The way that fans interact with music has changed drastically in the decade, moving them away from getting them to form long lines at venues to buy tickets to concerts to doing so now online, at home, alone, instantly, and with a click of a mouse. This also has meant that live performances sell out in mere minutes, whether they are music festivals like Coachella or Adele’s upcoming tour. The frenzy of camping out for shows has become antiquated. But has this technology-based change also given undue competitive advantage to big promoters with major name recognition? That has been a gripe of smaller players in the market, and it has become a more pressing issue to many as live concerts have become an ever more lucrative, central part of a music industry riven by streaming, recorded, published and performed ways of product distribution.
The complaint chorus rose to a crescendo about Live Nation, one of the leading companies promoting, orchestrating, organizing, and booking artists for concerts. A federal district judge had dismissed on summary judgment an anti-trust challenge to Live Nation; appellate judges recently affirmed that ruling. The courts have found that the company’s size was neither inherently good nor bad but that plaintiff It’s My Part Inc. (IMP) had provided insufficient proof that its anti-trust claim could succeed.
The appellate opinion noted that IMP set up the case akin to a “David-and-Goliath battle between an industry behemoth and its regional challenger.” That wasn’t an apt analogy, said U.S. District Judge Harvie Wilkinson III, who wrote on behalf of the U.S. Court of Appeals for the Fourth Circuit. Weighing in on a key issue — whether the corporate giant illegally coerced bands to perform at its select venues — he wrote that “[j]ust as big is not necessarily bad, small it not necessarily weak.” He and his colleagues sided with the music industry Goliath not David. (more…)