Class of 2025Plantation, Florida
- The Primary Market of Concert Ticketing: Evaluating Live Nation Entertainment's Involvement with Recent Inefficiencies with mentor Ethan (Oct. 11, 2023)
The Primary Market of Concert Ticketing: Evaluating Live Nation Entertainment's Involvement with Recent Inefficiencies
Started Apr. 13, 2023
Abstract or project description
The record-high prices of concert tickets of 2023 on the primary market have frustrated millions of music fans with their fingers often pointing towards Live Nation Entertainment (LNE), the live entertainment conglomerate that resulted from Live Nation and Ticketmaster's 2010 merger. Since this merger, LNE has maintained a substantial market share that critics argue is the source of recent inefficiencies. However, there are many components contributing to the current conditions of the concert ticketing industry's primary market. After examining the 2010 merger's ramifications and the factors contributing to the aftereffects of the merger, I determined that pent-up demand, a pandemic-weakened supply chain, and rising concert production costs most accurately explain recent events, not LNE's market power. Despite claims, the average ticket price has not severely increased in 2023; the increase in ticket prices is gradual but is heavily concentrated among the top ten music tours of 2023 which is due to dynamic pricing that follows the latest trends in consumer demands. Demand for concerts is higher than ever and outweighs the effect of LNE’s potential stronghold over the market. Furthermore, economies of scale in the ticketing market explain why LNE’s presence is not detrimental but often beneficial to the live music industry.