In summary
Bruno Mars tickets running for $2,000 and ones for SZA costing $600 caught California lawmakers’ attention. They’re advancing two bills targeting the resale market.
Earlier this year, tickets to see SZA perform at the Crypto Arena in Los Angeles were selling for $600 the day before they officially went on sale at $35 a piece. In San Francisco, tickets to see Sam Smith at the newly renovated Castro Theater went on sale for $120, only to be quickly snatched up by scalpers and resold for upwards of $600.
Those are some of the stories that California lawmakers are citing as they advance two plans to change the ticketing landscape. One caps the extent to which resellers can mark up the original ticket price while the other prohibits resellers from selling tickets they don’t yet own.
Democratic Assemblymembers Issac Bryan of Culver City and Democratic Matt Haney of San Francisco are each carrying bills that they say would protect consumers from fraudulent and deceptive ticket sales.
Both measures are backed by the ticket market’s dominant seller, Live Nation, which owns Ticketmaster. Its support has some worried that the bills will help the company crush its competitors and jack up prices. A federal jury in New York this week found that the company illegally acted as a monopoly in a victory for, among others, California Attorney General Rob Bonta, who with colleagues in other states sued the company two years ago and kept going after federal prosecutors settled. Live Nation is now awaiting penalties.
Despite these headwinds, the ticket bills are sailing through the Legislature.
Supporters say the legislation has nothing to do with the antitrust case against Live Nation and helps consumers. Opponents disagree.
“The state Legislature should really be standing up for consumers instead of advancing bills that are there to help a monopoly that has been caught on record calling its fans stupid and has bragged about robbing them blind,” said Jose Barrera, national vice president for the far west region at the League of United Latin American Citizens, a civil rights advocacy group.
Ticketmaster’s competitors in the online resale market are lobbying against the measures, a sign that they view the proposals as a threat to their business.
Jack Sterne, StubHub’s head of policy communications, wrote to CalMatters, stating, “Passing laws that hand the Ticketmaster monopoly more power and don’t actually make tickets more affordable is the last thing California’s leaders should do.”
But Stephen Parker, executive director of the National Independent Venue Association, which is co-sponsoring the bills, argues that they will regulate the marketplace to better protect fans by limiting price gouging and encouraging the face value — or below face value — exchange of tickets.
“Ultimately, that is what these bills will do, in addition to making sure that the tickets are actually real,” he said. “That is a good thing for California consumers. It’s a good thing for artists and it’s a good thing for these small businesses and nonprofits that make up the independent stages across the state.”
A Live Nation spokesperson said in a statement to CalMatters, “The resale lobby constantly tries to change the subject by pointing fingers at Ticketmaster, even though it has less than 25% of the resale market. This has nothing to do with anyone’s monopoly, but rather is about protecting fans from scalpers and the resale sites that cater to them.”
The company has spent roughly $165,000 on lobbying efforts this legislative session, including to support Bryan’s bill.
‘Unlikely allies’
Bryan’s Assembly Bill 1349 would ban the sale of speculative tickets — or tickets that are not in the possession or ownership of the people who list them online. In an April hearing, Bryan said the bill protects consumers from predatory mark ups.
“This bill is so important that, after our introduction, it brought unlikely allies together,” Bryan said, according to the CalMatters Digital Democracy database. “In fact, this bill brought the Giants and the Dodgers together, brought the National Independent Venue Association and Live Nation together. It brought Kendrick Lamar and Kid Rock together. It brought Isaac Bryan and Donald Trump together.”
Several secondary ticket sellers are fighting the measure, including StubHub, SeatGeek and Vivid Seats. The three companies have spent roughly $1.1 million dollars on lobbying efforts this legislative session, which included opposition to Bryan’s bill.
Opponents including Robert Herrell, executive director for the Consumer Federation of California, argue that the bill strengthens Live Nation Ticketmaster’s grip on the ticketing and live entertainment industry. According to them, the measure would give Live Nation complete control over the ticket even after it has been purchased — meaning, for example, that consumers could lose the ability to sell it or give it away.
“There’s no consumer choice in the matter,” said Herrell. “They can keep people out of shows if they want to. There have been situations where, if you bought a ticket on the secondary market, you’ve been denied entry into a show.”
Proponents say Herrell and other opponents are mistaken. They say they are not trying to prevent transferability but rather, they want to protect fans from speculative costs.
“We want those rooms full,” said Ron Gubitz, executive director of Music Artists Coalition, which is co-sponsoring both bills. “So you have to be able to transfer a ticket. We just want it to be in a way that’s safe, trustworthy and not creating this run on the market that exists now.”
Gubitz pointed to a recent Bruno Mars concert, where tickets were on StubHub for $400 to $2,000 before they were on sale through Ticketmaster.
“That’s crazy,” he said. “That’s a speculative ticket that Bryan’s bill is trying to stop. That shouldn’t happen. It’s not fair to anybody, except for the secondary (market). It seems great for them.”
Price caps in a free market
Haney’s Assembly Bill 1720, also known as the California Fans First Act, would put a 10% cap on resale event ticket markups, inclusive of the ticket fees. In other words, a reseller could not charge more than 10% higher than the original ticket price.
In an interview with CalMatters, Haney said artists, independent venues and downtowns are currently being “screwed over and exploited” by scalpers and brokers.
“We can’t allow the status quo to continue if we want to ensure Californians have access to affordable tickets to see their favorite artists or if we want independent venues or the broader landscape of musicians and artists to thrive in our state,” he said.
Learn more about legislators mentioned in this story.
Haney rejected the idea that his bill would strengthen the Live Nation Ticketmaster monopoly, saying that the company is one of the biggest operators and profiteers of the secondary ticket market and would therefore be subject to the same restrictions as any other platform or broker.
“I don’t think it’s a free market to allow folks to come in and buy up all these tickets and then create scarcity and then you’re now required to buy your ticket at a much higher price from someone who had nothing to do with the event,” he said. “This is not something we would ever allow for airplane tickets or even dinner reservations.”
The bill has been criticized by opponents like Diana Moss, vice president and director of competition policy at Progressive Policy Institute, who said price caps notoriously distort the market, describing them as “anti-consumer, anti-competitive and anti-artist.”
“If you shut down the resale market with price caps then guess what? Ticket buyers have no place to go but right back to Ticketmaster,” said Moss. “If (Live Nation) succeed(s) in decimating the resale market, then they steer millions and millions of fans back to their own ticketing platform where they charge monopoly ticket fees and where fans are hostage to their glitchy online platform and all of their data, privacy and security concerns that we always hear about in the news.”
Those concerns didn’t stop the bill from passing out of the Assembly Committee on Arts, Entertainment, Sports and Tourism last week with a 6-1 vote. The bill also passed out of the Assembly Committee on Privacy & Consumer Protection on Thursday with a 9-4 vote.
Cayla Mihalovich is a California Local News fellow.
via CalMatters https://ift.tt/bQgBF2s
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