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Broker Opposition Mounts to Ticketmaster Acquisition of TicketsNow
Thu, Jan 17th 2008 7:03 am EST
By Alfred Branch, Jr.
A lawsuit and growing opposition from ticket brokers, highlight some of the potential concerns over Ticketmaster’s planned $265 million acquisition of secondary ticketer TicketsNow.
Unable to successfully compete against the rising tide of secondary ticket brokers, Ticketmaster decided to buy the second-largest ticket marketplace, behind StubHub!, in the industry. But, Ticketmaster’s relationship with brokers over the years has often been contentious at best, and many of those brokers work with TicketsNow and use the company’s proprietary software, that contains broker profiles, inventory and tracking information.
And it is precisely this close relationship between brokers and TicketsNow that has many brokers concerned and fearful of Ticketmaster’s intentions.
Ticket industry internet message boards have been buzzing with angry recriminations against the proposed deal, which must receive federal sign-off before the two can close on the purchase within the next few months.
“Ticketmaster will merge their ‘platinum seats’ with EI [Box Office, TicketsNow’s proprietary software program used by hundreds of ticket brokers], and slowly flood EI with fronts [prime seats] being sold directly from artists. So you will see a lot more of the Van Halen's, where the first 20 rows are now listed on EI (and not StubHub/TND) and being sold directly from the artists. The artists will be shielded from the public scrutiny of scalping their own tickets more easily as average Joes won't really know these seats are coming from Van Halen as opposed to just from some Mr. Bad Broker. I think Ticketmaaster's long term plan (5 years) is to weed out brokers from EI, mainly by having all desirable seats sold by artists themselves. This transaction gives them that ability to do so,” said one broker on the ShowsOnSale.com message board, a comment indicative of many.
In a mass email today to hundreds of brokers, entitled “StubHub Values Your Business,” StubHub! President Chris Tsakalakis pleaded for brokers to continue to support his company, and parent company eBay and its eBay Tickets division, and laid out a litany of stranglehold business tactics performed by Ticketmaster over the years to stifle brokers. They include lobbying state governments to keep ticket resales illegal, and “using lawsuits as a weapon” against brokers and others. Both Ticketmaster and StubHub! remain embroiled in legal proceedings.
“TicketsNow and Ticketmaster's TicketExchange are services that have similarly underachieved in the secondary ticket market,” Sean Pate, spokesperson for StubHub, told TicketNews. “This is due in large part to the model that is supported by both entities that allows only a select few to participate in the sale of the ticket. The open marketplace model of StubHub and eBay Tickets, where any ticket holder can list a ticket to sell, keeps us the most popular platforms for ticket resale."
Continuing on the legal front, according to the South Florida Sun-Sentinel newspaper, the Miami Heat and its Basketball Properties Ltd. division is suing Miami-based Tickets of America and the Florida Association of Ticket Brokers (FATB) for allegedly resold premium tickets at AmericanAirlines Arena against the Heat’s policy requiring tickets only be resold through Ticketmaster’s TicketExchange program.
Alan Fein, the attorney representing the plaintiff, told the Sun-Sentinel that the organization is simply trying to protect its licenses and receive compensation that it believes it is owed. Prime seats not sold through TicketExchange cannot be charged a convenience fee.
"This is greed what the Heat is trying to do," Tickets of America CEO Michael Lipman told the Sun-Sentinel. "They're trying to double-dip on the secondary market. The real person who loses is the season ticket holder, who doesn't even make back face value [on the ticket]."
"I think what's really frightening from a consumer standpoint is that this is a broader pattern we're seeing around the country by sports franchises as well as Ticketmaster to put a lock on the secondary market of ticket sales," added Nick Iarossi, a lobbyist for the FATB, to the Sun-Sentinel.
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Comments represent the opinions of users and do not necessarily reflect the views of TicketNews.The way I see it, Ticketmaster has all along just tried to make the most money it can. Same as any of us are doing really. So now instead of selling the tickets to the brokers once and trying to stop the resale, now they are selling the tickets to the brokers (and regular people), AND taking a slice of the resale price when the tickets are sold through ticketsnow. It is in their best interest to sell as many tickets to brokers as they can, and then get those brokers to sell the tickets through TicketsNow. They are getting paid for the same tickets twice!!!
I just see this as making our lives that much easier. Most of my tickets are sold through ticketsnow, so the more people who buy through that site, means more of my tickets selling. Before I started using them, there was no way I could have sold tickets effectivly trying to run my own web site, or sell tickets to events not in my area very well for example, because I didn't have a lot of exposure. Ticketsnow takes care of all of that, and I can move a lot more inventory. I don't see what the problem is here?
Win win right?
