Ticketmaster is the market leader when it comes to ticket sales and distribution for live entertainment events in the United States and many other countries around the world. The company sells tickets for concerts, sports games, theater shows, and other live events on behalf of event organizers. Ticketmaster has a dominant position in the primary ticket sales market thanks to its exclusive partnerships with major venues and promoters.
Ticketmaster’s Market Share in the US
According to various estimates, Ticketmaster controls 70-80% of the primary ticket sales market in the United States. This gives the company a significant majority share of the total market for initial ticket sales for live events. The rest of the primary ticket sales market is divided up between smaller competitors like AXS, eTix, and Eventbrite. However, none of these rival platforms have managed to make a major dent in Ticketmaster’s dominance so far.
Ticketmaster sells tickets for the vast majority of major concert tours, professional sports leagues, and Broadway shows in the US. It has exclusive ticketing agreements with most NFL, NBA, NHL, and MLB teams. The company also has deals with large event promoters like LiveNation and AEG to sell tickets for the events and concerts they organize. These exclusive partnerships give Ticketmaster tremendous power over the live events ticketing business.
Ticketmaster’s Exclusive Venue Deals
One of the main reasons for Ticketmaster’s market dominance is its exclusive contracts with venues and promoters. The company has long-term agreements with most major concert venues and stadiums across the US. For example, Madison Square Garden in New York City and the Staples Center in Los Angeles only sell event tickets through Ticketmaster.
Ticketmaster also has exclusive ticketing rights deals with promoters like LiveNation, which runs large concert tours and festivals like Lollapalooza. These types of agreements make Ticketmaster the only authorized seller for the majority of popular live entertainment events. Competitor ticket sites simply do not have access to the inventory to break Ticketmaster’s hold on the market.
Merger with LiveNation
Ticketmaster solidified its market leading position by merging with the world’s largest concert promoter LiveNation in 2010. LiveNation organizes, promotes, and manages concerts, festivals, and tours for over 500 artists. The merger brought together LiveNation’s concert promotion business with Ticketmaster’s ticketing dominance.
The Department of Justice did require the merged company to abide by certain conditions to allow the deal to go through. For example, Ticketmaster had to license its ticketing software to its competitor AEG for five years. However, the merger still resulted in the combination of the largest ticketing company with the biggest concert promoter, cementing Ticketmaster’s control of the live events market.
Ticketmaster’s Market Share in Other Countries
In addition to its commanding market position in the US, Ticketmaster also holds a significant share in many countries around the world. The company owns Ticketmaster Entertainment LLC which operates ticketing marketplaces in 29 countries globally. Some of Ticketmaster’s major international markets include:
- Canada – Over 70% market share
- United Kingdom – Around 60% market share
- Ireland – Over 80% market share
- Australia – Estimated 80% market share
- Mexico – Over 50% market share
- Brazil – Dominant share of around 70%
Ticketmaster uses similar tactics in international markets to establish its dominant position. Exclusive deals with major venues, sports franchises, and promoters make Ticketmaster the primary ticketing option for most major events. The company faces more competition in certain European markets from companies like Eventim, but it still manages to secure a leading position in most countries.
Sources of Ticketmaster’s Market Power
Ticketmaster has maintained such a high market share in primary event ticketing over the years due to the following key advantages:
Network Effects
Ticketmaster benefits greatly from network effects. Event organizers prefer to partner with the ticketing platform that has the most customers and the most ticket sales. In turn, customers go to Ticketmaster to find tickets for the events they want. This creates a cycle that continues to attract events and fans to the platform.
Investments in Technology
The company invests heavily in ticketing technology like mobile apps and website design to improve ticket buying experiences. Ticketmaster has also integrated secure digital ticketing and contactless entry in response to the Covid-19 pandemic. These tech investments make Ticketmaster appealing as a sales platform.
Consumer Habit and Trust
Fans have gotten used to buying from Ticketmaster for decades. Its brand has become synonymous with ticket sales in many consumers’ minds. This gives the company an implicit trust and habit advantage over newer ticketing platforms.
Focus on Major Leagues and Artists
Ticketmaster has focused on securing exclusive deals with top artists, prominent venues, major sports leagues, and big event promoters. This gives them control over the tickets for the events that are in highest demand.
Criticisms of Ticketmaster’s Market Power
Despite its dominance, Ticketmaster has also faced significant criticism and backlash relating to its market position and ticketing fees. Some of the common complaints about the ticketing giant include:
High Fees
Customers dislike Ticketmaster’s high processing and services fees added onto every ticket purchase. These fees can sometimes make up over 30% of the ticket’s face value. There have been many class action lawsuits over Ticketmaster’s fees over the years.
Lack of Competition
Ticketmaster’s stranglehold on ticketing for major concerts and events leaves customers with little choice. Many feel they have no option but to use Ticketmaster and pay its high fees if they want tickets to see top artists and games.
Resale Market Control
Ticketmaster also owns the secondary ticket exchange site TicketsNow. Critics argue the company profits twice by collecting fees on initial sales and then again on marked-up resale tickets.
Anti-Competitive Practices
Some critics accuse Ticketmaster of anti-competitive tactics like signing long-term exclusive deals and forcing customers to only use its ticketing platforms. Lawmakers have examined its market power and LiveNation merger over antitrust concerns.
Potential Threats to Ticketmaster’s Market Position
Despite its current dominance, there are some threats on the horizon that could potentially loosen Ticketmaster’s grip on the ticketing market:
Legal Action on Anticompetitive Practices
If regulators bring an antitrust suit against Ticketmaster and its practices are found to be anti-competitive, the company could be forced to change its business model. This could include opening up access to tickets or ending mandatory Ticketmaster use.
Demand for Lower Fees
Continued public dissatisfaction with Ticketmaster’s high fees could pressure event organizers to seek lower-cost ticketing options. Competitors may gain market share by offering lower fees.
Emergence of Blockchain Ticketing
Blockchain-based ticketing platforms like Aventus, Blockparty, and EventChain have emerged. Their transparent decentralized models could disrupt Ticketmaster if they continue gaining traction.
Direct Artist Ticketing
Some major artists may choose to leave Ticketmaster to handle their own ticketing and cut out the middleman fees. Bands like Pearl Jam have attempted this, indicating it remains a threat to Ticketmaster.
Conclusion
In summary, Ticketmaster currently enjoys a dominant 70-80% market share of primary event ticketing in the United States and holds a leading position in several other countries. This market power stems from Ticketmaster’s investments in technology, strong brand recognition, exclusive partnerships, and other competitive advantages. However, the company does face criticism for its fees and lack of consumer choice. Upcoming technologies like blockchain ticketing could potentially challenge Ticketmaster’s supremacy in the future by providing a lower-cost alternative. But for now, Ticketmaster remains firmly entrenched as the leading ticket sales and distribution platform for live entertainment around the world.