Ticketmaster

live-nation-director-boasted-of-gouging-ticket-buyers,-“robbing-them-blind”

Live Nation director boasted of gouging ticket buyers, “robbing them blind”


Unsealed messages add wrinkle to trial after US agreed to settle with Live Nation.

Credit: Getty Images | Bloomberg

Newly unsealed documents show that a Live Nation regional director boasted of gouging ticket buyers and “robbing them blind” with fees for ancillary services such as slight upgrades to parking.

Live Nation has tried to exclude Slack messages from a trial that seeks a breakup of Live Nation and its Ticketmaster subsidiary, claiming the messages are irrelevant to the case, “highly prejudicial,” and would “inflame the jury.” The US government and state attorneys general opposed the motion to exclude evidence. US District Judge Arun Subramanian of the Southern District of New York hasn’t ruled on the motion yet, but ordered the documents unsealed yesterday.

Live Nation has touted the experiences it offers concertgoers at amphitheaters but sought “to exclude candid, internal messages in which the individual who is currently Head of Ticketing for these amphitheaters calls fans ‘so stupid,’ explains that he ‘gouge[s]’ them, and brags that Live Nation is ‘robbing them blind, baby,’” said a memorandum of law filed by the US and states.

The messages were “sent between Live Nation employees Ben Baker and Jeff Weinhold on the workplace collaboration tool known as Slack,” the memorandum said. The “robbing them blind” message was sent by Baker.

“As of 2022 (when most of the messages were sent), Mr. Baker was a regional Director of Ticketing for venues including Live Nation’s MidFlorida Credit Union Amphitheatre (a major concert venue),” the brief said. “Mr. Weinhold was also a regional Director of Ticketing for venues including Jiffy Lube Live (another major concert venue). Mr. Baker is now Head of Ticketing for Venue Nation (the component of Live Nation responsible for operating its amphitheaters), and Mr. Weinhold is a Senior Director of Ticketing for Live Nation’s Capital Region.”

US settlement throws trial into doubt

The brief said that “Live Nation’s excessive prices for ancillary services,” like those boasted of in the internal messages, “are directly relevant to Plaintiffs’ claims” regarding how “Live Nation monetizes its monopoly position in the amphitheater market.”

The trial itself could be halted and restarted at a later date because the Trump administration decided to settle with Live Nation and Ticketmaster. The US and states filed their motion to exclude the evidence on March 8, the same day that the US and Live Nation informed the court of a proposed settlement.

The US/Live Nation settlement blindsided state attorneys general, who have said they intend to take over the lead role in litigating the case. State AGs criticized the settlement terms and asked for a mistrial to give them time to prepare for a new trial. The judge reportedly urged the state AGs and Live Nation to hold settlement talks and to be prepared to continue the trial next week if they don’t reach a settlement.

The exhibits that Live Nation wanted to exclude were posted on the court docket yesterday. “I charge $50 to park in the grass lmao,” said a 2022 message from Baker. “I charge $60 for closer grass.”

Baker wrote, “parking alone I did almost $200K more than 2019…with LESS shows.” He shared an image that showed an increase in premier parking revenue from $499,415 in 2019 to $666,230 in 2021 and added, “robbing them blind baby… that’s how we do.” Weinhold replied, “lol.”

“I gouge them on ancil prices”

Baker complained that a Dead & Company cancellation prevented him from taking second place in a sales competition. “Gimme a plaque dammit,” he wrote. In a discussion about ticket prices and promotions, Baker wrote, “I gouge them on ancil prices to make up for it.”

Weinhold wrote in another chat, “I have VIP parking up to $250 lol.” Baker replied, “I almost feel bad taking advantage of them.” Weinhold then mentioned that he raised club prices to $125 and Baker replied, “I wonder if I can get $225.”

