Bill Text: NJ AR102 | 2024-2025 | Regular Session | Introduced
Bill Title: Urges Congress to respond to consolidation of ticket industry.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-02-08 - Introduced, Referred to Assembly Consumer Affairs Committee [AR102 Detail]
Download: New_Jersey-2024-AR102-Introduced.html
Sponsored by:
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
SYNOPSIS
Urges Congress to respond to consolidation of ticket industry.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging Congress to act in response to the consolidation of the ticket sale industry.
Whereas, New Jersey offers numerous venues for live entertainment and the live entertainment plays an important role in the identity of the State; and
Whereas, The arts, entertainment, and recreation sector contributed over $260 billion to the United States economy in the first three quarters of 2022, with $6.8 billion of that generated in New Jersey; and
Whereas, Live Nation and Ticketmaster, two of the largest companies in the live entertainment industry with a significant market share in the ticketing and concert promotion sectors, merged in 2010 and currently possess an estimated 70 percent of the ticketing market for live event venues; and
Whereas, The companies have since been the subject of numerous complaints, legal challenges, and investigations, including by the United States Department of Justice, related to current practices; and
Whereas, These practices include the imposition of excessive fees on consumers, surge pricing and a lack of transparency in the ticketing process, and taking advantage of its dominant market share to influence competitors and to enter the ticket resale market; and
Whereas, These practices have resulted in harm to consumers, who are often unable to purchase tickets at face value and are forced to pay inflated prices in both the primary ticket sale market and the resale market; and
Whereas, Performers and other industry stakeholders are also harmed as a result of the actions of the merger of Live Nation and Ticketmaster, and may be deprived of revenue and certain controls over ticket sales; and
Whereas, The United States Senate Judiciary Committee held a hearing on January 24, 2023, during which the practices of Live Nation and Ticketmaster were discussed at length; and
Whereas, Further action is needed to address the various problems impacting consumers in New Jersey and in the United States; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully
urges the United States Congress to act in response to the consolidation of the
ticket industry and resolve to address the subsequent various problems
impacting consumers in New Jersey and in the United States.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Majority and Minority Leaders of the United States Senate; the Speaker and Minority Leader of the United States House of Representatives; and every member of Congress elected from this State.
STATEMENT
This resolution urges Congress to respond to the consolidation of the ticket industry.
In 2010, Live Nation Entertainment, the world's largest event promoter and venue operator, merged with Ticketmaster, the world's largest ticketing platform. This merger allowed both companies to become even more powerful, controlling an estimated 70 percent of the ticketing and live event venue markets. Prior to the Covid-19 pandemic disrupted the live entertainment industry, Live Nation reported that it put on more than 40,000 events around the world and sold 485 million tickets. The company also owns more than 300 venues around the world, the most in the industry. In the years since the merger with Ticketmaster, Live Nation has been accused multiple times of abusing its market dominance and bullying smaller competitors. In 2019, the United States Department of Justice alleged that Live Nation "repeatedly violated" the consent decree the company entered with the federal government at the time of the merger. These alleged violations include threatening to withhold tours from performing at competing venues if those venues did not sign deals with Ticketmaster.
Live entertainment is a multi-billion dollar industry in the United States, and New Jersey contributes to that with its dozens of venues hosting a wide variety of shows. However, Live Nation's practices and its dominance of the market make it so the majority of the profits do not go to performers or independent venue owners. These practices also harm consumers by making it difficult to purchase affordable tickets at initial sales, forcing them to pay inflated prices due to surge pricing or additional fees, or purchase tickets on resale markets that result in even higher prices.
