, , , , , , ,

An Anti-Scalping Effort Was Gaining Momentum in the Senate – Until Live Nation Came Out to Support It


Ticketmaster owner Live Nation’s push for legislative ticketing reform earlier this year has actually slowed down progress on those issues, sources tell Billboard, stalling a long-in-the-works bill that addresses nearly identical concerns about the ticketing business.


Last year, even before Taylor Swift’s Eras Tour presale fiasco inspired a flurry of ticketing reform bills, the National Independent Venue Association (NIVA) had been working on a wide-reaching piece of legislation in cooperation with Sens. Amy Klobuchar (D-Minn.) and John Cornyn (R-Texas) to “combat predatory and deceptive ticketing practices,” according to sources close to the issue. The bill included bans on deceptive practices and speculative listings, enforcement of existing anti-bot laws and new tools for countering ticketing fraud. Its most substantive change took aim at the secondary ticketing industry, granting artists and tour promoters sweeping power to reduce ticket scalping by allowing artists to set legally binding rules on how and where their tickets are resold, according to a November 2022 memo reviewed by Billboard. Besides NIVA, Universal Music Group, Wasserman Music, Dice and See Tickets were all among the broad coalition of music companies supporting the effort under the coalition name Fix the Tix.

Related


But, for months, the bill has languished — even as attention around ticketing has grown considerably following a Senate Judiciary Committee hearing in January on competition within the ticketing industry. That’s because of increased lobbying by pro-scalper groups and a decision in February, by Ticketmaster owner Live Nation, to unveil the FAIR Ticketing Act, a five-point proposal with a list of legislative fixes — and the recommendations were very similar to the fixes NIVA had been quietly lobbying for.


With NIVA representing thousands of independent venues and Live Nation representing its huge corporate portfolio, the two entities often have opposing agendas, and some NIVA members theorized that Live Nation was attempting to sabotage their bill. Worried that supporting a similar proposal would look like politicians were rewarding Ticketmaster at a time when outrage at the company was growing, momentum around the NIVA bill waned. Klobuchar’s office, which had planned to announce a bi-partisan bill with Cornyn in the spring, delayed its announcement amid new concerns that the bill might strengthen Ticketmaster, sources close to both Live Nation and NIVA tell Billboard. They add that the FAIR Ticketing Act was neither a clone of the proposed NIVA bill nor a poison pill.


“Live Nation and Ticketmaster have been the target of the Senate since the two companies merged in 2010,” says one NIVA member speaking on the condition of anonymity. “There’s an appetite in D.C. to punish Ticketmaster, but the reality is that there’s no way to pass a law that would both punish Ticketmaster and bring about the types of reforms needed to clean up the ticketing business.”


Case in point: On April 28, Klobuchar’s office introduced legislation with Senator Richard Blumenthal (D-Conn.) that would have banned ticketing companies like Ticketmaster from signing venue clients to long-term exclusive contracts. The proposal has faced opposition from some members of NIVA, who argued it would hurt small venues that relied on the payments from those contracts, and that fans would likely have to make up for the loss through higher ticket prices. A representative for Live Nation previously told Billboard the proposal wouldn’t “have a material impact on our business as we historically add clients in competitive marketplaces.”

Related


As for similarities between the NIVA-backed bill and Live Nation’s proposal, “It’s not surprising that the two groups that spent the last six months thinking about legislative fixes [to] the same issue came up with similar solutions,” said one source close to Live Nation, noting that much of the friction between NIVA and Ticketmaster has subsided.


Ticketmaster officials appear to have gotten the message and have toned down the rhetoric around their political efforts. Many of the campaign efforts have been picked up by NIVA, which successfully lobbied for $15 billion in federal aid for venues negatively impacted by the coronavirus pandemic in 2021. Now, sources say, the Fix the Tix bill is expected to be proposed in the next couple of weeks.  


Leading the charge at NIVA is the organization’s executive director, Stephen Parker. A longtime D.C. insider who worked with Sen. Tim Kaine when he was the governor of Virginia, Parker spent a decade at the bipartisan National Governors Association and has served on the board of the Country Music Association.


Parker confirmed to Billboard that neither Live Nation nor Ticketmaster has signed on as official supporters of the Fix the Tix coalition, while he and others are being extra cautious not to make their legislative package a referendum on Ticketmaster. Still, the Live Nation-owned company will play an outsized role in the Fix the Tix plan, as opponents are getting ready to paint the proposal as a major power shift to Ticketmaster and away from scalpers.


The Fix the Tix proposal would “make it illegal for resellers, professional ticket brokers, and ticket platforms to violate the artists’ and venues’ ticket terms and conditions, including restrictions that prohibit price gouging of fans through the resale of tickets above face value,” according to an early draft obtained by Billboard. That means artists, venues, or promoters could place ceilings on how much tickets are allowed to be marked up or restrict ticket resale until after all primary tickets have been sold. Since Ticketmaster and AEG are the only two companies on the market with technology that can track tickets after they’re sold to see if they are being resold and for how much, however, critics say this sort of law would create an even greater dependence on their services.

Related


That’s far more power than Ticketmaster should have, says John Breyault, vp of public policy at the National Consumers League and a founding board member of the Fan Freedom Project, an advocacy group fighting restrictions on resale that receives funding from StubHub and Vivid Seats. “Ticketmaster does not want to eliminate resale; they want to control resale,” Breyault says. The current proposals by Ticketmaster and NIVA could bankrupt major secondary resale sites, especially if most tours decided to make their tickets non-transferable. Once Live Nation “got rid of its competitors,” Breyault says the company could convince the artist it works with to lighten up on ticket transferability and effectively “own the resale market.”


