Update (Feb. 11, 2009): The AP is reporting that the Justice Dept. will indeed investigate the proposed merger to “see if the combined company would create an unfair monopoly in the ticket-selling business.”
And to think, as of last week I thought the (recently ended) slew of RIAA lawsuits against MP3-downloadin’ tweens were the worst thing to happen to the music industry since Al Gore invented the Internet. But boy, was I wrong.
Earlier today, Ticketmaster Entertainment Inc. and Live Nation Inc. announced plans to merge. The combined monstrosity corporation – Live Nation Entertainment (LNE) – will essentially own (or at least have most of the control over) the entire concert industry in the US as it brings together the country’s biggest ticket seller with the largest concert promoter.
In other words…the new entity creates a complete stranglehold over live music in the US. With little to no competition (left) to help keep this new massive company in check, LNE will be free to jackup service charges and enforce less favorable terms against bands and fans alike.
Admittedly, I’m not much of a Bruce Springsteen fan, but I do agree with the Boss’ concern and opposition to this merger. Allowing these industry tyrants giants to effectively establish a musical monopoly is bad for everyone but LNE’s bottomline.
The only thing standing in the way of this potential beast is the Department of Justice. Hopefully Eric Holder and co. will perform adequate due diligence and come to a conclusion that is favorable for America as a whole (i.e. music fans) instead of lending a hand to the creation of this scary monopoly.