According to Michael Rapino, President and CEO of Live Nation Entertainment, there is a simple reason for Ticketmaster’s market dominance: the product is stronger than that of its competitors and offers its partners more information.
Speaking at Goldman Sachs’ Communacopia + Technology Conference, Rapino defended Live Nation’s much-maligned ticketing division, which is currently facing an antitrust lawsuit from the U.S. Department of Justice.
“Ticketmaster has consistently built the best global corporate platform,” Rapino said during his Q&A with Goldman entertainment industry analyst Stephen Laszczyk.
Live Nation acquired Ticketmaster in 2010 in the merger that changed the live industry forever. Back then, Rapino said, Ticketmaster was a closed company that kept the data it collected about events and ticket buyers to itself. Today, Rapino said, that information is shared with venues, artists and teams. That, Rapino said, is its “secret advantage.”
What’s next for Ticketmaster and Live Nation – aside from defending themselves in a complicated antitrust case – is global expansion. Rapino said outside of Canada, the U.S., the U.K. and, to some extent, Australia, ticket sales remain “immature” and “not nearly as technical as Ticketmaster.”
Rapino acknowledged that the near-constant criticism of Ticketmaster from customers is not entirely avoidable. Because the number of tickets is inevitably limited, a significant number of potential ticket buyers will be left empty-handed. He said the company is still struggling to resolve “that PR battle,” particularly making customers understand that Ticketmaster only keeps a small portion of the fees.
Rapino also said that on the events side, Live Nations Venue Nation is focusing on “white space” markets: those that lack suitable arena-sized concert venues. While the basketball and hockey markets have plenty of those due to the athletic demands, much of the world is hooked on soccer, leading to a glut of stadiums and a shortage of venues.
He also reiterated his predictions from previous earnings calls about the 2025 pipeline. This year, the stadium business has been relatively quiet, with Taylor Swift’s “Eras Tour” and Beyoncé’s “Renaissance,” for example, coming to an end, although Live Nation has seen stability in arenas and growth in amphitheaters. Rapino says the stadium business should rebound next year, with continued strength in arenas and consistency in indoor venues.
