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On July 1, 2024, Tulipshare sent an investor letter to directors of both Live Nation and Ticketmaster requesting dialogue concerning Live Nation’s ticket pricing fee structure. As meaningful engagement from Live Nation has become stagnant, Tulipshare has determined that fellow investors of Live Nation should be granted access to review the letter and requests for information sent to Live Nation and Ticketmaster. Follow this page to stay informed on the progress of our engagement.

You can read Tulipshare’s letter here. 

Why It Matters:

The lack of transparency shrouding the current ticket pricing scheme can alienate fans who are priced out of attending their desired events and presents a risk to the company's long-term objectives. As a long-term shareholder, Tulipshare believes it is crucial for Live Nation to address these pricing issues, both from an ethical and a business perspective. 

Pricing issues not only alienate loyal customers but also present risks of legal and regulatory repercussions, which could detrimentally impact the company's financial performance and reputation.

A significant portion of Live Nation’s revenue consists of the fees associated with ticket sales. While ticketing fees are essential for covering operational costs, including venue management, event security, and marketing, there is a growing concern among investors and customers regarding the transparency of these fees. As a long-term investor, Tulipshare believes that enhancing transparency in this area can bring substantial benefits to the company and its shareholders.

That is why we have called upon Live Nation to disclose a clear, itemized breakdown of ticket fees and to commit to fair ticket pricing.

Live Nation and Ticketmaster have been accused not only of anticompetitive behavior but are also being examined as a possible monopoly, as Live Nation not only owns the world’s largest ticketing company but also promotes tours and festivals, owns venues, and has a major artist-management division. American Economic Liberties Project reports that Live Nation operates the majority (64%) of the top-grossing amphitheaters in the United States and Ticketmaster is the sole ticketing provider for 82% of amphitheaters. Thus, there is a lack of meaningful competition in venue operations and ticketing for concerts at US-based amphitheaters.

There is a growing executive and legislative focus on fees and related pricing practices. Senator Amy Klobuchar (D-MN), Chairwoman of the Subcommittee on Competition Policy, Antitrust, and Consumer Rights, penned a letter in 2022 to Live Nation’s CEO, Michael Rapino, expressing concerns over the company’s lack of competition in the music industry as “Live Nation and Ticketmaster dominate the live entertainment supply chain with powerful positions in primary ticketing, secondary ticketing, concert promotion, artist management, tour sponsorships, and event venue operation.” She also argued in the letter that “Ticketmaster’s power in the primary ticket market insulates it from the competitive pressures that typically push companies to innovate and improve their services” - ultimately meaning that despite “dramatic service failures,” “...consumers are the ones that pay the price.” Moreover, Senator Klobuchar wrote in another letter to CEO Rapino in October 2023 that Live Nation’s “all-in pricing filter” should be switched-on by default as it is “still too difficult” for users to turn on the filter that’s “buried within a tab that gives no indication that it contains” the option in the first place.

Further, in President Biden’s 2023 State of the Union Address, he specifically targeted the growing issue of hidden fees known as “junk fees” or “drip pricing,” and, in his State of the Union Address this year, he stated that “[t]oo many corporations raise their prices to pad their profits charging [consumers] more and more for less and less...” which is “...why [the Administration is] cracking down on corporations that engage in price gouging or deceptive pricing.” This clear executive focus on corporate pricing issues has forecasted the ripple effect that we now see in U.S. legislation. In efforts to protect consumers and foster fair competition, at least six states have introduced bills that target junk fees or drip pricing, while the FTC has proposed a regulation that would require businesses to include all of their fees in the original listed price.

With these proposed regulations and increased executive and legislative focus, Live Nation’s current ticket fee structure leaves the company exposed to a host of reputational, regulatory, and anticompetitive risks. As a long-term investor, Tulipshare is hopeful that Live Nation will be responsive to our concerns and request for a clear, itemized breakdown of ticket fees and commitment to fair ticket pricing.

We will continue to engage with the company on this issue and will keep you informed on the progress of our engagement. 

Condensed Engagement Timeline:

10/24/23- Initial engagement email sent to the company’s Investor Relations team

10/25/23- Senator Amy Klobuchar sent a letter to Live Nation’s CEO regarding all-in pricing

12/12/23- Follow-up check in email sent to the Investor Relations team

12/12/23- Company directed Tulipshare to information on all-in pricing and legislative proposals

1/22/24- Tulipshare follow up requesting further information

3/4/24- Live Nation releases statement “The Truth about Ticket Prices” saying “the narrative that Ticketmaster fees are responsible for high ticket prices makes no sense”

3/7/24- President Biden addresses junk fees by ticket sellers in his State of the Union Address

3/12/24- Follow-up check in email sent to the Investor Relations team

3/15/24- Live Nation provided information on Fair Ticketing Reforms and ticket fee economics

5/23/24- Live Nation sued by the Department of Justice over alleged monopoly

7/1/24- Tulipshare sent investor letter to directors of Live Nation and Tickemaster requesting dialogue