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The Live Nation/Ticketmaster merger and YOU ...
Published: 2/27/2009 11:12 AM
Last Modified: 2/27/2009 11:12 AM

If you're wondering how the proposed Live Nation/Ticketmaster merger will affect Oklahoma, here's how:

CONCERTS:
So, what touring acts are involved with these two mega-companies who are vying to become one? In the Tulsa market alone, Live Nation already handles tours and/or "multi-level" music agreements for The Eagles, Def Leppard (Cheap Trick, Poison), Fleetwood Mac, Kenny Chesney, Billy Joel & Elton John, Rascal Flatts, Keith Urban, Nickelback, Bruce Springsteen, New Kids on the Block, Lil Wayne, Taylor Swift, Dave Matthews, Brad Paisley ... I could go on and on.

Ticketmaster handles online ticketing for most of those shows in most markets. (However, right now in Tulsa, Tickets.com handles BOK Center ticket sales, GetTix.net sells for Brady Theater and Cain's Ballroom, and TicketingCentral.com sells for the Mabee Center.)

And, Ticketmaster controls the largest share of concert venue ticketing in Oklahoma City: Cox Center and the Ford Center.

COMPETITION:
If the Live Nation Entertainment merger passes (hearings are being held this week in Washington, D.C.), the giant will control the lion's share of nearly every aspect of live music (and many aspects of recorded music) in nearly every major market across the United States.

If our nation's government allows these two (supposedly competing) companies to merge into Live Nation Entertainment, one company will likely have a finger in almost 100 percent of larger (read: higher-ticket price, "blockbuster") shows. Especially in Oklahoma. Those shows already have the highest ticketing fees attached to them.

Also, the ricochet of this would be that smaller ticketing and promotions companies (like Oklahoma's Doc Roc and DCF) could fail, far less money returns to our own city and state. Less competition. Less money. Less revenue. Fewer concerts. Probably higher fees.

The people lose.

That, my friends, to me, is the definition of a monopoly.

COSTS:
And when Live Nation or Ticketmaster says that it has taken steps to "eliminate" fees, those fees merely become buried in "all-inclusive" ticket pricing (remember the Eagles show?) that can often top $300 a pop.

Now, when Ticketmaster says it's not setting ticket prices ("Ticketmaster does not set prices. Live Nation does not set ticket prices. Artists set the prices," Ticketmaster Chairman Barry Diller said to earlier this month) ... Really? When a band like the Flaming Lips does its best to make a concert affordable (nay, cheap) for an audience, then Ticketmaster effectively doubles that ticket price with its fees, well ... pants on fire, Mr. Diller. At least, as far as the music consumer is concerned.

Let's look at Live Nation CEO Michael Rapino. Here are his own words, from his first quarter 2008 statement to investors: "In 2008, we currently expect to acquire 16,000 local concert rights, over 40 national tour rights, one to three global tours, and to date, three long-term full rights deals with Madonna, U2 and Jay-Z. [...] With Jay-Z, we have acquired the following rights for 10 years, all crossed touring, ticketing, secondary ticketing, merchandise, sponsorship, endorsement, DVD, TV broadcast, VIP, fan club, website, publishing and recordings."

In other words, in an economy rife with downturn, his business is booming.

That's about as non-competitive as a business can get in any market. Heck, by their own words, they would like to run everything.

CONFLICTS OF INTEREST:
And, Ticketmaster admits that is has directed (or redirected) ticketbuyers to its TicketsNow (a "scalping" or "resell" site) for fans to spend upwards of $500 for $50 tickets that are still available on the Ticketmaster site. Conflict of interest, much?

In recent weeks: music legends Bruce Springsteen, Phish and Leonard Cohen were, to quote Springsteen, "outraged" at the lack of ethics by the ticketing giant. Springsteen makes a great point: These business practices do not make "competitive" or "fair" marketplace for consumers. And what happens to smaller bands (remember Pearl Jam in the 1990s?) who stand up to these giants and fight for fair ticketing practices for their fans?

Ticketmaster said the Springsteen incident was a "glitch," and that it wouldn't happen again. Riiiight. Just this week, Leonard Cohen claims tickets were for sale on Ticketmaster-owned reseller TicketsNow at wildly inflated prices before they were even available for official sale on Ticketmaster.

How would the merger of Ticketmaster and Live Nation reduce those predatory practices? Short answer: They wouldn't.

IN-DEPTH:
Wanna know more? Sure ya do. Read excellent coverage from The Chicago Sun-Times and writer Jim DeRogatis's blog:
>> CLICK HERE TO FOLLOW THE SUN-TIMES BLOG

FEEDBACK:
Readers, what's your vote on this merger? As music fans, do you think it the "vertical innovations" claimed by a merger would lower ticket prices -- or more importantly, the fees that go with those tickets? Do you think a merger would help or hurt independent promoters?

Feel free to leave your comments below or email them to me at jennifer.chancellor@tulsaworld.com. I'd love to hear from you.

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Barrelhouse Beat

Barrelhouse: A colloquialism describing the low saloons at the turn of the century (19th) that served whiskey straight out of the barrel. It's also a reference to the type of music played in those venues. Ex: Barrelhouse music.

Beat: The time or timing. Ex: The band played with a solid beat. Also used as a term describing a reporters specific area of expertise. Ex: The music beat.

About me: I'm Okie born and raised, and have lived all over the state: Oklahoma City, Enid, Moore, Norman, Edmond and Tulsa. I am a music geek, writer, graphic designer and amateur photographer and videographer who's followed the Tulsa and regional music scene since I moved to Green Country more than 10 years ago. I've been enmeshed in Tulsa's varied and vibrant musical night life, what some of us affectionately call a modernized throwback to the Barrelhouse scene, since that time. I fell in love with it. I fell hard.

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