Ticketmaster

Last updated
Ticketmaster Entertainment, Inc.
Subsidiary
IndustryLive Entertainment
Founded1976;43 years ago (1976)
Phoenix, Arizona, U.S.
FoundersAlbert Leffler
Peter Gadwa
Jerry Nelson
Headquarters,
U.S.
Area served
Worldwide
Key people
Michael Rapino (CEO)
Jared Smith (President of Ticketmaster North America)
Mark Yovich (President of Ticketmaster International)
ProductsTicketing technology
Ticket sales
Ticket resales
Marketing
Distribution of event tickets and information
Support of venue renovation
RevenueSold 142 million+ tickets valued at $8 billion in 2007
Number of employees
6,678
Parent Live Nation Entertainment
(2010–present)
Website ticketmaster.com

Ticketmaster Entertainment, Inc. is an American ticket sales and distribution company based in Beverly Hills, California with operations in many countries around the world. In 2010 it merged with Live Nation under the name Live Nation Entertainment (NYSE :  LYV). [1]

A primary ticket outlet is an organization that contracts directly with venues and promoters to sell event tickets on its behalf.

Beverly Hills, California City in California

Beverly Hills is a city in Los Angeles County, California, United States. Located within 5.7 square miles and surrounded by the cities of Los Angeles and West Hollywood, the City has an estimated population of 35,000.

Live Nation is an American events promoter and venue operator based in Beverly Hills, California. Formed in 1996 by Robert F. X. Sillerman as SFX Entertainment, the company's business was built around consolidating concert promoters into a national company. In 2000, the company was sold to Clear Channel Communications for $4.4 billion, and operated as Clear Channel Entertainment until 2005, when it was spun off as Live Nation.

Contents

The company's ticket sales are fulfilled digitally or at its two main fulfillment centers located in Charleston, West Virginia, and Pharr, Texas for both primary and secondary markets. Ticketmaster's clients include venues, artists and promoters. Clients control their events and set ticket prices, and Ticketmaster sells tickets that the clients make available to them.

Charleston, West Virginia Capital of West Virginia

Charleston is the most populous city in, and the capital of, the U.S. state of West Virginia. Located at the confluence of the Elk and Kanawha rivers, the city had a population of 51,400 at the 2010 census and an estimated population of 47,215 in 2018. The Charleston metropolitan area as a whole had an estimated 211,037 residents in 2018. Charleston is the center of government, commerce, and industry for Kanawha County, of which it is the county seat.

Pharr, Texas City in Texas

Pharr is a city in Hidalgo County, Texas, United States. As of the 2010 census, the city population was 70,400, and in 2016 the estimated population was 77,320. Pharr is connected by bridge to the Mexican city of Reynosa, Tamaulipas. Pharr is part of the McAllen–Edinburg–Mission and Reynosa–McAllen metropolitan areas.

History

Ticketmaster was founded in Phoenix, Arizona in 1976 [2] by Peter Gadwa, a computer programmer, Albert Leffler, a box office specialist, as well as Gordon Gunn III, Thomas Hart Jr., Dan Reeter and Jerry Nelson. [3] [4] The company originally licensed computer programs and sold hardware for ticketing systems before switching to computerized ticketing in 1982. Its first ticketed concert was Electric Light Orchestra, held at the University of New Mexico. [5] [4] By 1985 the company had moved to Los Angeles and was operating in the U.S., Canada and Europe. [4]

Phoenix, Arizona State capital city in Arizona, United States

Phoenix is the capital and most populous city of Arizona, with 1,660,272 people. It is also the fifth most populous city in the United States, and the only state capital with a population of more than one million residents.

Electric Light Orchestra British band

The Electric Light Orchestra (ELO) are an English rock band formed in Birmingham in 1970 by songwriters/multi-instrumentalists Jeff Lynne and Roy Wood with drummer Bev Bevan. Their music is characterised by a fusion of Beatlesque rock, classical arrangements, and futuristic iconography. After Wood's departure in 1972, Lynne became the band's leader, arranging and producing every album while writing virtually all of their original material. For their initial tenure, Lynne, Bevan, and keyboardist Richard Tandy were the group's only consistent members.

