Ticketmaster is the dominant primary ticket provider for large-scale live entertainment events in the United States. As the leading ticketing company, Ticketmaster has a significant share of the primary ticket market and has faced scrutiny over its market power. However, measuring Ticketmaster’s exact market share is complex due to the nuances of the ticketing industry. In this article, we will examine Ticketmaster’s reach in the primary ticket market, factors that allow it to maintain its position, and estimates of its market share from various sources.
Ticketmaster’s Reach in the Primary Ticket Market
Ticketmaster sells primary tickets for concerts, sports events, theater shows, and other live entertainment events. Primary tickets refer to the original tickets sold when an event first goes on sale, before any resales on secondary markets.
Ticketmaster provides primary ticketing services through:
– Its owned and operated websites like Ticketmaster.com
– Exclusive contracts with venues, concert promoters, leagues/teams, theaters, etc.
– Its Ticketmaster Resale secondary ticket marketplace
– Distribution deals with big box retailers and grocery stores
According to Ticketmaster, it sells over 500 million tickets per year through these channels. It partners with over 11,000 venues, clubs, theaters, stadiums, and arenas globally for ticketing services. In North America alone, Ticketmaster provides primary ticketing for:
– 70% of the top 100 arenas
– 80% of the top 100 concert venues
– Top sports franchises like the NFL, NBA, NHL, and MLB
– Over 80% of Broadway shows
– The vast majority of major music festivals
This demonstrates Ticketmaster’s substantial clout in primary event ticketing. It can be difficult or impossible for major concerts, games, and shows to avoid selling through Ticketmaster.
Factors That Maintain Ticketmaster’s Market Position
Several key factors allow Ticketmaster to maintain its dominant position in primary event ticketing:
Exclusive Venue Contracts
Ticketmaster frequently signs long-term exclusive contracts with venues, promoters, sports franchises, and theaters to be their exclusive primary ticketing service. Ticketmaster may be the only way to purchase primary tickets for events at major venues like Madison Square Garden in periods where such contracts are active. These exclusive deals make it challenging for competitors to gain market traction.
Acquisitions
Ticketmaster has acquired competitors like Paciolan and Front Line Management over the years. This strategy eliminates rivals and absorbs their client venues and events. Recent acquisitions include Universe in 2015 which expanded Ticketmaster’s services into music festivals.
Merger with Live Nation
In 2010, Ticketmaster merged with the world’s largest concert and event promoter Live Nation. Live Nation owns, operates, or exclusively books ticketing for over 60 major U.S. amphitheaters, festivals, and clubs. The merger created vertical integration and closed loop cross-promotion between venues and ticket sales.
Consumer Habit
Ticketmaster benefits strongly from consumer habit and brand awareness. It is the first website many customers think to check for event tickets. This instinctive traffic aids Ticketmaster’s sales.
Technology and Scale
Ticketmaster has continuously invested in its ticketing technology over multiple decades. Its platform can handle huge simultaneous traffic spikes as millions of fans attempt to buy tickets for major shows or games. Newer competitors lack the years of tech refinement and scale that Ticketmaster enjoys.
Estimates of Ticketmaster’s Market Share
Due to the lack of public data on primary ticket sales, Ticketmaster’s exact market share is uncertain. However, various estimates exist:
United States Government Accountability Office Study
A 2009 study by the U.S. Government Accountability Office estimated that Ticketmaster controlled over 80% of the primary event ticketing market in the United States. This figure was cited by regulators reviewing the Ticketmaster / Live Nation merger.
Pollstar Estimate
Pollstar is a leading industry publication covering the live events business. In 2006, they estimated that Ticketmaster controlled over 80% of the primary ticketing market in North America.
Committee for a Fair and Balanced Live Nation / Ticketmaster Merger Report
A 2009 report by a consortium of U.S. venues stated that Ticketmaster’s share was 70-80% based on reviews of confidential promoter and venue contracts.
ACCC Investigation in Australia
In 2011, a competition regulator in Australia investigated Ticketek, Ticketmaster’s subsidiary which holds an estimated 70-80% market share in the country. This implies the Ticketmaster brand has similar dominance in Australia.
Source | Year | Estimated Ticketmaster Market Share |
---|---|---|
U.S. Government Accountability Office | 2009 | Over 80% |
Pollstar | 2006 | Over 80% |
Fair and Balanced Live Nation / Ticketmaster Merger Report | 2009 | 70-80% |
ACCC Investigation in Australia | 2011 | 70-80% |
Factors That Could Disrupt Ticketmaster’s Market Share
While Ticketmaster remains the dominant player, some factors have the potential to disrupt its market stranglehold:
DOJ Oversight of Live Nation Merger
The U.S. Department of Justice is monitoring anti-competitive practices between Live Nation and Ticketmaster under a consent decree. Violations could lead to diminished exclusive venue deals.
Growth of Ticket Resale Market
The secondary ticket market has boomed, reducing Ticketmaster’s share of all ticket transactions.However, Ticketmaster owns Ticketmaster Resale which participates in the secondary market.
Emergence of Upstarts
New players like AXS and Eventbrite provide increased competition, especially in smaller music venues. Their growth slowly chips away at Ticketmaster’s control. However, they lack the brand power and scale to rapidly erode Ticketmaster’s base.
Conclusion
Estimates peg Ticketmaster as controlling between 70-80% of the U.S. primary event ticketing market. This dominant position is maintained through exclusive venue deals, mergers and acquisitions, brand power, and advanced technology. Despite some emerging threats, Ticketmaster is likely to maintain its commanding market share for the foreseeable future given the formidable barriers to disrupt its entrenched position.