Ticketmaster has become the dominant ticketing platform for live entertainment events in many countries around the world. There are several key reasons why Ticketmaster has achieved such widespread usage and market dominance:
Large existing user base
Ticketmaster already has a huge installed user base of over 60 million active customers globally. This massive existing user base provides a self-perpetuating cycle – venues, event promoters and organizers choose to use Ticketmaster because that’s where the customers already are. Customers continue using Ticketmaster because it’s where all the events are listed.
Exclusive deals with venues and promoters
In many major markets like the US and UK, Ticketmaster has exclusive long-term deals in place with the majority of large venues, sports franchises, and event promoters. This locks out competitors and makes Ticketmaster the only ticketing option for many major concerts, sporting events, festivals, etc. This lack of alternatives forces customers to use Ticketmaster.
Owns or partners with large event discovery sites
Ticketmaster owns or has partnership deals in place with large event discovery sites like LiveNation. This online event listings ecosystem drives significant traffic to Ticketmaster for ticket purchases. Competitors struggle to attract as many customers when Ticketmaster owns prominent real estate on sites where people discover events.
Brand recognition and market position
Ticketmaster has established itself as the market leader in ticketing over its 50+ year history. It has strong brand name recognition and has become synonymous with ticket buying for many consumers. New entrants lack this brand power. Ticketmaster’s scale also allows it to outspend competitors on advertising and marketing to maintain its positioning.
Entrenched relationships with infrastructure providers
Ticketmaster has entrenched relationships with the major event management technology and point-of-sale solution providers in the industry. Venues often use these systems which integrate seamlessly with Ticketmaster, making it the default option over switching to less integrated competitors.
Large warchest to fend off competition
Ticketmaster generates over $10 billion in gross transaction value annually. This provides them with substantial financial resources to leverage for marketing, technical innovation, customer incentives, and acquisitions to maintain its market position. Smaller competitors struggle to keep up with Ticketmaster’s spending.
Ticketmaster’s pricing advantage
One of the other key drivers of Ticketmaster’s market dominance is that they are able to leverage their scale, partnerships and position to price tickets lower than competitors in many situations:
Discounts for bulk purchases
Ticketmaster provides discounts for season ticket packages, group sales etc. that smaller resellers struggle to match. Venues partner with Ticketmaster because they can sell more tickets. Fans get cheaper prices buying bulk from Ticketmaster.
Preferred deals from venues
Venues will often sell tickets to Ticketmaster at wholesale rates or structured payments that allow Ticketmaster to resell them at regular prices but still undercut competitors who have to pay higher rates. Venues do this because Ticketmaster can sell more tickets for them.
Lower payment processing fees
Ticketmaster negotiates lower credit card processing fees given their scale. Smaller competitors pay higher fees and have to price tickets higher to maintain margins. Ticketmaster can beat their prices due to lower payment processing costs.
Makes profit primarily from fees, not ticket prices
Ticketmaster strategically makes most of its profit from fees rather than ticket prices. This allows them to keep ticket prices lower, undercutting competitors and making them the most attractive option for price-sensitive consumers.
Negotiating leverage with artists and promoters
Ticketmaster can negotiate lower base ticket prices with artists and promoters by giving them a share of the fees. Smaller resellers lack the scale and relationships to make these types of deals.
Ticketmaster’s distribution advantages
In addition to pricing advantages, Ticketmaster often has preferential access to tickets that makes them a more attractive option for buyers:
Direct allocations for premium seats
Venues and event organizers will often allocate many front row, VIP, early access tickets directly to Ticketmaster rather than competitors. For high demand events, this exclusive premium ticket inventory gives Ticketmaster a major advantage.
Pre-sale code access
Ticketmaster operates the pre-sale system for many events. To get pre-sale code access, you have to be in Ticketmaster’s system. Competitors miss out on pre-sale ticket inventory.
Develops secure ticket delivery mechanisms
Ticketmaster invests heavily in mobile ticketing and other technologies to allow secure ticket delivery. Many venues prefer Ticketmaster’s proven technology over competitors.
Direct API connections to inventory systems
Ticketmaster has direct API connections into many venue box office inventory management systems. This gives them real-time access to ticket inventory over competitors.
Re-sale inventory via Ticketmaster Resale
Ticketmaster runs one of the largest secondary resale markets. This provides additional ticket inventory when primary sales sell-out. Customers have to go through Ticketmaster for resale tickets.
