Thursday, March 12, 2009

AEG / LN / Ticketmaster / TicketExchange et al

The creation of Live Nation Entertainment (Live Nation + Ticketmaster) is like the worst train wreck off the largest interstate; it's messy and political and fantastically difficult to pull away from. To me though, the best part is that while Azoff and Rapino try to convince the DOJ, Senate, existing clients, and the rest of the world that 'Live Nation Entertainment' is a necessary bridge for the sustenance of both powerhouses, they've managed to make themselves look like blabbering idiots. Not to mention that they've opened up a can of worms called the secondary ticketing market in a way that will forever change the significant [illegitimate] ancillary revenue stream that currently accounts for about $3B / year directly into artists, tour management, and executives' pockets.

Meanwhile, AEG, though severely affected by the situation and the ultimate ruling, manages to keeps its name out of the mud; the primary blame for the secondary ticketing market seems to be on Ticketmaster and the artists, though I'm sure both LN and AEG have a healthy knowledge of the SOP better known as scalping. Being an AEG fan more so than LN, I hope Ticketmaster and the inevitable Live Nation Entertainment take the brunt.

Good article in the WSJ (title linked).

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