Why Ticketmaster is Not a Monopoly
Ticketmaster, one of the leading companies in the event ticketing industry, has long been accused of holding a monopoly over the market. Over the years, many people have argued that Ticketmaster monopolizes the industry and is the only viable option for purchasing tickets to events. However, this claim is not entirely accurate. In this blog post, we’ll discuss why Ticketmaster is not a monopoly and how it operates in the industry.
What is a Monopoly?
Before delving into why Ticketmaster isn’t a monopoly, it’s important first to understand what a monopoly is. A monopoly occurs when a company has exclusive control over a particular product or service. In simple terms, it means there is no viable alternative to the product or service offered by the company. Monopolies can cause significant problems for consumers, primarily due to high prices and a lack of choice.
The argument that Ticketmaster is a monopoly and has no competition is a flawed one. In reality, Ticketmaster faces competition from several other companies, including StubHub, SeatGeek, and TicketWeb. These companies offer similar services to Ticketmaster, and some even specialize in certain types of events like sports or music concerts. Additionally, Ticketmaster has faced competition from a growing number of mobile ticketing services, such as Apple Pay and Google Wallet, which provide a more seamless and convenient way for consumers to purchase tickets.
Ticketmaster’s Market Share
While it’s true that Ticketmaster holds a significant market share in the event ticketing industry, that doesn’t make it a monopoly. According to Statista, Ticketmaster’s market share in North America is around 70%. While this is a significant market share, it still leaves room for competition. Many consumers still prefer to purchase tickets from other providers like StubHub and SeatGeek due to their user-friendly interfaces or competitive pricing.
One argument that is often cited to support the claim that Ticketmaster is a monopoly is their extensive contractual relationships with venues and artists. Ticketmaster has exclusive contracts with several arenas and venues, which means that they are the only authorized ticketing agent for events held at those locations. While these contracts can be seen as anti-competitive to some, they are a standard practice in the event ticketing industry.Additionally, Ticketmaster doesn’t have exclusive relationships with all venues and artists; they must also compete for the business of those who don’t have such contracts. In some cases, artists may choose to sell their tickets exclusively through their own website or other platforms like Spotify or YouTube, bypassing Ticketmaster altogether.
While Ticketmaster is a dominant force in the event ticketing industry, it is not a monopoly. There are many other companies that offer similar or better services, including StubHub, SeatGeek, TicketWeb, and mobile ticketing services. Moreover, Ticketmaster’s contractual relationships with venues and artists are not anti-competitive, and they still must compete to win business from those who do not have exclusive contracts. It’s essential to understand the company’s role within the market carefully, and while there are valid criticisms of Ticketmaster’s pricing practices, it’s inaccurate to label them as a monopoly. If you’re looking to purchase tickets for an upcoming event, it’s essential to do your research and shop around for the best deals. Consider the different companies that sell tickets, and don’t limit yourself to just one provider. This way, you’ll have a more comprehensive range of options to choose from and improve your chances of getting a better deal.