Ticketmaster is a ticket sales and distribution company based in the United States. Founded in 1976, it is the world’s largest ticket sales and distribution company, with operations in 30+ countries around the world. Some key facts about Ticketmaster include:
History
Ticketmaster was founded in Phoenix, AZ in 1976 by two computer programmers, Albert Leffler and Gordon Gunn. They had created a software program to help regulate ticket sales and distributions for live events. This allowed venues and promoters to have better control over inventory and pricing of tickets.
The company quickly expanded through partnerships with venues and promoters. In 1982, it created its first online ticketing system to allow ticket sales through phone lines. Throughout the 1980s and 90s, Ticketmaster continued to grow by acquiring multiple regional ticketing companies and establishing exclusive deals with major venues and promoters.
Some key events in Ticketmaster’s history include:
- 1976 – Founded in Phoenix, AZ by Albert Leffler and Gordon Gunn
- 1982 – Created first online ticketing system for phone sales
- 1991 – Signed exclusive deal with Pearl Jam concert venues
- 1993 – Partnered with the NFL to manage ticketing for Super Bowl XXVII
- 1996 – Launched first Ticketmaster website to allow online ticket purchases
- 1998 – Acquired TicketWeb and established online presence outside the US
- 2008 – Merged with Live Nation to become Live Nation Entertainment
Business Operations
Ticketmaster acts as an intermediary between event organizers and ticket buyers. Their operations include:
- Inventory Management – They use proprietary software to track ticket inventory for venues and events. This allows flexible pricing and timed releases of tickets.
- Distribution Channels – Tickets can be purchased through Ticketmaster directly via their website, mobile apps, phone lines, and retail outlets. They also integrate with official venue and promoter websites and box offices.
- Service Fees – On top of ticket face values, Ticketmaster charges extra fees for ticket services, delivery, and other processing costs. These fees can account for up to 30% of the total ticket cost.
- Security – They use safeguards like ticket limits and fraud monitoring to ensure fair ticket access and prevent scalping.
- Secondary Marketplace – Ticketmaster operates a resale marketplace that lets ticket holders resell event tickets through their platform.
Ticketmaster has attracted considerable controversy over its services fees and exclusive deals seen as monopolistic practices. However, it remains the dominant player in event ticketing due to its massive inventory reach and distribution network.
Financials
Ticketmaster generates billions in revenue annually. Some key financial figures for Ticketmaster and parent company Live Nation Entertainment include:
Year | Revenue | Net Income |
---|---|---|
2018 | $10.8 billion | $69.3 million |
2019 | $11.5 billion | $69.1 million |
2020 | $1.8 billion | ($1.7 billion) |
2021 | $6.2 billion | ($1.2 billion) |
The huge drops in 2020 and 2021 revenue and profits were due to the widespread cancellation or postponement of live events during the COVID-19 pandemic. As events return, Ticketmaster’s financials are expected to improve significantly.
Products and Services
Ticketmaster offers the following range of ticketing products and services:
For Event Organizers
- Ticket Sales Platform – Their white-label platform allows event organizers to manage and sell ticket inventory and collect sales revenue.
- Digital Ticketing – They provide fully digital ticketing, from online purchases to contactless entry via mobile tickets.
- Analytics – Organizers get sales reports, demand forecasting, pricing analysis, and other data analytics.
- Fan Verification – Ticketmaster’s Verified Fan system helps filter out scalpers and bots to get more tickets directly to fans.
- Season Tickets – Sports teams and other recurring events can manage season ticket packages and loyalty programs.
For Fans/Customers
- Website & Mobile Apps – Fans can easily search for events and purchase tickets online via Ticketmaster’s website and iOS/Android apps.
- Refunds/Exchanges – They allow fans to request refunds or perform ticket exchanges for cancelled, postponed, or rescheduled events.
- Ticket Resale Marketplace – Fans can resell event tickets they can no longer use to other customers through Ticketmaster’s secondary exchange.
- Gift Cards – Instead of tickets, customers can purchase Ticketmaster gift cards to give to fan recipients.
Venues/Events
Due to its exclusive deals and dominant inventory network, Ticketmaster tickets a wide range of major venues and events, including:
- Professional sports – NFL, NBA, MLB, NHL, MLS
- Music/tours – Major concerts across genres like pop, rock, hip-hop, country
- Theaters – Broadway, West End theater productions
- Arts – Museums, operas, ballets
- Amusement parks – Disney World, Universal Studios
- Arenas/stadiums – MSG, Staples Center, Wembley Stadium
- Festivals – Coachella, Lollapalooza, Austin City Limits
- College sports – March Madness, college football, other NCAA events
Ticketmaster either fully manages ticketing operations for these venues/events or serves as the primary vendor. The company states it tickets over 500,000+ events globally each year.
Company Controversies
Ticketmaster has been involved in a number of notable controversies over its operating history, including:
- Service Fees – Customers have long complained about excessive processing and services fees added to every ticket purchase. These can equal 25-30% of the base ticket price.
- Dynamic Pricing – Using adjustable market-based pricing for tickets has led accusations of scalping fans for maximum profits.
- Exclusive Deals – Long-term exclusive venue/promoter deals have been criticized as monopolizing tactics that limit consumer choice.
- Secondary Marketplace – While providing a resale exchange for fans, critics argue Ticketmaster double dips on fees through its own secondary marketplace.
- Bots – Despite anti-bot measures, large-scale ticket brokers have used bots and exploits to mass purchase tickets and relist them at higher prices.
- Lawsuits – Ticketmaster has faced multiple lawsuits over the years alleging anti-competitive and unfair trade practices.
These controversies have given Ticketmaster a reputation for poor customer service, technical issues, and anti-consumer practices in the eyes of many ticket buyers and event attendees.
Main Competitors
While Ticketmaster commands the majority of market share in ticketing, some competitors include:
- AXS – A ticketing platform used by AEG venues and others. Offers lower fees than Ticketmaster.
- SeatGeek – An online ticket marketplace that aggregates listings from various sellers.
- Vivid Seats – A large secondary ticket marketplace allowing resales between buyers and sellers.
- StubHub – Owned by Viagogo, StubHub is one of the largest secondary exchange platforms.
- Songkick – Focuses on concert discovery and direct artist-to-fan ticketing.
- Eventbrite – An independent platform popular with smaller/local venues and event organizers.
- Ticketfly – Provides ticketing services tailored for theaters and music venues.
- TickPick – A no-fee secondary marketplace competing with StubHub and VividSeats.
- TodayTix – Specializes in last-minute and mobile-delivery tickets for theater events in select cities.
However, none come close to Ticketmaster in terms of market share, inventory, sales volume, and supporting infrastructure.
Conclusion
In summary, Ticketmaster is the dominant primary and secondary ticket sales platform for major live entertainment events. It provides ticketing services for hundreds of thousands of events each year across 30+ countries. The company has attracted significant controversy and consumer complaints over its business practices like service fees, exclusive deals, and marketplace policies. But it maintains its market leadership position due to its massive ticket inventory, technology, and infrastructure.