Live Nation and Ticketmaster are two major players in the live entertainment and ticketing industry, but they are not exactly the same thing. Though they have a complex business relationship and ownership structure, Live Nation and Ticketmaster remain separate companies with some overlap and partnership between them.
In short:
- Live Nation is a live entertainment company that owns, operates, and promotes venues and festivals.
- Ticketmaster is a ticket sales and distribution company that provides ticketing services for Live Nation’s venues.
- Live Nation and Ticketmaster merged in a deal in 2009. Live Nation owns Ticketmaster but they continue to operate as separate entities.
- The merged company Live Nation Entertainment has monopolistic power in ticketing and live events.
To fully understand the relationship between Live Nation and Ticketmaster, it is important to know the history and context behind how these two companies came together while still maintaining distinct operations and brands. This article will dive into the details, provide key timeline events, and outline the corporate structure that binds yet separates Live Nation and Ticketmaster.
The History of Live Nation and Ticketmaster
Live Nation and Ticketmaster were both major established players in the live entertainment industry before their merger. Here is a brief history of each company:
Live Nation History
Live Nation was spun off from Clear Channel Communications (now iHeartMedia) in 2005. The company was formed to manage Clear Channel’s live entertainment assets including venues and concert promotions.
Some key points:
- Originally named Live Nation, Inc when formed in 2005.
- Became a publicly traded company in 2005.
- In 2006, sold off sports representation business and renamed Live Nation.
- Prior to merger with Ticketmaster, Live Nation promoted major tours and owned 135 venues around the world.
Ticketmaster History
Ticketmaster was founded in 1976 as a ticket sales and distribution company. It provided ticketing services for concert venues, sports stadiums, and theaters.
Some key points:
- Originally founded as Ticketmaster in 1976 by Albert Leffler and Gordon Gunn.
- Expanded operations through the 80s and 90s, acquiring various regional ticketing companies.
- Merged with Ticketron in 1991 to become the dominant ticket company in the US.
- Acquired by USA Networks in 1997 and later spun off in 2003 to become a publicly traded company.
So by the mid 2000s, Live Nation and Ticketmaster were two of the largest players in live entertainment. Live Nation focused on promotion and venues while Ticketmaster provided the ticketing services.
The Merger Announcement
In February 2009, Live Nation and Ticketmaster announced a merger deal to become Live Nation Entertainment. Some key details about the merger announcement:
- The deal was an all-stock merger valued at $2.5 billion.
- The statement positioned the merger as creating a vertically integrated company for concerts and ticketing.
- brand names Ticketmaster and Live Nation would be maintained separately.
- Live Nation CEO Michael Rapino would run the merged company.
- The merger aimed to capitalize on synergies between promotion, venues, ticketing.
The proposed merger raised anti-trust concerns about the combined company having too much power in live entertainment. The review process took about a year before DOJ approval.
Merger Approved in January 2010
The Live Nation Ticketmaster merger deal received approval by the Department of Justice in January 2010. Some key points about the merger approval:
- DOJ required Ticketmaster to license its software to Anschutz Entertainment Group (AEG), its competitor.
- DOJ mandated division of merged company’s ticketing and promotions businesses.
- New company named Live Nation Entertainment begins trading on NYSE.
- Though approved, the merger conditions acknowledged anti-trust concerns.
Current Corporate Structure and Separation
Although now operating under the parent company Live Nation Entertainment, Live Nation and Ticketmaster still remain operationally separate companies today in 2023. Here are some key points about their current relationship:
- Live Nation Entertainment (LYV) is the parent company with Live Nation and Ticketmaster as wholly owned subsidiaries.
- Live Nation owns around 200 venues and promotes concerts and festivals.
- Ticketmaster provides ticketing services to 500,000+ events and clients annually.
- Live Nation venues primarily use Ticketmaster for event ticketing.
- But Ticketmaster also tickets for many other non-Live Nation venues and sports teams.
- Live Nation and Ticketmaster have separate corporate headquarters, management, and employees.
To summarize, Live Nation Entertainment is the overall company, while Live Nation and Ticketmaster operate as distinct brands and subsidiaries with a level of division maintained from the DOJ mandate.
Ownership Structure
Here is a breakdown of the ownership structure:
- Live Nation Entertainment (NYSE: LYV) is the parent company.
- Live Nation Entertainment owns 100% of Live Nation.
- Live Nation Entertainment owns 100% of Ticketmaster.
