In the cheap seats
Ticketmaster disaster
Good morning my spring chickens. This is your Stock Market Rundown for June 26th, 2023.
TODAY’S TOP STORY: STICKY TICKET WICKET 🎫
Verizon. Equifax. Fox News. There are companies that people really, really hate. But there’s one company that has zero defenders. And that’s Ticketmaster.
Its only fans? Shareholders of the parent company, Live Nation Entertainment, which has had compound annual growth of 13% in the past decade, trouncing the overall S&P 500.
How’d such a loathed business enjoy such a surging stock price? By having a lock on the entire live music performance industry — from owning venues, to running concert tours for artists, to a monopoly on ticket sales.
This level of dominance has painted a target on Live Nation’s back. Everybody’s on the attack—especially moms and dads cringing at the cost for their tweens to see Taylor Swift. $838 for nosebleeds? I’m glad Jaden’s favourite band is Insane Clown Posse.
Fans’ biggest pet peeve is how hidden fees magically materialize on ticket prices. Responding to the federal “crackdown” on “junk fees”, Live Nation has agreed to display all-in prices upfront rather than giving us checkout sticker shock. The president bloviated that this would “bring down costs for working Americans”, but don’t get it twisted, Joe: tickets aren’t going to be any cheaper.
You’ll have better price transparency, but watching Beyonce do the Single Ladies dance live is still going to set you back an entire mortgage payment.
What most observers don’t realize is, it’s the artists who insist on the venue fees being broken out from the ticket price. Do you think T-Swizzle wants people assuming the entire ludicrous price tag goes to her, when she only gets a slice of the pie? She’d rather Live Nation take the brunt of fan rage. Understandable!
It’s the iron law of supply and demand: with millions clamouring for the biggest tours, tickets are never going to be as cheap as the demolition derby at the county fair (my personal preferred form of entertainment). That said, at a Tay Tay concert you’re much less likely to be hit in the head by stray muffler shrapnel.
SO WHAT ELSE IS GOING ON?
Two-thirds of US adults age 65 and older have money in stocks, versus half before the 2008 crisis. The rest are in a diversified portfolio of 60% Pokemon cards and 40% vintage comic books.
Um, ouch: two heavy-hitter pension funds voted against the re-election of Toyota’s CEO to the board. Rumor has it they also posted a clown emoji reaction on his last Facebook post.
Starbucks workers are going on strike because they’re not allowed to put up Pride flags in the store. This might be crazy talk, but maybe just put up Pride flags in your house instead?
Something called the “e-safety commissioner of Australia” has told Twitter that it has to comply with rules on “online hate” or face hundreds of thousands in fines per day. Reminds me of the nastygrams the neighbourhood Homeowners’ Association pops in my mailbox about my out-of-control rhododendron shrubs.
The builder of that sub that imploded thumbed his nose at certifying agencies before the disaster. Sure, everybody hates bureaucracy, but following the rules might’ve saved six lives, plus avoided the posthumous indignity of being dunked on by James Cameron.
Folks, that’s it for today, see you bright and early tomorrow. Yours in capitalism, The Axe