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Some of Taylor Swift’s fans want you to know three things: They’re not still 16, they have careers and resources and, right now, they’re angry. That’s a powerful political motivator, researchers say.
Look what Ticketmaster made them do.
It started Nov. 15, when millions crowded a presale for Swift’s long-awaited Eras Tour, resulting in crashes, prolonged waits and frantic purchases. By Thursday, Ticketmaster had canceled the general sale, citing insufficient remaining tickets and inciting a firestorm of outrage from fans. Swift herself said the ordeal “really pisses me off.”
Ticketmaster apologized but the bad blood had already been sowed. And now fans — and politicians — have started acting on it.
U.S. Rep. Alexandria Ocasio-Cortez directed Swifties to where they could make U.S. Department of Justice complaints. Multiple state attorneys general — including in Pennsylvania and Tennessee, key states in Swift’s origin story — have announced investigations.
Stephanie Aly, a New York-based professional who has worked on community organizing for progressive politics, for years has thought mobilizing fandoms for social progress could be beneficial. “Fandoms are natural organizers,” said the 33-year-old Swiftie. “If you find the right issues and you activate them and engage them then you can effect real change.”
In 2020, for instance, K-pop fans organized to back the Black Lives Matter movement and sought to inflate registration for a Donald Trump rally. Aly and Swifties from different industries — law, public relations, cybersecurity and more — have joined forces to create Vigilante Legal, a group targeting Ticketmaster by creating email templates to petition attorneys general and providing antitrust information. Thousands have expressed interest in helping or learning more.
“The level of anger that you’ve just seen in the country around this issue is astounding,” said Jean Sinzdak, associate director for the Center for American Women and Politics at Rutgers University. “People are really sharing their feelings about that and building a movement about that online, which I really think is quite fascinating. It’s certainly an opportunity to engage people politically. Whether it lasts is hard to say, but it certainly feels like a real opportunity.”
In one way, said Sinzdak, this is giving Swift’s large following of younger people a direct line to seeing how policy takes shape. It’s also targeting a demographic that is seldom courted by politicians during election season.
“Nobody goes out and thinks, ‘Let’s target young women,’” said Gwen Nisbett, a University of North Texas professor who researches the intersection of political engagement and pop culture. “Be it about abortion or student loans, that age group is super mobilized and young women are super mobilized.”
Fan culture and community has boosted that tendency toward mobilization. Nisbett was studying parasocial relationships — when fans have strong one-way relationships with celebrities — in 2018, when the previously apolitical Swift posted an endorsement of Democratic candidates to social media. Nisbett found that while such posts may not determine fans’ votes, they still led to the increased likelihood fans would look for more information about voting — and actually vote.
For the record: AP VoteCast, an extensive survey of the U.S. electorate, showed about a third of Tennessee voters in 2018 said they had a favorable opinion of Swift, and among them, a large majority — about 7 in 10 — backed Democrat Phil Bredesen in the Senate contest. That was in clear contrast to the roughly third of voters who had an unfavorable opinion of Swift and overwhelmingly backed Republican Marsha Blackburn.
For Swifties, the ire for Ticketmaster is not just about a ticket: “It’s the fact that you can’t participate in your community and your fandom and it’s part of your identity,” Nisbett said.
This isn’t even the first time a fandom or an artist has targeted Ticketmaster. Pearl Jam took aim at the company in 1994, although the Justice Department ultimately declined to bring a case. More recently, Bruce Springsteen fans were enraged over high ticket costs because of the platform’s dynamic pricing system.
“It’s not just about getting vengeance for Swifties. It’s not about getting an extra million Taylor Swift fans tickets, or all of us going to a secret session,” said Jordan Burger, 28, who is using his law background to help the cause. “It’s about fundamental equality. And when you have a monopolist like that, it’s just so representative of the class structure of a society where there isn’t equality anymore, there isn’t fairness.”
The sheer power and size of Swift’s fandom has spurred conversations about economic inequality, merely symbolized by Ticketmaster. Aly noted that quite a few of the members of the group did get tickets; the issue is is bigger than Ticketmaster, she said.
“We’ve gotten some feedback that, ‘This is too big, let the government handle it.’ Have you seen the U.S. government? The government only functions when the people push it to and when the people demand that it function and the people are involved,” she said. “Even when something seems too big to fail or too powerful to fail, there are always enough of us to make a difference. Your involvement may be the thing that pushes it over the edge that forces the government to act.”
Aly says many grown-up Swifties have 10-15 years’ experience of being bullied for liking the singer — but what fans have in mind might be better than revenge.
“We have thick skin and nothing to lose, really,” Aly said.
