Published: Fri, August 11, 2017
Health | By Jay Jacobs

Live Nation sheds earnings gains on report of Amazon ticketing service plan

Live Nation sheds earnings gains on report of Amazon ticketing service plan

Shares of Live Nation are up 48% in the year to date, while Amazon shares are up nearly 28% and Ebay shares are up almost 18%.

Amazon has held talks directly with the owners of major venues in the USA about potentially entering the business of ticket sales, according to a report from Reuters.

Amazon is said to be attracted to the opportunity because it would present another way it could leverage its massive customer base and attract even more to its Amazon Prime club.

Ticket sales could end up being a potential additional driver for Prime memberships, too; you can imagine how Amazon would be able to secure reserved blocks for Prime members for high-demand events, open early pre-sales or offer other member-exclusive benefits.

Ticketmaster, owned by Live Nation Entertainment, dominates the ticket-selling market, acting as exclusive vendor for primary tickets at many major USA venues. But as an alternative to competing, Amazon has also considered partnering with Ticketmaster on a ticketing effort.

It would also challenge Ticketmaster, which has a strong grip on the market. Amazon shares closed down 2.6 percent.

Amazon was initially in talks with Ticketmaster regarding a potential partnership in the industry, but they disagreed on the issue of who would control customer data, according to a source. Ticketmaster generated $1.6 billion in revenue from initial sales of tickets to events in 2016, according to estimates by research firm BTIG.

That figure does not include revenue from reselling tickets, which BTIG estimates at $250m.

Amazon has been aggressive in its negotiations, as Reuters notes that the company has reportedly been willing to provide multi-million dollar sponsorships to venues in order to get its foot in the door. Owners want to know who is buying their tickets so they can tailor social media campaigns and book the right acts in the right places.

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