- Shareholders own stock in the parent Live Nation Entertainment.
So public shareholders in Live Nation Entertainment ultimately own both Live Nation and Ticketmaster. But operations are still separated based on the 2010 DOJ approval conditions.
Where the Companies Overlap
While Live Nation and Ticketmaster operate independently, their relationship still involves considerable overlap in certain business operations and partnerships.
Ticketing Agreement
The main area where Live Nation and Ticketmaster directly intersect is ticketing services.
- Ticketmaster has a professional services agreement with Live Nation to provide ticketing for Live Nation owned and operated venues.
- This accounts for a sizable portion of Ticketmaster’s ticketing volume each year.
- Live Nation venues represent around 70% of Ticketmaster’s ticketing business.
Data and Analytics
Another symbiotic area is data sharing and analytics between the Live Nation and Ticketmaster businesses.
- With Live Nation’s promotion arm and Ticketmaster’s distribution, the combined company has powerful consumer data and analytics.
- Fan and ticket buyer data can be used across both platforms for targeted marketing and sales.
- Data sharing and utilization connects the two companies.
Executive Connection
There is also overlap between Live Nation and Ticketmaster at the executive level.
- Michael Rapino serves as President and CEO of the parent Live Nation Entertainment company.
- Joe Berchtold is Chief Financial Officer of Live Nation Entertainment, and also President of Live Nation.
- Michael Rowles is General Counsel for both Live Nation Entertainment and Ticketmaster.
- Some board members also overlap between the two companies.
So while operations are separate, there is direct executive connection and leadership of the jointly owned parent company.
Where the Companies Differ
Despite overlap in some areas, Live Nation and Ticketmaster still operate as independent companies in most of their business lines.
Venues and Promotions
Live Nation owns, operates, and runs around 200 venues and festivals worldwide. These include:
- House of Blues
- Fillmore
- O2 Apollo
- Electric Factory
- And major festivals like Lollapalooza
This venue ownership and concert promotion makes up the core of Live Nation’s business. Ticketmaster is not involved.
Ticketing Operations
Ticketmaster provides ticketing services and technology to over 500,000 global events and clients annually. Along with Live Nation venues, clients include:
- Major U.S. pro sports teams
- Hundreds of concert venues and theaters
- College sports teams and leagues
- Festivals, fairs, conferences, and more
For these clients and events beyond Live Nation’s portfolio, Ticketmaster provides stand-alone ticketing services and support. This ticketing operation makes up Ticketmaster’s primary business.
Corporate Headquarters
Live Nation Entertainment, the parent company, has corporate headquarters in Beverly Hills, California. Separately:
- Live Nation has headquarters in Beverly Hills.
- Ticketmaster is headquartered in West Hollywood, California.
They maintain separate main corporate offices reflecting their ongoing operational divisions.
Why Live Nation Acquired Ticketmaster
Given the requirements to still operate Live Nation and Ticketmaster separately, why did Live Nation seek to acquire Ticketmaster in this merger in the first place?
There were a few key strategic benefits Live Nation gained:
1. Access to Ticketmaster’s Ticketing Platform and Technology
By acquiring Ticketmaster, Live Nation now has full access to Ticketmaster’s industry leading ticketing platform, software, APIs, and technology. They can utilize this technology across their venues and concerts.
2. More Control Over Ticketing Their Own Events
Owning Ticketmaster gives Live Nation greater control and flexibility on service fees and commissions for tickets sold to their events. This allows them to maximize ticketing revenue.
3. Gain Ticketmaster’s Data and Analytics
With Ticketmaster under their roof, Live Nation could better leverage Ticketmaster’s ticketing data and analytics to improve marketing and sales for shows and promotion.
4. Establish More Vertical Integration
Bringing together the leading venue/promotion company and leading ticketing company creates more vertical integration in the live entertainment industry under one roof.
5. Build a Wider Competitive Moat
The merger strengthened Live Nation’s competitive positioning and created a wider moat around their combined ticketing/promotion business against competitors.
So in summary, though required to operate independently, Live Nation owning Ticketmaster solidified their power and control across the live event business.
Anti-Trust Concerns with the Merger
A major issue around the Live Nation Ticketmaster merger was anti-trust concerns and the increased market control of the combined company.
Consumer watchdogs warned the merger would lead to a monopoly in live entertainment. Specifically with concerns around:
- Ability to raise prices on service fees with reduced competition.