Ticketmaster has issued a formal apology to Taylor Swift and her fans following the chaotic ticket sales process for her 2023 Eras Tour.
The ticketing giant took to social media on Friday night (Nov. 18) to share a brief apology message, along with a link to a lengthier explanation on its website about why legions of Swifties weren’t able to buy tickets.
“We want to apologize to Taylor and all of her fans — especially those who had a terrible experience trying to purchase tickets,” Ticketmaster tweeted. “We feel we owe it to everyone to share some information to help explain what happened.”
We want to apologize to Taylor and all of her fans – especially those who had a terrible experience trying to purchase tickets. We feel we owe it to everyone to share some information to help explain what happened: https://t.co/1Gn4kRIvq8— Ticketmaster (@Ticketmaster) November 19, 2022
The debacle stems from Swift’s presale earlier this week for her 52-date Eras Tour, which initially crashed shortly after launch as 14 million fans and billions of bots flooded the site, causing service disruptions.
In its Friday statement, which repeated much of what was written (and later deleted) in a previous blog post, Ticketmaster noted that more than 3.5 million fans pre-registered for Swift’s Verified Fan program.
“Never before has a Verified Fan onsale sparked so much attention — or traffic,” the company wrote. “This disrupted the predictability and reliability that is the hallmark of our Verified Fan platform.”
Fans bought up more than 90% of the ticketing inventory on Tuesday and Wednesday, according to Ticketmaster, breaking the record on Tuesday for the most tickets ever sold in a single day by a touring artist at 2 million.
Ticketmaster added on Friday, “We’re working to shore up our tech for the new bar that has been set by demand for the Taylor Swift | The Eras Tour. Once we get through that, if there are any next steps, updates will be shared accordingly.”
Earlier in the day, Swift spoke out against Ticketmaster for her fans’ problematic experience in purchasing tickets to her tour.
“I’m not going to make excuses for anyone because we asked them, multiple times, if they could handle this kind of demand and we were assured they could,” the superstar wrote on her Instagram Story. “It’s truly amazing that 2.4 million people got tickets, but it really pisses me off that lot of them feel like they went through several bear attacks to get them.”
Sen. Amy Klobuchar sent an open letter on Thursday to Live Nation CEO Michael Rapino detailing her “concerns about the state of competition in the ticketing industry and its harmful impact on consumers.” The problem, wrote Klobuchar, is a lack of competition “that typically push[es] companies to innovate and improve their services. That can result in dramatic service failures, where consumers are the ones that pay the price.”
On Friday, a New York Times report surfaced that the U.S. Department of Justice is investigating whether Ticketmaster parent company Live Nation has abused its huge market share in the live music industry.
Maybe Live Nation chairman Greg Maffei’s statement that Taylor Swift and promoter AEG “chose” to work with Ticketmaster for her calamitous onsale earlier this week should have come with an asterisk.
On Thursday (Nov. 17), Maffei attempted to correct criticisms about Ticketmaster and its owner Live Nation operating as a monopoly by pointing out that Swift’s 2023 Eras Tour “is not actually a Live Nation promoted concert” but rather “promoted by one of our largest competitors.”
Maffei — who is also the president of Live Nation’s largest shareholder Liberty Media — continued: “AEG who is the promoter for Taylor Swift, chose to use us because, in reality, we are the largest and most effective ticket seller in the world. Even our competitors want to come on our platform.”
The thing is, AEG says it’s essentially forced to work with Ticketmaster because of the stranglehold it has over the touring business. “Ticketmaster’s exclusive deals with the vast majority of venues on the Eras tour required us to ticket through their system,” an AEG spokesperson told Billboard in a statement. “We didn’t have a choice.”
The debacle centers around Swift’s presale Tuesday for her Eras Tour, which initially crashed shortly after launch as 14 million fans and billions of bots flooded the site, causing service disruptions. The ticket crash caught the attention of Capitol Hill. Rep. Alexandria Ocasio-Cortez and Sen. Amy Klobuchar, both of whom criticized the outage at Ticketmaster and doubled down on claims that the Live Nation-owned ticketing service was a monopoly. The Justice Department is now reportedly investigating Live Nation, though the investigation reportedly pre-dated the Swift debacle.
AEG and Live Nation have a complicated relationship built around intense competition and steady cooperation going back decades. While AEG’s facility group relies on Live Nation for programming, AEG Presents, the company’s concert promotion wing, competes directly against Live Nation’s global touring team and has its own preferred ticketing system, AXS.
