Making Moves

TicketMaster announced this last week that it is purchasing TicketsNow. TicketsNow is regarded as the second largest secondary ticket online marketplace behind Stubhub, which is owned by eBay. The value of the acquisition is placed at $265 M.

This move clearly signifies the permanence of the online secondary market. Ticketmaster has been the biggest player in the primary market and has made many moves over the years to prevent the expansion of the secondary ticket market. They have been unsuccessful in changing the basic economics of the market.

This purchase is clearly a “if you cannot beat them, join them” move.

Details of how the new company will work are still in question. How TicketsNow deals with its suppliers, affiliates and commissions are up in the air. There is some concern amongst ticket brokers that Ticketmaster, who has a strong corporate culture against ticket brokers, will use the eight years of data that resides in the TicketsNow computers against them. They will now know exactly who sold what.

While it is good for Ticketmaster to validate the marketplace, they have a ways to go before they master it. TicketsNow exists because of the brokers who use the exchange. This is not the only exchange out there and offending the supply base could ruin their investment.

http://www.reuters.com/article/technology-media-telco-SP/idUSN1550717420080116

http://www.rollingstone.com/rockdaily/index.php/2008/01/15/ticketmaster-branches-out-claims-huge-stake-of-secondary-ticket-market-by-buying-ticketsnow/

http://www.boston.com/business/technology/articles/2008/01/16/ticketmaster_agrees_to_buy_net_reseller/

To learn how to make money being a ticket broker, visit www.MyTicketBiz.com.