Wednesday, February 4, 2009

Say it ain't so...

Heard this news?! Live Nation and Ticketmaster are in talks for a merger. Both companies have an element that does work. Live Nation may manage multiple facets of the music industry, i.e. album sales, concerts, merch, and licensing, their ticket platform sucks. In contrast, Ticketmaster can't seem to make a profit on anything but tickets. So this should be a match made in heaven, right?! If you're a shareholder maybe.

Should the merger come to fruition, you are looking at a uber-billion dollar music monopoly. Imagine the return with as many different income producing areas per artist. It's insane. All this is well and good, again for the shareholder.

No matter the anti-trust laws, this merger is bound to happen and when it does Joe Concertgoer-Downloader is screwed. The music industry was a one-trick pony--albums. Now, in the digital era, the industry is scrambling to stay relevant and with the buying power truly in the music lover's hand, the industry is grasping at the feathers of the golden goose.

With Live Nation Ticketmaster, price increases across the board would be inevitable. Whether in the form of additional 'convenience' fees {airlines, people} or straight up increase, tickets for shows would increase two. And while merchandising and licensing fees would possibly be in-house, we, the consumer, would not be on the receiving end of lower prices. Additionally, imagine the dreck {artists or merch} that could be packaged and sold as 'music'. Informed consumers already have to wade through the constant barrage of mediocrity to find true gems.

Skepticism is key with this transaction. Neither company is in real fiscal trouble, both are simply trying to increase market share. The consumer will be the one to truly lose out.

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