Ticketmaster Branches Out, Claims Huge Stake of Secondary-Ticket Market by Buying TicketsNow

1/15/08, 6:18 pm EST

Perhaps concerned about Live Nation’s plan to begin their own independent ticketing system beginning in January 2009, Ticketmaster announced yesterday that it has agreed to buy TicketsNow (the second-largest site in the secondary-ticket market behind eBay-owned StubHub). The Wall Street Journal places the value of the sale at $265 million. It’s a move that firmly entrenches Ticketmaster in a secondary-ticket market in which tickets to concerts and sporting events are often sold for double and triple their face value.

After years of not getting a slice of resale profits — and issuing strongly worded warnings that ticket buyers should not resell their tickets — Ticketmaster now will take the fifteen percent commission that TicketsNow charges its sellers and split it between themselves and clients who “own venues or promote events.” By entering this market, Ticketmaster will still be able to make some money off of Live Nation tickets that are resold on TicketsNow.

But will Ticketmaster now be consorting with scalpers? TicketsNow has been accused of being something of a safe harbor for ticket buyers who use “bots” to purchase tickets en masse before the general public can even click a mouse (the sort of bulk buying that caused a stir among parents in the great Hannah Montana Debacle of 2007). Ticketmaster President and Chief Executive Sean Moriarty promises that his company will attempt to “root out” those buyers who use technology unfairly. Consumers will likely be skeptical, however, as Ticketmaster has long been condemned as a fan-unfriendly service.

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Comments

Sharon | 2/18/2008, 8:59 pm EST

My mom has been an Elton John fan for decades…I was on the web and on the phone ten minutes before the tickets went on sale. Of course, they were immediately ’sold out’. And today, they are ALL OVER the web for $300 a piece. Why isn’t the Ticketmonster cartel illegal? The last two concerts I’ve gone to, I had to resort to resellers at steep prices. Well, I’m done. I hope StubHub chokes on their 300 dollar tickets. Isn’t this what anti-trust laws are for? Ticketmonster is clearly complicit in this gouging!!!

Sven | 1/17/2008, 11:22 am EST

Who cares if Ticketsnow is the actual broker or if they just sell the tickets that belong to brokers? Either way, Ticketmaster is validating the practice of scalping. Ironically, what Ticketmaster itself does is not all that different from scalping: they gain the rights to sell the tickets and then sell them to consumers with a big mark-up ie. a convenience fee. An extra twenty bucks for the show, even though I still have to pick up the tix at the box-office? How convenient!

Anonymous | 1/16/2008, 2:46 pm EST

companies like livenation and ticketmaster…even goldenvoice are basically the new equivalent of the major labels now that the majority of revenues are from touring.

fuck this monopoly shit | 1/16/2008, 12:03 pm EST

I along with amny people, hate this fucking company. the shit ticket man siad is pretty scary, ticketmnaster was bad enough before.

my question is, how is this business model NOT considered a monopoly? I don’t get it, realistically, if you want to buy a ticket to a concert, you MUST buy a ticket that originated from ticketmaster; whether you buy it on stubhub or wherever, rest assured ticketmaster got their cut when the ticket was bought the first time.

Whatever happened to anti-trust laws? this big-music bull shit has gone on long enough.

death to the major labels
death to the corporate wind-up artists
death to ticketmaster

begin the boycott anyone who is concerned.

Ticket Man | 1/16/2008, 11:00 am EST

people should not speak about what they do not know - Ticketsnow is the largest ticket broker in the world. Ticketsnow use to be known as Vip travel and Tours is now e seperate companies or divisons. Ticketsknow the Internet retail site, eventinventory.com - which is the broker exchange and Premium Inventory - which is their company that purchase tickets from ticketmaster for resell thru eventinventory.com and Ticketsnow.com. Ticketmaster is buying all 3 companies or divisons. That way Ticketmaster now has 3 different sources of income 1. the 15%markup of ticketnows 2. the 2.5 to 3.5% fee that eventinventory.com charges all brokers on their sale and 3. 100% of Premium Inventory mark which is general 505 or more of fave value. Watch for the amount of tickets carried by Ticketsnow to greatly increase. Why would Ticketmast now sell all their tickets at face value when they can now sell as many as they want thru over 800 ticketbrokers web sites at doubl, triple or more. How do I know this I have been a broker that has been part of Ticketsnow Exchange for over 15 years.

scalp TicketMaster | 1/16/2008, 10:55 am EST

Come on people, stop buying their crap and maybe, just maybe ticket prices will be affordable again.

It’s worked with record companies. We stop buying records, they start to scramble around wondering what the hell is going on. Music as big bussiness has failed, and it’s about time. Now let’s watch Ticketmaster fall on its face.

Oddjob | 1/16/2008, 10:41 am EST

It’s already hard enough to get tickets to any event. You can go online the second tickets go onsale and they’re all sold out, or you get the worst seat in the house. You can be proactive and go to a (very rare) physical outlet, be second on line and get shafted. Now Ticketmaster is embracing the scalpers, and redirecting you to a reseller site where they’re sold for $200, $900! This is legal? It’s about the most consumer-unfriendly model out there today. I’m sure it’s real nice for the sellers though, the people who don’t give a f*ck about the band or the music.

VIRV.TV | 1/16/2008, 9:11 am EST

Tom is so right!

Tom | 1/15/2008, 10:35 pm EST

Yes, they were accused, but once again the media didn’t get the facts out there. Ticketsnow is a site that sells tickets that belong to brokers. They are not the broker. Many sites out on the internet do the same thing and have fan tickets as well (stubhub). The DA is after the brokers who use the software that hacks ticketmaster not the ticket exchange the brokers sell tickets on. (razorgator, ticketsnow, stubhub, etc).

Mr. Man | 1/15/2008, 7:40 pm EST

Ticket. Master. Must. Die

Get on this, Pearl Jam! We need you again!

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