The world's largest concert promoter, Live Nation, acquired the world's largest ticket distributor, Ticketmaster in 2010. creating a virtual monopoly on concert production and ticket sales Bruce Springsteen warned back then that the merger of these two giants "would make the current ticke situation even worse for the fan than it is now" due to the increased monopoly power of the newl created Live Nation Entertainment He was right: concert tickets have gotten more expensive every year while Live Nation s profits h steadily increased. In part, the higher prices have come about through a proliferation of fees: ser fees, processing fees, facility fees, etc. A General Accounting Office study found that fees now account for 27 percent of a ticket's price and nearly 50 percent of Ticketmaster's profits. As Congressman Bll Pascrell of New Jersey observed, "coveted ticketed events are more expensiv harder to obtain, and larded with hidden fees. The U.S. Justice Department sued Live Nation in January 2020. accusing it of strong-arming concert venues to hire Ticketmaster as their sole distributor Source: Media reports, April 2018-March 2020. If Live Nation sold 500 million concert tickets in 2019 at an average price of $96 Instructions: Round your responses to the nearest whole number. a. How much total revenue did the company take in? %24 billion
The world's largest concert promoter, Live Nation, acquired the world's largest ticket distributor, Ticketmaster in 2010. creating a virtual monopoly on concert production and ticket sales Bruce Springsteen warned back then that the merger of these two giants "would make the current ticke situation even worse for the fan than it is now" due to the increased monopoly power of the newl created Live Nation Entertainment He was right: concert tickets have gotten more expensive every year while Live Nation s profits h steadily increased. In part, the higher prices have come about through a proliferation of fees: ser fees, processing fees, facility fees, etc. A General Accounting Office study found that fees now account for 27 percent of a ticket's price and nearly 50 percent of Ticketmaster's profits. As Congressman Bll Pascrell of New Jersey observed, "coveted ticketed events are more expensiv harder to obtain, and larded with hidden fees. The U.S. Justice Department sued Live Nation in January 2020. accusing it of strong-arming concert venues to hire Ticketmaster as their sole distributor Source: Media reports, April 2018-March 2020. If Live Nation sold 500 million concert tickets in 2019 at an average price of $96 Instructions: Round your responses to the nearest whole number. a. How much total revenue did the company take in? %24 billion
Chapter1: Making Economics Decisions
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Transcribed Image Text:Live Nation Drives Up Ticket Prices
The world's largest concert promoter, Live Nation, acquired the world's largest ticket distributor,
Ticketmaster in 2010. creating a virtual monopoly on concert production and ticket sales Bruce
Springsteen warned back then that the merger of these two giants "would make the current ticket
situation even worse for the fan than it is now due to the increased monopoly power of the newly-
created Live Nation Entertainment
He was right: concert tickets have gotten more expensive every year while Live Nation's profits ha
steadily increased. In part, the higher prices have come about through a proliferation of fees: servi
fees, processing fees, facility fees, etc. A General Accounting Office study found that fees now
account for 27 percent of a ticket's price and nearly 50 percent of Ticketmaster's profits. As
Congressman Bill Pascrell of New Jersey observed, "coveted ticketed events are more expensive,
harder to obtain, and larded with hidden fees.
The U.S. Justice Department sued Live Nation in January 2020, accusing it of strong-arming
concert venues to hire Ticketmaster as their sole distributor
Source: Media reports, April 2018-March 2020.
If Live Nation sold 500 million concert tickets in 2019 at an average price of $96,
Instructions: Round your responses to the nearest whole number
a. How much total revenue did the company take in?
billion
b. How much of this revenue came from fees?
billion
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