University of New Mexico public research university in Albuquerque, New Mexico, United States

The University of New Mexico is a public research university in Albuquerque, New Mexico. Founded in 1889, UNM offers bachelor's, master's, doctoral, and professional degree programs in multiple fields. Its Albuquerque campus encompasses over 600 acres (2.4 km²), and there are branch campuses in Gallup, Los Alamos, Rio Rancho, Taos, and Los Lunas. UNM is categorized as an R1 doctoral university in the Carnegie Classification of Institutions of Higher Education.

In May 1994, the grunge band Pearl Jam filed a complaint with the U.S. Department of Justice claiming Ticketmaster had cut the group out of venue bookings in a dispute over fees. [6] The investigation was closed without action in 1995, though the Justice Department stated it would continue to monitor the developments in the ticket industry. [7] [8] Chuck Philips, a reporter who covered the issue, [9] [10] [11] [12] was told by sources close to the case that the investigation was closed due to a combination of a shortage of resources and the case being difficult and having uncertain prospects. [7]

Grunge is a rock music genre and subculture that emerged during the mid-1980s in the Pacific Northwest U.S. state of Washington, particularly in Seattle and nearby towns. The early grunge movement revolved around Seattle's independent record label Sub Pop and the region's underground music scene. By the early 1990s its popularity had spread, with grunge bands appearing in California, then emerging in other parts of the United States and in Australia, building strong followings and signing major record deals.

Pearl Jam American band

Pearl Jam is an American rock band formed in 1990 in Seattle, Washington. Since its inception, the band's line-up has included Eddie Vedder, Mike McCready, Stone Gossard, and Jeff Ament. Since 1998, the band has also included drummer Matt Cameron. Boom Gaspar (keyboards) has also been a session/touring member with the band since 2002. Drummers Jack Irons, Dave Krusen, Matt Chamberlain, and Dave Abbruzzese are former members of the band.

United States Department of Justice U.S. federal executive department in charge of law enforcement

The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the U.S. government, responsible for the enforcement of the law and administration of justice in the United States, equivalent to the justice or interior ministries of other countries. The department was formed in 1870 during the Ulysses S. Grant administration.

InterActiveCorp years

In 1998, USA Networks Inc., later named InterActiveCorp (IAC), purchased a majority stake in Ticketmaster. [13] That same year, the company merged with CitySearch and was renamed Ticketmaster Online-CitySearch. [14] In May 2000, Ticketmaster Online-CitySearch acquired TicketWeb Inc., a ticket vendor that sold tickets online and over the phone. [15] In 2003, IAC repurchased the remaining Ticketmaster stock that it had previously sold off. [16]

IAC (company) American media and Internet company

IAC (InterActiveCorp) is an American holding company, that owns brands across 100 countries, mostly in media and Internet. The company is headquartered in New York City. Joey Levin, who previously led the company's search & applications segment, has served as Chief Executive Officer since June 2015.

In September 2006, Ticketmaster President Sean Moriarty told NPR that Ticketmaster had lobbied several states to enact laws that would limit the ticket resale market to authorized companies. Economists worried these laws would harm competition, but Moriarty expressed the need to reduce corrupt scalpers and counterfeit tickets. [17]

NPR Non-profit membership media organization

National Public Radio is an American privately and publicly funded non-profit membership media organization based in Washington, D.C. NPR differs from other non-profit membership media organizations, such as AP, in that it was established by an act of Congress and most of its member stations are owned by government entities. It serves as a national syndicator to a network of over 1,000 public radio stations in the United States.

In January 2008, Ticketmaster acquired Paciolan Inc., a developer of ticketing system applications and hosted ticketing systems, after litigation over the potential breach of antitrust laws. [18] Also in January, Ticketmaster acquired the UK-based secondary ticket marketplace, Getmein.com. [19]

IAC spun off Ticketmaster as its own company in the summer of 2008. [20] Later in 2008, Ticketmaster acquired Front Line Management, an artist management firm that worked with artists such as Aerosmith, Christina Aguilera and Jimmy Buffett. [21] Front Line CEO Irving Azoff became CEO of the new company, which was renamed Ticketmaster Entertainment. [22]