While AEG Presents prefers to use AXS, their partner in the Eras Tour, Louis Messina (Messina Touring Group is a 50-50 joint venture between AEG and Messina), is basically agnostic when it comes to ticketing systems — he will work with any ticketing company, based on where the show takes place. In North America, that means working with Ticketmaster, which is especially dominant in the NFL as it provides tickets to 27 of the NFL’s 32 teams. By choosing to stage her show in NFL stadiums – really, in choosing to tour stadiums in the U.S. — Swift and her partners at AEG and Messina Touring Group are effectively forced to use Ticketmaster due to its supremacy in North America.
In that sense, Maffei’s argument that AEG chose to work with Ticketmaster is misleading, but it would also be inaccurate to describe Swift or AEG’s relationship with Ticketmaster as one built upon coercion. Historically, it’s been more mutually beneficial.
AEG’s venue management company ASM Global — formed following the merger of AEG Facilities and SMG in 2019 to become the biggest such company in the country — expanded its partnership with Live Nation in 2021, allowing the use of Ticketmaster for any of the shows the promoter brings to ASM’s 300 clients. In this arrangement, both sides win, since AEG relies on Live Nation to bring content to its buildings and grants the company incentives to entice shows to their facilities.
Swift has worked very closely with Ticketmaster over the years — for her Reputation stadium tour, the COVID-19-canceled Lovers Fest and now the Eras Tour, building an entire fan verification and Taylor Swift-branded ticketing platform together. While Swift might have preferred to have had more options to sell tickets to her fans, she did partner with the company in a way that few artists have in the past.
Perhaps Ticketmaster and Swift will mend their relationship once they start counting how much money they made together. Or maybe, they’re never, ever, ever, ever getting back together.
The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online.
Is Ticketmaster a monopoly that treats customers unfairly? Problems with Taylor Swift’s record-breaking The Eras Tour onsale this week has created choruses of complaints around the ticketing giant that have now led to a reported Justice Department investigation.
On Thursday, Sen. Amy Klobuchar sent an open letter to Live Nation CEO Michael Rapino detailing her “concerns about the state of competition in the ticketing industry and its harmful impact on consumers.” The problem, wrote Klobuchar, is a lack of competition “that typically push[es] companies to innovate and improve their services. That can result in dramatic service failures, where consumers are the ones that pay the price.”
Breaking up Live Nation and Ticketmaster wouldn’t necessarily have prevented this problem. It’s likely that any ticketing platform would have struggled with such a high level of demand. StubHub crashed in 2018 after University of Georgia fans flooded the site to purchase tickets to see their team play in the NCAA football national championship game — and that was just one game.
Ticketmaster blamed the outage on a surge of unregistered fans and billions of bots. According to the company, over 3.5 million people pre-registered for Swift’s Verified Fan credentials, the largest registration in its history. Typically, only a fraction of registered fans show up to buy a ticket. This time, “a staggering number of bot attacks as well as fans who didn’t have invite codes” resulted in 3.5 billion total system requests — four times the previous record number.
One could argue Ticketmaster could have been better prepared for such a high level of demand. Perhaps the company should Swift-proof the platform in anticipation of a flood of speculators and unregistered fans — Swift said Friday (Nov. 18) that her team “asked them, multiple times, if they could handle this kind of demand and we were assured they could.” Overall, problems on the platform are relatively rare given Ticketmaster’s volume of business, but we talk about them because they happen with high-profile concerts that attract large numbers of customers. Those attract the most attention and complaints online, which in turn attracts politicians. Ticketmaster is one of the few non-partisan issues in America in 2022.
Some observers have conflated the issues surrounding Ticketmaster’s market power, though. Rep. David Cicilline, chairman of the House Judiciary Committee’s Antitrust, Commercial and Administrative Law Subcommittee, wrote about the Swift on-sale that “excessive wait times and fees are completely unacceptable … and are a symptom of a larger problem.” It’s fair for Cicilline to suggest that Ticketmaster does not invest enough in its platform to avoid the technical issues and wait times Swift fans recently experienced. That’s debatable, but it’s a defensible argument.
Fees are, however, an entirely different issue. Ticketmaster is a pioneer in the area of ticket fees but does not have a monopoly on the ability to charge them. More competition in ticketing would not prevent venues and promoters from adding to the face value of tickets. The ticket purchase is an opportunity for all parties involved to capitalize on fans’ demand for live music. As Bruce Springsteen’s controversial leap into dynamic pricing showed, leaving money on the table is an increasingly uncommon strategy in the modern music business.
Ticket prices occasionally get dragged into the argument, too. Politicians and consumers seem to want a form of price competition that doesn’t exist. Prices for an in-demand concert ticket won’t necessarily become more affordable if they’re sold at, say, StubHub rather than Ticketmaster. The laws of supply and demand say that prices for in-demand, scarce objects like a Swift concert ticket are going to be high no matter who’s selling them.