- Control over venues through exclusive ticketing deals.
- Higher barriers to entry for competitors in ticketing or venue ownership.
- Requirement for artists to work with Ticketmaster/Live Nation.
These concerns led the DOJ to establish the merger conditions it did, prohibiting complete integration of Live Nation and Ticketmaster.
However, some analysts argue the conditions did not go far enough to promote fair competition. And Live Nation Entertainment does wield considerable power.
Live Nation Entertainment’s Share of Key Markets
Here are some statistics showing Live Nation Entertainment’s commanding market share in key live entertainment categories:
Category | Market Share |
Primary ticketing services | 60-70% |
Live event promotion | 70%+ |
Major U.S. concert venues | 70% |
This level of dominance has continued to raise anti-trust concerns despite the conditions placed on the merger. Calls remain for the DOJ to take broader action to increase competition.
Competition Between Live Nation and AEG
While Live Nation Entertainment oversees a huge swath of the live event industry, it does still face competition in some areas from AEG and other players.
AEG (Anschutz Entertainment Group) is a large sports and entertainment company that competes with Live Nation in some key ways:
- AEG owns venues like Staples Center and O2 Arena.
- Promotes major concert tours.
- Owns sports teams like the LA Kings and LA Galaxy.
- Has a ticketing subsidiary AXS providing ticketing services.
Given AEG’s position, they are able to compete with Live Nation Entertainment in tangible ways such as:
- Bidding against each other for major concert tour promotions.
- AEG promoting tours with their own AXS ticketing vs. Live Nation venues primarily using Ticketmaster.
- Competing for venue naming rights deals.
- AEG attempting to challenge Ticketmaster’s ticketing dominance.
So while Live Nation Entertainment is clearly the 800-pound gorilla, AEG’s presence has prevented complete dominance and acts as a counter-balance in the market.
Recent Calls for Break Up or Divestiture
Despite the conditions placed with the original merger approval, there have been renewed calls to break up Live Nation Entertainment in the past few years.
Some recent actions include:
- 2018 – The DOJ was reported to be reviewing complaints about Live Nation Entertainment potentially violating antitrust laws.
- 2019 – DOJ Assistant Attorney General Makan Delrahim met with concerned musician groups.
- 2021 – Groups called for DOJ and President Biden to examine the competitive impacts of the merger and take corrective action.
While no major legal action has been taken recently, pressure remains on Live Nation Entertainment given anti-trust critiques. Some proposed outcomes being called for include:
- Breaking Live Nation and Ticketmaster back into separate companies.
- Requiring Live Nation to divest all or part of its Ticketmaster holdings.
- Prohibiting exclusive ticketing deals between Live Nation venues and Ticketmaster.
If any moves were legally taken, it would significantly shake up the live event industry structure. However, no major legal challenges are currently underway.
Live Nation Entertainment’s Defense of Merger
Given the ongoing criticism and calls to undo the merger, Live Nation Entertainment leadership has provided defenses and justification for why the deal benefits consumers and the industry.
Here are some of the key points Live Nation executives and spokespeople have asserted:
- The combination has created innovative products and better experiences for fans.
- Ticket prices and fees have stayed generally consistent with inflation since the merger.
- Artists are receiving a higher percentage of revenue from concerts now compared to pre-merger.
- There are no exclusive arrangements between Live Nation and Ticketmaster, venues have open ticketing options.
- The conditions already placed on the merger have protected fair competition.
Live Nation argues their size, capabilities, and vertical integration ultimately provide a better live event ecosystem that serves both fans and artists more effectively.
But critics challenge these claims, arguing prices have risen faster than inflation and the company wields too much unilateral power in the industry. The debate continues.
Conclusion
While Live Nation owns Ticketmaster, the two companies continue to operate independently in key business lines per DOJ requirements with the merger. This separation is what allows them to maintain distinct brands and headquarters.
However, considerable overlap exists between the two, especially for ticketing Live Nation’s venues. This illustrates the symbiotic relationship between the promotion and ticketing giants.
The complex merger has undeniably made Live Nation Entertainment a juggernaut in live events, spurring ongoing criticism and calls for antitrust action. But the company defends its structure as benefitting consumers and the industry.
The total market impact from the Live Nation-Ticketmaster merger likely remains a mix of beneficial innovation and problematic consolidation. Their intertwined yet separate ongoing relationship will continue to be debated moving forward.