00:00Live Nation is under scrutiny after messages between two executives were released.
00:06This is the DOJ announced a possible settlement in the antitrust lawsuit against the entertainment company.
00:11Internal slack messages from 2022 between two regional directors of ticketing at Live Nation,
00:16Ben Baker and Jeff Weinhold, came out showing Baker bragging about, quote,
00:21robbing them blind, baby, that's how we do,
00:23and referring to ancillary fees charged to fans for things like parking.
00:27I gouged them on ancillary pricing to make up for it.
00:30In a different message, Weinhold said, quote,
00:32I have VIP parking up to $250, lol.
00:36To which Baker replied, I almost feel bad for taking advantage of them.
00:39But this is a pretty complicated topic, so let's explain it like we mean it.
00:44Here's some context.
00:46As part of the proposed antitrust settlement,
00:48Live Nation will only be giving up or loosening control of about 13 amphitheaters out of the hundreds it now
00:56manages.
00:56For example, Baker manages ticket sales for, like, 150 venues.
01:01The DOJ in 39 states brought forth the antitrust case due to claims of a monopoly.
01:06You see, Live Nation owns Ticketmaster, so they control the venue management and ticket sales of many shows.
01:13Now, this settlement says Live Nation and Ticketmaster need to put a 15% cap on service fees or ticket
01:18sales at Live Nation-owned venues.
01:21Here's the thing, Ticketmaster doesn't need to adhere to the 15% cap for shows that take place at venues
01:27not owned by Live Nation.
01:29Now, Live Nation Entertainment says these messages shouldn't be included in the trial,
01:33saying they would only be used to paint the company in a bad light and tip the jury.
01:37But the 39 states, a part of this lawsuit, argue that these messages show how Live Nation, quote,
01:41degrades the fan experience by charging excessive prices for ancillary services without fear of artists switching away.
01:48They then pointed out that this is exactly how a monopoly operates.
01:52Um, uh, there is one more note.
01:54Just one more note.
01:55There's nothing in this settlement that limits how much Live Nation can charge for ticket holders to park their car
02:00at the venue,
02:01concession prices, or other incidental expenses.
02:04So while this deal could cap one part of ticket prices, many of the extra costs that fans complain about
02:09wouldn't change at all.
02:11Which leaves a big question.
02:12Does this settlement actually fix the system or just put a small cap on one piece of it?
02:17Let us know in the comments, check out our website, and follow us here for more.
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