Ticketmaster: An In-Depth Overview
Ticketmaster is the global leading ticket selling and distribution company. Ticketmaster was founded in 1976 and grew to be the market leader for live event ticketing, providing service for concert tours, sports events, theater productions, and more. Ticketmaster has attracted praise and criticism for its activities over the years, ranging from its innovation in technology, customer service, pricing, and its impact on the entertainment industry.
The History of Ticketmaster
Ticketmaster was founded in Phoenix, Arizona, by Albert Leffler, Peter Gadwa, and Gordon Gunn III. The company was formed with the vision of providing a computerized ticketing system that would make the sale process of live event tickets more efficient. Ticketmaster, in its early years, was working on a relatively small level, focusing on venue and promoter affiliations to build up its presence.
During the 1980s and 1990s, Ticketmaster saw speedy growth, acquiring various small ticketing companies and expanding overseas. During 1998, the company introduced online sales of tickets, revolutionizing the business and allowing customers to purchase tickets from anywhere on the planet. Online ticketing allowed Ticketmaster to consolidate its services while simultaneously increasing its customer base.
In 2010, Live Nation purchased Ticketmaster, a large live entertainment company, and merged to become Live Nation Entertainment. The buyout created an industry giant with both ticketing and event promotion in house, which created monopolistic behaviors and competitive issues.
How Ticketmaster Works
Ticketmaster serves as a go-between for consumers and event promoters. The company sells tickets on behalf of the venues, promoters, and performers and offers additional services to provide efficient processes. Consumers can purchase tickets through Ticketmaster's website, mobile app, or licensed retail stores.
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When tickets become available for an event, Ticketmaster typically handles the first sale of tickets, typically in combination with pre-sales to specific groups such as fan clubs, credit card companies, or arena members. Once tickets sell out, Ticketmaster's resale site is open for customers to buy or resell tickets based on market-based prices.
Ticketmaster also offers various delivery methods for tickets, including mobile tickets, printable PDF tickets, and mail-in physical tickets. The company has been moving increasingly towards electronic ticketing to reduce fraud and improve security.
Features and Services
Verified Fan Program
To combat the scalpers and bots, Ticketmaster introduced the Verified Fan platform. This regulation requires fans to pre-register and purchase tickets ahead of time to allow Ticketmaster to verify authentic fans and allow them priority consideration. While the system has slowed down automated shopping, frustration on the part of fans with respect to signing up and accessing tickets has been heard.
Dynamic Pricing
Ticketmaster employs dynamic pricing for some events, with prices adjusting based on demand. Employed in airlines and hotels sectors as well, the practice helps artists and promoters earn as much as possible but has been criticized for pricing out some fans from purchasing tickets.
Ticketmaster Resale
Ticketmaster is an over-the-counter resale market upon which purchasers may list and purchase tickets at prices established by vendors. While this does provide a lawful marketplace for resale, some say that Ticketmaster gains financially on both the original sale and resale and consumers ultimately pay more.
Mobile Ticketing and Entry
With a digital innovation emphasis, Ticketmaster has placed a priority on mobile ticketing to enhance security and convenience. Mobile tickets can be read directly from a smartphone, reducing the risk of counterfeit tickets and making it easier to enter events.
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Controversies and Criticism
Despite its success, Ticketmaster has been the subject of much criticism over the years. Some of the most significant issues include high service fees, monopolistic practices, and customer service issues.
High Fees and Pricing Transparency
One of the common complaints about Ticketmaster is its service fee, which has the potential to greatly increase the cost of tickets. These charges often involve convenience fees, processing fees, and facility fees, and it is difficult for customers to be aware of the actual cost of the ticket beforehand.
Monopoly and Antitrust Issues
The Live Nation and Ticketmaster merger was undesirable from a competition within the industry standpoint. Critics complain that the merged firm has too much power in the promotion of events and sale of tickets, and this translates to consumers paying too much money and a failure to provide substitutes.
In 2022, the United States Department of Justice launched an antitrust investigation into Live Nation Entertainment to determine whether the company had engaged in anti-competitive conduct. The investigation followed a highly disputed ticket sale for Taylor Swift's Eras Tour, where Ticketmaster's website went down due to heavy traffic, and thousands of fans found themselves without tickets.
Scalping and Bots
Scalping has long been a thorn in the side of the ticketing market, with scalpers employing the use of bots to buy in bulk and subsequently resell them at inflated costs. While Ticketmaster has made efforts such as CAPTCHA and Verified Fan, scalpers find ways to game the system.
System Outages and Technical Issues
Ticketmaster has experienced several high-profile technical issues, particularly on large ticket sales. The interruptions have left fans disappointed and raised doubts about the company's ability to effectively handle large events.
Competitors and Alternatives
While Ticketmaster is the industry leader in ticketing, there are several competitors that offer alternatives to customers:
StubHub – A large resale site where fans can buy and sell tickets.
SeatGeek – Sells primary and secondary tickets with an easy-to-use interface.
Vivid Seats – A secondary site where users can find many different event tickets for sale.
AXS – Bids against Ticketmaster on primary ticket sales, particularly for big venues.
These options provide customers with more variety, though Ticketmaster remains the default for most big events due to its contacts with venues and promoters.
The Future of Ticketmaster
As technology advances, Ticketmaster will invest more in digital tickets, blockchain technology, and artificial intelligence-based solutions for increased security and efficiency. Ticketmaster will also be faced with greater regulatory scrutiny as governments grapple with monopolistic behavior and fair prices.
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Moreover, growth in direct-to-fan and decentralized ticket platforms is likely to bust Ticketmaster's monopoly. Promoters and artists can hence turn directly to fans to release tickets, reserving use of third-party sites as much as possible.
Conclusion
Ticketmaster has played a key role in the development of the live event market, providing required ticketing solutions and being under extreme scrutiny at the same time. Despite its controversies, the company is still a market leader, continuously innovating to thrive in the dynamic face of entertainment. As competition and regulatory pressures continue to rise, Ticketmaster's ability to innovate and address consumer concerns will dictate its long-term success.
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