Ask HN: Why has no one replaced Ticketmaster?
I constantly see people complaining about ticketmaster with scalping, nasty business tactics, broken interfaces, etc. and they get sued left and right after countless big events.
Yet even with all that, it seems no competitor has been able to reasonably get off the ground and poise a viable alternative. What gives? What's their moat/why do they have a monopoly?
168 comments
[ 4.6 ms ] story [ 211 ms ] threadThey have a vertically integrated monopoly.
Take a look at the largest venues in the country. Most of them aren't owned by LN, but they still use TM for ticketing. If anything, TM has helped LN to acquire more venues than the other way around. In general, TM has a much more dominant share of the ticketing business than LN has of the venue or promotion business.
Source: I used to own a night club in San Francisco.
"Founded in 1996 by Robert F. X. Sillerman as SFX Entertainment, the company's business was built around consolidating concert promoters into a national entity to counter the oversized influence of ticket behemoth Ticketmaster."
It's kind of amazing how the present distorts our perspective of the past.
The point being: TM already had the market power before LN was on the scene, and all of LN's market power wasn't enough to get people to use their ticketing platform instead of TM. Saying LN is the reason everyone uses TM is very much getting it backwards.
Surely, if LN's dominance is what is needed to lock up the ticketing market, LN's ticketing platform should have been able to compete with TM quite well, and TM should have been struggling to succeed in the ticketing market prior to being acquired by LN.
In fact, Pearl Jam sued TM for being a monopoly in 1994, about 15 years before LN bought TM.
https://www.kiro7.com/news/local/1994-when-pearl-jam-took-ti....
Literally a web search will give you plenty. The NYT even did an article about it.
Streaming services pay peanuts and nobody outright buys albums anymore.
Ticketmaster's service is to provide something to point a finger at. People hating them instead of their clients is just their product working as intended.
Also, Ticketmaster influence wasn’t that big in France to begin with because many concert halls and arenas have their own ticketing website. Music events were also not that pricey compared to other neighboring countries, probably because the state pumps a lot of money in the music system.
Of course now we also have huge expensive festivals owned by Live Nation and the likes and the model is changing: festival are going from 30€ a day to almost 80€+
Also, since artists make almost all of their money from tours, they know trouble will arise with the mess that is ticket/venue sales. If they go full capitalist and someone like Taylor Swift starts charging what the market will bear(maybe $10k/ticket ?), many people will revolt, since there is zero chance they can afford that.
Instead, they can lay 100% of the blame on Ticketmaster, and nobody hates the artists for the mess.
So artists are not incentivized to try and fix the mess, and venues are not really incentivized either, since they also get to lay the blame on Ticketmaster.
Ticketmaster in the meantime takes all the blame, does nothing and keeps depositing fat stacks of cash in their bank account.
Some incentive will have to change, for this to get fixed. Perhaps govt will slap some regulations on Ticketmaster? Perhaps people will stop blaming Ticketmaster and make venues and/or artists accountable for their continued contracting with Ticketmaster? I don't know, but until something changes, don't expect Ticketmaster to behave or a competitor to show up.
Artists not signing deals with Ticketmaster lose access to venues, and venues not signing exclusivity deals with Ticketmaster lose access to artists.
There are enough of these on both sides that neither wants to lose the other so they sign.
Side note: I worked at a small ticketing software shop circa the Ticketmaster/LiveNation merger. The CEO got a call from the feds(FTC?) doing background work on the industry's view on how it might affect competition. For the life of me I can't imagine why he said it wouldn't really matter, but I have to assume that Ticketmaster was already so locked in to the industry that perhaps it didn't.
~15 years ago, I was working with venues to see how we could handle ticketing, etc. They ALL had exclusive deals where the venue could ONLY sell online through TicketMaster and then TM would handle ~100% of the back office reporting, tracking, etc and even the onsite credit card processing for walk up sales.
It was one end to end system/suite and to replace any of it, you had to replace ALL of it once the contract was up. Not a fun space at all.
I do too! I get so sick of Ticketmaster's fees upon fees upon fees and "sorry, your browser isn't Chrome" junk.
[0] https://congressionaldish.com/cd267-the-monopoly-powers-of-l...
TM makes more money for everyone, that's why they use it.