So, what tangible results might come from the calamitous The Eras Tour on-sale? Sen. Klobuchar’s letter points to customers’ desire for fair access to concert tickets. She asked Rapino, “Generally, what percentage of high-profile tour tickets are made available to the general public compared to those allocated to pre-sales, radio stations, VIPs, and other restricted opportunities?”
Klobuchar wants to know what percentage of tickets the average person has a realistic shot at getting without being the customer of a particular credit card, without buying high-priced VIP packages, without winning a radio station contest or without being a member of an artist’s fan club. In this case, Capital One is a sponsor of the Eras tour and offered a pre-sale to its customers.
But how do lawmakers regulate access? Do they establish rules that dictate what kind of marketing partnerships artists can and cannot establish? Would they tell American Express to stop giving such long-standing perks as pre-sale access and dedicated tickets to its credit card holders? If Congress really wanted to create a more level playing field for fans, they could do what the lawmakers in Victoria, Australia, did in 2021: pass a law that limits the resale value of a ticket to 110% of its face value. That could lower the number of resellers and bots clogging up Ticketmaster’s system for high-traffic on-sales like the Eras Tour. At the very least, price limits would bring a much-desired sense of fairness to the secondary market. Whether the U.S. Congress has the stomach to establish price controls on private companies remains to be seen.
A more likely outcome of the Eras Tour debacle is increased transparency. New York State legislators passed a law in June that improves transparency by requiring all-in pricing and prohibits revealing the ticket’s total cost — face value plus fees — after multiple clicks in a check-out process. The bill could have gone further: a requirement to disclose the percentage of tickets made available to pre-sales and VIPs was in an early form of the bill but not the final version.
But, again, are lawmakers willing to mandate such disclosures from private businesses? This would more likely be a voluntary disclosure done at the behest of the artist – Swift is exactly the kind of powerful artist who could persuade ticket sellers to reveal this information. Transparency wouldn’t immediately translate into greater access for the average fan, but it could fuel a larger conversation about how fans get access to concert tickets. That wouldn’t ease the pain of many Swift fans, but it would be a step forward.
Following the ticket chaos of Taylor Swift’s The Eras tour this week, the conversation has shifted to Ticketmaster’s monopoly in the business and their out-of-control “dynamic pricing” model.
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It’s hardly the first time that an artist’s tour tickets have been blown into wildly expensive territory on Ticketmaster. When Bruce Springsteen and The E Street Band’s 2023 tour tickets went on sale a few months back, some ended up costing thousands of dollars.
In a recent interview with Rolling Stone, Springsteen gave his two cents on the struggle between balancing affordable tickets and making enough money for his band. “What I do is a very simple thing. I tell my guys, ‘Go out and see what everybody else is doing. Let’s charge a little less.’ That’s generally the directions,” he shared. “They go out and set it up. For the past 49 years or however long we’ve been playing, we’ve pretty much been out there under market value. I’ve enjoyed that. It’s been great for the fans.”
He added, “This time I told them, ‘Hey, we’re 73 years old. The guys are there. I want to do what everybody else is doing, my peers.’ So that’s what happened.”
The Boss followed up by nothing that “ticket buying has gotten very confusing, not just for the fans, but for the artists also,” and that “most of our tickets are totally affordable.” He then concluded by noting, “We have those tickets that are going to go for that [higher] price somewhere anyway. The ticket broker or someone is going to be taking that money. I’m going, ‘Hey, why shouldn’t that money go to the guys that are going to be up there sweating three hours a night for it?’ It created an opportunity for that to occur. And so at that point, we went for it. I know it was unpopular with some fans. But if there’s any complaints on the way out, you can have your money back.”
In the wake of Ticketmaster’s disastrous sale of tickets to Taylor Swift’s upcoming tour, a report has surfaced that the U.S. Department of Justice is investigating whether parent company Live Nation has abused its huge market share in the live music industry.
According to a story Friday in the New York Times, the DOJ’s antitrust division had already been scrutinizing Live Nation for months before Tuesday’s botched rollout, which saw widespread service delays and website crashes as millions of fans tried – and many failed – to buy tickets for Swift’s 2023 Eras Tour.
The Times report said that antitrust investigators have been contacting music venues and others involved in the live music industry for months to ask about Live Nation’s practices, aiming to determine whether the company maintains an illegal monopoly over the sector. The story was sourced to “two people with knowledge of the matter”; a spokesperson for the DOJ did not immediately return a request for comment.
Though the DOJ probe reportedly predates the Swift debacle, it echoes criticism that has been leveled at Live Nation in the days since the messy Eras presale.
