Concert promoter AEG has partnered with the technology start-up Outbox Technology to create a new ticketing company that will challenge rival promoter Live Nation Entertainment’s Ticketmaster.
Outbox will begin selling tickets for events at 105 arenas and theaters throughout the United States within the first half of 2011, and the company hopes to acquire more venues after their contracts with Ticketmaster expire.
This is potentially troubling news for Ticketmaster. AEG is the company’s biggest client and accounted for nearly 10 percent of their ticket sales last year. According to the Wall Street Journal, Ticketmaster earned $55 million in service fees last year just from the sales of AEG events.