This article from Wired highlights the fact that Ticketmaster controls the ticket selling industry despite its antiquated system and high service fees. This is due to their established relationships with major venues and proprietary, reliable ticket platform, which sets them apart from their more innovative competitors. However, future success in this industry is contingent upon whether the small ticket sellers can advance technologically to compete with Ticketmaster, and whether Ticketmaster opts to reduce service charges and make changes to its model adapting to the popularity of social media.
Currently, newer ticket sellers such as Veritix and Topspin Media have creative business models that also take into account the needs of the artist and the fans, rather than just the venue. Veritix’s innovative Flash Seats allows the company to conduct valuable market research for future ticket sales, while Topspin is geared towards assisting independent artists promote themselves and sell tickets. Creating reliable technology that can withstand large volumes of ticket sales at one time is the crucial issue for these upstart ticket sellers, that once conquered, will establish them as major contenders against the behemoth Ticketmaster.
If Ticketmaster elects to create new, innovative ways to engage ticket buyers and reduce their fees, without jeopardizing their current technological platform they will continue to dominate. However, the company will most likely not be spurred to make any changes until they feel that other ticket sellers are a threat. The threat will become apparent once another vendor creates sturdy, reliable technology, and with constant technological advances this may not be too far in the future.
From Elizabeth Edelson’s online Introduction to Arts Management class: 11/15/10 post by Sylvia Goncalves, LSCE student (CAM1100 Fa10).