Ticketmaster is the largest ticket sales and distribution company in the United States, selling tickets for concerts, sports games, and other live entertainment events. There has been speculation that Ticketmaster has an exclusive deal with American Express to be the preferred credit card for ticket purchases on their website. In this article, we will examine the relationship between Ticketmaster and American Express and analyze whether there is evidence of an exclusive partnership.
Ticketmaster’s Preferred Payment Options
On the Ticketmaster website, American Express is listed as a preferred payment option along with Visa, Mastercard, Discover, and PayPal. Ticketmaster states that they accept “all major credit cards” but American Express does seem to be highlighted and prominently featured.
When checking out, American Express is the default credit card option on the payment page. The page is clearly branded with American Express imagery and the card number field is pre-populated to start with an American Express prefix. There is an option to change the card type to Visa, Mastercard, Discover, or PayPal but American Express is the default selection.
American Express Cardholder Benefits
American Express offers certain benefits, discounts, and presale ticket opportunities to its cardholders for select events purchased through Ticketmaster. This includes things like presale code access, discounted tickets, VIP packages, and more. These offers are promoted on the American Express website as part of the card membership perks.
Some examples of recent American Express ticket deals through Ticketmaster include:
- Access to presale tickets for Adele’s Las Vegas residency
- $20 back on tickets for UFC events
- Tickets to the iHeartRadio Music Festival starting at $39 for cardholders
These special offers are only available to American Express customers, suggesting there is an exclusive partnership in place.
Official Partnership Statements
Neither Ticketmaster nor American Express publicly advertise an official partnership or contract between the two companies. However, there are some clues that suggest an established business relationship:
- In their SEC filings, Ticketmaster’s parent company LiveNation states that American Express is a “sponsorship partner” of theirs.
- American Express includes Ticketmaster in lists of their ticket partners on their website.
- Ticketmaster is highlighted as a top place to use the American Express card for purchases.
While this is not a formal declaration of an exclusive deal, it does indicate that the two companies work together on ticket sales and promotions.
Analysis of a Potential Exclusive Deal
There are several reasons why it would make sense for Ticketmaster and American Express to have an exclusive formal agreement:
- Customer Base: American Express caters to higher income customers which matches Ticketmaster’s demographic of people willing to spend money on expensive event tickets.
- Sales Volume: A large percentage of Ticketmaster’s ticket sales likely come from American Express cardholders given their prominence on the website.
- Discount Incentive: By partnering with American Express, Ticketmaster can offer special presale and discounted tickets to encourage spending on American Express cards.
- Brand Alignment: Both brands focus on premium services, customers, and experiences which creates a worthwhile partnership.
Forming an official exclusive deal can benefit both sides – American Express gets promoted reach and Ticketmaster gets a committed partner that drives substantial revenue.
Potential Drawbacks of an Exclusive Deal
While there are advantages to an exclusive contract, there are also some potential drawbacks to consider:
- It limits Ticketmaster’s ability to partner with other payment companies.
- They become somewhat dependent on each other’s business.
- It reduces competition among payment providers.
- Customers who don’t have American Express cards may prefer other options.
An exclusive long-term deal blocks Ticketmaster from easily changing payment partners if a better opportunity comes along. It also risks American Express customers taking their business elsewhere if rewards are reduced.
Conclusion
Based on the payment prominence, cardholder benefits, partnership hints, and alignment of target demographic, there appears to be a mutually beneficial relationship and likely an exclusive contract between Ticketmaster and American Express.
While the exact details of the partnership are unclear, the evidence points to American Express being Ticketmaster’s preferred payment service provider and ticket sales partner. This exclusive deal leverages each company’s strengths to drive revenue through ticket sales and card use.
However, exclusivity does limit future flexibility and options. As the ticket marketplace evolves, it will be interesting to see if Ticketmaster and American Express maintain their tight partnership or if they eventually go their separate ways.