Ticketmaster is the world’s largest ticket sales and distribution company, selling tickets for concert, sports, and theater events on behalf of event organizers. Live Nation is the world’s largest live entertainment and ecommerce company, promoting, operating, and producing live entertainment shows and festivals.
So does Ticketmaster work for Live Nation? The short answer is yes, Ticketmaster and Live Nation have had an interconnected relationship since Ticketmaster merged with Live Nation in 2010. However, while the two companies work together in many aspects, they also operate as independent businesses. Let’s take a closer look at the details.
The Ticketmaster-Live Nation Merger
In 2010, Ticketmaster and Live Nation merged into a new company called Live Nation Entertainment. The goal of the merger was to combine their services and create a global powerhouse for live entertainment ticketing and promotion.
Some key points about the merger:
– Ticketmaster and Live Nation remain separate entities but they are both subsidiaries of Live Nation Entertainment.
– Live Nation Entertainment handles the oversight and finances of both companies.
– The US Justice Department approved the merger in 2010 on the condition that Ticketmaster sell part of its business to reduce anti-competitive concerns.
How the Companies Work Together
Despite being separate legal entities, Ticketmaster and Live Nation work very closely together under their parent company Live Nation Entertainment:
– Ticketmaster is Live Nation’s primary ticketing service. It tickets the majority of Live Nation’s concerts, festivals, and venues.
– Ticketmaster provides ticketing services and ticket resale (or scalping) through its secondary ticket exchange websites. Many of these tickets are for Live Nation events.
– Live Nation signs exclusive promoter deals with major artists and bands for their tours and festivals. Ticketmaster then tickets the events.
– Live Nation owns, operates, and provides ticketing services to major venues like House of Blues. Ticketmaster tickets events at these venues.
– Live Nation and Ticketmaster integrate and share data, analytics, marketing, and operations.
Aspects Where They Operate Independently
Despite the interconnectedness, Live Nation and Ticketmaster still operate as independent companies in some regards:
– Each has their own leadership team, corporate structure, and staff.
– Live Nation deals primarily with promotion, artist management, and venue operations.
– Ticketmaster focuses on ticketing services and technology.
– Both pursue some partnerships and deals independently of each other.
– Live Nation has been expanding its own ticketing services to compete with Ticketmaster in some respects.
Live Nation’s Growing Ticketing Services
In recent years, Live Nation has been expanding its in-house ticketing services and capabilities:
– Live Nation launched its own ticketing website and apps to sell directly to fans without Ticketmaster.
– It has been utilizing this direct-to-fan ticketing for many shows and venues.
– Live Nation acquired a few smaller ticketing companies.
– It is developing its venue access control systems to reduce reliance on Ticketmaster.
– Live Nation president recently stated their plan is to have 40% of ticket sales directly through Live Nation platforms within 3 years.
Benefits for Live Nation
Some benefits Live Nation gets from expanding its ticketing services:
– Avoid paying Ticketmaster fees and revenue shares. This means capturing more revenue themselves.
– Offer lower fee tickets on Live Nation platform compared to Ticketmaster to attract fans.
– Have more control over customer data and relationships.
– Provide a more integrated experience for fans by controlling more of the ticketing process.
What This Means for the Future
Live Nation’s expansion into more direct ticketing services means:
– More competition for Ticketmaster on ticketing some Live Nation events.
– Less reliance on Ticketmaster long-term if Live Nation ticketing grows significantly.
– Ticketmaster will likely focus more on ticketing non-Live Nation venues and concerts.
– More choice for fans in buying primary tickets from Live Nation or Ticketmaster.
– Potentially lower fees on Live Nation’s ticketing platform.
However, the interdependent relationship between Live Nation and Ticketmaster means Ticketmaster will likely remain Live Nation’s dominant ticketing partner for the foreseeable future.
Financial Ties Between Live Nation and Ticketmaster
Live Nation and Ticketmaster maintain extensive financial ties under their parent company Live Nation Entertainment:
– Ticket sales revenue flows into both companies depending on the source.
– Sponsorship, advertising, and data monetization benefits both.
– Share financial risk in upfront event promotion costs.
– Both accountable to parent company Live Nation Entertainment shareholders.
Some key financial metrics:
Company | 2021 Revenue |
---|---|
Live Nation | $6.27 billion |
Ticketmaster | $1.49 billion |
– In 2021, Ticketmaster provided ticketing services for Live Nation events that generated over $5.5 billion in gross transaction value.
– Ticketmaster pays Live Nation a fee or revenue share when it tickets Live Nation events.
– Live Nation owns approx. 69% of Live Nation Entertainment stock.
The financial entanglement means both companies benefit when they cooperate on events and ticketing. But Live Nation’s ticketing expansion challenges that dynamic.
Anti-Trust Concerns and Controversies
The Live Nation-Ticketmaster relationship has faced ongoing criticism and anti-trust allegations from politicians and consumer groups:
Anti-Trust Arguments
– Their combination creates a monopoly in live event promotions and ticketing.
– Lack of competition lets them charge higher fees and prices.
– Merger and exclusive promoter deals stifle competition.
– Exploits artists and fans using their market power.
Responses to the Criticisms
– They face significant competition from rivals like AEG, StubHub, SeatGeek.
– Fees have remained stable or declined relative to costs since the merger.
– They offer huge distribution reach benefiting many artists.
– Exclusive deals are mutually beneficial partnerships.
– Ticketing involves major technology investments funded by fees.
Nonetheless, the growing political backlash from across the aisle remains a risk and threat to the Ticketmaster-Live Nation relationship. Increased anti-trust regulation could impact their business models.
Conclusion
In summary:
– Ticketmaster and Live Nation maintain an interconnected but independent relationship within their parent Live Nation Entertainment.
– Ticketmaster serves as the dominant ticketing provider for Live Nation’s live events and venues. Their operations are heavily intertwined.
– However, Live Nation is expanding its own ticketing services to compete with Ticketmaster in some areas.
– Critics argue their market power exploits artists and fans, but they contend with significant competition.
– Their relationship faces ongoing anti-trust concerns from politicians and consumer groups. Increased regulation could threaten their business models.
– But the financial entanglements and operational synergies between Ticketmaster and Live Nation mean the relationship is built to endure despite changes in the live entertainment industry.