Live Nation falls after hours on news Pres. Trump is targeting live event ticketing

Key Concepts:

• Ticket Scalping: Reselling tickets at a price higher than the face value.
• Primary Ticket Sales: Tickets sold directly by the venue or authorized ticket seller (e.g., Ticketmaster).
• Secondary Ticket Market: Resale market for tickets (e.g., StubHub, Vivid Seats, SeatGeek).
• Dynamic Pricing: Adjusting ticket prices based on real-time demand.
• Executive Order: A directive issued by the President of the United States that manages operations of the federal government.
• IPO (Initial Public Offering): The first time a private company offers shares to the public.

Trump's Executive Order Targeting Ticket Scalping

The discussion begins with the announcement that former President Trump plans to sign an executive order targeting ticket scalping. The specific details of the executive order are not yet available.

StubHub's IPO Plans and Potential Impact

The announcement coincides with StubHub's revived plans to go public (IPO). The timing of the executive order is considered "unfortunate" for StubHub, given its business model relies heavily on the secondary ticket market.

Ticketmaster vs. StubHub: Business Model Differences

A key distinction is made between Ticketmaster and StubHub. Ticketmaster's sales are primarily (80%) in the primary market, meaning they sell tickets directly from the venue or artist. StubHub, Vivid Seats, and SeatGeek operate primarily in the secondary market, facilitating the resale of tickets. Therefore, the executive order is expected to impact the secondary market more significantly than Ticketmaster.

Dynamic Pricing and the Taylor Swift Controversy

The discussion touches on the issue of dynamic pricing, particularly in the context of Ticketmaster and the Taylor Swift concert ticket sales. Dynamic pricing allows ticket prices to fluctuate based on demand, potentially leading to significant price increases (e.g., from $200 to $900). The potential for the executive order to address dynamic pricing practices is raised.

Transparency and Public Perception

Ticketmaster is described as the "most transparent" among ticket sellers. The public generally dislikes high ticket prices, making the issue of ticket scalping a popular target for regulation.

Notable Quotes:

• "This is unfortunate timing for StubHub, but we've seen them fight this before and the businesses."
• "Ticketmaster is the most transparent."
• "80% of their sales are primary right. So this is really hurts the secondary."

Conclusion:

The potential executive order targeting ticket scalping presents a complex situation with varying impacts on different players in the ticket market. While the specific details of the order are unknown, it is expected to primarily affect secondary ticket marketplaces like StubHub. The discussion also highlights the controversial practice of dynamic pricing and its potential inclusion in the scope of the executive order. The timing of the announcement coinciding with StubHub's IPO plans adds another layer of complexity.