. In a recent development, attorneys general for 10 more states have joined the U.S. Department of Justice (DoJ) in their ongoing legal battle to dismantle the live music giant’s hegemony over the industry. This brings the total number of states involved in the lawsuit to 39, including one district.

Growing legal battle

The lawsuit was initially filed in May 2023, accusing Live Nation of operating a monopoly by stifling competition within live music services.

• According to allegations by the U.S. Department of Justice, Live Nation-Ticketmaster’s market dominance has led to higher ticket prices and little prospect for innovation and growth.
• Not only have several states become parties to this lawsuit, but so have consumer groups that have filed another class action lawsuit on behalf of millions of ticket buyers across the country.

On August 19, 2024, the DoJ filed an amended complaint that provides more detail about the companies’ anticompetitive behavior. The complaint alleges that Live Nation directly manages more than 400 musicians, controls approximately 60 percent of concert promotions at major venues nationwide, and owns or controls 60 of the top 100 amphitheater venues in the country. Additionally, it alleges that Ticketmaster dominates more than 80 percent of primary ticket sales at major concert venues, as well as a growing percentage of the secondary resale market. Additionally, many of the musicians managed by Live Nation have consistently appeared on the iTunes Top 100 charts, reinforcing concerns about the company’s overarching influence in the music industry.

Live Nation’s Defense

These allegations have been hotly contested by Live Nation long before and after the lawsuit was filed. The company says that its profit margins are not as high as those of most monopolies and that a breakup of Live Nation and Ticketmaster would not necessarily lower ticket prices for consumers. Ticket pricing has always been determined by artists, clubs or promoters, rather than by ticket sellers, as Ticketmaster claims Live Nation does.

In response to the lawsuit, Live Nation posted a blog post in March 2024 stating that high ticket prices are due to factors such as rising production costs, artist popularity, and online scalping, which the DoJ ignored. It further noted that service fees charged by Ticketmaster take up only a small percentage of revenue and compared its commission rates to Airbnb and Uber, where it suggested the commission was low at 5%.

Implications for the music industry

The outcome of this lawsuit could have far-reaching implications for the music industry, particularly for concertgoers, artists and indie promoters. If Live Nation and Ticketmaster were to split 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 iTunes Album Chart participation in the industry.

As this case unfolds, it will likely continue to be a focus of debate about the future of the music industry, especially as more states join what they see as an oppressive monopoly. This could be another major turning point for an industry already revolutionized by streaming services and platforms like the iTunes Top 100. Everyone from industry insiders to fans themselves will be keeping a close eye on the next steps in this legal battle.