Consumers?
But, alas, that money too good.
On one hand, free markets involve sellers and buyers coming together freely which exclusivity contracts prohibit, but on the other hand exclusivity contracts are nominally voluntary agreements which is a free exchange. Perhaps free-exchange simply isn't a useful framing here.
This one. Not only does ticketmaster have contracts with most venues unless they own them outright, they're also a very convenient foil as they serve as ire-magnets.
https://en.m.wikipedia.org/wiki/CTS_Eventim
Specifically about Ticketmaster or what has FTC done more broadly?
Proposed a rule against hidden fees (10 days ago). It's also supposed to give FTC enforcement mechanism so that it'd be more effective than state laws that were passed and basically ignored.
Also filed an antitrust lawsuit against Amazon (less than a month ago) for how they're treating third-party sellers. And if I remember correctly a lawsuit against Facebook is supposed to proceed in December, in which the FTC is asking the court to force Facebook to sell Instagram and WhatsApp (I wouldn't get my hopes up on this one).
FTC definitely has some teeth now, but they can't wish monopolies out of existence, they have to go through a years-long court process against an army of lawyers employed by tech companies with a budget that's orders of magnitude higher than FTC's.
Monopolies are not inherently illegal.
If a business obtains a monopoly by offering superior products or innovation, or through superior business acumen, the monopoly is legal. Antitrust issues arise when a monopoly is achieved or maintained by exclusionary or predatory acts.
Ticketmaster is big but it’s not Amazon or banking.
A string of losses will set precedent that will get harder and harder to overturn. It's not clear from the outside if Ticketmaster would be a stronger case but something to ponder.
What I find strange is that people aren't usually reluctant to sign exclusivity agreements because it's very limiting. How did ticketmaster get so big to begin with to force / convince people of signing exclusivity clauses?
One way would be to sign deals reserving venue space in advance for a good chunk of the year. Artists wanting to perform there on dates reserved to Ticketmaster would need to sign exclusivity deals.
This has a network effect. The more they do, the more effective is the strategy and the easier it gets to keep doing it.
By dangling more money.
In the 1980s, Ticketmaster beat the competitors (e.g. Ticketron) by offering the venues a better financial deal.
Ticketron charged the venues a service fee. Venues pay Ticketron.
Ticketmaster flipped that around and made a clever proposal: instead of charging the venue, we'll charge the concertgoing fans extra service fee(s) and we'll give the venue a percentage of the fees collected. To sweeten the deal, we'll even pay the venue _upfront_ money as part of signing an exclusive deal.
https://thehustle.co/the-sneaky-economics-of-ticketmaster/
That's why most ideas about creating a new ticketing startup to "disrupt Ticketmaster" are naive about how the underlying business deals actually work. E.g. if the well-meaning programmers have idealistic motivations to create a new "fair ticketing" system that doesn't charge outrageous fees, the venues will not sign up with you which means you have no tickets to sell at the "cheaper & fair price".
Why would the venues use your new "fair ticketing" system if it means they get less money?!? That's the financial puzzle a viable Ticketmaster competitor has to solve.
I think we would need some entity on the scale of the NFL to fix this. Ticketmaster is too big to take on any other way.
While it's true Ticketmaster does have these exclusive deals, it's demonstrably false that this is the reason why TM still hasn't been replaced.
If you've been around the industry for a while, you'll remember that LiveNation & Ticketmaster were distinct companies. In fact, LN tried to leave Ticketmaster. LN was the one with the exclusive deals with artists. LN was the one who owned the venues.
Yet LN failed. They dumped hundreds of millions into building a ticketing platform unsuccessfully. And eventually just bought Ticketmaster.
It a good data point that even if you have the right contracts, you'll fail if you don't have the right tech.
Artists can play small venues, venues can book small artists, but that's not where the money is.
https://faroutmagazine.co.uk/pearl-jam-war-with-ticketmaster...
does ticketmaster monopolize small venues, as well?
maybe those venues could also sell streaming access as well as in-person viewing, to attack ticketmaster from 'below'. Other than Pearl Jam (and Prince, RIP), the big concert attractions seem to be happy with the current ticketmaster situation.
