Why Ticketmaster is a Monopoly?
Ticketmaster is a household name in the concert and event ticket sales industry. Chances are, if you’ve ever attended a concert or sporting event, you’ve likely purchased tickets through Ticketmaster. With such a widespread presence, it’s clear that Ticketmaster controls a significant part of the ticketing industry, if not all of it. In this blog post, we’ll discuss why Ticketmaster is a monopoly and the impact it has on consumers.
What is a Monopoly?
To understand why Ticketmaster is a monopoly, we first need to define what a monopoly is. A monopoly is a market structure where one company or entity has complete control over a specific industry or product. Monopolies are often characterized by high prices, low-quality goods or services, and a lack of competition.
History of Ticketmaster
Ticketmaster was founded in 1976 and initially provided computerized ticketing services to venues and promoters. Over the years, Ticketmaster grew in size and scope, acquiring multiple ticketing companies and forming partnerships with various venues, teams, and artists. Ticketmaster is now part of Live Nation Entertainment, which is the world’s largest entertainment company.
Control over the Ticketing Industry
One reason why Ticketmaster is a monopoly is due to its control over the ticketing industry. Ticketmaster has long-standing partnerships with many venues, teams, and artists, which gives it an exclusive deal to sell event tickets. This makes it challenging for newer players to enter the market and compete with Ticketmaster’s established relationships.Ticketmaster also has a vast database of customer information, which gives it an edge over its competitors. The company can use its deep knowledge of customer preferences and purchasing behavior to create targeted marketing campaigns and drive sales.
High Ticket Prices and Additional Fees
Ticketmaster’s monopoly on ticket sales has allowed the company to charge high ticket prices and additional fees, which can be a significant burden for consumers. Ticketmaster adds various fees, such as processing fees, ticket delivery fees, and convenience fees, which can significantly increase the cost of tickets.Moreover, Ticketmaster has been criticized for its dynamic pricing strategy, which is a pricing model that adjusts ticket prices based on demand. In this model, Ticketmaster sets the initial ticket price low and increases it as demand increases. This pricing model can lead to unfair practices, where tickets are sold for much higher than their actual value.
Alternatives to Ticketmaster
Consumers who are unhappy with Ticketmaster’s high ticket prices and additional fees may look for alternative ticketing options. However, due to Ticketmaster’s monopoly, finding other ticketing options can be a challenge. While there are some smaller ticketing companies like StubHub and SeatGeek, they are not widely used and may not have the same inventory as Ticketmaster.Some venues and artists have attempted to create their ticketing platforms or work with smaller ticketing companies to offer their customers a more affordable ticketing option. However, these efforts are often met with resistance from Ticketmaster, which uses its exclusive deals to limit competition.
The Impact on Consumers
The impact of Ticketmaster’s monopoly on consumers is significant. Since Ticketmaster controls so much of the ticketing industry, consumers have limited options when it comes to purchasing event tickets. This leaves them at the mercy of Ticketmaster’s pricing, which can be much higher than the actual ticket value.Ticketmaster’s high ticket prices and additional fees can also make events inaccessible to those on a tight budget, particularly for popular shows, where ticket prices may skyrocket due to dynamic pricing. Additionally, Ticketmaster’s dynamic pricing strategy can lead to unfair practices, like scalping, where tickets are purchased and resold for much higher than their actual value.
Conclusion
Ticketmaster’s monopoly on the ticketing industry has allowed the company to charge high ticket prices and additional fees, which can be a significant burden for consumers. While there are some alternative ticketing options available, Ticketmaster’s control over the industry makes them challenging to find. The impact of Ticketmaster’s monopoly on consumers is significant and will continue until there is a proper solution to the issue.
