Why Ticketmaster has Monopoly?
Ticketmaster is a well-known name in the ticketing industry, and it is a dominant player in the market. It is the go-to platform for buying tickets to events, concerts, and sports games. It is said that the company has a monopoly in the ticketing industry. However, many people may not understand why Ticketmaster has a monopoly on this market. In this blog post, we will discuss the reasons behind Ticketmaster’s monopoly in the ticketing industry.
What is Ticketmaster?
Ticketmaster is an American ticket sales and distribution company. It provides ticket sales services for concerts, theater, sports events, and other live events. It is owned by Live Nation Entertainment and operates globally. The company offers a platform that enables event organizers to distribute tickets to their events.
How Ticketmaster became a Monopoly?
Ticketmaster’s monopoly in the ticketing industry can be attributed to several factors, including:
Exclusive Contracts
Ticketmaster has exclusive contracts with many sports teams, artists, and event promoters. These contracts prohibit these entities from selling tickets through any other provider. The exclusivity contracts are said to have started when Ticketmaster merged with Live Nation Entertainment in 2010.
Acquisitions
Ticketmaster has acquired several competitors in the ticketing industry, including its biggest competitor at the time, Ticketron. In 1991, Ticketmaster merged with Ticketron, which reduced competition in the market. Since then, Ticketmaster has acquired several other ticketing companies, including Paciolan, ETM Entertainment Network, and TicketsNow.
Brand Recognition
Ticketmaster has been in the ticketing business for over four decades, and the brand is well-known amongst consumers. It is a household name for ticket sales and distribution, and consumers have developed loyalty to the brand. Ticketmaster’s brand recognition has made it difficult for new entrants to gain a significant share of the market.
Market Power
Ticketmaster has a significant market share of the ticketing industry. This market power allows it to negotiate deals with event organizers and dictate terms to smaller competitors. Due to these factors, it is difficult for competitors to break into the market and gain a broader customer base. This is because Ticketmaster can use its market power to keep competitors out of the industry.
The Impact of Ticketmaster’s Monopoly
The ticketing industry’s monopoly has led to a higher cost for consumers. Ticketmaster charges service fees that are typically much higher than its competitors. Customers do not have a choice but to pay this fee, as they cannot purchase a ticket from any other platform. Moreover, Ticketmaster also charges additional fees, such as processing fees and delivery fees. These fees add up, making it difficult for consumers to afford tickets to events.Furthermore, Ticketmaster’s monopoly has also impacted the music and sports industry. Ticketmaster has a significant advantage over other ticketing companies, leading to the exclusion of smaller competitors. Due to Ticketmaster’s dominance in the industry, it can dictate terms and prices to event organizers. This means that smaller venues or independent music artists may have to pay higher fees to sell their tickets or may not receive an invitation at all.
Conclusion
Ticketmaster’s monopoly in the ticketing industry has had a negative impact on the market. It has led to higher prices and limited options for consumers. The company’s exclusivity contracts, acquisitions, brand recognition, and market power has been instrumental in solidifying its monopoly in the industry. It is essential that the ticketing industry adopts more competitive practices and regulations to ensure that consumers have better options and lower prices. Other ticketing companies and event organizers should have the chance to operate and compete fairly in the ticketing industry.