I don't know, but I do know that about half of the small venues in my town use Ticketmaster. I notice because it means that I have to remember which small venues I'm willing to see shows at.
At least it might come with some renewed interest in competition getting in on game with a better playing field before the monopoly starts forming again in new ways.
Biden is probably the first President since Carter to have even acknowledged the issue, we have 40 years of both Democrats and Republicans at every level of government slopping at the trough at this point.
antitrust enforcers starting with Lina K are so incompetent that they cant win open and shut cases
Exhibit A: action against a merger between Amazon and a robo-vaccum company, iRobot.
Let that sink for a minute.
Ticketmaster then tries to offload some of the blame to unknown "scalpers" but I think it's very likely that most of the scalpers are either Ticketmaster itself or entities contracted with them.
it's the only logical explanation since if they really wanted to solve the scalping problem, it would be the easiest thing in the world to solve. just make the tickets non-transferable.
The entertainment business is not very technical. TM serves as their IT department. By the nature of the business, everyone wants to differentiate themselves from everyone else. So literally every client wants some special feature that no one has seen before. TM is the only place that can afford to say, "sure, we'll do it" to all of them, and since most of the clients (sports teams being the major exception) aren't that technically sophisticated, so they're not in a position to do the differentiation on their own.
Startups usually don't succeed by having more features than entrenched competitors. They succeed, but delivering a small bundle of features that create a huge value difference. If one were to do that, it'd be great for the first few clients that used them, and then it'd be "old hat" and everyone else would want tons of new, differentiated features, which would cause the startup to lose focus. The industry doesn't want a handful of outstanding features. They all want to be snowflakes.
> I constantly see people complaining about ticketmaster with scalping
Ironically, the reseller market is the one part of the ticketing market that TM hasn't dominated. It's kind of ironic that people talk about TM when they complain about scalping.
I was initially quite a big fan until I purchased “sold out” tickets to a music festival a year in advance with the assurance that I could resell them if I changed my mind, only to see the resale queue disabled many months before the festival due to “lack of demand”. This didn’t seem to align with the festival being sold out, and apparently the tickets were released in batches which allowed them to claim it was “sold out” despite there being plenty of tickets still available. I’m not sure if this was the fault of Dice or the festival itself but soured my impression significantly.
Dice is still leagues better than Ticketmaster both in terms of UX and fees, but to me Resident Advisor is still the gold standard; unfortunately it seems a lot of the sort of shows that would be listed on RA are now on Dice instead.
> Yet even with all that, it seems no competitor has been able to reasonably get off the ground and poise a viable alternative. What gives?
To the extent that you're complaining about scalping, that's not something ticketmaster does. Scalping is a choice made by whoever originates the tickets. If the facial price is $20 and the market value is $700, scalping is going to occur regardless of whatever platform(s) may be involved. And if the facial price is $20 and the market price is $5, scalping won't occur regardless of whatever platform(s) may be involved.
> Anything essential to our conferences is processed in-house. E.g. When you register for an event we personally handle the process to generate your ticket—removing spying middlemen like Ticketmaster.
It saves thousands in Ticketmaster fees which is life-changing when you're indie. We don't have to overcharge ticket holders.
I'd be interested in turning this into a polished webapp other organizers can install and use. Sadly, building your own replacement doesn't address the monopoly TM has with the biggest venues.
[0] https://handmadecities.com/about
https://www.youtube.com/watch?v=-_Y7uqqEFnY
Kind of like back in the day when Intel & Microsoft imposed drastic licenses on Dell and HP that you couldn't get Windows license if you shipped ANY linux or non-windows laptops, Ticketmaster has the tremendous power of blacklisting non-conforming venues.
And then there's the REALLY SHADY stuff they do like hiring competitor executives who bring over their passwords, excels and accounts (https://www.directitcorp.com/blog/ticketmaster-caught-access... and other ridiculously wrong stuff like this https://www.cbc.ca/news/business/ticketmaster-resellers-las-... . Just start google search with "TicketMaster Caught..." and you'll find fascinating stuff that should be made up but isn't.
Basically they are a big evil bully.
From what I've heard from folks in the industry, literally no one else is capable of handling the biggest artists like Taylor Swift.
https://www.cbc.ca/news/entertainment/ticketmaster-taylor-sw...