Unlocking Tickets Markets Act, in the U.S. Senate
SPONSORS: Sen. Amy Klobuchar (D-Minn.) and Richard Blumenthal (D-Conn.).
FOCUS: Improve competition among ticket-sellers, particularly Ticketmaster, which, according to its sponsors, has a 70-to-80% market share and is guilty of “clear excesses and abuses.” The bill would authorize the Federal Trade Commission to prevent “excessively long” exclusive contracts and open the market to more ticket-selling companies.
However, limiting long-term, guaranteed contracts could be costly to venues. In this scenario, venues’ exclusive ticketing rights, typically valued between six and seven figures annually, would drop to zero. To make up for that loss, they could wind up raising service charges even higher. “If we get rid of those contracts, then there’s a cost to pay,” says Luke Froeb, a Vanderbilt University chaired professor who was chief economist at the Federal Trade Commission from 2003 to 2005. “We’re going to see less investment in the theaters up front.”
POLITICAL GAIN: Klobuchar, who supports greater enforcement of antitrust laws, tells Billboard she was “concerned” about the 2010 Justice Department approval of the merger between top promoter Live Nation and ticket-selling giant Ticketmaster. “What’s happened now,” she adds, by phone from a car in northern Minnesota, “is they’ve gotten bigger and bigger and more dominant with these long-term contracts. You’ve got them having a clear monopoly over ticket sales, then promoting the concerts for venues they don’t own, locking them in.
“You’ve got a situation where 70% of primary ticket sales are there, and at major concert venues, it’s over 80%. That’s just ticket sales,” she continues. “They also have 90% of Billboard‘s Top 40 tours, as well as NBA, NHL and NFL. That’s just one part of their monopoly.” She says President Biden’s Justice Department “appears to be doing an extensive investigation” and “you’re going to see some action from the Justice Department if I had a guess.” She adds, “At the same time, we should be passing bills that help consumers, and that’s what you’re seeing.”


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