Live Nation said the messages aren’t reflective of the company’s general operations. “The Slack exchange from one junior staffer to a friend absolutely doesn’t reflect our values or how we operate,” Live Nation said in a statement provided to Ars today. “Because this was a private Slack message, leadership learned of this when the public did, and will be looking into the matter promptly. Our business only works when fans have great experiences, which is why we’ve capped amphitheater venue fees at 15 percent and have invested $1 billion in the last 18 months into US venues and fan amenities.”

The US and states said Live Nation is downplaying Baker’s position at the company. “Defendants’ brief fails to mention this individual has since been promoted and now serves as Head of Ticketing for Venue Nation, with responsibilities relating to all of Live Nation’s venues,” the plaintiffs’ brief said.

Live Nation said in a March 8 filing that the messages aren’t relevant to the trial because they concerned fees for things like VIP club access, premier parking, or lawn chair rentals. “These products are not primary concert tickets, are sold separately from tickets, and are not part of the ticketing services markets at issue in this trial; they bear no relevance to the parties’ claims and defenses,” Live Nation told the court.

Live Nation: Messages could “inflame the jury”

Live Nation said the only purpose of using the exhibits as evidence “is to portray Defendants in an unflattering light and inflame the jury against Defendants,” and that the exhibits “would confuse and mislead the jury, invite decision-making on an improper emotional basis, and cause unfair prejudice to Defendants.” The company also asked the court to bar plaintiffs “from questioning Ben Baker or any other witness about the substance of these Exhibits or about similar communications concerning ancillary, fan-facing products and services not encompassed by the markets and claims proceeding to trial.”

The brief from US and states said the messages about ancillary fees are highly relevant. The brief said the ancillaries “include facilities fees that Live Nation imposes on fans as part of the ticket price, portions of service fees that Live Nation imposes on fans in addition to the ticket price, and Live Nation’s sale of ‘onsite’ services, such as upgraded parking and access to the VIP lounge.”

The brief said that Live Nation boasted in its latest annual report that ancillary revenue was over $45 per fan for the year, and that “Live Nation CEO Michael Rapino has cited ‘onsite’ ancillary sales [as] a ‘high margin business’ enabled by Live Nation’s scale.”

Live Nation’s argument that ancillary services are irrelevant to trial questions about concert tickets “completely misses the point,” the plaintiffs said. “The fact that Live Nation uses the high-margin ancillary business to monetize the amphitheater monopoly at issue in this case is sufficient on its own to demonstrate relevance. Second, Live Nation is able to degrade the fan experience by charging excessive prices for ancillary services without fear of artists switching away, which demonstrates its monopoly power in the amphitheater market.”

Urging the judge to allow the chats as evidence, the brief said the messages “provide important context and insight to the jury of how Defendants in fact operate their businesses, potentially contrary to the testimony the witness may provide in the courtroom.”

Photo of Jon Brodkin

Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry.

Live Nation director boasted of gouging ticket buyers, “robbing them blind” Read More »

us-blindsides-states-with-surprise-settlement-in-live-nation/ticketmaster-trial

US blindsides states with surprise settlement in Live Nation/Ticketmaster trial

State attorneys general were “kept in the dark and excluded materially from settlement discussions” while they prepared for trial, the filing said. On March 5, the states were “notified of the near-final terms of the settlement at 4 P.M.” and given one day to determine whether to accept or reject them,” the filing said.

States to take over lead role at trial

The US was taking the lead role in the case before the settlement was announced. In addition to seeking a mistrial, the states asked the court to stay the proceedings to give them time “to fully prepare to assume the lead role at trial and explore settlement.”

The states “have had no opportunity to obtain and reallocate the resources necessary to try the case on their own or to meaningfully discuss the settlement with Defendants and attempt to negotiate the terms,” the filing said. “Moreover, despite the primary role that DOJ has played before the jury, the United States (and several additional individual Plaintiff States) will now vanish from the trial… Due to the substantial prejudice caused by this settlement and DOJ’s abrupt exit after taking the lead role up to and during the first week of trial, a mistrial is warranted.”

