Live Nation and Ticketmaster are two of the biggest companies in the live entertainment and ticketing industry. Though they are closely tied together, they are actually separate corporate entities with some important distinctions.
Brief Background
Live Nation was formed in 2005 after spinning off from Clear Channel Communications. The company promotes live events, operates venues, and manages artists. Some of Live Nation’s major divisions include:
- Live Nation Concerts – Promotes tours and festivals
- Live Nation Venues – Operates over 100 venues worldwide
- Live Nation Sponsorship – Manages sponsorships and branding deals
- Ticketmaster – Primary ticketing provider (owned by Live Nation)
Ticketmaster originated as a ticket sales service in 1976. Over the decades, it expanded significantly through acquisitions and growth to become the largest ticketing company in the world. In 2010, Ticketmaster and Live Nation merged to create the Live Nation Entertainment company.
Type of Business
The key difference between Live Nation and Ticketmaster is the type of business each company focuses on:
- Live Nation is primarily focused on event promotion, operation of venues, management of artists, and overall live entertainment.
- Ticketmaster is a technology and e-commerce company that provides ticketing services and ticket sales.
In other words, Live Nation’s business revolves around live events themselves, while Ticketmaster facilitates customer access to those events through ticket sales.
Areas of Operation
Within the live entertainment industry, Live Nation and Ticketmaster have the following main areas of operation:
| Live Nation | Ticketmaster |
|---|---|
| – Promoting tours and festivals | – Providing ticketing platforms/services |
| – Managing artists | – Selling event tickets online and phone |
| – Operating venues/theaters | – Offering ticket resale marketplace |
| – Producing TV broadcasts and content | – Providing box office software |
| – Sponsorships and advertising | – Data/analytics on ticket sales |
While there is some overlap in areas like sponsorships and data, the core focuses remain distinct. Live Nation works directly on event content, production, and promotion. Ticketmaster offers the technology and sales infrastructure that gives customer access to that content.
Revenue Sources
Live Nation and Ticketmaster also differ significantly in their revenue sources and financial models:
Live Nation Revenue
- Ticket sales from promoted events
- Sponsorships
- Concessions, merchandising, parking at venues
- Management commissions from artists
- Venue rental fees
- Advertising
Ticketmaster Revenue
- Fees and commissions on ticket sales
- Advertising and promotions
- Commissions from ticket resale/exchanges
- Licensing platforms and services
- Data on ticket sales and customers
The companies both earn substantial revenue from ticket sales, but Live Nation is focused on event content while Ticketmaster monetizes transactions around that content.
Industry Leadership
The merger of Live Nation and Ticketmaster made the combined Live Nation Entertainment company an industry juggernaut. Some key indicators of leadership:
- Live Nation Entertainment reported $10.8 billion in revenue in 2019.
- Ticketmaster sells over 500 million tickets per year worldwide.
- Live Nation promotes over 40,000 events annually.
- The companies together control around 70% market share of primary event ticketing and live promotions.
The merged company has achieved high integration and captured dominant market positions in core live entertainment services – events, ticketing, venues, etc. Competitors like AEG and smaller players trail significantly in scale and breadth.
Management Structure
Although now united under Live Nation Entertainment, Live Nation and Ticketmaster still largely operate as separate entities with dedicated management teams.
- Michael Rapino is President and CEO of Live Nation Entertainment.
- Joe Berchtold is President of Live Nation.
- Michael Rowles is General Counsel for Live Nation Entertainment.
- Kathy Willard is CFO of Live Nation Entertainment.
- Amy Howe is President of Ticketmaster.
- Jared Smith is President of Ticketmaster North America.
- Mark Yovich is President of Ticketmaster International.
There is overlap between the executive leadership teams, but the core business divisions retain their own corporate management structures.
Conclusion
While Live Nation and Ticketmaster work hand-in-hand in live entertainment, they play distinct roles with different core businesses:
- Live Nation focuses on event promotion, operation of venues, managing artists.
- Ticketmaster provides ticketing platforms and services that give access to events.
Through their 2010 merger to form Live Nation Entertainment, the companies integrated their operations and became an entertainment industry powerhouse. But Live Nation continues to center its business on live events and content, while Ticketmaster brings its technology and infrastructure to bear on sales and distribution of access to that content.
