Ticketmaster is a large ticket sales and distribution company based in Beverly Hills, California. It sells tickets for concert, sports, and theater events on behalf of event organizers and venues. Ticketmaster dominates the ticket sales market in North America, selling around 70% of all event tickets through its website and retail outlets. So who actually owns and controls this major player in the live entertainment industry?
The History of Ticketmaster
Ticketmaster was founded in 1976 by two computer programmers, Albert Leffler and Gordon Gunn. It initially focused on selling tickets for smaller events using call centers. In 1982, Ticketmaster was bought by Jay Pritzker, part of the famous Pritzker business family. He expanded Ticketmaster nationally in the US throughout the 1980s by signing exclusive deals with large venues and promoters.
In 1993, Ticketmaster bought their largest competitor Ticketron and became the dominant ticket seller in the US. Throughout the 90s and 2000s, Ticketmaster continued to acquire or partner with smaller ticket companies to cement its market leadership. Key acquisitions included Front Line Management Group, GetMeIn.com and Paciolan Inc.
Merger with Live Nation
In 2008, Ticketmaster announced plans to merge with the world’s largest concert promoter Live Nation. Live Nation promoted major tours for artists like Madonna, U2, Jay-Z as well as owning major venues like the House of Blues chain. The merger aimed to combine Live Nation’s concert promotion expertise with Ticketmaster’s dominance in event ticketing.
The Ticketmaster-Live Nation merger was highly controversial though. Critics claimed it would create a near monopoly in live music events. But the merger ultimately went through in 2010 after approval by the Department of Justice. As part of the deal, Ticketmaster and Live Nation agreed to license a copy of Ticketmaster’s software to competitor AEG Live.
Current Ownership Structure
After the merger with Live Nation, Ticketmaster is now a wholly owned subsidiary of Live Nation Entertainment. Live Nation Entertainment (NYSE: LYV) has been publicly listed on the New York Stock Exchange since 2010.
According to Live Nation’s 2021 annual report, their largest shareholders are:
Owner | Ownership Percentage |
---|---|
Liberty Media | 33.6% |
The Vanguard Group | 11.1% |
Blackrock Inc. | 8.1% |
Cadian Capital Management | 5.2% |
Others | 42.0% |
So while Live Nation Entertainment owns Ticketmaster, about 34% of Live Nation is owned by the media company Liberty Media. Liberty Media was founded by businessman John C. Malone and has interests in media, telecommunications, e-commerce and more.
The largest institutional shareholders of Live Nation Entertainment stock are investment/asset managers like The Vanguard Group, Blackrock and Cadian Capital Management. But no single entity directly controls Ticketmaster anymore – it is part of the large publicly traded Live Nation Entertainment company.
Key Executives
Although Ticketmaster doesn’t have a single owner anymore, it does still have executives managing the company under Live Nation Entertainment.
Key executives at Ticketmaster include:
- Michael Rapino – President and CEO of Live Nation Entertainment (previously CEO of Ticketmaster)
- Joe Berchtold – Chief Operating Officer of Live Nation Entertainment
- Amy Howe – Chief Operating Officer of Ticketmaster
- Jared Smith – President of Ticketmaster
Michael Rapino led the merger with Live Nation back in 2010 when he was Ticketmaster’s CEO. He is now the top executive running the whole Live Nation Entertainment business including oversight of Ticketmaster operations.
Business Model and Revenues
Ticketmaster dominates ticket sales through its exclusive deals with major venues and promoters. Ticketmaster typically gets an upfront fee per ticket sold as well as a percentage commission on the ticket price. This can result in services fees for customers of up to 25% on top of the ticket’s face value.
For example, if a $100 ticket was sold via Ticketmaster they may charge a $15 service fee per ticket plus 10% of the ticket price ($10) resulting in a total fee of $25. These fees are then split between Ticketmaster and the event organizer as revenue.
Due to this revenue model and dominant position, Ticketmaster has very high gross margins. According to Live Nation’s 2021 annual report, their Ticketing segment which includes Ticketmaster had:
- $1.5 billion in revenues
- 90% gross margins
- $525 million in operating income
Ticketing makes up around 25% of Live Nation total revenue. But it contributes even more to operating profits due to the high margins from Ticketmaster fees.
Controversies and Criticisms
Ticketmaster’s dominant position in ticket sales and unpopular service fees have made it a frequent target of criticism over the years. Some of the main controversies and complaints against Ticketmaster include:
Service and Order Processing Fees
Customers dislike the often very high fees Ticketmaster charges on every ticket bought through their platform. They argue the fees are excessive for simply processing an order and reduce affordability of events.
Dynamic and Surge Pricing
Ticketmaster utilizes demand-based pricing where ticket prices fluctuate based on market demand. This leads to accusations of scalping when popular events sell out quickly at inflated prices.
Difficulties Buying Tickets
Technical issues on Ticketmaster frequently prevent fans from buying tickets during busy on-sales, even if they wait in online queues. This leads to complaints about their systems inability to handle peak traffic.
Lack of Competition
Ticketmaster’s dominant position due to exclusivity deals limits competition in ticketing markets. This may result in higher fees and poorer services due to lack of consumer choice.
Reselling and Bots
Critics argue Ticketmaster does not do enough to limit ticket reselling on secondary markets and automated ticket buying bots that shut out everyday fans.
In summary, while Ticketmaster doesn’t have a direct single owner anymore, it is part of the large Live Nation Entertainment company. Ownership is distributed across Liberty Media, institutional shareholders and the general public. But Ticketmaster’s virtual monopoly and unpopular fees in event ticketing still make it a controversial company among consumers and policymakers.
Conclusion
Ticketmaster revolutionized event ticketing when it was founded in the 1970s. After acquiring its major competitor Ticketron in the 1990s, Ticketmaster solidified itself as the dominant player in the North American ticketing industry. Its 2008 merger with the world’s largest concert promoter Live Nation further entrenched its leading position in ticketing markets.
Today, Ticketmaster is a wholly owned subsidiary of the publicly traded Live Nation Entertainment company. It no longer has a single direct owner, though media group Liberty Media remains its largest shareholder with a 34% stake. Key executives like Michael Rapino oversee Ticketmaster’s operations as part of the wider Live Nation business.
Ticketmaster’s business model relies heavily on service and order processing fees added onto ticket prices. These unpopular fees, combined with its near monopoly position, frequent technical issues and perceived lack of innovation, make Ticketmaster a regular target of consumer complaints and policymaker scrutiny.
But with exclusive ticketing deals for major venues and promoters locked in long-term, Ticketmaster remains the dominant force in event ticketing in North America and a key revenue generator for Live Nation Entertainment.