Ticketmaster

Ticketmaster Entertainment: The Journey of a Ticket Sales Giant

Imagine a world where every concert or event ticket is seamlessly purchased, but behind the scenes lies a complex web of business practices that have sparked numerous controversies and lawsuits. Who is this company that has become so integral to our entertainment experiences?

The Birth and Growth of Ticketmaster

Ticketmaster Entertainment, LLC, founded in 1976 by college staffers Peter Gadwa and Albert Leffler, Gordon Gunn III, and businessman Jerry Nelson, started as a small player in the ticketing industry. How did this company grow to become the market leader it is today?

The company’s journey was marked by strategic acquisitions and partnerships. In 1998, InterActiveCorp (IAC) purchased a majority stake in Ticketmaster, leading to its merger with CitySearch and renaming as Ticketmaster Online-CitySearch. In 2003, IAC repurchased the remaining stock, setting the stage for further expansion.

Under Fred Rosen’s leadership, Ticketmaster grew exponentially, acquiring Paciolan Inc., Getmein.com, TicketsNow, and Front Line Management in January 2008. Was this growth without any hiccups?

The Controversies and Legal Battles

Ticketmaster has faced numerous controversies and lawsuits over the years. Is it just a coincidence that every time they grow, they face scrutiny from regulators, customers, and musicians?

In 1994, Pearl Jam filed a complaint against Ticketmaster for cutting them out of venue bookings due to fees. The case was closed without action but sparked an investigation by the US Department of Justice. Has this been a recurring issue in their history?

The company has also faced criticism for its dynamic pricing system and ‘platinum’ tickets, with the Canadian Competition Bureau fining Ticketmaster $4.5 million for deceptive advertising practices in June 2019. Is there any transparency in how these prices are set?

Mergers and Acquisitions

In February 2009, Ticketmaster merged with Live Nation under the name Live Nation Entertainment. The deal was cleared by the U.S. Justice Department with conditions that included selling Paciolan and licensing software to Anschutz Entertainment Group. Was this merger a smooth transition?

Ticketmaster continued its expansion in 2015-2018, acquiring Front Gate Tickets, Universe, Two Toasters, Strobe Labs, and UPGRADED. In November 2020, the company announced it would check COVID-19 vaccination status before issuing passes for live events. How has this affected their customer base?

Data Breaches and Customer Complaints

Ticketmaster faced a significant data breach in June 2018, affecting 40,000 U.K. customers. The company notified these customers a month later on June 22, 2018. How does this impact customer trust?

In September 2018, the Toronto Star reported that Ticketmaster was not enforcing ticket limit rules on its resale platform, TradeDesk. A class action lawsuit was filed against Ticketmaster in July 2019 for deceptive pricing practices. Is there a pattern of such incidents?

Regulatory Scrutiny and Future Challenges

The Tennessee Attorney General began an investigation into consumer complaints about the chaos during the presale of Taylor Swift’s tour tickets in December 2022. The federal Department of Justice also launched an investigation on November 18, 2022. Are these investigations just a formality?

A group of Swifties filed a lawsuit against Ticketmaster and Live Nation accusing them of fraud, anti-trust violations, and price-fixing in December 2022. The company has also faced criticism for its handling of Taylor Swift’s Eras Tour pre-sale, which crashed due to ‘historically unprecedented demand.’ Is there any solution on the horizon?

The Future of Ticketmaster

Ticketmaster and Live Nation have been accused of monopolistic practices. Several US lawmakers, including Alexandria Ocasio-Cortez and Bill Pascrell, have called for the company to be broken up or subject to stricter antitrust enforcement. Will these calls lead to significant changes?

The Tennessee Attorney General concluded she is taking necessary measures to resolve the issue and resume the sale of tickets. What does this mean for future events?

As the ticketing industry continues to evolve, it remains to be seen how these challenges will shape the future of Ticketmaster. The company must navigate a complex landscape of consumer expectations, regulatory scrutiny, and technological advancements. Will they rise above the controversies or face significant changes? Only time will tell.