Despite growing competition from a host of new and old rivals, Live Nation’s Ticketmaster division appears to be succeeding in the fight to retain its ticketing contracts, according to company officials.
The world’s dominant ticketing company has contracts with a total of about 12,000 clients, and it is holding onto 90 percent of those whose contracts were up this year, a healthy renewal rate as several “white label” ticketing solutions companies nip at Ticketmaster’s heels.
“Historically, Ticketmaster has lost a few buildings to whatever new technology enters the market,” Live Nation President and CEO Michael Rapino told investors during a second quarter financials conference call Monday, August 8. “But, we haven’t seen any significant erosion.”
The 90 percent renewal rate is consistent with the company’s historical figures, Rapino added.
Ticketmaster was able to renew contracts with its top 25 buildings, Rapino added, but he did not disclose the length of those contracts. The company typically likes to lock venues into long-term deals of five years or more, but according to industry insiders many of the company’s contracts are being signed for shorter periods, such as one or two years.
Ticketmaster represents an older but still highly viable business model of being the middleman between the venue, team or promoter and the ticket buyer and locks those content providers into exclusive contracts. Tickets.com offers a competing variation of a similar theme, for example, but a growing number of white label ticketing companies, led by the partnership of Anschutz Entertainment Group and Outbox Technology and Veritix, take a different approach. The white label companies offer ticketing solutions directly to the content provider so they can sell their own tickets and manage their data and customer relationships.
Ticketmaster offers its own white label solution for venues, but most of its tickets are sold through Ticketmaster.com or LiveNation.com, two formidable e-commerce sites. But, a lot of fans are turning to Google — and FanSnap and SeatGeek — to search for tickets, which gives content providers and secondary ticket resellers an improved chance to sell tickets directly to fans.
One new feature Ticketmaster is turning to help it in the fight against the white label companies is a new data analytics initiative that provides their clients with ticketing and sales information.