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Is Ticketmaster a Monopoly?

By
Adam Hayes
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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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Updated September 19, 2024
Reviewed by Margaret James
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Vikki Velasquez
Vikkie Velasquez Vikkie Velasquez
Fact checked by Vikki Velasquez
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Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area.
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Ticketmaster, part of Live Nation Entertainment, is a premier booking and ticketing service provider for the arts and entertainment industry. With its global reach, Ticketmaster powers ticket sales for stadiums, performing arts centers, and museums.

According to Yale University, Ticketmaster has controlled over 70% of the market for tickets and live events and over 80% for live concerts since 1995. Because of its consistent dominant market position, the company has faced criticisms for monopolistic practices.

Key Takeaways

  • Ticketmaster is the world’s largest and dominant ticketing services provider.
  • The company earns money by charging service fees on ticket sales, promoting artists, and managing venues.
  • In 2024, the U.S. Department of Justice filed a lawsuit against Ticketmaster and Live Nation for monopolizing the ticket industry.

Timeline and History

  • 1976: Computer programmer Peter Gadwa and box office specialist Albert Leffler established a software company that licensed ticketing systems to retail outlets and universities to sell paper tickets to event-goers.
  • 1982: The company appointed Fred Rosen as CEO and established its headquarters in Los Angeles. Ticketmaster sold its systems to vendors and charged fees to consumers. Its main rival was Ticketron, a subsidiary of Control Data Corp. Through aggressive marketing and incentives paid to venues, Ticketmaster overtook Ticketron by the mid-1980s. The company made deals in more than 90 cities around the United States.
  • 1993: Microsoft co-founder Paul Allen acquired 80% of Ticketmaster for more than $325 million. The company posted over $1 billion in annual sales, accounting for more than 52 million individual tickets sold annually. Allen transformed Ticketmaster into an information technology company with online ticketing capabilities.
  • 1998: Digital media giant InterActive Corp. (IAC) purchased a majority stake in Ticketmaster and competitor CitySearch and combined the two entities to form a comprehensive online entertainment guide selling concert tickets and related merchandise.
  • 2008: IAC acquired TicketWeb in 2000 and several smaller players throughout the 2000s, before spinning off Ticketmaster as an independent entity in 2008. After the spinoff, Ticketmaster acquired Front Line Management, a premier artists management and representation firm, inking exclusive rights to sell concert tickets to Front Line talent.
  • 2010: Ticketmaster merges with Live Nation, the country's largest event promotor through the 2000s.
  • 2015: The combined company, Live Nation Entertainment, acquired festival ticketer Front Gate Tickets.
  • 2018: Live Nation Entertainment acquired UPGRADED, which converted physical tickets to digital, blockchain-based tokens.
  • 2022: In Dec. 2022, a group of Taylor Swift fans filed a lawsuit accusing Ticketmaster and Live Nation of fraud, antitrust violations, and price fixing.
  • 2024: In May 2024, the Department of Justice filed a lawsuit against Ticketmaster and Live Nation for monopolizing the ticket industry. In Aug. 2024, the DOJ amended its lawsuit to include Ticketmaster’s nontransferable ‘SafeTix’ as anticompetitive.

SafeTix

Nontransferable tickets replace static barcodes on electronic tickets with encrypted barcodes that refresh every 15 seconds. The company marketed SafeTix to reduce fraud, but the system also squeezes out competitors like StubHub and SeatGeek, according to the lawsuit filed by the U.S. Department of Justice.

Criticisms and Lawsuits

While Live Nation and Ticketmaster dominate the ticketing market, there are some competitors, but each is relatively small and lacks substantial market power. Competitors include Eventbrite, Tickets.com, AXS, Etix, SeatGeek, Vivid Seats, and StubHub, and may also specialize in other segments rather than mainstream concerts and sporting events.

In 1994, Ticketmaster faced anti-competitiveness claims. The alternative rock band Pearl Jam sued Ticketmaster on antitrust grounds, alleging the company had bought up all of its major competitors and abused its marketplace dominance by demanding high service fees and signing exclusive deals with major concert venues, limiting competition. The U.S. Department of Justice dropped the case.

On Nov. 15, 2022, the Ticketmaster platform crashed amid a presale for Taylor Swift’s concert tour, leaving many unable to log on. Customers criticized Ticketmaster for its ticketing model and monopolistic practices. Company officials stated that the system crash was due to the high number of fans attempting to buy Taylor Swift tickets. Consumers urged policymakers to address the Ticketmaster "monopoly." In 2024, the U.S. Department of Justice filed a lawsuit to address the anti-competitive business practices of the company.

