Will the myth hold true as merger between giants is announced?
Woke up this morning to this potentially game changing news in the concert promotion industry. Ticketmaster and Live Nation have announced plans to merge. In a Financial Times.com story appearing this morning, Michael Rapino, CEO of Live Nation and the proposed CEO of the merged group, said the combination would produce “measurable benefits to consumers”, noting that “current inefficiencies in the system result in higher costs and confusion over access to seats”.
These two giants in the concert promotion industry could potentially have a stranglehold on venues, artists, and ticket buyers. According to the piece there are still a lot of particulars to work out but it will be interesting to see how this plays out.
A recent conversation I had with a source in the concert promotion industry, said advance ticket sales for premium seats at venues are sagging considerably. Perhaps this merger is designed to shore up ticket sales in a bad economy. Will this also mean an increase in 360 deals, a trend started by Live Nation. I’m sure much more will be written about this in the coming months.