JPMorgan said Amazon faces a "tough road ahead," pessimistic on its chances to break into the ticketing business dominated by Live Nation's Ticketmaster. That, in turn, bodes well for shares of the ticketing giant.
"[Ticketmaster] has invested heavily in its platform in recent years in order to expand the suite of products it offers and build stronger relationships with venues," wrote JPMorgan analyst David Karnovsky. "For Amazon to gain share it will need to sign venues as the contracts come up, a proposition that would come with real switching costs."
Amazon is seeking to partner with U.S. venue owners to sell event tickets, a move that could ease Ticketmaster's iron grip on the profitable ticketing industry, Reuters reported Thursday.