The way I see it, Ticketmaster has all along just tried to make the most money it can. Same as any of us are doing really. So now instead of selling the tickets to the brokers once and trying to stop the resale, now they are selling the tickets to the brokers (and regular people), AND taking a slice of the resale price when the tickets are sold through ticketsnow. It is in their best interest to sell as many tickets to brokers as they can, and then get those brokers to sell the tickets through TicketsNow. They are getting paid for the same tickets twice!!!
I just see this as making our lives that much easier. Most of my tickets are sold through ticketsnow, so the more people who buy through that site, means more of my tickets selling. Before I started using them, there was no way I could have sold tickets effectivly trying to run my own web site, or sell tickets to events not in my area very well for example, because I didn't have a lot of exposure. Ticketsnow takes care of all of that, and I can move a lot more inventory. I don't see what the problem is here?
Win win right?
Win win? maybe short-term, lose long-term. good bye broker..see where you are in 2 years. I hear the soup lines are getting long out there....you're not getting any of that 265 million are you? haha
Ticket Master purchasing Tickets now will only help you business...their site will receive so many for visitors...more visitors means more business for Ticket Brokers
Ticket Master purchasing Tickets now will only help you business...their site will receive so many for visitors...more visitors means more business for Ticket Brokers
If the Ticket Scalpers, opps excuse me, the Ticket Brokers, are against this, it must mean that this deal is good for the consumer! Good for Ticketmaster!
Many of the people posting here are brokers who are venting and non-brokers who don't use brokers. To the non-brokers...you are not intimately involved in this industry like brokers and our clients who need our services are. You simply think brokers are the problem. That is your right but it is misguided. Ticketmaster has been on a march to enter the secondary market, dominate it, and remove any competition. It is how they operate in the primary ticket market (and you see how difficult it is to get tickets) and it is what they will do in the secondary market. ALL tickets for an event should be released to the consumers. That is not what Ticketmaster is doing. TM states that it is the artists, venues and promoters who hold back tickets. Since many of these venues are paid for with YOUR tax $$'s, but you don't ever get a shot at the tickets. It used to be they would hold back the best seats, now that they want to own the secondary market they mark them up to whatever they want and put them on their exchange or now TNOW. Since they controlled the tickets to begin with, the end consumer never has a chance at them. If no-one can get those seats, they have no competition and you will have to pay what they ask to get them. If they have to release all seats to the public, the public and brokers can resell them for what the market demands, not what TM demands. Multiple sellers of front rows causes a free market that will offer consumers options and better prices. This is an economic fact! Teams are already starting to tell their season ticket holders that they can only sell their seats through their own exchange, which is TM. Again, no competition to buy your seats, no highest offer from the market. TM has convinced artists and teams they are entitled to be paid twice. Why? Nintendo doesn't come after you when you re-sell a Wii that you bought after you stood in line for 6 hours. No products other than the precious "artist" expect to be paid and repaid again and again. How often do you get paid for your work efforts? As a broker, I only get paid once. If my client wants to re-sell tickets I have sold him, do I get to get a piece of that again? No. Do I expect to...NO!Look at the big picture. Look at the historic moves TM makes. Attendance at live events are on the decline. It is because the teams and artists are listening to the greedy corporate monopoly. TM doesn't care how many people attend a show, they only care that they make the most $$ they can. Artists used to want their shows to sell out...I wonder if they still do?
No, it just means that Ticketmaster is going to be taking our money and not brokers. This is NOT a good deal for consumers.
I too like the industries new labels for Secondary Ticketing good guys and bad guys. The "Broker" or the cowboy with the white hat saving customers everywhere from the evil doers, or "Scalpers", who jump out from behind your car when you drive up to the show. One gets to ride off into the sunset, pockets full of money saying “don’t forget the next time you need tickets, just go to paytoomuchforyourneighborstickets.haha.com, or ihadnoideahannagotbot.com, while the other tries to sell you a package of 4 tickets and an unlicensed Ozzy t-shirt for $700.00. He takes your money saying "you got a great deal, just don't wash that shirt".
There is no difference. It's like finding the difference between a Ford car salesman and a BMW sales associate. They're both car salesmen. One has a $12.00 tie, and the other has a $300.00 tie. They both show you the trunk. Neither one really knows how the car will perform, because they were not there when it was built or rolled out of the factory. They just want you to buy. If the car breaks down, don’t take it back to them. They will tell you “we are not responsible…we didn’t build the car, we just sell them” “that’s a manufacturers defect…you need to call them”.
Scalpers, keep working toward legitimacy. Someday you too could be a BMW Sales Associate. Brokers, pray for a real ticketing company looking to buy your list of customers. Until then keep up the crying, it gives you an edge in court when you take on the 800 pound gorilla. And remember, wear something blue, it makes you appear honest. Hey look, you're good enough, smart enough, and a Broker dad gum ya'! Not a Scalper...everyone LOVES YOU!