On Thursday, Sen. Amy Klobuchar (D-Minn.), the chair of the Senate subcommittee for antitrust issues, wrote an open letter to Live Nation, complaining that the company’s market power “insulates it from the competitive pressures that typically push companies to innovate and improve their services.” Klobuchar said the results were the kind of “dramatic service failures” that took place during Swift’s presale.
Rep. Alexandria Ocasio-Cortez (D-N.Y.), was even blunter, tweeting Tuesday: “Daily reminder that Ticketmaster is a monopoly, it’s merger with Live Nation should never have been approved, and they need to be reigned in. Break them up.”
As alluded to by Ocasio-Cortez, Ticketmaster and Live Nation have long been dogged by accusations that they exert an unfair dominance over the market for live concerts, particularly since they merged in 2010 to create their current structure.
The combined entity has operated for its entire existence under a so-called consent decree imposed by the DOJ when it approved the merger. Under the decree, Live Nation is prohibited from retaliating against venues that refuse to use Ticketmaster. Those restrictions were set to expire in 2020 but were extended by five years in 2019 after the DOJ accused Live Nation of repeatedly violating the decree.
Ticketmaster has already tried to offer explanations for what went wrong on Tuesday, publishing a since-deleted in-depth blog post that said that it had misjudged demand for presale tickets and was ill-prepared for the millions of fans that tried to log in.
“I apologize to all our fans. We are working hard on this,” Liberty Media CEO and Live Nation chairman Greg Maffei said in an appearance on CNBC on Thursday. “Building capacity for peak demand is something we attempt to do, but this exceeded every expectation.”
Whether or not that explanation satisfies federal antitrust investigators, it does not appear to have been enough for Swift. In a statement issued Friday in which the star said the calamitous presale “really pisses me off,” Swift did not call out Ticketmaster explicitly, but laid the blame on an unnamed “outside entity.”
“I’m not going to make excuses for anyone because we asked them, multiple times, if they could handle this kind of demand and we were assured they could,” Swift wrote.
How did Taylor Swift‘s 2023 Eras tour presale turn so calamitous? Ticketmaster service delays and website crashes outraged fans trying to buy tickets to the superstar’s 2023 tour this week, causing widespread outcry and condemnation for the ticket service as high up as Congress. And, finally, on Thursday (Nov. 17), company officials announced they had decided to cancel the general ticket sale scheduled for Friday — blaming a surge of unregistered fans and billions of bots for the failure.
Fans already bought up more than 90% of the ticketing inventory on Tuesday and Wednesday, according to Ticketmaster, breaking the record Tuesday for the most tickets ever sold in a single day by a touring artist at 2 million. But with that success came catastrophe. More than 3.5 million fans registered for the chance to buy Swift tickets, and 1.5 million were invited to participate in Tuesday’s ticket sale for a crack at seats on the 52-date tour. Company officials say, however, it wasn’t pre-registered fans buying tickets who caused the crash on Tuesday, but that tens of millions of uninvited fans and billions of bots trying to access the sale early were to blame.
A Wednesday presale for Capital One card holders again brought a second unreported massive traffic of traffic to the site, as millions of fans — most without presale codes or an invitation — again tried to flood the presale meant only for a few hundred thousand card holders.
With little inventory left and even bigger crowds expected Friday, on Thursday Ticketmaster and Swift’s team decided to cancel the final onsale. It’s unclear how the remaining ticketing inventory will be distributed or sold. Meanwhile, the bad press has brought unwanted attention to the ticket giant.
Earlier Thursday, in an open letter to Live Nation CEO Michael Rapino, Sen. Amy Klobuchar, chair of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, argued that “Ticketmaster’s power in the primary ticket market insulates it from the competitive pressures that typically push companies to innovate and improve their services,” resulting in “dramatic service failures,” like the crash of Tuesday’s Taylor Swift sale.
Hours after the letter surfaced, Ticketmaster published a blog on its website offering an in-depth explanation of what caused the Swift presale to crash. Ticketmaster’s explanation for the crash — that it misjudged demand for presale tickets and was ill-prepared for the millions of fans that tried to log in — is not likely to satisfy Klobuchar and the bi-partisan criticism that the company is cutting corners due to it’s massive marketshare in the concert space.
According to Ticketmaster, about 3.5 million fans pre-registered for Taylor’s Verified Fan program — “the largest registration in history,” the company’s blog claims. The huge amount of demand “informed the artist team’s decision to add additional dates” to Taylor Swift’s Eras tour earlier this month, increasing the number of shows on sale from 26 to 52 stadium shows — 47 of which would be ticketed by Ticketmaster.
