Ticketmaster and Live Nation are two of the biggest companies in the live event and entertainment industry. They work closely together, but are actually separate companies with a complex business relationship.
The Short Answer
No, Ticketmaster and Live Nation are not the same company. They started out as competitors in the ticket sales industry, but in 2010 they merged into a new entity called Live Nation Entertainment. However, Ticketmaster and Live Nation still operate as separate companies under the Live Nation Entertainment umbrella.
The Long Answer
Here is a more in-depth look at the history and relationship between Ticketmaster and Live Nation:
Ticketmaster’s Origins
Ticketmaster was founded in 1976 as a ticket sales and distribution company. It developed a strong market position by signing exclusive deals with major venues and promoters to be their official ticket vendor. This allowed Ticketmaster to charge service fees on each ticket sold for an event.
Live Nation’s Origins
Live Nation originated in 1996 when SFX Entertainment, a concert promoter, merged with Bill Graham Presents, another major promoter. SFX Entertainment later changed its name to Clear Channel Entertainment before adopting the Live Nation name in 2005. Live Nation promoted and operated tours for high-profile musicians and bands.
The Merger
As Ticketmaster and Live Nation grew into industry heavyweights, they developed a co-dependent relationship. Live Nation relied on Ticketmaster to sell tickets to its events, while Ticketmaster relied on Live Nation to provide content and events to sell tickets for. This relationship was sometimes strained, however, as the companies still competed for venue deals and promotional business.
In 2009, Ticketmaster and Live Nation announced plans to merge into a new entity called Live Nation Entertainment. Regulators approved the merger in 2010, allowing the companies to combine their ticketing, promotion, artist management and event businesses. The goal was to create a global end-to-end platform for the live entertainment business.
How They Operate Today
Within Live Nation Entertainment, Ticketmaster and Live Nation still exist as separate companies and brands. In simple terms:
- Ticketmaster handles ticketing services and technology
- Live Nation promotes events and manages artists
However, the two companies have a symbiotic relationship and work together to sign deals with venues, promoters and bands. Ticketmaster is still the world’s largest ticket seller, while Live Nation is the biggest event promoter and artist manager.
Criticisms and Controversies
The Ticketmaster-Live Nation merger has been criticized by many music fans and industry watchers. Some of the main criticisms include:
- The combined company has too much market power in live entertainment
- Ticket fees are too high for customers due to lack of competition
- The merger stifles competition by locking so many venues and artists into exclusive deals
- Smaller promoters and venues have struggled to compete as the companies favor their own venues and ticketing services
The company has also faced multiple lawsuits over its ticketing fees and other business practices since the merger.
Recent Developments
In recent years, Live Nation Entertainment has expanded further by acquiring several companies related to the live events space, including:
- Ticketweb – an independent ticketing company (2008)
- Front Line Management – one of the biggest artist management firms (2008)
- CTS Eventim – a European ticketing company (2013)
- GetMeIn! – a European online ticket marketplace (2013)
The company continues to grow its clout across ticketing, promotion, artist management and related areas of the live entertainment industry.
Key Differences Between Ticketmaster and Live Nation
Despite being under the same corporate umbrella, there are still several key differences between Ticketmaster and Live Nation:
| Ticketmaster | Live Nation |
|---|---|
| Primary focus is ticketing services and technology solutions for live events | Primary focus is promoting live music events and managing music artists |
| Provides ticketing platforms and services to venues, theaters, arenas, festivals etc. | Owns, operates, promotes concerts and festivals at major venues globally |
| Sells tickets on behalf of clients across multiple live entertainment genres like sports and arts | Promotes and manages tours for high-profile pop, rock, and country musicians |
| Charges service fees on tickets sold through its platforms | Generates revenue by taking a share of ticket sales, promotions, sponsorships, artist management commissions etc. |
Conclusion
In summary, Ticketmaster and Live Nation are no longer direct competitors, but they continue to operate as distinct companies under their joint parent enterprise Live Nation Entertainment. This arrangement combines Ticketmaster’s ticketing dominance with Live Nation’s strength in live music promotion and artist management.
The merged entity controls huge power across the live events value chain. While this has strengthened their business, it remains controversial with critics who accuse the companies of monopolistic practices and disfavoring consumers and small event promoters.
Nonetheless, with their vast resources and global footprint, Ticketmaster and Live Nation will likely continue to be key players shaping the future of the live entertainment and ticketing industries.