Ticketmaster and American Express have had an exclusive partnership since 2008 that generates significant revenue for both companies. This partnership gives American Express certain privileges when it comes to ticket presales and provides incentives for American Express cardholders to purchase tickets through Ticketmaster. There are several key reasons why this partnership is beneficial for Ticketmaster.
Exclusive Presales
One of the main benefits for American Express is access to exclusive presales for big events like concerts and sports games. Presales allow cardholders to purchase tickets before the general public. This provides an incentive for consumers to sign up for and use an American Express card if they want early access to in-demand tickets.
For Ticketmaster, presales are attractive because they help drive traffic and ticket sales to their platform in advance of general public sales. Presales also allow Ticketmaster to maximize prices and sell more platinum tickets before regular seats are available.
Revenue from Presales
Presales generate significant revenue for Ticketmaster. In 2011 alone, Ticketmaster sold over $500 million worth of tickets during American Express presales. These exclusive presale events represent a major revenue stream that Ticketmaster would be reluctant to lose.
Lower Fees for AmEx Cardholders
Another benefit of the partnership for American Express is that their cardholders get access to lower Ticketmaster fees compared to other credit cards. There is a $2.50 “processing fee” per ticket for American Express customers, compared to as much as $12 per ticket for other cards.
| Credit Card | Processing Fee per Ticket |
|---|---|
| American Express | $2.50 |
| Other Credit Cards | Up to $12 |
This provides a strong incentive for American Express cardholders to purchase tickets through Ticketmaster. Even if tickets are available for the same base price elsewhere, the lower service fees mean American Express customers save money by going through Ticketmaster.
Higher Profit Margins
The upside for Ticketmaster is that AmEx’s lower processing fees allow them to retain higher profit margins on these ticket sales. While Ticketmaster needs to share some of the service fee revenue with American Express, their overall profits are still increased compared to non-AmEx sales with higher fees.
Exclusive Marketing and Fan Access
Ticketmaster and American Express spend millions on combined marketing efforts around the partnership. This includes presale ticket giveaways, contests, artist meet-and-greets, and other exclusive offers for AmEx customers.
For example, in 2019 American Express offered cardholder-only access to concerts by artists like Jennifer Lopez, Lady Gaga, and Blake Shelton. This kind of exclusive access provides added value that incentivizes consumers to use an AmEx card when purchasing tickets.
Joint marketing campaigns like these also benefit Ticketmaster by associating their brand with high-profile music and entertainment acts. The seamless ticket purchasing experience offered to AmEx cardholders further cements Ticketmaster as the go-to ticketing provider.
Customer Loyalty
The Ticketmaster-AmEx partnership is designed to drive loyalty from customers on both sides of the deal.
For American Express, the various ticketing perks encourage cardholders to actively use their AmEx cards so they don’t miss out on presale events, lower fees, and special offers.
Meanwhile, Ticketmaster benefits from repeat business from these loyal American Express customers. Once customers get in the habit of using their AmEx card to buy tickets through Ticketmaster, they are less likely to shop for tickets elsewhere.
Retention of Customers
This mutual customer loyalty translates to strong retention rates for both companies. The customers acquired through the partnership are likely to remain active AmEx cardholders continuing to purchase tickets through Ticketmaster for the foreseeable future.
Big Data and Analytics
The Ticketmaster-AmEx partnership also provides both companies with valuable customer data and analytics.
For American Express, ticket purchase data gives useful insights into cardholder interests and spending habits. These insights help AmEx fine-tune marketing efforts and identify new ways to engage different cardholder segments.
For Ticketmaster, data on AmEx cardholders helps them better understand and predict buying patterns. Ticketmaster can leverage this knowledge to optimize prices, forecast demand, and deploy targeted promotions to maximize sales.
Personalized Recommendations
The combined data also allows Ticketmaster to provide personalized recommendations to AmEx cardholders based on purchase history and location. As Ticketmaster’s database of fan profiles and behaviors grows, recommendations can become even more tailored and accurate.
New Products and Services
By collaborating closely, Ticketmaster and American Express have jointly developed new products and services that benefit their customers.
For example, they have integrated American Express payment processing into Ticketmaster’s ticketing app and concert venue digital experiences like express food and drink ordering.
In 2019, Ticketmaster and AmEx launched a new “American Express Experiences” platform offering exclusive access to high-demand tickets packaged with pre-event or post-event activities.
These kinds of new offerings increase customer engagement for both partners and also serve to deepen the relationship between the two companies.
Feature Development
Looking ahead, analysts expect Ticketmaster and American Express to continue exploring new ways to enhance live events with improved digital experiences. This ongoing joint innovation gives Ticketmaster an edge in developing premium platform features.
Conclusion
The strategic partnership between Ticketmaster and American Express has transformed the live entertainment experience by integrating exclusive ticketing access with payment services. The arrangement delivers major revenue, customer loyalty benefits, data insights, and new innovation opportunities – all good reasons why the partnership is invaluable for Ticketmaster’s business.
