Ticketmaster is a large ticket sales and distribution company that sells tickets for many major concerts, sporting events, and more. There has been some debate over whether Ticketmaster should be considered a corporation or not. Here we will look at the definition of a corporation, examine Ticketmaster’s structure and operations, and analyze whether it meets the criteria to be classified as a corporation.
What is a corporation?
A corporation is a legal entity that is separate from its owners. Corporations have many of the same legal rights and responsibilities as individuals. Some of the key characteristics of corporations include:
- They can enter into contracts, sue and be sued.
- They are subject to taxes and regulations.
- They can sell stock and bonds to raise funds.
- They have a board of directors and executive leadership.
- If a corporation goes bankrupt, the owners are not personally liable.
In the United States, corporations are formed under state law. They must file articles of incorporation and other documents with the state to be officially recognized. Corporations also have bylaws that govern their internal structure and processes. Ownership in a corporation is divided into shares of stock.
Ticketmaster’s structure and operations
Now let’s look at how Ticketmaster is structured and operates:
- Ticketmaster is owned by Live Nation Entertainment, which is a publicly traded company.
- Ticketmaster files registration documents, quarterly reports, and other filings with the SEC as a subsidiary of Live Nation.
- The company has a board of directors and executive leadership team.
- It enters into high-value contracts with major venues, sports teams, and event promoters.
- Ticketmaster can be sued and pays taxes as a corporate entity.
- The company sells stock on the New York Stock Exchange under the symbol LYV.
Here is a summary of some key financial statistics for Ticketmaster:
Category | Statistic |
---|---|
Annual revenue | $6.26 billion (2021) |
Net income | $407 million (2021) |
Total assets | $9.4 billion (2021) |
Employees | 8,500 (2021) |
This financial and operational data shows that Ticketmaster exhibits many classic signs of being a corporation. It has substantial assets, revenues, employees and hierarchical leadership.
Does Ticketmaster meet the criteria for a corporation?
Based on the definition and criteria for a corporation, Ticketmaster clearly qualifies:
- Separate legal entity: Ticketmaster is registered and files as its own entity, separate from its parent Live Nation.
- Can enter contracts: Ticketmaster signs high-value ticketing deals and partnerships worth millions.
- Can sue and be sued: Ticketmaster is frequently party to lawsuits related to its ticketing business.
- Subject to regulations: Ticketmaster must comply with consumer protection laws, advertising standards, ADA requirements and more.
- Sell stock and bonds: While Ticketmaster itself doesn’t issue stock, its parent Live Nation does, giving it access to capital markets.
- Has board and executives: Ticketmaster has a CEO, COO, VPs and other managerial positions.
- Owners have limited liability: Ticketmaster’s debts and liabilities are not the responsibility of its owner Live Nation.
Ticketmaster also exhibits other common corporate characteristics:
– Has multiple locations and subsidiaries
– Hires large numbers of employees
– Provides services globally
– Has significant revenues and assets
– Was formed by filing incorporation documents
Conclusion
Based on an analysis of its legal status, structure, operations and other factors, Ticketmaster matches the definition of a corporation. Key indicators include:
– Registered as separate legal entity
– Can enter contracts, sue and be sued
– Subject to regulations and taxes
– Part of a publicly traded parent company
– Has corporate management hierarchy
– Owners have limited liability protections
While Ticketmaster does not directly issue stock or have shareholders, it functions as part of a larger corporate structure under Live Nation. Overall, Ticketmaster clearly qualifies and is rightly classified as a corporation rather than a private partnership, sole proprietorship or non-profit entity.
Other major ticket sellers
Ticketmaster is the largest ticket seller, but not the only major player in the industry. Here are a few other large corporations involved in ticket sales and distribution:
AXS
AXS is a ticketing platform owned by Anschutz Entertainment Group, which is a large sports and entertainment conglomerate. AXS sells tickets for major concerts, shows, sports events and more.
Vivid Seats
Vivid Seats is an online marketplace for event tickets. It allows buyers and sellers to trade tickets for concerts, theater, and sports events. Vivid Seats serves as a secondary ticket market.
SeatGeek
SeatGeek is a mobile-focused ticket platform that aggregates event tickets from primary and secondary market sellers. It uses real-time data to rate ticket deals.
StubHub
StubHub is one of the largest secondary market ticket platforms. It allows fans to buy and sell tickets to sports, concerts and other live entertainment events. StubHub was acquired by Viagogo in 2020.
Ticketmaster controversies
While a major player in ticketing, Ticketmaster has also been involved in several controversies over its business practices:
Fees and dynamic pricing
Customers have complained about Ticketmaster’s extensive fees that can add more than 25% to the ticket face value. Ticketmaster also utilizes variable and surge pricing, raising prices for hot events.
Anti-competitive concerns
Ticketmaster has faced allegations of anti-competitive behavior through exclusive contracts that box out competitors in the ticketing market. The company has previously settled class action lawsuits related to pricing practices.
Bots and bulk purchases
There is an ongoing problem with ticket bots and bulk purchases scooping up tickets and then reselling them at inflated prices. Ticketmaster has been criticized for not doing enough to combat bots and scalpers.
Security breaches
Ticketmaster has faced data breaches that compromised customer information. In 2018, it revealed a breach that may have leaked the personal data of up to 40,000 customers in the UK.
The future of Ticketmaster
Ticketmaster has cemented itself as a power player in event ticketing over more than 40 years in business. However, the ticketing landscape continues to evolve. Here are some predictions for Ticketmaster’s future:
– Increased competition from new ticketing platforms and secondary marketplaces
– Integration of emerging technology like blockchain and cryptographic ticketing
– Continued expansion into international markets
– Ongoing pressure related to fees, dynamic pricing, anti-competitive behavior
– More scrutiny from regulators on alleged anti-competitive practices
– Introduction of consumer protections related to bulk ticket purchases and transparency
As a major corporation, Ticketmaster will likely continue to wield strong influence and maintain dominance. But the company will also need to adapt to growing public concerns, new technologies, and a shifting live events industry. If Ticketmaster can successfully innovate and update business practices, the corporation could reinforce its leading role in event ticketing for years to come.