Kid Rock and Ted Nugent Discuss Ticketmaster
It’s not every day that two legendary rock musicians weigh in on public policy matters. This unusual occurrence unfolded when Kid Rock testified at a Congressional hearing about Ticketmaster’s practices, prompting Ted Nugent to share his thoughts.
Nugent expressed his concerns through a tweet, stating, “Live Nation/Ticketmaster is lobbying for aggressive socialist price controls because they can get through this,” and further added, “No Ticketmaster competitor can survive this.” He emphasized that “Total control from Ticketmaster = bad for artists and fans.”
He’s got a point, and it’s worth diving into what’s really happening here.
Live Nation, the parent company of Ticketmaster, has been pushing for price controls on ticket sales, ostensibly to increase their profit margins. This has sparked a significant response, especially from influential figures like Kid Rock.
Looking at the bigger picture, concert ticket prices across North America have seen a dramatic rise recently. The average ticket price is forecasted to climb from $96 in 2019 to $136 in 2024. For instance, tickets for Taylor Swift’s recent tour averaged an astonishing $1,088.
Ticketmaster dominates the market, controlling about 70 to 80 percent of concert ticket sales in North America, according to their own figures. Yet, they portray music fans as victims of price gouging as if they are not part of the system at fault.
Interestingly, Live Nation points to a different culprit: the surge of “ticket harvesting” technology utilized by brokers. They primarily target online bots that snag tickets the moment they go on sale, allowing third parties to resell them at inflated prices.
While it’s clear that Ticketmaster grapples with a bot issue, it doesn’t change the fact that they may not be the best voice for public policy on this matter. Their suggested solution, a 20 percent cap on resale prices, seems, frankly, self-serving.
Returning to Nugent’s tweet, it’s clear that Ticketmaster wants these price controls for reasons that could undercut competitors while benefiting their bottom line.
Though Ticketmaster sells tickets, most of its revenue (around 85%) actually comes from services like concerts and sponsorships. So, while restrictions on resale prices could pinch ticket resellers, Ticketmaster has diverse income sources that might cushion any losses. Smaller rivals, however, could struggle or even fail in this climate.
In the long run, companies like Ticketmaster may see an uptick in business as competitors disappear, leading to fewer choices for consumers. History illustrates this; every time price controls are implemented, competition wanes, reducing consumer options. We’ve seen this before—let’s hope we don’t have to relive it.
Fortunately, it seems Congress recognized during the hearing that Ticketmaster isn’t advocating for the free market or the consumer’s best interest.
You know those bots Ticketmaster is so worried about? Senator Marsha Blackburn raised concerns during the hearing about internal communications where a Ticketmaster executive suggested turning a blind eye to bot activity.
Live Nation’s Dan Wall claimed the context of the email was misconstrued, but Blackburn suggested otherwise, noting, “I don’t think Mr. Wall did Ticketmaster or Live Nation any favors.”
The Federal Trade Commission is also looking into Ticketmaster, indicating that the company has privately admitted that its model benefits from brokers who hinder regular consumers from purchasing tickets at fair prices.
Thus, while Ticketmaster is right about bots influencing the ticket market, the implications from the FTC’s claims suggest that they might be colluding with these bots to push up prices and then promote price controls that would hinder competition.
This behavior is typical in corporate environments.
It could be particularly interesting for Kid Rock to know that Live Nation supports these price controls. In his recent testimony, Rock didn’t hold back against the company’s exploitative practices. If he knew that such controls were merely a monopoly’s tactic to manage the ticketing landscape and that they would profit Ticketmaster, I think he might reconsider his stance.
The silver lining is that many in Congress seem aware of Ticketmaster’s questionable practices. Let’s hope they reject the push for price controls and keep Ticketmaster accountable.
That would certainly strike the right note.
