Taylor Swift’s Eras Tour ticket presale event not only let many fans see Red, but also challenged the monopoly of Ticketmaster and Live Nation (LYV).
Diehard Swifties weren’t going to miss the chance to see Taylor Swift on her first tour in five years.
The tour, which was only announced a few weeks ago, was expected to sell out quickly, but no one could have foreseen the chaos that ensued.
Live Nation (LYV) Price Chart
The November 15 ticket pre-sale was a disaster from the start – from long lines and price gouging, to the Ticketmaster site crashing and ultimately Taylor Swift stopping all public sales of tickets.
Ticketmaster’s parent company, Live Nation (LYV), has lost 7% of its stock value in the past 5 days, 6% more than the loss seen on the S&P 500 (US500).
Meanwhile, last week rivals such as Endeavor Group (EDR) and Warner Music Group (WMG) saw their share values rise.
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Endeavor Group Pricing Chart (EDR)
Why did the Ticketmaster site crash?
Taylor Swift broke the record for the most tickets sold on Ticketmaster in one day. The company said it sold 2 million tickets, despite the technical difficulties faced by many fans while shopping.
Fans reported online queues of over 2,000, which took some nearly ten hours to get through. Ticketmaster reported over 3.5 billion visits during the day, which caused the majority of people in the queue to fail to purchase.
Following this, sites such as StubHub listed the prized tickets at an unreasonably high price, with some listings even going as high as $90,000 per ticket. This resulted in many fans calling out Ticketmaster for not doing enough to stop the price hike.
This was a multi-step pre-sale process only available to “verified fans” who received special messaging codes. Fans had until November 9 to register for this presale, which will take place on November 15. Ticketmaster said it received “extraordinarily high demand” from fans and bots, which caused problems on the site.
While normal ticket sales were scheduled for November 18, this is now canceled for the time being.
Is Ticketmaster a monopoly?
The ripples from this event reached political heights with many policy makers speaking out for Ticketmaster to remain the primary source of entertainment tickets.
Since its inception in the early 1980s, Ticketmaster has managed to sign exclusive agreements with sites that allowed them to list tickets only on their site.
In 2010, when Live Nation, a theater operator that has its own exclusive branding deals, acquired Ticketmaster for $2.5 billion, its market position was further strengthened.
Senator Amy Klobuchar wrote a letter to Live Nation and Ticketmaster stating numerous anti-trust concerns and that she “continues to abuse her market positions.”
She continued, “Ticketmaster and LiveNation dominate the live entertainment supply chain with strong positions in primary ticketing, secondary ticketing, concert promotion, artist management, tour sponsorship and operations. of event locations.
“Ticketmaster’s strength in the core ticket market insulates it from the competitive pressures that typically drive companies to innovate and improve their services. This can lead to dramatic service outages, where consumers are the ones paying the price. »
Representative Alexandria Ocasio-Cortez also tweeted her concerns:
To which a follower replied:
It may take a much bigger force to steer Livenation away from Ticketmaster, which in 2019 brought in £12bn in revenue.
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. course the action Live Nation under pressure after the failed Ticketmaster LYV the cancellation sale tickets for tour Eras Taylor Swift