Ticketmaster’s technology advantages
Ticketmaster has also developed technology advantages from its long tenure and scale in ticketing:
Superior event discovery capabilities
Ticketmaster powers event discovery experiences on high traffic sites like LiveNation. Their SEO and event indexing algorithms are more refined given decades of data which makes them better at event discovery.
Robust technical infrastructure
Ticketmaster runs massive technical operations to handle huge live event ticket sale spikes. Smaller competitors can’t match the stability and reliability of Ticketmaster’s infrastructure.
Advanced fraud and bot detection technology
Sophisticated bots and scalpers try to exploit tickets sales. Ticketmaster has developed industry leading tools to counter these attacks that maximize real fan ticket availability.
In-venue technology integrations
Ticketmaster is continuously expanding in-venue technology like digital ticketing, concession ordering and payments, and audience data tools. Competitors lack the investment capabilities to create these experiences.
Data assets and analytics tools
Decades of ticket sales and event data provides Ticketmaster with unique insights into event demand, pricing optimization, marketing effectiveness, and other analytics competitors cannot access.
Ticketmaster’s branding power
Brand recognition and loyalty also plays a big role in Ticketmaster’s ongoing dominance.
Strong brand equity with ticketing
Consumers have a mental association between live event ticketing and Ticketmaster. They default to the Ticketmaster brand out of habit given decades of ticketing dominance.
Customer loyalty programs
Ticketmaster’s loyalty programs like Ticketmaster Rewards retain and reward existing customers through discounts, special access, and other benefits competitors don’t provide.
Partnerships amplify brand reach
Brand partnerships with LiveNation, venues, sports leagues, and major events expand Ticketmaster’s brand visibility and reach. Competitors don’t have the marketing funds to compete.
Ongoing national marketing campaigns
Ticketmaster runs large marketing campaigns like national TV ads and live music sponsorships. Smaller players lack the budgets for this degree of marketing prominence.
Perceptions of reliability and security
Consumers see Ticketmaster as a safer option over competitors due to perceptions of stability, security, and fraud protection. This brand halo shields Ticketmaster.
Network effects make Ticketmaster sticky
Ticketmaster has also built strong network effects that help maintain its market position:
Direct network with venues, promoters, artists
The more events, venues, promoters that use Ticketmaster, the more fans have to use it too. Competitors struggle to replicate Ticketmaster’s scale in this direct network.
Indirect network with users
As more fans use Ticketmaster, more organizers will also partner with them. This user base advantage is very difficult for competitors to overcome.
inertiain switching costs
Once a venue is set up with Ticketmaster’s hardware/software, there is inertia to stick with them rather than endure switching costs. Existing customer accounts also create inertia.
Word of mouth and influencer effects
With so many fans and influencers using Ticketmaster, it sustains word of mouth promotion. Positive experiences passed on from influencers maintain its brand strength.
Partner integrations and support
Technology integrations between Ticketmaster APIs and partner systems makes Ticketmaster a frictionless default ticketing solution for many big brands.
Regulatory environment favors Ticketmaster
The regulatory environment in ticketing also helps entrench Ticketmaster’s dominant position:
varied regulatory oversight globally
Limited regulatory oversight over ticketing allows Ticketmaster to leverage scale, partnerships, and pricing power in an unconstrained manner globally. Regulation varies widely country to country.
US and EU anti-trust reviews have approved mergers and acquisitions
Ticketmaster has gone through major anti-trust reviews including LiveNation merger. Ultimately deals were approved strengthening Ticketmaster’s position over time.
No controls over use of service fees
Regulators impose no constraints over Ticketmaster’s use of services fees, order processing fees and other tacked on fees which are major revenue drivers.
No regulations on exclusivity deals
Ticketmaster uses long-term exclusive ticketing deals with venues, promoters, and colleges which lock out competitors. Regulators have not prohibited these exclusive arrangements.
No limitations on primary + secondary market domination
Ticketmaster has been allowed to operate primary AND secondary resale marketplaces. This dual market control further solidifies Ticketmaster’s power.
