More on Ticketmaster

In July I blogged about Ticketmaster as a potential investment idea.  Today's WSJ has an article on the company and its client-turned-biggest-competitor Live Nation. 

Live Nation's competitive strategy in a nutshell:

People close to the situation said Live Nation pressed an advantage it has over Ticketmaster and other competitors during the negotiations. As the largest purveyor of concerts at major venues, it is in a position to offer more events to venues that sign up for its new ticketing service -- and potentially to steer big shows away from venues that don't cooperate.

That sounds like tying and it's not nice.  Where is Judge Thomas Penfield Jackson when you need him?

Ticketmaster's competitive strategy in a nutshell:

Ticketmaster has long-term contracts with venues, giving it exclusive rights to sell tickets. The company makes its money on service charges and other fees. It has been able to maintain its dominant position by paying its client venues a portion of the fees it collects, and by installing proprietary technology that would be difficult to replicate.

Who wins?  I don't know enough yet to make a bet.

Comments

[Scott]

I wouldn't be surprised to see LiveNation and Ticketmaster soon under the same umbrella. If TM's proprietary technology and expertise in ticket management is as good as advertised than it makes sense to avoid competition. For LN, their strategy is compelling but won't hold up if they have to begin competing on price along their entire business line (I believe this to happen if they get too greedy).