Before the advent of modern ticketing systems, purchasing event tickets was a laborious and often unfair process. Manual ticket boxes were commonly used, where patrons had to physically visit a designated location to buy tickets, leaving people outside the area with no other solution than buying from highly marked up tickets from resellers.
The early waves of digitalization revolutionized event ticketing, paving the way for more convenient and efficient methods. One of the first significant developments was the emergence of computerized ticketing systems. These systems allowed venues and ticketing agencies to automate the ticket selling process and maintain a centralized database of available seats. Customers could purchase tickets over the phone, through designated outlets, or at the venue itself. This innovation significantly reduced the time and effort required to obtain tickets.
The true game-changer in the ticketing industry came with the rise of the internet and e-commerce. Online ticketing platforms such as Ticketron, Ticketmaster, StubHub, and Eventbrite, transformed the ticketing landscape. Consumers could now browse events, choose seats, and purchase tickets online from the comfort of their own homes. The introduction of online ticketing not only enhanced convenience but also (supposably) reduced the prevalence of resellers.
Founded in 1976, Ticketmaster initially operated as a ticket sales company using automated machines to print tickets. In 1982, Ticketmaster made a significant leap forward in the ticketing industry by introducing computerized ticketing systems, allowing customers to buy tickets through various retail outlets including grocery stores.
During the early years of Ticketmaster, it faced competition from a significant rival known as Ticketron. Ticketron’s business model relied on installing ticket dispensing kiosks at retail locations in cities. Under this model, Ticketron imposed a ~ $0.25 service fee for every ticket sold, in addition to rental fees for the kiosks placed on their premises. In 1991, Ticketmaster made a significant move by acquiring Ticketron. The acquisition allowed Ticketmaster to absorb Ticketron’s extensive customer base, further expanding its market share.
In 1995, Ticketmaster.com launched. This move to online ticketing allowed customers to purchase tickets conveniently from their homes, greatly enhancing the ticket purchasing experience. As the internet and e-commerce became more prevalent, Ticketmaster capitalized on the trend, and its website became one of the most popular platforms for buying event tickets online.
One of the most significant developments in the live entertainment industry happened in 2010 when Ticketmaster merged with Live Nation, forming Live Nation Entertainment. Prior to the merger, Live Nation was primarily known for its concert promotions, venue management, and artist management services. Ticketmaster, on the other hand, was already the leading ticketing company. The merger brought both these segments under one roof, giving Live Nation Entertainment unprecedented control over the entire event lifecycle, from production to ticket sales.
1. Integrated ticketing and marketing.
By combining Ticketmaster’s vast ticketing platform with Live Nation’s network of fans and artists, the company can boost ticket sales and enhancing the overall fan experience.
2. Amplified artist and fan engagement.
With the merger, Live Nation Entertainment became a one-stop-solution for artists, offering a comprehensive suite of services, including artist management, concert promotion, ticketing, and even merchandise sales.
3. Venue management
The combination of Live Nation’s venue management expertise and Ticketmaster’s ticketing technology allowed for seamless event planning, ticket distribution, and capacity optimization.
Ticketmaster revolutionized the ticketing industry through a disruptive approach that focused on delivering value to its true customers – the venues. Unlike its predecessor, Ticketmaster recognized the importance of forging mutually beneficial relationships with venues. Instead of charging venues for the ticketing system, cutting the venues’ profits, Ticketmaster split the fees to ticket buyers. Venues pay around 10% of the sales price whereas buyers pay 20%.
