Two giants in the music world are poised to duke it out over the ticket selling business. Although Ticketmaster (IACI) has dominated the concert business for years, it’s apparently hit a wrong note with Live Nation (LYV), a concert promoter. Now they want to start a rival operation. So what’s the trade?
CNBC Media Correspondent Julia Boorstin joins the panel for this conversation.
Here are the major points that she made.
- The two companies are fighting over who should sell the tickets and get the commission. Last year 17% of Ticketmaster's revenue was generated by Live Nation. Consequently, Live Nation wants to sell more of those tickets themselves.
- The concert promoting business is a low margin business and that is likely why Live Nation wants to get into the ticket business.
- Another issue at stake is the relationship with customers. That information is valuable to marketers.
- The live music business is much healthier than the CD business. Also a lot of baby boomers have money to spend on tickets.
- The current contract between the two companies expires at the end of 2008.
*Note Ticketmaster is owned by IAC Interactive.
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