Ticketmaster is a major ticket sales and distribution company based in Beverly Hills, California. It provides ticket sales for concert, sports, and theater events both through its website and retail locations. Ticketmaster merged with Live Nation in 2010 to become Live Nation Entertainment (NYSE: LYV). So the ticker symbol for Ticketmaster is LYV on the New York Stock Exchange.
Ticketmaster was founded in 1976 as a means to centralize the computerized ticket sales for venues in the Phoenix area. Within a few years it expanded into a national company, providing services for major concert venues, theaters, sport stadiums and more. Today it dominates the ticket sales market, providing services for over 200 clients and venues across the country.
In 1991, Ticketmaster established its first website, ticketmaster.com, becoming one of the first companies to have an online presence specific to its business. This allowed them to sell tickets online and through phone sales using a centralized computer network. In many major cities across the US, Ticketmaster has deals with venues giving them exclusive rights to handle all ticket sales.
Over the years, Ticketmaster has been the subject of controversy for its service fees which can add a significant cost on top of the ticket price. There have been lawsuits and probes into their operations and criticisms of monopolistic practices. However, Ticketmaster has maintained its position as the dominant ticket seller for major live entertainment events.
Company History and Ownership
Ticketmaster was founded in Phoenix, AZ in 1976 by two computer programmers, Gordon Gunn and Thomas Gadwa. They partnered with Peter Gadwa, Thomas’s brother and a business academic, to create a centralized computer system to handle ticket sales for local venues. This allowed venue operators to avoid the chaos of standalone box office sales.
The newly established company quickly expanded from the Phoenix area to cities across the US. Within a few years, Ticketmaster was making exclusive deals with major venues in cities to be their sole ticketing service. Throughout the 80s and 90s, it acquired various smaller ticket vendors, expanding their market dominance.
In 1991, Ticketmaster established the first website focused on ticket sales, ticketmaster.com. This allowed them to sell tickets online as the Internet grew in popularity in the subsequent decades. In 1996, Ticketmaster merged with TicketWeb, an early pioneer in online ticket sales.
In 1998, Ticketmaster was acquired by USA Networks for $4.5 billion. USA Networks included various media and e-commerce properties. Under this larger company, Ticketmaster’s online sales and services continued to grow. USA Networks later became InterActiveCorp (IAC) which spun off Ticketmaster in 2008 into a merger with Live Nation.
Live Nation was a promoter of music concerts and tours. By merging the two companies, Live Nation could integrate ticket sales and distribution with promotions and artist management. The combined company became known as Live Nation Entertainment with over $5 billion in annual revenue.
So in summary, Ticketmaster originated as an Arizona-based startup in the 70s but grew through expansion and acquisitions to become a major national ticket seller. As of today, it is part of the publicly traded Live Nation Entertainment company.
Services and Business Model
Ticketmaster provides ticket sales, distribution and related services for:
- Concert events – Ticketmaster has exclusive deals with most major concert venues and festivals across North America and sells the majority of tickets for stadium rock concerts, music festivals and more.
- Theater events – It tickets for Broadway and West End theater shows, musicals, plays and more. This includes resellers and season ticket packages.
- Sporting events – Ticketmaster sells tickets for the NFL, NBA, MLB, NHL, MLS, and major college sports programs.
- Other live events – This includes comedy tours, Las Vegas shows, WWE events, festivals and more.
In addition to ticket sales, Ticketmaster also provides the following services:
- Online and phone sales – Integrated sales through their website, mobile apps and call centers.
- Ticket distribution – Electronic ticket delivery and mail/will-call pickup management.
- Venue management – Provide hardware, software and management services to venues to manage ticketing, inventory, access control, analytics etc.
- Secondary ticket exchange – Facilitate ticket resales through their TicketExchange platform.
- VIP packages – Offer premium ticket bundles with amenities like exclusive access, parking, merchandise etc.
Ticketmaster earns revenues in three major ways:
- Service fees from ticket buyers – This can range from 10-25% on top of the ticket face value as Ticketmaster’s fee for the transaction.
- Marketing and promotions – Revenue from ads, sponsorships and lead generation for shows and events.
- Ticketing services – Fees and revenue sharing with venues for the ticketing services and analytics they provide.
The company has faced ongoing criticism for its service fees which many feel are excessive. However, Ticketmaster maintains their fees are in line with other major ticket sellers and required based on the scope of its services and operations.
Market Position
Ticketmaster holds a commanding position in the primary ticket sales market. Here are some key facts about its dominant market share:
- Ticketmaster handles 500+ million ticket transactions annually.
- It has exclusive ticket sales agreements with over 200 venues and clients across North America and Europe.
- The company has 80%+ market share of primary ticket sales for major concerts and shows in the US and UK.
- It manages ticketing for 120 professional sports teams and hundreds of major university athletic programs.
- Over 12,000 web domains and apps connect to Ticketmaster for ticket sales.
No other primary ticket seller comes close to Ticketmaster’s scale and reach. StubHub, SeatGeek and AXS are among its major competitors in secondary sales. But even there, Ticketmaster still has considerable market share through its TicketExchange platform.
Critics argue that Ticketmaster uses monopolistic practices in forcing venues into exclusive contracts. Numerous lawsuits have been filed against the company around unfair market practices. However, Ticketmaster maintains that consumers still have choices in the ticketing market.
Stock and Financial Information
As mentioned earlier, Ticketmaster is now part of Live Nation Entertainment (NYSE: LYV). Live Nation was formed from the merger of Live Nation and Ticketmaster in 2010.
Key financial details for Live Nation Entertainment include:
- Annual revenue (2021) – $6.27 billion
- Net income (2021) – $103 million loss
- Employees (2021) – 7,200
- Market cap (Oct 2022) – $12.76 billion
- Stock price range (52 weeks) – $73.76 – $127.75
- EPS (TTM) – $-2.58
- P/E ratio – N/A (negative earnings)
Live Nation struggled during the COVID-19 pandemic with many events cancelled or postponed. Revenue fell over 75% in 2020. However, business has rebounded sharply as live events resumed. The company remains unprofitable but is seeing strong revenue growth as pent-up demand is released.
Key Operating Metrics
In addition to financial data, Live Nation looks at these key operating metrics:
- Number of live events organized
- Attendance at its live events
- Revenue per fan at events
- Number of tickets sold online and via phone
- Number of sponsor partners
These metrics help assess the strength of their core business and demand trends across live entertainment and sports.
Conclusion
In summary, the ticker symbol for Ticketmaster is LYV, representing its parent company Live Nation Entertainment. Ticketmaster pioneered computerized ticketing in the 1970s and over decades of expansion and acquisitions, gained a dominant position in the primary ticket sales market.
The company provides integrated ticketing services for concerts, theater, sports and more. It earns revenues through fees and services charged to venues, events and ticket buyers. While Ticketmaster has faced controversies over the years around its market power, it has maintained leadership in live entertainment ticketing in North America and the UK.
As the world has returned to normal post-pandemic, demand has surged for Ticketmaster’s services. This is reflected in Live Nation’s financial rebound, even if the company remains unprofitable for now. For investors interested in the live events sector, Live Nation and its Ticketmaster division represent a major way to gain exposure given their unmatched size and market position.