In short, yes, Live Nation and Ticketmaster are connected. Live Nation is the parent company of Ticketmaster and owns it outright. The two companies merged in 2010 in a deal valued at $2.5 billion, creating a live entertainment giant that dominated ticketing and promotion of concerts and other events.
The History of the Live Nation-Ticketmaster Merger
Prior to their merger, Live Nation and Ticketmaster were the two largest companies in the live entertainment and ticketing industry. Live Nation formed in 2005 after spinning off from Clear Channel Communications. It promoted events and owned major venues. Ticketmaster had been around since the 1970s and dominated ticketing services. Despite being rivals, the two companies had a deep relationship. Ticketmaster had an exclusive deal to handle ticketing for Live Nation’s venues.
In 2009, Live Nation let its exclusive deal with Ticketmaster expire. Later that year, the two companies announced plans to merge in a deal reported to be worth $2.5 billion. Under the terms of the merger, Ticketmaster became a subsidiary of Live Nation. The combined company took the Live Nation name but retained Ticketmaster as a brand for its ticketing services. The deal officially closed in January 2010 after receiving regulatory approval.
The Live Nation-Ticketmaster merger brought together the two largest players in live entertainment under one roof. It combined Ticketmaster’s ticketing dominance with Live Nation’s concert promotion business and network of venues across the country. The merged company immediately controlled ticketing for the majority of major concert venues and festivals in the US. Critics raised concerns about the new company having a near-monopoly in the industry and the impact on concertgoers and venues.
Current Connection Between Live Nation and Ticketmaster
Today, the connection between Live Nation and Ticketmaster remains strong as the merged company continues to dominate. Live Nation Entertainment is the official name of the parent company. Under it are two main divisions:
- Live Nation – Responsible for promoting concerts, booking talent, and operating venues.
- Ticketmaster – Provides ticketing services and ticketing website/app.
The two divisions work hand-in-hand, even though they operate as distinct units. Live Nation venues and concerts use Ticketmaster almost exclusively for their ticketing needs. Ticketmaster also works with many third-party venues and events outside of Live Nation. But the bulk of its business comes from servicing its parent company’s venues and concerts.
Live Nation Entertainment also houses other related brands like:
- House of Blues – Live music venues and restaurants
- C3 Presents – Festival promotion company
- Front Gate Tickets – Festivals and live event ticketing platform
The entire Live Nation Entertainment umbrella is led by President and CEO Michael Rapino. So while Live Nation and Ticketmaster run as separate businesses day-to-day, they are both ultimately controlled by the same leadership team. Strategic decisions for the ticketing division support the overall goals of the concert promotion and venue business.
Overlap Between Live Nation and Ticketmaster
The close connection between Live Nation and Ticketmaster can be seen in the significant overlap between the two companies:
Exclusive Ticketing Agreement
Ticketmaster remains the exclusive ticketing service for the majority of Live Nation owned and operated venues. It also handles ticketing for most Live Nation promoted concerts, festivals, and tours.
Shared Sales Forces and Data
Ticketmaster and Live Nation sales teams work together to land ticketing deals with third-party venues and promoters. The two divisions also share consumer data to help market shows and target concert ads.
Bundled Promotions
Live Nation will often run ticket giveaways and other promotions across its owned brands that bundle concert tickets and Ticketmaster vouchers.
Cross-Promotion
Live Nation venues, festivals, and concerts are heavily advertised and promoted on the Ticketmaster website and app. This cross-promotion supports Ticketmaster’s lead role in ticketing all Live Nation events.
Shared Executives
There is an overlap between executives at Live Nation and Ticketmaster. For example, Live Nation’s President of North American Concerts also serves as Ticketmaster’s Chief Operating Officer.
Benefits of the Live Nation-Ticketmaster Connection
The main benefit of Live Nation and Ticketmaster’s relationship is the convenience and efficiency of being able to handle ticketing in-house for Live Nation concerts and venues. Other benefits include:
- Streamlined sales, marketing, and data sharing between divisions.
- Ability to bundle Live Nation venue/concert promotions with Ticketmaster discounts.
- More negotiating leverage with vendors, sponsors, and third-party venues.
- Lower overhead costs than operating completely separate entities.
The connection delivers Live Nation Entertainment synergies and advantages that competitors do not have access to. It also frees them from relying on an outside ticketing service. However, the close relationship has also drawn continuous anti-trust scrutiny.
Anti-Trust Concerns and Controversies
The Ticketmaster-Live Nation merger immediately raised anti-competition concerns from regulators and the music industry. Specific allegations have included:
- Ticketmaster intentionally directs customers away from lower-priced tickets to Live Nation resale sites like TicketsNow.
- They bundle desirable concert tickets with less popular Live Nation venue or festival tickets.
- Ticketing fees for Live Nation events are higher than non-Live Nation events.
- They threaten venues and promoters to not work with other ticketing companies.
The companies have denied many of the accusations and settled some lawsuits out of court. Live Nation Entertainment remains under a consent decree with the Department of Justice until 2020 stemming from the original merger agreement. The decree prevents certain retaliatory practices against venues that don’t use Ticketmaster. There are still regular calls to split Live Nation and Ticketmaster back into separate companies.
Conclusion
In summary, Live Nation and Ticketmaster maintain a closely intertwined relationship since merging in 2010. Ticketmaster sits under the Live Nation corporate umbrella but operates independently handling ticketing. The two divisions work hand-in-hand for ticketing Live Nation venues and concerts. They also share data, promotions, executives, and strategic direction as part of Live Nation Entertainment. The unified company holds clear dominance in live entertainment promotion, venues, and ticketing. While the connection has drawn anti-trust concerns, Live Nation and Ticketmaster remain cemented as partners running the largest concert promotion empire in the world.
