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I always wonder why ticketmaster/live nation isn't making more money? Given they are a monopoly, I'd expect them to be making a ton of profit. But it doesn't re
by rrrpdx1 3mo ago
I always wonder why ticketmaster/live nation isn't making more money? Given they are a monopoly, I'd expect them to be making a ton of profit. But it doesn't really seem to look that way: https://www.google.com/finance/quote/LYV:NYSE https://www.google.com/finance/quote/LYV:NYSE
- saaaaaam 3mo agoBecause a large proportion of the money flows out the door. Most of their revenue is pass-through revenue, due to the sports teams and concert promoters (and by extension musicians) they sell tickets for. Ticketing works as a high volume low margin business. You need to deduct at least 70% (or more) from their topline to get a true picture of the company’s revenue vs revenue that walks straight out the door.
- toast0 3mo agoTicketmaster's job is to take the heat for ticketing (high prices, BS fees, sketchy reselling, etc), but funnel enough money back to the producing parties (artist/event, venue, promoter) that nobody is going to go through the effort to try to compete. Better to set their margins at 2-3% and keep a monopoly than be forced down in a competitive marketplace.
- deleted 3mo ago[deleted]
- imtringued 3mo agoConsidering so many people here don't care about the corporate structure of Live Nation and instead blame Ticketmaster, it seems like they are doing a good job. After all, the idea of competing with Ticketmaster is silly, since the problem isn't originating in Ticketmaster at all, that's where the problem is most visible.
- toast0 3mo agoI don't understand your message. Live Nation and Ticketmaster are a single entity. It's like Comcast and Xfinity (but with different corporate history). People complaining about Ticketmaster are complaining about Live Nation too. It's just that the Ticketmaster brand gets the heat, because that's how they run the brand. It's not like Ticketmaster wasn't doing the same stuff when Live Nation was a separate company, or even when Live Nation was a separate company that was doing its own ticketing.
- datsci_est_2015 3mo ago“They” (shareholders, etc.) also own the venues and promoters, so much of the pass-through revenue is captured by the same interests that own TM.
- imtringued 3mo agoYou mean the company that happens to own the venues and promoters also happens to own the ticket platform that they prefer to use.