Live Nation merger

In February 2009, Ticketmaster entered into an agreement to merge with event promoter Live Nation to form Live Nation Entertainment. [23] The deal was cleared by the U.S. Justice Department in January 2010 under the condition that the company sell Paciolan to Comcast Spectacor or another firm, and license its software to Anschutz Entertainment Group (AEG), its biggest competitor. [24] The new company, which would be called Live Nation Entertainment, would also be subject to provisions for 10 years that prevented it from retaliating against venues that partnered with competing ticketing firms. [24] Live Nation CEO Michael Rapino was named CEO of the new company. [25]


Growth and acquisitions

In 2015, Ticketmaster acquired Front Gate Tickets, a music festival ticketing service that provided services for festivals including Lollapalooza and Austin City Limits. [26] The same year, the company acquired Universe, a DIY ticketing platform. [26] In 2017, TicketWeb, Ticketmaster's self-service ticketing platform, acquired Strobe Labs, a marketing platform that allows users to market to fans through social media. [27]

Products and services

Ticketmaster sells tickets that its clients make available to them. [28] In 2009, Ticketmaster released a digital ticketing system that required customers to prove their identity prior to purchase. The company believed this would help circumvent brokers and scalpers. [29]

In 2016, Ticketmaster released a statement in favor of the Better Online Ticket Sales Act (BOTS Act), which banned the use of ticket bots to buy large amounts of tickets online and resell them at inflated prices. [30] The following year, the company filed a lawsuit against the ticket broker Prestige Entertainment after the company used bots to buy more than 30,000 tickets to the Broadway play “Hamilton". [31]

Pricing

The face value of Ticketmaster tickets is determined by the artist or client. [32] In addition to the face value price, venues and Ticketmaster add fees to pay for their services. [33]

Typically, fees added to a ticket’s face value have included: [34] [35]

Fee amounts vary between events and are dependent on the venue, available delivery methods, and preferences of the artist. [32] Some economists and activist groups have claimed that high ticket prices are due to a lack of competition within the music industry. [33] [36]

A class action lawsuit was filed against Ticketmaster in 2003, alleging that it did not fully disclose UPS and order processing fees added to tickets sold online. The case settlement was approved in 2015 and Ticketmaster issued vouchers and discount codes to fans who purchased tickets online between 1999 and 2013. [37] [38] In a related case, Ticketmaster filed suit against its liability insurance carrier, Illinois Union Insurance Company, a subsidiary of ACE Limited (NYSE :  ACE), in 2010 for failing to aid in its defense in the 2003 suit. [39]

In 2013, the jam band The String Cheese Incident gave fans money to purchase 400 tickets to one of its shows in order to resell them on its own site with fewer fees. The band said they were protesting Ticketmaster’s ticket fees, while Ticketmaster argued that the band was taking revenue from venues and promoters. [40] [41]

Resale market

In January 2008, Ticketmaster acquired TicketsNow, a ticket reseller in the United States, for $265 million. [42]

In a 2009 article by the Canadian Broadcasting Corporation (CBC), Ticketmaster argued that legislation was needed in Ontario to protect fans from scalpers and unauthorized ticket brokers saying, "You and I both know there is a thriving ticket-broker industry ... so the law is really a fiction ... We very strongly feel the law needs to be modernized to reflect the reality of internet commerce. By keeping a price cap in place, you're really just driving the [resale] business into the shadows.” [43]

Ticketmaster launched TicketExchange in the United Kingdom in August 2018. [44]

In 2013, Ticketmaster quietly began rolling out [45] Ticketmaster Plus, the company's resale platform, bringing the secondary market and primary market together on Ticketmaster. [46] As of 2018, Ticketmaster was the No. 2 market for ticket resales. [47]

Controversies

Anti-competition claims

In 2009, Ticketmaster faced several lawsuits across North America, claiming they conspired to divert tickets to popular events to its ticket brokering website TicketsNow, in which the same tickets were sold at premium prices. [48] This also raised the ire of musician Bruce Springsteen, who said he was 'furious' at Ticketmaster, [49] and "...the one thing that would make the current ticket situation even worse for the fan than it is now would be Ticketmaster and Live Nation coming up with a single system, thereby returning us to a near monopoly situation in music ticketing". [50] [51]

In 2018, the United States Department of Justice began reviewing complaints by AEG that claimed the company had engaged in anti-competitive practices. As of April 2018, the Department of Justice hadn’t released comments on its investigation. [52]