Despite doubling the number of shows that it was now selling tickets for, Ticketmaster didn’t increase the window of time it would need to process the large uptick in volume. That meant that instead of having 11 East Coast shows go on sale at the same time (10 a.m. EST), Ticketmaster was now putting 21 shows on sales at once.
Making matters worse, far more people showed up to buy tickets than was expected. On Monday night, the day before the presale, Ticketmaster sent out invitations to 1.5 million fans who had signed up for the presale with instruction on how to purchase tickets. “Historically, around 40% of invited fans actually show up and buy tickets,” according to Ticketmaster’s blog post, meaning Ticketmaster was only expecting about 600,000 people to actually try to log in. Not only did far more invitees show up, millions more uninvited guests tried to crash the party. Ticketmaster estimates that with uninvited guests and massive armies of bots, about 3.5 billion requests were made requesting access to the presale, causing the system to meltdown.
Company officials ended up having to do what they probably should have done in the first place — pushing back the remaining sales to give the Ticketmaster team more time to deal with the traffic issues and high demand. About 15% of fans attempting to buy Swift tickets experienced some type of disruption while trying to buy tickets or were unable to do so because of the site crash, according to the Ticketmaster blog. Still, the company did sell more than 2 million tickets that day — the most ever sold for a single artist in a day — and Ticketmaster has agreed to not allow Swift tickets to be sold on any of the secondary resale sites it controls, restricting markups to fans on its service.
Liberty Media CEO and Live Nation chairman Greg Maffei appeared on CNBC on Thursday morning (Nov. 17) to discuss the issues with Ticketmaster’s Verified Fan program that resulted in frustrated Taylor Swift fans queuing up for hours in an effort to score pre-sale tickets to the singer’s anticipated Eras Tour.
Ticketmaster Postpones Sales For Taylor Swift’s ‘Eras’ Tour Due to ‘Historically Unprecedented…
11/17/2022
“I apologize to all our fans. We are working hard on this,” Maffei told Squawk on the Street on Thursday morning (Nov. 17) about the company’s efforts to straighten out the situation that caused fan (and parent) consternation from coast-to-coast. “Building capacity for peak demand is something we attempt to do, but this exceeded every expectation.”
Ticketmaster, which is owned by Live Nation — with Liberty holding a 30% ownership stake in the ticketing giant — has come under intense scrutiny this week for after the company’s website experienced mass outages and extreme delays that forced some to wait for hours in the virtual line, or just walk away empty-handed.
“Daily reminder that Ticketmaster is a monopoly. Its merger with LiveNation should never have been approved & they need to be reigned in. Break them up,” Rep. Alexandria Ocasio-Cortez tweeted on Tuesday after the Swift tickets meltdown. Maffie told Squawk on the Street that the Live Nations team is “sympathetic that the long wait times and fans who couldn’t get what they wanted… reality is it’s a function of the massive demand that Taylor Swift has.”
Maffei explained that the pre-sale was supposed to be opened to 1.5 million Verified Swift fans for Tuesday’s on-sale, but instead 14 million Swifties attempted to log-in, including, he added, bots that were not supposed to be able to join the line. Despite the challenges and breakdowns, he said TM sold 2 million on Tuesday, a gaudy number that Maffei said could have filled 900 stadiums.
In a blog post, TM said that more than 3.5 million people pre-registered through Verified Fan for the Swift shows, the largest registration in the program’s history. It further explained that historically “around 40% of invited fans actually show up and buy tickets,” so working with Swift’s team around 1.5 million were invited to participate in the sale, with the remaining 2 million Verified Fans put on a waiting list.
Maffei also noted that the show is not promoted by LN — but by rival AEG Live and Messina Touring Group — so, “though AOC [a common nickname for Ocasio-Cortez] may not like every element of our business, AEG, our competitor who is the promoter for Taylor Swift, chose to use us because we are, in reality, the largest and most effective ticket seller in the world. Even our competitors want to come on our platform.”
Ticketmaster shared a statement shortly after 1 p.m. ET on Tuesday, about three hours after the East Coast venue presales began. It said that the company wasn’t prepared for the “historically unprecedented demand” for tickets, and postponed presales for West Coast venues and Capitol One cardholders scheduled for later that same day. Swift has announced 52 dates so far for the stadium tour that will mark her first major outing in five years.
AOC wasn’t the only member of congress to weigh in on the debacle. Connecticut Sen. Ricard Blumenthal tweeted, “Taylor Swift’s tour sale is a perfect example of how the Live Nation/Ticketmaster merger harms consumers by creating a near-monopoly. I’ve long urged DOJ to investigate the state of competition in the ticketing industry. Consumers deserve better than this anti-hero behavior.” In addition, Minnesota Sen. Amy Klobuchar agreed, writing on Wednesday, “What is going on with Ticketmaster is an example of why we need strong antitrust enforcement! Monopolies wreak havoc on consumers and our economy. When there is no competition to incentivize better services and fair prices, we all suffer the consequences.”