To a degree, Fix the Tix is a response to the dozens of pieces of pro-scalping legislation that have been proposed at the state and federal levels over the past six months. This Fix the Tix bill would seek to overrule any state-level legislation that exists; there are currently over a dozen states with laws that outlaw restrictions on ticket transferability, meaning anyone can resell tickets at any price they want. Most of them have been from pro-resale think tanks like the American Economic Liberties Project, which is funded by Pierre Omidyar — former chairman of eBay and owner of Ticketmaster rival StubHub — in a bid to sway public opinion. Others, like Rep. Bill Pascrell’s (D-NJ) BOSS and SWIFT Act — which Breyault supports and the Fix the Tix coalition opposes — would permanently legalize scalping by making it illegal for ticketing companies to restrict ticket transferability.


Opponents of scalping say the BOSS Act would make it impossible for artists to keep their tickets off secondary sites and would allow all scalping sites to sell any tickets they wanted without restriction. Proponents, however, believe that outcome is better for fans than allowing Live Nation and the artists it works with to make these decisions.


While the scalpers and the concert promoters are far apart on most issues, the rival bills do share consensus on a number of practices in ticketing that have long drawn the ire of fans. Those include speculative ticket listing, drip pricing and misleading marketing campaigns — all of which would be banned by both NIVA’s proposal and the BOSS and Swift Act.

https://www.billboard.com/pro/live-nation-support-anti-ticketing-scalping-bill-backfired/


November 2024
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930  

About Us

Welcome to encircle News! We are a cutting-edge technology news company that is dedicated to bringing you the latest and greatest in everything tech. From automobiles to drones, software to hardware, we’ve got you covered.

At encircle News, we believe that technology is more than just a tool, it’s a way of life. And we’re here to help you stay on top of all the latest trends and developments in this ever-evolving field. We know that technology is constantly changing, and that can be overwhelming, but we’re here to make it easy for you to keep up.

We’re a team of tech enthusiasts who are passionate about everything tech and love to share our knowledge with others. We believe that technology should be accessible to everyone, and we’re here to make sure it is. Our mission is to provide you with fun, engaging, and informative content that helps you to understand and embrace the latest technologies.

From the newest cars on the road to the latest drones taking to the skies, we’ve got you covered. We also dive deep into the world of software and hardware, bringing you the latest updates on everything from operating systems to processors.

So whether you’re a tech enthusiast, a business professional, or just someone who wants to stay up-to-date on the latest advancements in technology, encircle News is the place for you. Join us on this exciting journey and be a part of shaping the future.

Podcasts

TWiT 1007: All the Hotdogs in the World – China's 'Salt Typhoon' Hack, Google on the Chopping Block, Recall AI This Week in Tech (Audio)

In this episode of This Week in Tech, the panel tackles the "biggest hack in US history," the future of AI, and the role of government in tech. From the Chinese hack's implications to Microsoft's AI-powered Recall, the Supreme Court's tech-related cases, and the push for social media age verification, Leo Laporte, Patrick Beja, Wesley Faulkner, and Alex Wilhelm provide insightful analysis and lively discussion on the most pressing issues facing the industry today. China's "Salt Typhoon" hack, dubbed the "worst hack in our nation's history," which compromised US telecommunications infrastructure and allowed surveillance of high-profile individuals The panel debates the challenges of securing outdated infrastructure and the role of government in regulating tech companies DOJ's push for Google to sell off Chrome to break its search monopoly, and the potential implications for competition and innovation Alex Wilhelm's article "If you like startups, you should love anti-trust" and the importance of fostering competition in the tech industry Microsoft's Windows 365 Link, a $349 mini PC that streams Windows from the cloud, and the potential for thin client computing Microsoft's Recall AI feature, which records and indexes users' screen activity, raising security concerns but offering potential benefits for users The Supreme Court's involvement in cases related to Facebook's Cambridge Analytica data breach and the fate of America's low-income broadband fund The panel also discusses their personal experiences with parenting in the digital age and the challenges of balancing screen time, privacy, and education for children Meta's push for Apple and Google to verify users' ages on social media platforms, and the challenges of implementing effective age verification while protecting user privacy Amazon's talks with Instacart, Uber, Ticketmaster, and others to enhance its AI-powered Alexa assistant Spirit Airlines filing for bankruptcy amidst financial losses and mounting debt payments Alex laments the addition of ads to Amazon Prime Video and the panel debates the tradeoffs of bundled subscription services Host: Leo Laporte Guests: Patrick Beja, Wesley Faulkner, and Alex Wilhelm Download or subscribe to This Week in Tech at https://twit.tv/shows/this-week-in-tech Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsors: Melissa.com/twit shopify.com/twit veeam.com lookout.com bitwarden.com/twit
  1. TWiT 1007: All the Hotdogs in the World – China's 'Salt Typhoon' Hack, Google on the Chopping Block, Recall AI
  2. TWiT 1006: Underwater Alien Civilizations – Bluesky Growth, Tyson Vs. Paul, AI Granny
  3. TWiT 1005: $125,000 in Baguettes – iPod Turns 23, The $1.1M AI Painting, Roblox
  4. TWiT 1004: Embrace Uncertainty – Political Texts, Daylight Saving Time, Digital Ad Market
  5. TWiT 1003: CrabStrike – Delta Sues Crowdstrike, Hospital AI, Surge Pricing