Ticketmaster is the world’s largest ticket sales and distribution company, serving clients in the entertainment, sports, and arts industries around the globe. The company has a dominant position in the live event ticketing market, with an estimated 80-90% market share in the United States.
Ticketmaster’s History and Ownership
Ticketmaster was founded in Phoenix, Arizona in 1976 by two computer programmers, Albert Leffler and Gordon Gunn. The company initially focused on selling tickets for local events in Phoenix using computerized ticketing systems.
In 1982, Ticketmaster was acquired by Jay Pritzker, an American businessman and heir to the Hyatt hotel chain fortune. Pritzker helped to expand Ticketmaster nationally in the United States throughout the 1980s. Under Pritzker’s ownership, Ticketmaster became the primary ticketing service for large venues across the country.
In 1993, Ticketmaster merged with Ticketron, its main competitor at the time. This gave Ticketmaster control of over 80% of the major-venue ticket sales market in the US. The merger solidified Ticketmaster as the dominant player in event ticketing.
In 2003, Ticketmaster was acquired by IAC/InterActiveCorp, a media and internet company controlled by Barry Diller. IAC operated Ticketmaster as part of its Ticketing division.
In 2008, Ticketmaster merged with Live Nation, the world’s largest concert promoter, in a $2.5 billion deal. The new company was named Live Nation Entertainment. Barry Diller and John Malone, another media mogul and IAC shareholder, owned approximately 27% of the combined company.
Today, Live Nation Entertainment continues to own and operate the Ticketmaster brand. Live Nation Entertainment (NYSE: LYV) is a publicly traded company with a market capitalization of around $25 billion as of October 2022.
Current Ownership Structure of Live Nation Entertainment
As a public company, Live Nation Entertainment has numerous institutional and retail shareholders. However, several individuals and entities hold significant ownership stakes in Live Nation:
- Liberty Media Corporation – Owned by media mogul John Malone, Liberty Media holds a 33% stake in Live Nation, making it the company’s largest shareholder.
- Barry Diller – The chairman of IAC owns over 5% of Live Nation’s shares personally.
- Vanguard Group – The mutual fund giant holds over 4% of Live Nation’s stock.
- BlackRock Inc. – The world’s largest asset manager owns around 3.5% of Live Nation.
- Mark Carleton-Smith – A Live Nation co-founder who serves as Chairman of the Board of Directors. He owns 1.7% of the company’s shares.
- Joe Berchtold – Live Nation’s Chief Executive Officer. He owns around 1% of the company’s stock.
With no single majority shareholder, Live Nation Entertainment does not have a fully controlling owner. However, Liberty Media and its main shareholder John Malone hold the most significant influence based on their one-third equity stake.
Leadership of Live Nation Entertainment
Here are some of the key executives and leaders guiding Live Nation Entertainment and the Ticketmaster business:
- Joe Berchtold – President and Chief Executive Officer
- Michael Rapino – President and Chief Executive Officer of Live Nation Entertainment from 2005 to 2020. He remains involved as a board member.
- Mark Yovich – President of Ticketmaster
- Amy Howe – President, Ticketmaster North America
- Jared Smith – President, Ticketmaster International
- Mark Carleton-Smith – Chairman of the Board of Directors
- Ariel Emanuel – Board member; co-CEO of Endeavor agency and entertainment group
- Ping Fu – Board member; software entrepreneur and co-founder of Geomagic
- Jeff Hinson – Board member; former CEO of Youbet.com
- Jimmy Iovine – Board member; music producer and co-founder of Interscope Records and Beats Electronics
- Jim Kahan – Board member; former President of Warner Bros. Records
This leadership team brings decades of combined experience across the live events, music, arts, media, technology, and entertainment industries. They guide Live Nation Entertainment’s business strategies and oversee the Ticketmaster ticketing operations globally.
Ticketmaster Products and Services
Ticketmaster provides a range of ticketing products and services used by event organizers and fans to buy tickets. These include:
- Primary ticketing platforms and inventory management systems used by venues and event promoters to manage, sell, and distribute live event tickets.
- Consumer-facing websites, mobile apps, and phone services for ticket buyers to purchase tickets.
- Integrated ticketing platforms for sports teams and leagues to sell game tickets, seamlessly linked with venues.
- Ticket resale marketplaces like Ticketmaster Resale and TicketExchange to facilitate secondary ticket sales.
- Fan-to-fan ticket transfer services.
- Access management services using mobile ticketing and digital IDs for gated events.
- Analytics and business intelligence platforms providing data-driven insights on ticket sales, fans, and more.
Ticketmaster sells hundreds of millions of tickets annually across over 30 countries globally. It serves clients ranging from small music clubs to massive sporting event venues and leagues.
