Fans of pop culture icon Taylor Swift are a force to be reckoned with. The media are well aware of how long the Swifties, as Swift fans call themselves, will go to get a glimpse of their favorite star. Well, things got out of hand when Ticketmaster missed the sale of the songwriter’s upcoming Eras Tour. Angry Taylor Swift fans have sued Ticketmaster, alleging the ticketing platform engages in fraudulent practices.
More than two dozen Swifties from more than 13 U.S. states got together and filed the lawsuit in LA County Superior Court on Dec. 2. The plaintiffs allege that Ticketmaster’s monopoly in the primary and secondary markets resulted in fraudulent practices to the detriment of the consumer.
Sue Ticketmaster, Taylor Swift fan
In November, Swifties blocked Ticketmaster’s website for hours, if not days, from accessing tickets they had pre-registered for. But alas, there was no need to have. Some fans have complained that at one point Eras Tour tickets were in their shopping cart while the next day they were available on the secondary market for three times the price. To say they were furious is an understatement.
- Ticketmaster later canceled sales to the general public, citing “extraordinarily high demand” and “not enough remaining ticket inventory”.
- The Swifties took to social media to express their anger at the colossal mismanagement that culminated in this fiasco. Some tickets would have reached $20,000 each.
- A day after the debacle, Live Nation Entertainment, Ticketmaster’s parent company, apologized to Swifties for the experience. The Live Nation CEO mentioned that he understands why fans have aired their grievances on social media and that they have to “deal with this every day”.
The swift reaction caught the attention of the media, but also of New York Congresswoman Alexandria Ocasio-Cortez, who took to Twitter to share her thoughts.
Daily reminder that Ticketmaster is a monopoly, its merger with LiveNation should never have been approved, and they need to be brought under control.
Break them.
— Alexandria Ocasio-Cortez (@AOC) November 15, 2022
As Taylor Swift fans sue Ticketmaster, one thing they want to point out is how the company’s monopoly has allowed it to charge fans higher prices in the presale, sale and resale. By controlling all aspects of ticketing related to The Eras Tour, fans had no choice but to use the site.
The lawsuit states, “Ticketmaster is a monopoly only interested in taking every dollar it can from a captive audience.”
It goes on to say, “Defendant’s anti-competitive conduct has materially harmed, and will continue to materially harm, Taylor Swift fans, as well as competition in the ticket sales market and in the secondary market for ticketing services.”
The Swifties seek a $2,500 fine for each violationwhich can run into the millions as hordes of fans didn’t receive tickets and had to wait.
Fans have accused Live Nation of deliberately misleading fans by providing codes to nearly 1.4 million verified fans despite having insufficient inventory. “Ticketmaster intentionally provided codes when it could not fulfill requests,” the Swifties lawsuit notes.
Ticketmaster and the concert ticket monopoly
The box office debacle has drawn the ire of everyone from lawmakers to fans, who have denounced the messed up economy regarding concert tickets.
The Swifties lawsuit highlights the damage suffered by the public when a company puts its tentacles into all aspects of a certain market. It is estimated that Ticketmaster controls nearly 90% of the ticketing market.
- In March, long before the Taylor Swift debacle, US Senators Richard Blumenthal (D-CT) and Amy Klobuchar (D-MN) appeal to the Ministry of Justice (DOJ) to Investigate Live Nation’s Antitrust Violationsbecause their ever-increasing fees have harmed consumers.
- The Senators wrote to the DOJ as Ticketmaster was content to charge exorbitant fees to consumers while buying off the competition, leaving artists and fans no choice but to go through them to host events.
- Live Nation has been accused of charging almost 75% of the face value of a concert ticket in processing fees. Concerned senators have written to the DOJ about the company’s aggressive tactics that have all but eliminated the competition as it continues to reap obscene profits by overcharging customers.
“We write to urge the Department to investigate the state of competition in the live entertainment and ticketing industry, including any potential anti-competitive and anti-consumer action by Live Nation, and to take action, the where appropriate, to enforce antitrust laws and restore competition to these important markets,” Blumenthal and Klobuchar wrote to DOJ Assistant Attorney General for the Antitrust Division Jonathan Kanter.
The letter continues, “We are deeply concerned that the Department’s past enforcement and negotiated remedies in this industry have failed to adequately promote and protect competition in the live entertainment and Ticketing.
Ticketmaster is the story of a monopoly gone wild. It’s a vertically integrated behemoth with Live Nation that can jack up prices and offer below-average service.
That is why we will hold a bipartisan hearing in the Senate on these issues so that we can press for solutions. pic.twitter.com/r0R6MiaTcP
— Amy Klobuchar (@amyklobuchar) November 19, 2022
In late November, the DOJ admitted it had opened an antitrust investigation into the owner of Ticketmaster, to see if claims the company was abusing its power in the multibillion-dollar music industry were true.
As Taylor Swift fans sue Ticketmaster, they expect more angry Swifties to join the cause and shine a light on the rampant malfeasance that is prevalent in the music industry.
The rise of Ticketmaster
From 1982 to 1998, Fred Rosen was the CEO of Ticketmaster and a genius at what he did. The deals he struck laid the foundation for Ticketmaster’s untouchable ticketing monopoly.
When Fred Rosen was CEO, he approached venues and promoters and suggested doubling service fees on event tickets. At the time, venues were actively trying to lower service fees so more fans could afford to attend the event.
But Rosen won them over by sweetening the deal. He promised to split the revenue with them if they agreed to sign with Ticketmaster. Nearly 80% of large cinemas sign exclusive offers with the company.
No one could have estimated the intoxicating power that Ticketmaster would wield in the years to come. His merger with event promoter Live Nation in 2010 made him virtually untouchable.
Today, Live Nation owns concert venues, ticketing systems, promotes tours and a streaming entertainment company, VIP. These factors have helped him become the ultimate authority when it comes to deciding prices and dictating the terms of how events unfold.
Over the years, the company has faced numerous lawsuits alleging price fixing, hiking fees, and anti-competitive behavior, among other things.
The dark side of monopolies
Monopolies stifle innovation and encourage price gouging.
Since there are no worthy competitors, sellers in a monopolistic market run the business according to their whims and fancies.
Buyers cannot switch companiesbecause they have no other options on the market.
While monopolies face inelastic demand, consumers could be forced to pay a lot more that they cannot afford.
Industry analysts hope the Swifties lawsuit will bring much-needed regulation to the ticketing market.