New York took the lead role in the states’ filing today. “The settlement recently announced with the US Department of Justice fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers. We cannot agree to it,” New York Attorney General Letitia James said today. “My attorney general colleagues and I have a strong case against Live Nation, and we will continue our lawsuit to protect consumers and restore fair competition to the live entertainment industry.”

Most of the states that backed the filing have Democratic attorneys general. But the group is bipartisan with Republican attorneys general from Kansas, New Hampshire, Ohio, Pennsylvania, Tennessee, Utah, and Wyoming.

Other states involved in the lawsuit either decided to join the US settlement or have not yet taken a position. States agreeing to the settlement are Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina, and South Dakota, the filing said. The other states involved in the lawsuit are Florida, Indiana, Louisiana, Texas, and West Virginia.

This article was updated with a statement from Live Nation.

US blindsides states with surprise settlement in Live Nation/Ticketmaster trial Read More »

“yikes”:-internal-emails-reveal-ticketmaster-helped-scalpers-jack-up-prices

“Yikes”: Internal emails reveal Ticketmaster helped scalpers jack up prices

Through those years, employees occasionally flagged abuse behavior that Ticketmaster and Live Nation were financially motivated to ignore, the FTC alleged. In 2018, one Ticketmaster engineer tried to advocate for customers, telling an executive in an email that fans can’t tell the difference between Ticketmaster-supported brokers—which make up the majority of its resale market—and scalpers accused of “abuse.”

“We have a guy that hires 1,000 college kids to each buy the ticket limit of 8, giving him 8,000 tickets to resell,” the engineer explained. “Then we have a guy who creates 1,000 ‘fake’ accounts and uses each [to] buy the ticket limit of 8, giving him 8,000 tickets to resell. We say the former is legit and call him a ‘broker’ while the latter is breaking the rules and is a ‘scalper.’ But from the fan perspective, we end up with one guy reselling 8,000 tickets!”

And even when Ticketmaster flagged brokers as bad actors, the FTC alleged the company declined to enforce its rules to crack down if losing resale fees could hurt Ticketmaster’s bottom line.

“Yikes,” said a Ticketmaster employee in 2019 after noticing that a broker previously flagged for “violating fictitious account rules on a “large scale” was “still not slowing down.”

But that warning, like others, was ignored by management, the FTC alleged. Leadership repeatedly declined to impose any tools “to prevent brokers from bypassing posted ticket limits,” the FTC claimed, after analysis showed Ticketmaster risked losing nearly $220 million in annual resale ticket revenue and $26 million in annual operating income. In fact, executives were more alarmed, the FTC alleged, when brokers complained about high-volume purchases being blocked, “intentionally” working to support their efforts to significantly raise secondary market ticket prices.

On top of earning billions from fees, Ticketmaster can also profit when it “unilaterally” decides to “increase the price of tickets on their secondary market.” From 2019 to 2024, Ticketmaster “collected over $187 million in markups they added to resale tickets,” the FTC alleged.

Under the scheme, Ticketmaster can seemingly pull the strings, allowing brokers to buy up tickets on the primary market, then help to dramatically increase those prices on the secondary market, while collecting additional fees. One broker flagged by the FTC bought 772 tickets to a Coldplay concert, reselling $81,000 in tickets for $170,000. Another broker snatched up 612 tickets for $47,000 to a single Chris Stapleton concert, also nearly doubling their investment on the resale market. Meanwhile, artists, of course, do not see any of these profits.

“Yikes”: Internal emails reveal Ticketmaster helped scalpers jack up prices Read More »

how-shinyhunters-hackers-allegedly-pilfered-ticketmaster-data-from-snowflake

How ShinyHunters hackers allegedly pilfered Ticketmaster data from Snowflake

Lifting the curtain —

Start with a third-party contractor and go from there.