As of 2016, ticket resale was Ticketmaster's fastest growing business. [53]

Data Breach

In June 2018, Ticketmaster notified 40,000 U.K. customers that it had identified a hack caused by malicious software on a third-party customer support product it contracted. The company stated that customers who bought tickets between February and June 2018 may have had data compromised. [54] [55] [56] [57] [58] [59] [60]

Secret Scalping Program

In September 2018, the Toronto Star reported that Ticketmaster was not enforcing ticket limit rules on its resale platform, TradeDesk. [61] Ticketmaster denied the allegations, saying it would examine its resale policies on TradeDesk, and that it “never allows ticket scalpers to buy tickets ahead of fans.” [62] One month later, a group of customers filed a class action lawsuit against Ticketmaster. [63]

In July 2019, a report by Billboard revealed a strategy by Live Nation, Ticketmaster's parent company, to secretly bypass placing certain tickets for sale on the primary market and instead, place them directly on resale sites "without giving fans a chance to buy them through normal channels at face value." [64]

The company acknowledged it has "facilitated the quiet transfer of concert tickets directly into the hands of resellers through the years, though only at the request of the artists involved."

Deceptive Pricing

In June 2019, Competition Bureau (Canada) forced Ticketmaster to pay $3.4 Million as part of a settlement after it was discovered that Ticketmaster "topped advertised costs by more than 20% -- and sometimes as much as 65%." [65]

Partners

Ticketmaster has partnerships with venues, professional sports leagues, musical acts and theatre tours [66] [67] [68] in the United States and internationally. [69] Ticketmaster has partnered with musical acts such as Taylor Swift, [70] and the Trans-Siberian Orchestra, [71] and theatre productions such as Hamilton and Harry Potter and the Cursed Child. [66] [72]

Ticketmaster has been the ticketing provider for the National Hockey League (NHL) and the National Basketball Association (NBA). [73] [74] In 2008, Ticketmaster entered into an agreement with the National Football League (NFL) to manage its resale market on NFL TicketExchange. [75]

In 2017, Ticketmaster announced it would open the TicketExchange platform to allow the sale and validation of tickets on third-party websites, including StubHub. [75] Ticketmaster has also partnered with the United States Tennis Association, [76] Tennis Canada, [77] and the PGA Tour. [78]

See also

Related Research Articles

Ticket resale act of reselling tickets for admission to events

Ticket resale is the act of reselling tickets for admission to events. Tickets are bought from licensed sellers and are then sold for a price determined by the individual or company in possession of the tickets. Tickets sold through secondary sources may be sold for less or more than their face value depending on demand, which tends to vary as the event date approaches. When the supply of tickets for a given event available through authorized ticket sellers is depleted, the event is considered "sold out", generally increasing the market value for any tickets on offer through secondary sellers. Ticket resale is common in both sporting and musical events.

Tour promoters are the individuals or companies responsible for organizing a live concert tour or special event performance. The tour promoter makes an offer of employment to a particular artist, usually through the artist’s agent or music manager. The promoter and agent then negotiate the live performance contract. The majority of live performance contracts are drawn up using the American Federation of Musicians (AFM) standard contract format known as the AFM Performance Agreement.

Irving Azoff is an American entertainment executive and chairman of Full Stop Management, which represents recording artists.

StubHub

StubHub is an online ticket exchange company owned by eBay, which provides services for buyers and sellers of tickets for sports, concerts, theater and other live entertainment events. It has grown from the largest secondary-market ticket marketplace in the United States into the world's largest ticket marketplace. While the company does not currently disclose its financials, in 2015 it had over 16 million unique visitors and nearly 10 million live events per month.

Viagogo is an online marketplace for ticket resale. The company, which was founded in London in 2006, has a network of more than 60 global websites with customers in 160 countries. Viagogo is backed by the venture capital investment firm Index Ventures as well as Brent Hoberman, the co-founder and former CEO of lastminute.com and Lord Jacob Rothschild via his family interests. The organisation has faced criticism for inflating ticket prices, and for refusing to work with artists trying to prevent secondary resale. After court action was taken over concerns that it was breaching consumer protection law, in November 2018 the United Kingdom's Competition and Markets Authority secured a court order against Viagogo, requiring the site to "overhaul the way it does business by mid-January 2019 in order to comply."

