UPDATED: In the wake of the Senate Judiciary Committee’s hearing examining on Ticketmaster’s powerful presence in the live-entertainment market, U.S. Senators Amy Klobuchar (D-Mn.) and Richard Blumenthal (D-Ct.) today introduced legislation intended to improve competition in live event ticketing markets.
Without naming the company, the announcement notes that “Today’s primary ticketing market is dominated by one company that by some estimates has locked up 70 to 80 percent market share and has used its dominance to pressure venues to agree to ticketing contracts that last up to ten years, insulating it from competition.”
Titled the “Unlock Ticketing Markets Act,” the legislation aims to “help restore competition to live event ticketing markets by empowering the Federal Trade Commission to prevent the use of excessively long multi-year exclusive contracts that lock out competitors, decrease incentives to innovate new services, and increase costs for fans,” referencing ticketing companies’ practice of exclusive contracts with venues and promoters.
“Right now, one company is leveraging its power to lock venues into exclusive contracts that last up to ten years, ensuring there is no room for potential competitors to get their foot in the door,”said Klobuchar, clearly referencing Ticketmaster.“Without competition to incentivize better services and fair prices, we all suffer the consequences. TheUnlock Ticketing Markets Actwould help consumers, artists, and independent venue operators alike by making sure primary ticketing companies face pressure to innovate and improve.”
Reps for Ticketmaster owner Live Nation said in a statement: “The ticketing industry is more competitive than ever.Ticketmaster wins business because it offers the best product available for venues, andthe length of contracts is generally decided by venues and the guaranteed payments they want to help support their expenses. We do not expect any of the proposed changes to have a material impact on our business as we historically add clients in competitive marketplaces.”
Senators on Wednesday are set to introduce a bipartisan bill targeting hidden ticket fees for live events, called the Transparency in Charges for Key Events Ticketing (TICKET) Act, according to CNBC. The measure would require ticketing merchants to disclose upfront full ticket prices, including fees, for concerts, sporting events and other large gatherings. This separate bill would address the longstanding issue of opaque service charges, which often appear very late in the purchase process.
Reps for Ticketmaster owner Live Nation responded quickly, saying, “We appreciate the good work of Senators Cantwell and Cruz. This bill is a good starting point – we support all-in pricing – but in order to protect fans and artists more can and should be done, including: ensuring artists can determine how their tickets can be resold, banning speculative tickets and deceptive websites, and strengthening the BOTS Act,” referencing the 2016 Better online Ticket Sales act. “These are allcommon sensereforms supported by a wide array of artists, managers, venues and countless others involved in live entertainment, and they should be included in whatever reforms Congress considers.”
Sources tell PvNew that Klobuchar and Sen. John Cornyn (R.-Tx.) are working on additional legislation addressing other issues in the live-events ticketing market.
Earlier this year, Klobuchar and Senator Mike Lee organizeda Senate Judiciary Committee hearing after reports of service failures and delays on Ticketmaster’s website in November left fans unable to purchase concert tickets for Taylor Swift’s current “Eras” tour.
Last November, Klobucharwrotea letter to Ticketmaster expressing concern about the lack of competition in the ticketing industry and questioning whether the company is taking necessary steps to provide the best possible service to consumers.