Why competitors have struggled to challenge Ticketmaster
Given the clear dominance of Ticketmaster, some may wonder why meaningful competitors have failed to emerge or scale to challenge it. There are some key reasons for this:
Network effects and ticketing ecosystem control
As described earlier, Ticketmaster has built strong network effects given its ticketing ecosystem control. These network effects and overall system lock-in make it very difficult for competitors to gain meaningful share.
Preferred deals with venues, promoters, artists
Ticketmaster’s exclusive ticketing deals and close promoter/artist relationships mean competitors are boxed out from big concerts and events where the major ticket volume is.
Massive investment required to replicate capabilities
The technical infrastructure, analytics capabilities, fraud tools that Ticketmaster has developed require massive time and investment to replicate. Most competitors lack the capital to match Ticketmaster’s capabilities.
Few alternative hold major exclusive events or inventory
Competitors lack exclusive access to major concerts, festivals, venues, or ticket inventory that could attract consumers away from Ticketmaster.
Inertia and switching costs for venues
Venues face time, cost, integration headaches, and business risks switching from Ticketmaster to an unproven platform. These inertia factors keep venues locked in.
Consumer creature of habit tendencies
Consumers default to Ticketmaster out of familiarity and habit. Getting them to change ticketing behavior is difficult without major exclusive inventory.
Mergers and acquisitions of competitive threats
Ticketmaster has repeatedly acquired smaller competitors that posed any real threat over the years. Its financial power eliminates upstart competition.
Blockchain as a potential competitive disrupter
Blockchain-based ticketing platforms potentially offer a new competitive threat to Ticketmaster’s dominance in recent years. However, blockchain has some major hurdles to overcome:
Immature technology and UX challenges
Blockchain platforms have struggled with technical issues, reliability problems, and poor user experiences to date. Mass consumers will not adopt an inferior user experience.
No control over initial inventory supply
Blockchain startups face the same supply challenges – Ticketmaster controls the exclusive deals for premium ticket inventory that fans desire most.
Unproven fraud prevention and security capabilities
Ticketmaster has perfected fraud detection and prevention capabilities over decades. Blockchain platforms are still building out their features and security protections.
Lack supporting ecosystem
Blockchain platforms need to build out venue acceptance, fan adoption, and full event lifecycle functionality to rival Ticketmaster. This will take significant time and capital.
No clear cost savings for venues
Switching to blockchain may disrupt critical venue operations and offers unclear cost savings benefits relative to Ticketmaster’s entrenched solution.
Regulatory uncertainty and oversight
As blockchain matures for ticketing, regulatory scrutiny and constraints around areas like data privacy, identity management, and cryptocurrency will grow.
How Ticketmaster is trying to innovate and evolve
Despite its market power, Ticketmaster is investing to continue evolving its offerings:
Improving mobile ticket delivery and entry
Mobile tickets reduce friction for ticket holders and limit fraud. Ticketmaster is improving NFC, video, and graphic technologies to enhance mobile ticket security and ease of use.
Investing in in-venue technology
Technology like in-venue concession ordering and payments improves the event experience. Ticketmaster is innovating new capabilities to drive venue adoption.
Launching loyalty and rewards programs
Programs like Ticketmaster Rewards drive switching costs through benefits like preferred pricing and access. This increases customer lock-in.
Developing personalized recommendations
Using machine learning on its customer data, Ticketmaster is improving personalized recommendations to drive engagement and conversions.
Enhancing event discovery capabilities
Better event listings, notifications, and recommendations keep fans engaged in Ticketmaster apps and reduce search fragmentations across sites.
Integrating VR, AR, and interactive content
Immersive content before or during events make the Ticketmaster apps a more engaging destination and deepen its customer relationships.
Acquiring technology to expand capabilities
Ticketmaster makes strategic acquisitions in areas like fraud prevention, data analytics, fan engagement tools, etc. to maintain its technical edge.
Expanding globally
Ticketmaster is growing its international footprint in Europe, Latin America, and Asia to access new markets and revenue streams.
Conclusion
In summary, Ticketmaster has maintained its leadership position through aggressive deal-making, technical innovation, brand power, customer inertia, regulatory environment, and barrier creation against meaningful competition. Challengers have struggled to displace Ticketmaster given these entrenched advantages. While emerging technologies like blockchain pose a threat, Ticketmaster continues evolving through investments in new capabilities, global expansion, and strategic acquisitions. Given this dynamic, Ticketmaster remains well positioned to retain its dominant industry position for years to come.