Ticketmaster and Live Nation merged in 2010 to form Live Nation Entertainment, rolling together the nation’s largest concert promoter and ticketing agency. The move that was drew intense scrutiny at the time and in the wake of the Swift pre-sale fiasco, Tennessee attorney general Jonathan Skrmetti said on Wednesday that his office will once again be looking into the company.
“There are no allegations at this time about any misconduct, but as the Attorney General, it’s my job to ensure that the consumer protection laws and antitrust laws in Tennessee are being honored,” Skrmetti told reporters, according to WJHL. Skrmetti said there have been “a number of complaints” lodged with his office about the pre-sale and that his team planned to look into the “severe” lack of customer support in what is the latest probe into possible antitrust allegations involving TM and LN conducted by Tennessee authorities.
Watch Maffei’s interview below.
Fans waiting to buy tickets to Taylor Swift’s Eras tour next week should expect two things: high demand and high prices. After all, it’s been five years and four albums since Swift toured, with her newest album, Midnights, on track to be the best-selling record of the year — earning Swift the title of first artist to ever have 10 songs dominate the top 10 of the Hot 100 chart.
That popularity means that Swift can set high prices for her tickets — most seats will be priced between $200 to $400, with floor tickets going for as much as $800 a piece. Platinum tickets will cost even more with some selling for thousands of dollars per ticket.
If there’s any consolation for the impending sticker shock, though — which has caused outcry over recent Bruce Springsteen and Blink-182 tours as well — it’s that unlike with some of Swift’s past tours, most of that money will be going into her pocket, and not scalpers.
Much like with album marketing and record-breaking sales, as well as revolutionary stances around artists owning their masters and streaming royalties, Swift has had a profound effect on the concert ticket market over the years. Throughout much of her early career, Swift was a master of pricing and marketing and distributing concert tickets to her growing fan base, who eagerly bought up tickets to tours arounds hit albums like Fearless and Red. Unfortunately, scalpers were buying up tickets too. By 2015, with her tour supporting Swift’s crossover pop album 1989, average prices on the secondary market were going for two to three times face value.
In 2016, promoter Louis Messina — who has been working Swift since she was 17 — had been celebrating the mega-successful 1989 tour, which grossed a staggering $250 million worldwide, when a well-known entertainment executive and friend bragged that he had made more on the tour than Swift or Messina. The executive enjoyed a far more profitable haul from the tour thanks to his ownership in a ticket scalping business that was selling 1989 tickets at a four-to-five-times markup. Messina and Swift had priced the tickets so low, and fan demand was so high that anyone flipping tickets for the concert was bound to make a big return.
The nexus between ticket prices at the box office and what ticket flippers can sell them for on sites like StubHub was also a problem that Live Nation chief executive Michael Rapino wanted to solve. Working with then Ticketmaster president Jared Smith, newly hired head of music David Marcus and company product engineers, the team developed an aggressive pricing strategy to make more money for artists by pricing tickets closer to what they would sell for on the secondary markets.
After piloting the program with Jay-Z in early 2018, Ticketmaster began implementing its new pricing strategy for Swift’s Reputation Tour later that year. Compared to the 1989 tour, the Reputation Tour average ticket price was only about 10% more, but the best seats in the venue were priced significantly higher than in past years, thanks to new Ticketmaster tools that allowed it to optimize a venue’s seat map on a seat-by-seat basis. Ticketmaster also created a fan identification tool for Swift called SwiftTix, which had fans register in advance for an opportunity to buy tickets during the show’s presale, with their place in line partially boosted by purchasing fan merch and posting about the Reputation tour online. Today, the pricing strategy Swift used has become a staple of how most major tours are priced to capture more profit for artists, while advance registration has become a staple of most high-demand shows. For the Eras tour, for example, fans who register in advance get first crack at tickets while those held onto tickets for Swift’s canceled 2020 Lover Fest shows received even higher priority access for the Nov. 16 onsale.
Swift initially faced massive backlash over higher-than-expected ticket prices for the Reputation Tour, as well as criticism that SwiftTix was a money grab at the expense of fans. She was excoriated in the press, bashed on Twitter and targeted by ticket brokers for allegedly ruining her career. Not long after tickets went on sale, Gary Adler, executive director of the North American Ticket Brokers association penned a piece called “Why Taylor Swift’s Reputation Tour Is a Total Disaster” saying Swift’s sales scheme was the “best example of how not to sell tickets to a large tour.”