Its about time you brokers felt what is was like to steel business from artists and venues without contributing. Now you are going to be forced to.
Bravo ticketmaster!!!
You need to learn how to spell (steel?????) IT IS STEAL S-T-E-A-L. Don't post on this post until you LEARN TO SPELL!!
AND it's "It's", not "Its" in this context! Don't post until you learn GRAMMAR! :-)
We have been talking to 4 other brokers this morning and we decided to take our inventory off TicketsNow POS Friday Jan 18 by 12 noon (if we can get it all off by then, we have over 2200 events) out of protest. We will leave them off until we can get a new POS system. Our Contact (thank God) comes up in April so we can live with it. Join us if you want. Guys (fellow Brokers) its time to get back at TicketMaster. I would personally like to see them eat 265 million. But they will get there money back again in a couple years after they sue more Brokers, Stubhub, and Ebay. That is a good question? Why don't Ebay do something about this?
Also, if you what to do the protest will us, go for it. The more the merry! IT TIIME TO SHOW TicketMaster who is boss!!! We own the invertory remember?
I agree that this is not the approach to take in arguing for the brokers.
When we do this we sound like the guy who sells telegraphs and is trying to stop the sell of the telephone.
There are much better ways to go about this matter. The main one being that TM is attempting to monopolize the secondary market.
The second point is that if fans never have any chance at good tickets for face value, that will not set well, and it would do harm to TM.
The third point is that these suits where they are trying to force people to sell their tickets only on TM (ie Heat, Patriots) is a violation of our rights in the United States to sell that which we own in a free and open market.
This is how the whole matter should be attacked. Not by complaining that it isn't fair to us brokers.
I agree that this is not the approach to take in arguing for the brokers.
When we do this we sound like the guy who sells telegraphs and is trying to stop the sell of the telephone.
There are much better ways to go about this matter. The main one being that TM is attempting to monopolize the secondary market.
The second point is that if fans never have any chance at good tickets for face value, that will not set well, and it would do harm to TM.
The third point is that these suits where they are trying to force people to sell their tickets only on TM (ie Heat, Patriots) is a violation of our rights in the United States to sell that which we own in a free and open market.
This is how the whole matter should be attacked. Not by complaining that it isn't fair to us brokers.
I still don't see what all the fuss is about? Why are there complaints that the artist and promoters will now control and take the majority of the market value out of the ticket? Why is this the 'right' of a ticket broker? Brokers have benefited from the much vaunted "market inefficiencies" of the primary market for years - - so guess what? They're getting more efficient! And the brokers business will shrink. As my mother used to say, "toughy darts".
Can"t you see the big picture? With many small brokers they can't control prices because they are always in competition to get our money. The prices are controlled by demand and we have many choices. With ONE big company controlling everything we don't have a chance and prices will be higher. It is pretty simple economics really.
Scalping is illegal in my state, and rightfully so. I don't care what niche brokers, scalpers rather, have found in the e-commerce market that allows them to forgo our laws. Let TM weed them out and indirectly e-volve the anti-scalping laws.
Face value will become a reality once again!
People like you (people that slam Brokers) make me laugh for two reasons.
1) You were to dumb to get into the business when it was time to get in.
2) You don't have the money to get into the business.
All you are is a person that is jealous because Brokers make a living on a product that you were to dumb to get into or are to broke to get into! All because people like you that are living pay check to pay check, does not mean that anyone that makes living on a business (that you are to broke to get into) are bad people.
CAN I ASKED THIS QUESTION, WHAT DO YOU DO FOR A LIVING? AND DOES YOUR COMPANY MARK UP ITS PRODUCTS?
yeah, but 'face value' will end up being $250 instead of, say, $100 it would've been before...
and just like anything else - if they don't sell at that price - if there is no demand then the price will drop. Tickets are not an essential commodity like water and food.
I agree, why does everyone think this is such a good deal? Ticketmaster is going to screw us now, not the scalpers.
The comments that were made in this article were from a broker forum, to other ticket brokers. It was not a "woe is me, I can't believe how unfair ticketmaster is being", but a message to other brokers, in "this is how ticketmaster is going to try to take over our businesses, either adapt, or be run over by the 800 lb gorilla."
Ticketmaster has every right to do what they are doing, just like Walmart has every right to come in to a small city and destroy all small businesses that operate there. If I were the Ticketmaster CEO, I would've done the same thing, but about 4 years ago when you could've bought TNow for $100 million. Brokers aren't complaining as much as they are figuring out their next move.
Just like cities often times try to stop a Walmart from coming to their town, brokers will try and resist ticketmaster coming to their town for the same reason.