Key Facts and Figures About Ticketmaster
Here are some key facts and figures highlighting Ticketmaster’s size and scale as the dominant player in event ticketing worldwide:
- Founded: 1976 in Phoenix, Arizona
- Tickets sold: Over 500 million per year
- Websites and mobile apps: Over 400 globally
- Clients served: Over 30,000 businesses and organizations
- Revenue from ticketing services: $6.6 billion in 2021
- Share of primary ticketing market in North America: Estimated 80-90%
- Live events powered annually: Over 40,000 concerts and shows
- Partnerships: Hundreds of exclusive deals with major venues, sports leagues, entertainment companies and more
- Employees: Over 7,000 worldwide
Despite some criticism over its high services fees and market dominance, Ticketmaster continues to reign as the ticketing leader worldwide given its widespread partnerships and fan bases.
Revenues and Financial Performance
Live Nation Entertainment reported total revenues of $6.3 billion in 2021. Its Ticketmaster division accounted for around $6.6 billion of this amount through ticketing services and fees.
Here are Ticketmaster’s reported revenues over the past 5 years:
| Year | Ticketmaster Revenues |
|---|---|
| 2021 | $6.6 billion |
| 2020 | $2.7 billion |
| 2019 | $6.1 billion |
| 2018 | $5.1 billion |
| 2017 | $4.5 billion |
Revenue plunged in 2020 due to the COVID-19 pandemic shutting down live events globally. But the business saw a strong rebound in 2021 as events resumed. Going forward, Ticketmaster is well-positioned to grow revenues further as it expands into new markets and builds partnerships internationally.
Notable Acquisitions
To cement its leadership position and expand into new services, Ticketmaster has made some significant acquisitions over the years, including:
- Ticketron – Merged with top rival Ticketron in 1991 for $50 million to obtain their technology and ticketing contracts.
- TicketsNow – Acquired the online ticket resale marketplace TicketsNow in 2008 for $265 million.
- Front Line Management Group – Acquired the artist management company Front Line in 2008 as part of the Live Nation merger.
- Moshtix – Bought Australia’s largest independent ticketer Moshtix in 2018 to expand into Asia Pacific.
- Universe – Acquired the DIY ticketing and event management platform Universe in 2019.
- Atom Tickets – Took a minority stake in the mobile-focused ticket retailer Atom Tickets in 2020.
These strategic deals have allowed Ticketmaster to expand its capabilities, enter new markets, and eliminate competitive threats by acquiring rivals.
Controversies and Criticisms
As the dominant player in event ticketing, Ticketmaster has faced its fair share of controversies and criticism over the years, including:
- Being accused of monopolistic practices and abusing its market power.
- Facing multiple lawsuits over its secondary ticket resale policies and fees.
- Criticism regarding its exorbitant service and processing fees that inflate ticket prices.
- Consumer complaints about technical issues causing website outages and preventing ticket purchases.
- Backlash when it merged with Live Nation from fans fearing higher prices.
- Lawsuits alleging anticompetitive conduct in its exclusive deals with major venues and artists.
Despite the criticism, Ticketmaster still controls the majority of major event ticketing due to its entrenched position in the industry. But its market dominance will likely continue to draw ongoing legal and regulatory scrutiny going forward.
Competitors
Some of Ticketmaster’s major competitors in the event ticketing space include:
- AXS – Owned by AEG, AXS sells tickets for many AEG-operated venues and events. It is Ticketmaster’s chief rival.
- SeatGeek – An online ticket marketplace that partners with teams, theaters & venues.
- Eventbrite – A self-serve DIY ticketing platform popular for smaller gatherings and community events.
- Etix – Provides custom ticketing solutions for smaller venues, theaters, and promoters.
- eTix – A white label ticketing service used by many smaller event organizers and venues.
- See Tickets – Large UK-based ticketing company owned by Vivendi’s Canal Plus Group.
Despite these alternatives, none come close to Ticketmaster’s reach, distribution power, and brand recognition. The high switching costs for venues also make it difficult for newer players to steal significant market share.
Conclusion
In summary, Ticketmaster enjoys a dominant market position in ticketing due to its early mover advantage, acquisitions of competitors, and exclusive partnerships with major venues and entertainment companies. It boasts unmatched distribution scale and inventory.
Live Nation Entertainment, which owns Ticketmaster after merging with Live Nation in 2010, is a publicly traded company with institutional investors and media companies like Liberty Media as key shareholders.
Despite ongoing criticism over its fees and market power, Ticketmaster continues to thrive as the go-to ticketing provider for most major concerts, sports leagues, and entertainment events worldwide. Its brand recognition and entrenched industry relationships make it difficult for competitors to challenge its leadership in event ticketing.
Going forward, Ticketmaster is poised for further growth as demand rebounds strongly for live events and ticketing post-pandemic. However, the company will likely continue facing scrutiny from regulators, consumers, and the entertainment business given its vast influence over event ticketing globally.