Shots Fired: Jam Takes Ticketmaster to Court | Bleader

Tuesday, November 2, 2010

Shots Fired: Jam Takes Ticketmaster to Court

Posted By on 11.02.10 at 05:34 PM

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Chicago's Jam Productions has a long and contentious history with concert-industry behemoth Live Nation, and Live Nation merged with Ticketmaster earlier this year. So it's not exactly surprising that Jam is suing Ticketmaster, which sells tickets to Jam concerts, in order to terminate its contract. The Live Nation-Ticketmaster merger represents a massive shift of power in the live-music business, combining the largest promoter in the country with the company that's dominated the ticketing industry for years. In the process of persuading the U.S. Department of Justice to approve the merger, Live Nation promised that the combined entity would maintain an internal firewall to keep Ticketmaster data regarding rival promoters' ticket sales away from Live Nation employees who could use it to undercut their competitors. Critics of the merger find the notion of Live Nation actually turning down such a huge potential competitive advantage laughable. The contract with Ticketmaster that Jam wants to break was signed in 2006 and isn't supposed to expire until late next year. Jam's argument, roughly, is that some of the money Ticketmaster makes from this deal with Jam surely benefits parent company Live Nation, Jam's biggest competitor, and this was not so when the deal was done in 2006; therefore Jam has the right to get out. Look for some big-time music-biz drama to develop from this case.

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