Adler could not have been more wrong. By avoiding the urge to price tickets so that they would immediately sell out, Swift’s long game, higher priced approach brought in $345.7 million, making it one of the highest grossing tours of all time.
When Swift’s tickets go on sale next week, millions of fans will be waiting for a confirmation email to notify them when it is their turn to buy tickets and fans will collectively spend hundreds of millions of dollars buying up seats. Based on the size of the tour, the popularity of Swift and the five years since Reputation, some fans will not be able to get the seats they want or will not pay the asking price, either because they can’t afford it or because they do not think it’s worth the money.
Again, angry fans will go on Twitter to complain about soaring prices, rage at Ticketmaster and lament about how things used to be, when tickets cost less — and, as they’re likely to forget, when scalpers bought them up in a frenzy. And they can thank their favorite “Anti-Hero,” Swift, for helping to develop a ticketing model that shifted more money into the pockets of artists, instead of scalpers — raising upfront prices for fans in the process. Whether that’s a solution or a new problem altogether, those who do buy tickets are likely to be applauding next year anyway when she sings, “It’s me, hi, I’m the problem, it’s me.”
Live Nation set records for concert revenue and ticket sales in the third quarter of 2022 as the touring industry continued its recovery from the COVID-19 pandemic. Third-quarter revenues were $6.2 billion, 66.8% greater than the same period in 2019, while adjusted operating income increased 45% to $621 million, the company announced Thursday (Nov. 3).
“Fans around the world continue prioritizing their spend on live events, particularly concerts,” said president and CEO Michael Rapino in a statement. “Despite varying economic headwinds including inflation, we have not seen any pullback in demand, as on-sales, on-site spending, advertising and all other operating metrics continue showing strong year-on-year growth.”
The concerts division tallied its highest-ever quarterly attendance with 44 million fans at 11,000 events that generated $5 billion of revenue and $281 million of adjusted operating income (AOI), up 67% and 44%, respectively, from the same period in 2019. Demand was strong across all types of venues and markets. Stadium attendance tripled to almost 9 million as many top artists, including Bad Bunny (the highest grossing Latin tour in Boxscore history), Red Hot Chili Peppers and The Weeknd, took advantage of strong fan demand by performing the larger venues.
Ticketmaster also had a record-breaking quarter by delivering its highest fee-bearing gross transacted value of $7.3 Billion, a 62% increase from the same period in 2019. Ticketing revenue was $343 million, up 96.7% year-over-year and 36.8% greater than the same period in 2019. Ticketing’s AOI of $163.2 million was 5% lower year-over-year but 28.2% above the third quarter of 2019.
Ticketmaster has made headlines because some artists — namely Bruce Springsteen and Blink-182 — opted for dynamic pricing that charged more for the best seats. The practice may frustrate some fans, but Live Nation expects to transfer over $550 million to artists through higher primary ticket prices — value that might otherwise have been captured on the secondary ticketing market.
Sponsorship and advertising revenue was up 59.4% to $343 million on the strength of Live Nation’s festivals and Ticketmaster platform integration. The high-margin segment’s AOI of $226.2 million was 103.4% better year-over-year and 69.8% higher than the same period in 2019. Confirmed sponsorship revenue for 2023 is up 30% over the same period a year ago.
Through September, ancillary fan spending at U.S. amphitheaters was up 30%. “The consistent theme is that fans are eager to enhance their experience, as we continue elevating our hospitality operations and provide more premium options,” said Rapino.
Looking ahead, the busy touring season will continue into 2023 and consumer demand appears to be holding strong despite widespread fears of an upcoming recession and tightening budgets due to persistent inflation. “Ticket sales for shows in 2023 are pacing even stronger than they were heading into 2022, up double-digits year-over-year, excluding sales from rescheduled shows,” said Rapino. Through the third quarter, Ticketmaster sold over 115 million, up 37% from the same period in 2019.
Live Nation’s share price rose 4.6% to $79.90 in after-hours trading on Thursday following the earnings release.
Financial metrics
Total revenue: $6.2 billion, up 63.TK% from 2019
Adjusted operating income: $621 million, up 45% from 2019
Concert revenue: $5.29 billion, up 66.8% from 2019
Ticketing revenue: $531.6 million, up 36.8% from 2019
Sponsorship and advertising: $343 million, up 59.4% from 2019
Fan metrics
North America concerts; 8,261, up 14% from 2019
International concerts: 2,958, up 57.4% from 2019
North American fans: 29.1 million, up 27.7% from 2019
International fans: 15.2 million, up 71.9% from 2019
Fee-bearing tickets: 73.4 million, up 32.7% from 2019
