- What is Ticketmaster, and how does Ticketmaster work?
- How does Ticketmaster make money?
- A Percentage of Ticket Sales
- Ticketmaster subsidiaries, acquisitions, and exits
- Ticketmaster profit and revenue
- What is the Ticketmaster business and revenue model?
- Ticketmaster funding, net worth, and valuation
How does Ticketmaster make money if a lot of their services are free to use? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Ticketmaster business and revenue model, how much Ticketmaster makes per year, and how Ticketmaster works.
What is Ticketmaster, and how does Ticketmaster work?
Ticketmaster is an online ticketing platform that allows users to buy and sell tickets for live sports, concerts, and more.
Founded in 1976 by Peter Gadwa, Albert Leffler, and Gordon Gunn III, Ticketmaster began trading on the NASDAQ in November 1996, under the ticker symbol “TKTM” before later delisting after Live Nation completed its acquisition of the company on February 12, 2009.
Now, Ticketmaster servers more than 7,100 clients and sold roughly 151 million tickets in 2021 alone making it the world’s largest ticketing marketplace.
So, how does Ticketmaster work? To use Ticketmaster, users can simply either download their mobile app on Apple Store or Google Play store; or visit their website.
Once on their platform, customers can use the search bar on the homepage to look up tickets for concerts, live sports, and more. They can then compare the seats and prices available for that event and purchase directly on the platform if they choose to do so.
How does Ticketmaster make money?
According to Live Nation, Ticketmaster sold roughly 151 million tickets in 2021 and serves nearly 7,100 clients worldwide.
So how does Ticketmaster make money off of all those clients and tickets sold?
Below is a breakdown of how much money Ticketmaster makes and its revenue model. Including their main revenue stream and how much they charge for their services.
Here is how Ticketmaster makes money in 2022
Ticketmaster has a revenue model that makes money in just one (1) way; by collecting a percentage of all tickets sold on their platform.
#1. A Percentage of Ticket Sales
StubHub makes all of its money by collecting a percentage from each ticket sold and bought on its platform.
As noted above, Ticketmaster sold roughly 151 million tickets on their platform in 2021. Of which, they collect a 10% fee from the seller as well as a roughly 20% service fee from the buyer on every ticket sold.
Ticketmaster Ticket Fees:
- Seller fee: 10% of the sales price
- Buyer fee: 20% of the sales price
Note: Ticketmaster charges both the buyers and the sellers of a ticket a fee, which means Ticketmaster collects roughly 30% in fees from each ticket sale, on average.
Ticketmaster subsidiaries, acquisitions, and exits
Aside from Ticketmaster being acquired by Live Nation for $2.5 billion, Ticketmaster has had its own fair share of acquisitions as well.
To date, Ticketmaster has made a total of 16 acquisitions, 5 investments, 1 lead investment, and 2 successful exits.
Ticketmaster profit and revenue
In 2021, Ticketmaster reported $1.1 billion in revenue.
Note: Because Live Nation Entertainment, Inc., the parent company of Ticketmaster, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Live Nation’s publicly released financial reports, including annual reports, through Live Nation’s investor section on their website.
What is the Ticketmaster business and revenue model?
Ticketmaster makes money through a few revenue models that they combine within their company, they are:
- Commission based business model
- B2B2C (partnerships) business model
- Mergers and acquisitions (M&A) business model
Ticketmaster funding, net worth, and valuation
On February 12, 2009, Ticketmaster was acquired by Live Nation for $2.5 billion, per reports.