Ticketmaster has dominated the primary ticket sales market for major concerts and events in the United States for decades. As the leading primary ticket seller, Ticketmaster faces competition from several key players attempting to take a share of the lucrative ticket sales business.
StubHub
StubHub is Ticketmaster’s biggest competitor in the secondary ticket resale market. StubHub provides a platform for fans to buy and sell tickets to events. Unlike Ticketmaster, StubHub does not have direct partnerships with major venues and event promoters. Instead, it facilitates ticket resales between fans. StubHub was founded in 2000 and acquired by eBay in 2007 for $310 million. In 2020, Ticketmaster’s owner Live Nation acquired StubHub from eBay for $4.05 billion in order to expand its stake in the secondary ticket sales market.
Key Advantages
- Large established secondary ticket marketplace
- Wide selection of tickets to high demand events
- Lower service fees compared to Ticketmaster resales
Market Position
StubHub holds a dominant position in the secondary ticket sales market ahead of rivals such as Vivid Seats and SeatGeek. According to estimates, StubHub controls around 50% of the secondary ticket market.
AXS
AXS is a digital ticketing platform launched by Anschutz Entertainment Group (AEG) in 2011. AXS allows fans to buy tickets to concerts, sports games, and other live entertainment events online. It offers primary ticket sales for events at major AEG-owned or operated venues. AXS also provides ticketing services and software to other venues and event promoters beyond AEG.
Key Advantages
- Ticketing partner for top AEG venues including Staples Center and O2 Arena
- Robust digital ticketing technology and analytics
- No outside ticket resales allowed
Market Position
AXS has a small but growing share of the primary event ticketing market estimated at around 5-10%. It sells tickets for over 300 major venues and promoters globally. AXS does not compete significantly in the secondary ticket resale market like StubHub.
SeatGeek
SeatGeek is an online ticket marketplace that allows customers to buy and sell tickets to sports, concerts, theater and other live entertainment events. The company was founded in 2009 and serves as a search engine for tickets across multiple primary and secondary ticketing sites.
Key Advantages
- Price comparison tool for tickets
- Integrates listings from both primary and resale markets
- No listing fees for sellers
Market Position
SeatGeek has a small share of the primary event ticketing market. The company focuses more on secondary ticket sales as an aggregator. SeatGeek has raised over $150 million in funding and partnered with major leagues like the NFL for ticket resales.
Vivid Seats
Vivid Seats is an online secondary ticket marketplace founded in 2001. It allows ticket buyers and independent sellers to buy and sell tickets to live entertainment events. Vivid Seats competes directly with StubHub but has a much smaller share of the secondary ticketing market.
Key Advantages
- Lower buyer service fees vs. StubHub
- FanProtect Guarantee on all ticket purchases
- Independent platform not owned by Ticketmaster
Market Position
Vivid Seats has about 10-15% share of the secondary ticket resale market, a distant second behind StubHub. In 2016, Vivid Seats was acquired by private equity firm GTCR for a reported $1.5 billion valuation.
TicketNetwork
TicketNetwork is an online ticket marketplace that provides resale listings for live entertainment, sports and other events. Sellers list available tickets and buyers can purchase them through TicketNetwork’s platform. Founded in 2002, TicketNetwork competes directly against StubHub and VividSeats in the secondary market.
Key Advantages
- No fees for buyers on resale tickets
- Guarantees valid tickets for all purchases
- PrimeTrust ensures all transactions are safe
Market Position
TicketNetwork has a small single-digit market share in the secondary ticket resale market. It has developed partnerships with season ticket holders of major sports teams to source premium tickets for resale on its platform.
Secondary Ticket Sellers
In addition to online secondary marketplaces, Ticketmaster faces direct competition from the growing practice of event performers and teams selling their own resale tickets. Major artists like Bruce Springsteen and Taylor Swift along with sports teams like the New York Yankees have started to sell their own resale tickets. This allows them to recapture secondary market value rather than scalpers and brokers.
Key Advantages
- Control over ticket allocation and pricing
- Ability to recapture secondary market value
- Build direct relationships with ticket buyers
Market Position
Performers and teams selling their own resale tickets is a small but growing share of the secondary market. As an example, Taylor Swift’s “Verified Fan” program for resales captured 5% of ticket volume on StubHub in 2018. More artists and teams are likely to follow suit in the coming years.
Comparison of Market Share
The following table summarizes the estimated market share in the primary and secondary event ticketing market for Ticketmaster versus its major competitors:
Company | Primary Market Share | Secondary Market Share |
---|---|---|
Ticketmaster | 70-80% | 5-10% |
StubHub | Minimal | 50% |
AXS | 5-10% | Minimal |
SeatGeek | 1-2% | 10-15% |
Vivid Seats | Minimal | 10-15% |
TicketNetwork | Minimal | 1-2% |
Performers/Teams | Minimal | 1-5% |
Ticketmaster maintains a dominant position in primary event ticketing through its exclusive partnerships with major venues and promoters. Competitors like AXS also have direct venue partnerships but considerably smaller share. In secondary ticketing, StubHub leads among online platforms while performers and teams build increasing resale capabilities.
Key Factors for Competing Against Ticketmaster
For any company looking to take market share from Ticketmaster in primary or secondary ticketing, there are several key factors to succeed:
Exclusive venue/promoter partnerships
Ticketmaster’s dominance is built on long-term exclusive ticketing deals with major venues and event promoters. Competitors need to secure their own exclusive partnerships, which AXS has done effectively for AEG venues. Partnerships provide access to the best events and ticket inventory.
Innovative technology and data
Superior digital ticketing technology and data analytics create a better experience for venues, promoters and fans. Ticketmaster invests heavily in technology so competitors need to match or exceed their capabilities.
Low fees and strong buyer guarantees
Ticketing fees are a major point of dissatisfaction for fans. Companies that offer much lower service fees can attract buyers away from Ticketmaster. Generous buyer guarantees also reduce purchase risk.
Trust and security
Fans want confidence they are buying valid event tickets from trusted sources. Effective security protections and purchase guarantees build trust in new ticketing platforms.
Differentiated offering
It’s difficult to directly compete against Ticketmaster’s scale in the general ticketing market. New entrants may find more success targeting specific underserved niches in the ticketing industry.
Conclusion
In summary, Ticketmaster retains dominant market share in primary event ticketing but faces increasing competition in secondary sales from StubHub, SeatGeek, artists and teams directly selling tickets. For Ticketmaster competitors to gain significant traction, exclusive venue partnerships, superior technology, and strong buyer incentives are likely required. Still, Ticketmaster’s established position will be difficult for any single company to overcome across the full spectrum of live entertainment ticketing.