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Ticketmaster Sues N2K, Alleging Breach of Contract Over 2-Year Deal

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Los Angeles-based Ticketmaster has sued online music retailer N2K Inc. for alleged breach of contract, the company said Wednesday.

New York-based N2K, which is in the process of merging with competitor CDnow Inc., in April signed a $12-million, two-year deal to be the exclusive online music retailer for Ticketmaster, which was to promote N2K’s Music Boulevard using its own Web site, as well as through telemarketing; advertisements on the backs of tickets and on ticket envelopes; music heard over the phone while on hold; and other Ticketmaster media.

On Monday, according to the lawsuit filed in Los Angeles County Superior Court, N2K formally notified Ticketmaster that it did not intend to honor the agreement, defaulting on a $3-million payment due to Ticketmaster at the beginning of the month.

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Officials at Ticketmaster, a subsidiary of USA Networks Inc., declined to comment, and N2K officials could not be reached.

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