Senators grill Ticketmaster after Taylor Swift fiasco
Senators grilled Ticketmaster Tuesday, questioning whether the company’s dominance in the ticketing industry led to its spectacular breakdown last year during a sale of Taylor Swift concert tickets.
Republicans and Democrats on the Senate Judiciary Committee also debated possible action, including making tickets non-transferable to cut down on scalping and requiring more transparency in ticket fees. Some suggested it may also be necessary to split Ticketmaster and Beverly Hills, California-based concert promoter Live Nation, which merged in 2010.
“The fact of the matter is, Live Nation/Ticketmaster is the 800-pound gorilla here,” said U.S. Sen. Richard Blumenthal, a Connecticut Democrat. “This whole concert ticket system is a mess, a monopolistic mess.”
Ticketmaster is the world’s largest ticket seller, processing 500 million tickets each year in more than 30 countries. Around 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster, according to data in a federal lawsuit filed by consumers last year.
In mid-November, Ticketmaster’s site crashed
during a presale event for Swift’s upcoming stadium tour. The company said its site was overwhelmed by both fans and attacks from bots, which were posing as consumers in order to scoop up tickets and sell them on secondary sites. Thousands of people lost tickets after waiting for hours in an online queue.
Live Nation’s President and Chief Financial Officer Joe Berchtold apologized to fans and to Swift on Tuesday, and said the company knows it must do better. Berchtold
said Ticketmaster has spent $1 billion over the last decade trying to improve its security and stop bots.
“We need to do better and will do better,” he said.
But lawmakers were skeptical. Republican Sen. Marsha Blackburn of Tennessee said plenty of others, including banks and power companies, are also frequent targets of bots but don’t suffer service meltdowns.
“They have figured it out but you guys haven’t? This is unbelievable,” she said. “We’ve got a lot of people
who are very unhappy with the way this has been approached.”
Senators also took aim at Ticketmaster’s fees. U.S. Sen. Amy Klobuchar, a Minnesota Democrat, recalled piling into a friend’s car in high school to go to concerts by Led Zeppelin, The Cars and Aerosmith. These days, she said, ticket prices have gotten so high that shows are too expensive for many fans. Klobuchar said ticket fees now average 27% of the ticket cost and can climb as high as 75%.