Monopoly and Live Nation Essay

Submitted By helltotheno
Words: 490
Pages: 2

At the time of the merger Ticketmaster and Live Nation were two of the biggest companies in the music industry. Ticketmaster controlled 80% of ticket sales and also has a controlling interest in Frontline Management, and Live Nation owns and operates 120 theaters around the country. The merger of these two companies created a feeling of monopolization in the industry. Competitors in this market believed that the merger would give Ticketmaster and Live Nation a controlling hand in the live music industry. Competitors believed that this merger would stifle competition and also allow both companies as a whole to hick the prices on tickets. This merger is not very welcoming by the competitors in this industry. The merger (Vertical Integration and Horizontal Integration) was the first of its kind in live music industry. Because both companies are in the music industry and are competitors this makes it a Horizontal merger but Ticketmaster is a seller of tickets to venues and Live Nation is the supplier of these venues in 120 theaters so this creates a Vertical merger. To make this happen Ticketmaster and Live Nation had to create a Horizontal and Vertical type merger. As the merger concluded ticket prices for venues have gone down. The ability for Ticketmaster and Live Nation merger to supply consumers with low price tickets has given them the edge. Regardless of the sharing of technology that Ticketmaster allowed its competitors to use Ticketmaster and Live Nation has been able to sell tickets cheaper than most competitors. This merger has made it difficult for any individuals to enter this industry. AEG is the one true competitor, but even then it cannot compete with Ticketmaster and Live Nation on a global scale. During the merger Ticketmaster was told to give up one of its ticket selling companies to a competitor. Ticketmaster was also advised to share their ticket software with its competitors to allow an even playing field for all competitors in…