Live Nation takes on Ticketmaster

[Basher]

Live Nation takes on Ticketmaster

Concert ticketing is about to change, but we may not be paying less

December 29, 2008

Michael Oliveira

THE CANADIAN PRESS

January 2009 could be the start of a new era for concert-ticket buyers who are fed up with exorbitant prices, extraneous service charges and a lack of competition in the marketplace.

That's when Live Nation will start taking on Ticketmaster in the United States – with plans to do the same in Canada by 2010 – and there are already promises being made about how the new competition will empower the consumer.

"We still believe the venue, the artist and the fan would love an alternative ticketing company," said Live Nation chief executive Michael Rapino during a recent conference call. "I think it's probably the only industry in the world ... that doesn't have a good No. 2 or No. 3 (competitor)."

"We believe that competition will drive a better price for the fan."

In the other corner, Ticketmaster recently announced it's "experimenting" with selling tickets with no extra fees attached, as long as the customer prints out their tickets at home.

Even though ticket buyers have long vilified Ticketmaster for introducing those fees in the first place, company president Sean Moriarty insists he's been advocating for "the fan-friendly move to no-fee or all-in pricing."

"The initial reaction from fans has been overwhelmingly positive," he said during a conference call. "We look to lead the way with this dramatic new approach and fundamentally change the way tickets are sold."

But some industry watchers predict concertgoers won't be won over by Ticketmaster's new strategy, and that Live Nation will eventually be held in the same esteem as its much-maligned rival.

"Competition is good, it keeps everyone on their toes," said Tim Baker, the head buyer for Sunrise Records, which handles the lion's share of Ticketmaster's retail sales in southern Ontario.

"But I don't know if it's going to mean one bit of difference for the general public or not, to be perfectly honest."

Terry McBride, president of Vancouver-based Nettwerk Music Group, said there are major changes coming in the ticketing business, but he predicted most will improve the companies' bottom lines while doing little to reduce prices.

"Ticketmaster just moved the fees within the ticket price," McBride said of the company's plan to do away with separate service charges.

"All they really said was rather than stand outside, the fees are now going to stand inside the ticket price."

Ticketmaster has admitted as much to investors but, said Moriarty, the company believes consumers won't complain about paying the extra fees as long as they're invisibly bundled into the price.

The companies are also experimenting with how much they can charge.

For Nickelback's upcoming tour the band is selling "rockstar packages" for $495 per person, which come with a top ticket, a T-shirt, poster, VIP pass and guitar picks.

A Britney Spears "Toxic VIP Experience" ticket goes for $549.50 and includes an invitation to a pre-show party, a ticket to the show, a backstage tour, a "tour gift item," laminate tour pass and free parking, among other add-ons.

Initially, Live Nation's foray into the concert market means it will sell tickets for venues it owns or operates, and has the rights to some limited sales for the artists it works with, including the likes of U2, Madonna, AC/DC, Jay-Z, Nickelback, Coldplay and the Jonas Brothers.

The company's reach is further limited in Canada currently, since it only controls two venues, Toronto's Molson Amphitheatre and Vancouver's Commodore Ballroom.

[Irie Guy]

The Nickelback Rockstar Package for $495 Oh My!!! Why are people so stupid as to spend what amounts to probably a weeks pay for most for 2.5 hours of so-called entertainment.

Crazy f*cking consumers.

[AD]

Why are people so stupid as to spend what amounts to probably a weeks pay for most for 2.5 hours of so-called entertainment.

They're called masochists.

[jonyak]

The Nickelback Rockstar Package for $495 Oh My!!! Why are people so stupid as to spend what amounts to probably a weeks pay for most for 2.5 hours of so-called entertainment.

Crazy f*cking consumers.

why did people give up everything to tour with the dead or phish for what amounts to 2.5 hours of entertainment?

people have paid WAY more than that to see phish or the grateful dead. its all subjective..

[Irie Guy]

It might be subjective but I would have never paid $500 for just a Concert Ticket no matter who was playing. Yes I have spent $1000 on a Weekend in New Orleans to see 3 Panic shows but that includes 3 nights, plane tickets, hotel rooms etc etc. Or I may have spent $1500 on the road over 2 weeks following the Dead around but never that much for one night.

Consumers are to blame for the rise in concert ticket pricing. They agree to pay these exorbitant amounts. And those that have paid that much for a Dead or Phish ticket are just as stupid or more because they are paying the scalpers those fees. Face value pricing for Jam Band type shows have never gone that far out of reach.

The Nickelback Rockstar Package for $495 Oh My!!! Why are people so stupid as to spend what amounts to probably a weeks pay for most for 2.5 hours of so-called entertainment.

Crazy f*cking consumers.

why did people give up everything to tour with the dead or phish for what amounts to 2.5 hours of entertainment?

people have paid WAY more than that to see phish or the grateful dead. its all subjective..

Edited December 30, 2008 by Guest