Ticketmaster logo

Hackers who stole terabytes of data from Ticketmaster and other customers of the cloud storage firm Snowflake claim they obtained access to some of the Snowflake accounts by first breaching a Belarusian-founded contractor that works with those customers.

About 165 customer accounts were potentially affected in the recent hacking campaign targeting Snowflake’s customers, but only a few of these have been identified so far. In addition to Ticketmaster, the banking firm Santander has also acknowledged that their data was stolen but declined to identify the account from which it was stolen. Wired, however, has independently confirmed that it was a Snowflake account; the stolen data included bank account details for 30 million customers, including 6 million account numbers and balances, 28 million credit card numbers, and human resources information about staff, according to a post published by the hackers. Lending Tree and Advance Auto Parts have also said they might be victims as well.

Snowflake has not revealed details about how the hackers accessed the accounts, saying only that the intruders did not directly breach Snowflake’s network. This week, Google-owned security firm Mandiant, one of the companies engaged by Snowflake to investigate the breaches, revealed in a blog post that in some cases the hackers first obtained access through third-party contractors, without identifying the contractors or stating how this access aided the hackers in breaching the Snowflake accounts.

But according to one of the hackers who spoke with WIRED through a text chat, one of those firms was EPAM Systems, a publicly traded software engineering and digital services firm, founded by Belarus-born Arkadiy Dobkin, with current revenue of around $4.8 billion. The hacker says his group, which calls themselves ShinyHunters, used data found on an EPAM employee system to gain access to some of the Snowflake accounts.

EPAM told WIRED that it does not believe that it played a role in the breaches and suggested the hacker had fabricated the tale. ShinyHunters has been around since 2020 and has been responsible for numerous breaches since then that involve stealing large troves of data and leaking or selling it online.

Snowflake is a large data storage and analysis firm that provides tools for companies to derive intelligence and insight from customer data. EPAM develops software and provides various managed services for customers worldwide, primarily in North America, Europe, Asia, and Australia, according to its web site, with about 60 percent of its revenue coming from customers in North America. Among the services EPAM provides customers is assistance with using and managing their Snowflake accounts to store and analyze their data. EPAM claims it has some 300 workers who are experienced in using Snowflake’s data analytics tools and services, and announced in 2022 that it had attained “Elite Tier Partner” status with Snowflake to leverage the latter’s analytics platform for its customers.

EPAM’s founder emigrated from Belarus to the US in the ’90s before founding his company in 1993 from his New Jersey apartment. Nearly two-thirds of EPAM’s 55,000 employees resided in Ukraine, Belarus, and Russia until Russia invaded Ukraine, at which point the company says it closed its Russia operationsand moved some of its Ukrainian workers to locations outside of that country.

The hacker who spoke with WIRED says that a computer belonging to one of EPAM’s employees in Ukraine was infected with info-stealer malware through a spear-phishing attack. It’s unclear if someone from ShinyHunters conducted this initial breach or just purchased access to the infected system from someone else who hacked the worker and installed the infostealer. The hacker says that once on the EPAM worker’s system, they installed a remote-access Trojan, giving them complete access to everything on the worker’s computer.

Using this access, they say, they found unencrypted usernames and passwords that the worker used to access and manage EPAM customers’ Snowflake accounts, including an account for Ticketmaster. The hacker says the credentials were stored on the worker’s machine in a project management tool called Jira. The hackers were able to use those credentials, they say, to access the Snowflake accounts because the Snowflake accounts didn’t require multifactor authentication (MFA) to access them. (MFA requires that users type in a one-time temporary code in addition to a username and password, making accounts that use MFA more secure.)

While EPAM denies it was involved in the breach, hackers did steal data from Snowflake accounts including Ticketmaster’s, and have extorted the owners of the data by demanding hundreds of thousands, and in some cases more than a million, dollars to destroy the data or risk having the hackers sell it elsewhere.

How ShinyHunters hackers allegedly pilfered Ticketmaster data from Snowflake Read More »