What You Need to Know About the Live Nation Verdict and Its Impact on Ticket Prices

(SeaPRwire) –  
Sky-high ticket prices have long been a top frustration for concertgoers. But the landmark defeat of entertainment giant Live Nation Entertainment, which owns Ticketmaster, in an antitrust trial has raised hopes that concerts and live events could soon grow more affordable—though the ruling is unlikely to bring immediate, long-lasting relief.

After weeks of trial proceedings that launched on March 2, a New York federal jury determined Wednesday that the company was running an illegal monopoly over large entertainment venues. 

The verdict arrives roughly two years after the Biden Administration’s Justice Department and nearly 40 state attorneys general sued Live Nation over its unmatched control over ticket sales and venues. That said, under the Trump Administration, the federal government reached a $280 million settlement just one week into the current trial. Some states joined the settlement, which still requires a judge’s final approval, but more than 30 other states plus Washington, D.C., chose to continue their legal battle in court.

The jury also found that Ticketmaster overcharged customers $1.72 per ticket across 21 states and D.C. as a result of Live Nation’s anticompetitive practices. 

State attorneys general celebrated the ruling: New York’s Letitia James called it a “landmark victory,” and California’s Rob Bonta said it was a win “for artists, fans, and the venues that support them.” Utah’s Derek Brown noted the “fight isn’t over” as states push forward to secure remedies.

Omeed Assefi, acting assistant attorney general for the Justice Department’s antitrust division, called the jury verdict “a fantastic outcome for the American people” in a statement sent to media: “DOJ and some states settled their case and got instant relief. The remaining states received a liability finding and will now move on to the next phase of a remedies trial. Everyone but Live Nation wins with this scenario.”

What comes next?

Arun Subramanian, the judge presiding over the case, will ultimately decide what remedies are imposed, which could require Live Nation to sell off some of its business units, or order a full split between Live Nation and Ticketmaster, which merged in 2010—a split the Biden Administration’s Justice Department has already called for. Live Nation could also be ordered to refund customers for overcharges, which would cost the company millions of dollars. 

Following the verdict, the judge instructed attorneys for both sides to meet and submit a joint letter proposing a timeline for next steps, including addressing remedies, according to the Associated Press.

States have framed the ruling as a way to open the ticketing market to other companies, in an effort to lower prices. But Shubha Ghosh, professor of law at Syracuse University, told the AP that while ticket buyers who used Ticketmaster may feel a small impact from the ruling, “whether ticket prices will go down in the long run, I think it largely depends.”

Live Nation has insisted throughout the trial that it is not a monopoly, and it is not backing down on the case after the verdict. In a statement, the company said the jury’s verdict “is not the last word on this matter,” citing pending motions, including one for judgment of law, which could determine whether the current rulings on liability and damages remain in place. The company also claimed that it should pay no more than $450 million in total damages. 

And once all matters are resolved, including appeals and remedies, Live Nation also predicts that the case’s final outcome “will not be materially different than what is envisioned by” the earlier settlement with the Trump Administration’s Justice Department, which included caps on service fees at some venues as well as new ticketing options for promoters and venues, changes that could boost competition.

What factors go into ticket prices

Ticketmaster is widely regarded as the world’s largest primary ticketer for live events.

During the trial, Jeffrey Kessler, an attorney for the states, said that Ticketmaster holds an 86% share of the ticketing market at “major concert venues”—which he defined as around 250 U.S. amphitheaters and arenas that can hold 8,000 people and host more than 10 concerts a year. Live Nation argues that its market share is much smaller—around 44%—if broader, smaller venues are included in the calculation. 

The extent of Live Nation’s market control is the foundation of the states’ argument: they claim Ticketmaster can pressure venues to charge higher fees without worrying that venues will switch to other ticketing service providers. 

Bloomberg reports that Michael Rapino, Live Nation’s CEO and president, acknowledged during testimony that fees charged by Ticketmaster have increased over time, though he argued those increases have been on par with fee growth at other ticketing service providers. Ben Baker, Live Nation’s ticketing director, also testified that Ticketmaster’s fees adjust based on the base cost of a ticket.

But ticket prices have also grown dramatically over the past few decades. Bloomberg reports that as streaming became a less lucrative source of revenue for musicians, artists have turned to touring and charge higher base ticket prices. The post-pandemic boom in demand for live events has also contributed to the increase.