See Tickets

See Tickets is the trading name of an international ticketing services company owned by Vivendi SA. See Tickets' head office is on Upper Parliament Street in Nottingham. It also has offices in London, Los Angeles, Paris, Marseille, Madrid, Berlin, Amsterdam, Groningen, Antwerp and Lisbon.

Online ticket brokering is the resale of tickets through a web-based ticket brokering service. Prices on ticket brokering websites are determined by demand, availability, and the ticket reseller. Tickets sold through an online ticket brokering service may or may not be authorized by the official seller. Generally, the majority of trading on ticket brokering websites concerns itself with tickets to live entertainment events whereby the primary officially licensed seller's supply has been exhausted and the event has been declared "sold-out". This "sold-out" status increases the ticket's potential market value. Critics of the industry compare the resale of tickets online to ‘ticket touting’, ‘scalping’ or a variety of other terms for the unofficial sale of tickets directly outside the venue of an event.

Until 27 November 2018 Seatwave was an online ticket marketplace for buying and selling tickets to music, sporting and cultural events. Ticket sellers were able to list their tickets on Seatwave and specified what price they would be willing to sell them for. Buyers could browse the site, compare ticket prices and could then purchase the ticket they feel was the best deal. Seatwave’s TicketIntegrity guarantee ensured buyers got the tickets they ordered by the day of the event. If they did not, Seatwave would find replacement tickets, or refund the buyer.

Live Nation Entertainment is an American global entertainment company, founded in 2010, following the merger of Live Nation and Ticketmaster. The company promotes, operates, and manages ticket sales for live entertainment in the United States and internationally. It also owns and operates entertainment venues, and manages the careers of music artists.

TicketsNow, established in 1999 and based in Rolling Meadows, Illinois, is a marketplace for event tickets.

Songkick is an American technology company that provides concert discovery services and ticket sales for live music events. Songkick’s web and mobile app allows users to track touring artists, receive alerts for concerts in their area and purchase tickets to shows, using technology and services that power ticket sales on behalf of artists.

TicketNetwork is an online marketplace that provides an outlet for buyers and sellers of tickets to live entertainment events. The company was founded in 2002 by ticket broker Don Vaccaro and software developer Doug Kruse. It operates several retail sites and partners with large name brand travel and media companies.

AXS (company) ticketing company

AXS is a digital marketing platform for purchasing tickets for sports and entertainment events in the US, and overseas. It was developed and is operated by Anschutz Entertainment Group (AEG) in partnership with Outbox Technologies.

Ticket Liquidator is an online marketplace for live entertainment tickets. It is a division of Ticket Software LLC, a technology company based in South Windsor, Connecticut.

Eventim UK an events and ticket agent

Eventim UK is an events and ticket agent, based in the UK. The company is a wholly owned subsidiary of Europe's largest ticket retailer, CTS Eventim AG & Co. KGaA.

<i>Springsteen on Broadway</i> concert residency by Bruce Springsteen in New York City

Springsteen on Broadway was a concert residency by Bruce Springsteen held at the Walter Kerr Theatre in New York City. The residency consisted of Springsteen performing five shows a week, Tuesday through Saturday. Preview performances began on October 3, 2017 followed by the official opening on October 12, 2017. The run was originally expected to conclude on November 26, 2017; however, due to high demand for tickets and issues with scalpers, additional dates were added through June 30, 2018. The show was extended a second time on March 20, 2018, extending the run through December 15, 2018.

The Better Online Ticket Sales Act of 2016 was signed into federal law by President Barack Obama on December 14, 2016. This act was created to thwart attempts by individuals and organization to automate the process of purchasing tickets en masse using ticket bots. Later, these tickets are often resold on third-party sites for profit at a markup over face value, or at a loss. This activity is also referred to as ticket scalping. The BOTS Act outlawed the resale of tickets purchased using bot technology and set a fine of $16,000 for violations of the act, which is enforced by the U.S. Federal Trade Commission.

Michael Rapino is an American business executive and the Chief Executive Officer and President of Live Nation Entertainment, Inc, which was formed in 2010 following the merger of Live Nation and Ticketmaster.

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