Concert and ticketing giant Live Nation Entertainment, which identified it as one of its major initiatives, is planning to rollout a dynamic ticket pricing product this summer, according to company President and CEO Michael Rapino.
During a conference call with investors and analysts today, February 28, where he spoke about the company’s tough 2010, Rapino said the Live Nation dynamic pricing product will be a “self-contained software platform” that venues and sports teams that already use its ticketing software will be able to implement.
“We expect to begin beta-testing it with teams in May,” Rapino said.
Dynamic ticket pricing, which has been embraced by a growing number sports teams over the past two years, allows ticket providers to adjust ticket prices up or down on-the-fly depending on several factors, such as the weather, a team’s standings, quality of opponent or injuries.
Third party companies such as Qcue and Digonex are experts in dynamic pricing, but they will face a formidable challenge by Live Nation. The company’s Ticketmaster division has ticketing contracts with hundreds of venues, stadiums, sports teams, promoters, theaters and other entities in the ticketing chain that it could use those relationships to its advantage.
In fact, those relationships are at the heart of Rapino’s thought process as it relates to the new challenge by Anschutz Entertainment Group (AEG) and Outbox Technology, which have teamed up to create the nation’s second-largest ticketing entity. When asked about AEG/Outbox, Rapino brushed aside the potential challenge because he believes venues and teams will appreciate the size and scope of Ticketmaster.com to help them sell tickets.
“We think there are two business models when it comes to ticketing and we’re in both,” Rapino said. “There’s the software to allow entities to sell tickets, and we’re the leader in that, and there’s aggregating to help them sell tickets through Ticketmaster.com, which is the fifth-largest e-commerce site in the world. We ‘white label’ Web sites for over 2,000 venues, but those venues like the added audience and eyeballs that Ticketmaster.com can provide.”