Why Tennessee, other states are unhappy about Ticketmaster settlement

While the Department of Justice recently reached a settlement with Live Nation and Ticketmaster in their 2024 lawsuit accusing the organization of creating a monopoly within the live entertainment industry, the state of Tennessee is proceeding with its lawsuit against the entertainment conglomerate.

The settlement reached between the Justice Department and Live Nation (the owner of Ticketmaster) did not force the company to divest from Ticketmaster. However, the settlement did require Live Nation and Ticketmaster to allow venues to use competitors such as StubHub and SeatGeek to sell tickets. The Justice Department also forced Live Nation to divest 13 amphitheaters, and that number could grow if more states agree to the settlement.

“We’re very excited about this settlement, because it basically opens up markets for other competitors, which will allow for competition that previously didn’t exist in primary ticketing and in the live entertainment space,” said a senior Justice Department official concerning the current deal.

As of now, Tennessee seemingly has no plans to agree to the settlement, per remarks made by State Attorney General Jonathan Skrmetti.

What is the current state of Live Nation following the lawsuit?

Currently, Live Nation controls approximately 70%-80% of the live-event and concert ticket sales space, as well as owns a substantial number of venues and concert promotions. Last year, the entertainment giant reportedly generated $25 billion in revenue. Beyond divesting 13 amphitheaters and allowing venues to use competitors, the settlement also forces Live Nation to do the following, according to USA Today:

Place a 15% cap on service fees for individuals who use their venues.
Offer their technology to competitors.
Prohibits them from taking action against venues that pick ticketers other than Ticketmaster.

Currently, Live Nation has to pay an estimated $280 million civil fine. However, that number could change depending on how many states agree to the settlement. A large majority of officials are disenchanted by this settlement, as they believe it doesn’t reform the main issues at hand: Live Nation’s monopoly on the live entertainment industry.

Why did the DOJ and 30 states sue Live Nation?

Filed in 2024 by the Justice Department and 30 state and district attorney generals, the civil antitrust lawsuit alleged that Live Nation and its subsidiary, Ticketmaster, unlawfully created a monopoly that suppressed “ticketing innovation,” forced consumers to use “outdated technology,” and led them to pay more for tickets than fans in foreign countries, said the Justice Department following the suit’s filing.

“Live Nation-Ticketmaster exercises its power over performers, venues, and independent promoters in ways that harm competition. Live Nation-Ticketmaster also imposes barriers to competition that limit the entry and expansion of its rivals,” they continued.

Initially, the lawsuit intended for Live Nation to restructure in order to reimplement competition, lower prices, and make venues more accessible for musicians and performing artists of all kinds. However, as noted, the settlement did not force Live Nation to breakup their relationship with Ticketmaster.

Why Tennessee is still suing Live Nation

“Tennessee is the music capital of the world” said Skrmetti in a statement sent to The Tennessean. “Broadway to the soul of Memphis and the stages of Appalachia, the entertainment industry is woven into the very fabric of our State’s identity. When a corporate monopoly acts as a gatekeeper to live entertainment, it doesn’t just crank up prices for fans; it threatens the heartbeat of our culture,” the state attorney general said.

“Our resolve has not wavered. We are proud to stand with a powerful core of conservative AGs and bipartisan partners from across the country committed to continuing the fight against Ticketmaster/Live Nation,” Skrmetti added. “For decades too long, we’ve seen fans, artists, and independent venues squeezed by a system that prioritizes monopoly power over affordability and quality.”

The state won’t be satisfied until Live Nation’s relationship with Ticketmaster is deeply altered, according to Skrmetti’s statement, allowing for more competition, greater opportunity for performers, as well as enhanced accessibility for fans through better ticket prices.

“I think it’s a big issue for people, especially in Tennessee, that affects artists and our citizen,” Gov. Bill Lee said in a press briefing concerning the settlement. “The ticket prices matter to folks who want to go (to Live Nation venues).

Other states rejecting the settlement include Arizona, California, Colorado, Connecticut, Illinois, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.

Live Nation’s impact in Nashville and how lawsuit could affect Music City

For quite some time the public has viewed both Live Nation and Ticketmaster as major antagonists in the live-event space, given that their alleged monopoly has been overcharging fans. Consequently, this refusal to sign the settlement holds a lot of weight in Music City, where Live Nation currently operates and has partnerships with a multitude of different concert promoters, Ascend Amphitheater and the Brooklyn Bowl. Live Nation also has a controlling interest in the beloved Bonnaroo Music & Arts Festival.

If Tennessee and the other states procure their desired result, what would that mean for music fans? What officials are aiming for with continued litigation is a restoration of an equitable ticket market, which would lead to greater competition, industry diversification, and ultimately, lower prices and protection for fans, as well as increased opportunity for talent.

Why Live Nation settlement has drawn backlash

For decades, major artists and fans alike have been pleading and protesting for greater ticket accessibility. In recent years. artists who have voiced the grievances of their fans include Kid Rock, Taylor Swift, Zach Bryan, Robert Smith of The Cure, and the roughly 300 artists who signed the “Fans First Act” in 2024.

The DOJ settlement drew calls for further legal action from groups including the Ticket Policy Forum, a coalition of independent ticket sellers, and the National Independent Venue Association, which represents independent music venues, festivals, and promoters.

“Live Nation has secured a token tap on the wrist,” said Brian Berry, executive director of the Ticket Policy Forum in an official statement. “After a strong first week at trial, live event fans will continue to suffer with a settlement that will equate to less than a speed bump for the Live Nation-Ticketmaster monopoly, and may very well cement their power to control live events for years to come.”

“Live Nation, once again, profits off of all-or-nothing touring deals and opening Ticketmaster up to ticket scalpers,” said Stephen Parker of the National Independent Venue Association. “The best way to level the playing field is to break up the Live Nation monopoly.”