The People vs. Ticketmaster

I've been busy. Here's the latest.

You haven’t heard from me in a month.

Why?

Because this is a great job, but it’s all-consuming.

We’re the state’s largest law firm, handling hundreds of criminal and civil cases at any given moment.

We also run the three largest crime labs in the state, full of forensic scientists doing all kinds of work, including testing firearm ballistics, DNA evidence, and drug chemistry.

And we do a huge amount of law enforcement training at two major facilities that are always very busy.

I wanted to get to each of our facilities as quickly as possible, and now I’ve done that.

The impression I’m left with is that this entire organization is filled with mission-driven people. I’ve been in the military for a long time, and mission-driven people are a different breed. Their motivation is internal, and it doesn’t quit. They’re drawn toward teams, because working as a team is how you accomplish a mission. And when a team full of mission-driven people feels pressure, it pushes them together instead of pulling them apart.

It’s incredibly motivating to lead an organization filled with people like that. I knew their reputation before I arrived, but now seeing it up close, it’s just outstanding.

The People vs. Ticketmaster/Live Nation

I’m forcing myself to only pick one case to go into detail about - but it’s a great one.

Let’s say you want to make a bunch of money by supplying live entertainment, primarily the music industry.

Well, the three big pieces in that business are:

• The venue

• The right to promote the event

• The right to sell the tickets

Now imagine you control each of those. You own venues, and you promote the events, and you sell the tickets.

Congratulations - you’re a monopoly.

You’ve achieved vertical integration within your business, which means the sum of those parts has unlocked the ability to gouge customers with the confidence that they won’t be able to find a competitor to offer them a better deal. And using your monopoly to further entrench your power to charge customers higher prices is against the law.

This is exactly what I, along with a bipartisan group of AGs, allege that Ticketmaster/Live Nation has done.

They've turned concert ticket fees into something fans call the “Ticketmaster Tax.” These are the “convenience fees,” “processing fees,” and “handling fees” that add up quickly, inflating ticket prices by huge margins.

Why can they get away with it? Because they've locked venues into exclusive contracts, squeezing out any chance of competition.

But it gets worse. If venues try to resist and explore other options, Live Nation retaliates by threatening to strip venues of popular acts. The internal emails from Live Nation executives detailed in our lawsuit are explicit and awful.

Which means, if you’re an independent venue that doesn't use Ticketmaster, good luck booking artists. Ticketmaster controls ticket sales and Live Nation controls promotion, so artists who are promoted by Live Nation typically won't be allowed to perform at venues that refuse to use Ticketmaster for ticketing.

This is textbook unlawful monopoly behavior. Consumers are paying higher prices and artists and venues are suffering from reduced competition and income.

The good news is that Live Nation just tried - but failed - to get our lawsuit dismissed. That’s a big step toward accountability, including our ultimate request that Live Nation be required to divest Ticketmaster, which it acquired in 2011 and which became the linchpin for much of their monopolistic behavior.

One-sentence roundup

Just to quickly cover some other important issues, I also:

• Visited Western North Carolina to find ways our office can assist with rebuilding efforts, and we'll roll that out next week.

• Coordinated with the NC Turnpike Authority to tackle the toll road text message scam affecting people statewide (more to come - and please warn your friends not to fall for texts demanding payment for fake missed toll fees!).

• Responded quickly to 23andMe's bankruptcy announcement, urging users to delete their genetic data before it’s sold - and we've drafted legislation to strengthen your control over your genetic information.

• Joined a lawsuit to prevent nearly quarter of a billion dollars in health care funding to North Carolina from being unlawfully cut, which would hurt 77 of 86 local health departments.

• Led the first fentanyl task force meeting of the year, bringing together state, federal, and local law enforcement to align resources and strategies for a stronger response.

• Met with Chief Penn of Winston-Salem Police Department to explore their real-time crime center - the most advanced in the state - which has significantly reduced response times and strengthened public safety.

• Launched a new initiative providing real-time support to District Attorneys statewide for major criminal cases.

• Spent considerable time at the state legislature, meeting lawmakers individually to discuss our priorities and address their concerns.

• Consulted with the State Bureau of Investigation on strategies to combat money laundering linked to fentanyl trafficking (more details soon).

• Met sheriffs from across the state to discuss criminal trends and address local issues unique to their regions.

• Delivered the inaugural keynote for Wake Forest Law School’s lecture on Character and Leadership in the law - an honor and a genuine pleasure.

Snapshots

With Chief Penn at Winston-Salem’s real-time crime center. Photo: Allison Lee Isley

Best,

Jeff Jackson