Ticketmaster is an American ticket sales and distribution company based in Beverly Hills, California. It serves clients worldwide and has operations in multiple countries, but its headquarters and founding location are in the United States.
Quick Facts
- Ticketmaster was founded in Phoenix, Arizona in 1976 by two computer programmers, Albert Leffler and Peter Gadwa.
- It was established as an alternative to stand-in-line ticket buying methods, allowing customers to purchase tickets remotely for events.
- Originally solely focused on live events, Ticketmaster has expanded to provide ticketing services for various venues including sporting events, concerts, theater shows, and more.
- In 1991, Ticketmaster acquired Ticketron, its major competitor at the time, to expand its market share in ticketing services.
- Ticketmaster merged with Live Nation in a $2.5 billion deal in 2009. Live Nation is the world’s largest live entertainment company.
- Ticketmaster sold over 485 million tickets in 2019 across 30 countries. It has more than 200 global websites in over 20 languages.
- Ticketmaster’s parent company Live Nation reported $11.5 billion in revenue in 2019. $1.1 billion of that came from Ticketmaster operations.
History of Ticketmaster
Ticketmaster was founded in Phoenix, Arizona in 1976 by two computer programmers, Albert Leffler and Peter Gadwa. They recognized the need for a more efficient method of purchasing tickets for events and created a remote ticketing service as an alternative to physical ticket buying.
The first major client for Ticketmaster was the Phoenix Open golf tournament. In 1982, Ticketmaster provided ticketing services for the first FIFA World Cup held in Spain. It saw significant growth through the 1980s by expanding to serve major concert venues and promoters like Bill Graham Presents.
In 1991, Ticketmaster acquired their major competitor, Ticketron. At the time, Ticketron’s share of the ticket market was around 80-90%. This acquisition allowed Ticketmaster to expand its services and client base substantially.
Over the 1990s and 2000s, Ticketmaster continued to grow through partnerships with venues, sports leagues and bands. It developed a large online presence to meet growing digital ticket sales. The website Ticketmaster.com was launched in 1996.
In 2008, Ticketmaster sold over 141 million tickets and generated $1.2 billion in revenue. The following year, it merged with Live Nation in a deal worth $2.5 billion. Live Nation is the world’s largest live entertainment company, allowing further expansion of Ticketmaster’s services in the industry.
Today, Ticketmaster provides ticket sales, distribution and marketing services for hundreds of clients in live entertainment. It sold over 485 million tickets globally in 2019 across 30 countries. In that year, Ticketmaster’s parent company Live Nation reported $11.5 billion in total revenue.
Ticketmaster Operations
Ticketmaster is an e-commerce site that acts as a marketplace connecting buyers to tickets for events. It signs long-term contracts with venues, sports leagues and event organizers to sell tickets directly through its platform.
In a typical ticket sale on Ticketmaster, the event provider sets ticket prices and delivery methods. Ticketmaster lists the tickets for sale on its platform and handles the transaction and delivery of tickets to customers. There is an additional service charge added to each ticket purchase that acts as Ticketmaster’s revenue source.
Ticketmaster uses market-based pricing to adjust the price of tickets closer to events selling out. This dynamic pricing aims to maximize profitability based on demand. Ticketmaster has faced criticism in some instances for dramatic price hikes.
In addition to ticket sales, Ticketmaster offers tools for event marketing, ticket tracking and analytics for clients. It has also expanded with technology companies under Live Nation like machine learning platform UpNext and digital ticketing company Presence.
Ticketmaster Company Structure
Ticketmaster is a wholly owned subsidiary of Live Nation Entertainment. Live Nation was formed from the Ticketmaster and Live Nation merger in 2010.
Ticketmaster’s headquarters are located in Beverly Hills, California. It operates over 200 websites across 27 countries and has 19 office locations spread globally.
Live Nation Entertainment is headquartered in Beverly Hills and has over 10,000 employees worldwide. In 2019, it reported $11.5 billion in total annual revenue.
Ticketmaster Revenue Sources
Ticketmaster has two main revenue sources:
- Service charges – Ticketmaster adds a service charge to each ticket sold on its platform. This can range from a few dollars to up to 25-30% of the base ticket price.
- Client contracts – Ticketmaster has long-term contracts with venues, sports leagues and event organizers. They pay an upfront fee for Ticketmaster’s ticketing services.
In 2019, Ticketmaster generated $1.1 billion in revenue through commissions and services charges. This made up about 10% of total revenue for parent company Live Nation Entertainment.
Is Ticketmaster an American or Canadian Company?
Despite having operations in multiple countries, Ticketmaster is an American company. Important points:
- Ticketmaster was founded in Phoenix, Arizona in the United States in 1976.
- Its headquarters and executive leadership are based in Beverly Hills, California.
- Ticketmaster merged with and is a subsidiary of Live Nation Entertainment, an American events company based in California.
- In public financial filings and investor documents, Ticketmaster is referred to as an American company.
- While Ticketmaster operates globally, its founding location, leadership, and corporate ownership are American.
So in summary, Ticketmaster is considered an American company despite having an international presence. Its origins, leadership, and corporate structure are all centered in the United States.
Conclusion
Ticketmaster is an American ticket sales and distribution company headquartered in Beverly Hills, California. It was founded in Phoenix, Arizona in 1976 as a remote ticketing service for live events. Through partnerships, acquisitions and online growth, Ticketmaster expanded to become a dominant player in event ticketing globally.
In 2009, Ticketmaster merged with Live Nation in a deal valued at $2.5 billion. Live Nation is an American events company and the combination created the world’s largest live entertainment company. Ticketmaster continues to operate as a subsidiary, handling ticketing operations and technology services across Live Nation’s portfolio.
So while Ticketmaster sells tickets worldwide, its founding location, leadership and ownership by Live Nation Entertainment make it clearly an American company. When researching Ticketmaster’s origins and operations, all evidence points to its identification as a United States company.
