Ticketmaster is the dominant ticketing company in the live entertainment industry. The company sells tickets for concerts, sports events, theater shows, and more. Ticketmaster has exclusive contracts with many major venues and artists. This gives them control over ticket sales for some of the biggest events. But why do so many performers go through Ticketmaster rather than selling tickets themselves?
Convenience and Scale
The main reason performers use Ticketmaster is convenience. Ticketmaster provides services that would be incredibly difficult for artists and venues to handle themselves. This includes:
- A massive distribution network – Ticketmaster can get tickets to millions of potential fans worldwide through their website, mobile apps, and third-party sellers.
- Established infrastructure – The company has the staff, software, call centers, and equipment to smoothly handle high ticket demand.
- Anti-fraud and verification systems – Ticketmaster has technology to identify bots, fight scalpers, and ensure authenticity of tickets.
- Customer support – The company manages all aspects of customer service for ticket sales and issues.
Very few performers could build global ticket sales and distribution operations on a scale matching Ticketmaster’s. Fans can purchase tickets to shows all over the world on Ticketmaster thanks to their network. Performers benefit from tapping into this large built-in customer base.
Data and Marketing
Ticketmaster also provides valuable data and marketing capabilities. Their systems give insights into ticket buyers including:
- Demographics – Age, gender, income, and other stats on fans.
- Purchase history – What shows and ticket types fans have bought in the past.
- Geography – Where ticket purchases are coming from.
- Sales trends – How fast tickets are selling.
Performers can use this data to understand their audiences, plan tours and promotions, price tickets, and much more. Ticketmaster also has tools to help artists reach fans such as:
- Targeted ads – Commercials and campaigns aimed at likely ticket buyers.
- Email lists – Reach fans who have opted-in for artist emails.
- Social media features – Contests, presales, and other campaigns on social platforms.
These marketing options provide significant exposure for shows. Performers can tap into Ticketmaster’s expertise and tools to boost ticket sales rather than building in-house data and marketing departments.
Guaranteed Payment
Ticketmaster guarantees payment to event organizers shortly after tickets go on sale. Rather than waiting until after the event to get paid, performers can access revenue right away to fund tour expenses through Ticketmaster’s payroll advance program. They provide a percentage of the projected gross ticket sales before the show occurs. This gives artists early capital to pay for travel, production, marketing and other costs associated with putting on an event.
Venue Relationships
Many major venues have exclusive ticketing deals with Ticketmaster. Large stadiums, theaters, clubs, and arenas rely on Ticketmaster to handle their events. Going around Ticketmaster to sell directly could shut performers out of premier venues. Artists essentially have to work with Ticketmaster or potentially miss out on big gigs. Some examples of major venues with Ticketmaster ticketing deals include:
Venue | Location | Capacity |
---|---|---|
United Center | Chicago | 23,500 |
Madison Square Garden | New York City | 20,789 |
Bridgestone Arena | Nashville | 20,000 |
Performers need to be able to book shows at in-demand venues to plan tours and reach fans. Going around Ticketmaster could hurt their ability to book these locations, so artists continue using the ticketing giant.
Secondary Market Control
Ticketmaster also exerts control over the secondary ticket market through their resale services. The company owns large resale marketplaces like Vivid Seats and TicketsNow. Many tickets end up on these resale sites after initial sales. Ticketmaster can monitor, manage, and profit from secondary sales. Performers earn a percentage of resale revenue. So working with Ticketmaster gives them a cut of secondary sales they may miss out on through other channels.
The company also monitors secondary sites for fraudulent sales and excessive markups. This helps protect fans from getting ripped off and preserve artists’ brands. Performers benefit from Ticketmaster’s oversight of the complex secondary market.
Media and Sponsorships
Ticketmaster works closely with media partners and sponsors to cross-promote events. They have connections with major outlets like Rolling Stone, Billboard, ESPN, and local newspapers. Ticketmaster provides event details, tickets for giveaways, and access for contests to media partners. This provides valuable exposure and buzz for shows. Performers can tap into these media relationships through Ticketmaster.
The ticketing company also bundles event sponsorships with ticket sales. Popular brands pay to sponsor tours, festivals, and venues that Ticketmaster tickets. Artists earn sponsorship revenue without the legwork of pitching and negotiating deals themselves. Allowing Ticketmaster to handle sponsorships provides a lucrative income stream for performers.
Settlement Services
At the end of a tour or residency, Ticketmaster provides settlement services to finalize accounting, payments, and data reporting. Their systems track ticket sales, print and distribute checks to vendors, and compile financial statements. Venues, promoters, managers, and performers all receive payouts for their share of revenue. Settlement involves complex accounting that Ticketmaster handles seamlessly. This reduces headaches for artists and ensures accurate payment dispersal.
Reduced Fraud Risk
Ticketmaster deploys leading anti-fraud technology to detect fake tickets and unauthorized sales. Their team monitors suspicious activity and frequently updates fraud-fighting measures. This reduces the risk of counterfeit or stolen ticket scams. Such fraud causes major problems for venues and performers when fans show up with fake tickets. Ticketmaster’s anti-fraud operations minimize the chances of bogus tickets. Performers can avoid lost revenue and frustrated fans by letting Ticketmaster safeguard against fraud.
Conclusion
Ticketmaster provides invaluable distribution, data, marketing, financial, and operations services for live events and performers. Their systems offer convenience, scale, and expertise that would be enormously expensive for artists to build alone. Ticketmaster’s capabilities allow performers to focus on the creative rather than logistical aspects of putting on great shows for fans. Despite some consumer complaints, virtually all major live acts rely on Ticketmaster as an essential partner in ticketing and promotions.