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by chongli 789 days ago
If isn’t just vertical integration. It’s also abuse of monopoly power. I’m sure the DoJ won’t have any trouble showing how much market share TM/LN have.

I think the real issue is the limited supply of tickets to the most popular shows. Supply and demand dictates that the prices for these limited goods be very high, yet social norms discourage artists from charging the true market value for their tickets (fans will rebel against their favourite artist for perceived greed). So TM provides an effective reputation-laundering service to the artists and collects a hefty fee for it. If the DoJ were to win their case and succeed in breaking up the TM monopoly then I bet the extra revenue would go to some other ticket brokers, not to the artist or into consumers’ pockets.

1 comments

It’s partly this but also the artists benefit in other ways from large strata of their fan base being able to attend live shows, but merch in person and mingle with each other. The venue and Ticketmaster only benefit from the ticket sales.
Scalpers are also a source of guaranteed sales, so you're diluting the risk of a concert because someone is already buying up all seats already for you and running the risk of not being able to sell them at a higher price later.