Ticketmaster and Live Nation need to merge for their bottom lines, not to screw you.

Let me tell you how this works.  TM has been spun off from IAC, its stock stands (or falls) on its own.  What’s going to make the stock go up?

Is TM suddenly going to sell many more tickets?  Is America gonna wake up and start going to twice as many events?  No.  Which is why TM bought Irving Azoff’s Front Line management company.  
To gain another revenue stream, with potential upside.

Why did Irving merge with Ticketmaster?  For the money!

Did Bob Sillerman roll up concert promoters because he loved the live music business?  Of course not.  He did it for the money.  Bob’s such a great salesman, he laid the whole thing off on Clear Channel, claiming some kind of synergy.  And after running away with his cash, Clear Channel wrote off billions and then spun off Live Nation as a separate company.

But there’s only one problem.  Live Nation’s upside is limited.  Because the acts get all the money from live shows.  As the "Wall Street Journal" so eloquently put it, Live Nation is "a river of nickels".

So how is Live Nation going to increase its bottom line?

By selling merch, by utilizing the artist to create new revenue streams.  But there’s a problem.  Almost none of the artists will cough up these streams, so Live Nation’s stock can’t grow.

But suddenly, Ticketmaster has all the acts, with Front Line. Suddenly, the impediment is gone.  If they’re all working under the same roof…

Furthermore, as bad as the financials might be, by merging the two companies you end up with an unknown quantity that you can hype to Wall Street.  Will the stock go up and stay up?  Unclear.  But one thing’s for sure, it can’t be much worse for these two companies than it is now.

And you’re sitting there at home, bitching about ticket add-ons.

Like Deep Throat said, FOLLOW THE MONEY!

The money is generated by the acts.  And if Live Nation won’t pay the acts, then AEG or JAM or IMP will.  So, there’s no downward pressure.  The acts rule.

But the acts don’t want to APPEAR greedy, so they utilize Ticketmaster to generate more dollars.  By adding fees, that are kicked back to themselves, or starving concert promoters, or utilizing TicketExchange/platinum packages to in essence scalp their own tickets. Because, you see, the acts are greedy, they want more money!  But they don’t want you to know this…

The ticket brokers are up in arms, knowing that the acts and Ticketmaster want to squeeze them out, getting all that revenue for themselves, utilizing paperless ticketing amongst other techniques.  So what do the ticket brokers do?  They start a Website, http://ticketdisaster.org/, imploring you to block the TM/LN merger.  Why?  So you can buy overpriced tickets from them!

But you are angry.  Because ticketing is a disaster.

Mainly because the acts are afraid to tell you the truth, that they’re breadheads.  They take the money from AmEx for pre-sales, they form fan clubs so theoretically you can get good seats, even though you’re paying extra for this privilege.

You want transparency.

Then again, do you?  Do you really want to pay $1500 for a front row seat, or would you rather bitch that you can’t get the same seat for $15, because you’re a fan?

Will the TM/LN merger be successful?

Wow, who knows?

Maybe it’s like the Telecommunications Act of 1996.  Allowing radio chains to merge, ruining terrestrial radio.  Driving sales of iPods, satellite, Pandora and Slacker.  If TM/LN really ends up being that bad, do you expect it to survive?

As for ticketing, you can bet that there will be concessions allowing others to enter the sphere in order for the merger to be approved.  If they can do it better than TM/LN, they’ll get traction.  If not?

Citadel Broadcasting went bankrupt.  Clear Channel is tottering.  Maybe you let TM and LN merge and they’re so inept that the way is paved for the future!

The loser in a merger?  The major labels.  Suddenly, they’re barely necessary.  You’ve got a manager, with relationships with the tour promoter, you can license your music yourself, do you need a major label?  The same labels who insist on a piece of 360 degrees of revenue, taking so much money for doing so little poorly?

Please stop complaining about this merger with the knee-jerk position that you just can’t get a good seat, right down front, for under fifty bucks, to see a superstar.  Can you buy a brand new BMW for ten grand?  Is an iPhone free?  Wake up and see that it’s business.  All about the money.  And if you want change, you’ve got to dig down a hell of a lot deeper than the merger of two companies that show little growth individually.

But one thing’s for sure.  If you create something of value, that everybody wants, the doors are open for you.  Yup, every label, concert promoter and manager wants to make a deal with a hit act.  If you’re talented enough, and business prospects are good, you can even dictate the terms.  And when you become successful, are you going to let everybody in for free?  Or very little?  Are you willing to require ID to get in, to combat scalping, like NIN and Metallica?  Or would you rather use TM as a front to generate further riches.

Maybe, years ago, acts were willing to forgo the cash.

Then came Peter Grant and Led Zeppelin.

And what did the Eagles sing?  The doctor say he’s coming, but you gotta pay in cash?

Are you willing to sacrifice part of your salary for the common good?  Are you willing to pay more tax?  Seems most people aren’t.  Why do you expect the acts to be any different from you?