Ticketmaster is the primary ticketer for nearly 80% of arenas that host NBA or NHL teams. 

Who Owns Ticketmaster and What Is the Company Worth?

Ticketmaster is owned by Live Nation Entertainment, which is a publicly traded company under the ticker symbol LYV on the New York Stock Exchange. As of September 2024, LYV had a market capitalization of more than $22 billion.

When Will the Lawsuit Against Ticketmaster and Live Nation Be Resolved?

In 2022, U.S. Sen. Amy Klobuchar (D-Minn.), chair of the Senate antitrust subcommittee, and a coalition led by the American Economic Liberties Project and several fan-based organizations, initiated action to undo the Live Nation and Ticketmaster merger and break up the ticketing monopoly. A lawsuit filed by the U.S. Department of Justice in 2024 is still pending resolution.

How Does Ticketmaster Make Money?

Ticketmaster and its parent company, Live Nation Entertainment, make money through fees split among the venues, promoters, artists, and Ticketmaster. Ticketmaster also extracts fees from its resale market application. The company’s Concerts and Festivals segment earns money from the global promotion of live music events in venues owned or operated by Live Nation and in rented third-party venues; the operation and management of music venues; the production of music festivals around the world; the creation of associated content; and the provision of management and other services to artists. Live Nation generates revenue from concessions, parking, premium seating, rental income, and ticket rebates or service charges earned on tickets sold through internal ticketing operations or by third parties.

The Bottom Line

Ticketmaster, part of Live Nation Entertainment, is the world’s largest ticketing services company. The company generates revenue from fees on ticket sales, artist promotion, and venue management. The company faces criticism for its role in consolidating the live events industry, allegations that it engages in anti-competitive practices, and poor handling of the ticketing process, especially for popular events.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. U.S. Securities and Exchange Commission. "Live Nation Entertainment Inc., Form 10-K for the Fiscal Year Ended December 31, 2023." Pages 2-6, 59.

  2. Yale Insights. "Did Ticketmaster’s Market Dominance Fuel the Chaos for Swifties?"

  3. Los Angeles Times. “Rival to Ticketron: Ticketmaster Emerging as Force in L.A.”

  4. Chicago Tribune. “Microsoft Co-Founder Paul Allen Buys Control of Ticketmaster.”

  5. Wired. “CitySearch Joins Ticketmaster.”

  6. Los Angeles Times. “IAC to Spin Off Ticket Seller.”

  7. The Hollywood Reporter. “Ticketmaster Takes Stake in Front Line.”

  8. The New York Times. “Top Concert Promoter Sets Up a Challenge to Ticketmaster.”

  9. Reuters. “Live Nation, Ticketmaster Merge; Agree to U.S. Terms.”

  10. Live Nation Entertainment. “Ticketmaster Boosts Festival and DIY Ticketing Services Through Acquisitions of Front Gate Tickets and Universe.”

  11. Live Nation Entertainment. “Ticketmaster Acquires Blockchain Ticketing Solution UPGRADED.”

  12. The New York Times. "Taylor Swift Fans Sue Ticketmaster’s Parent Company."

  13. U.S. Department of Justice. "Justice Department Sues Live Nation-Ticketmaster for Monopolizing Markets Across the Live Concert Industry."

  14. U.S. Department of Justice. "Live Nation Amended Complaint."

  15. U.S. Securities and Exchange Commission. "Live Nation Entertainment Inc., Form 10-K for the Fiscal Year Ended December 31, 2023." Page 9.

  16. Morningstar. "When It Came to Ticketmaster, Pearl Jam Was Decades Ahead of the Justice Department."

  17. Vox. “How Disappointed Taylor Swift Fans Explain Ticketmaster’s Monopoly.”

  18. U.S. Securities and Exchange Commission. "Live Nation Entertainment Inc., Form 10-K for the Fiscal Year Ended December 31, 2023." Page 54.

  19. CompaniesMarketCap. "Market Capitalization of Live Nation (LYV)."

  20. U.S. Senator Amy Klobuchar. “Letter Dated November 16, 2022, to Michael Rapino, President and CEO, Live Nation Entertainment.”

  21. American Economic Liberties Project. "New Campaign Launches to Break Up Ticketmaster."

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