Amazon’s Plans to Disrupt Ticketing Business Shelved
Amazon’s (AMZN) plans to disrupt the U.S. ticketing business have been shelved. U.S. promoters (i.e. Ticketmaster) pay lofty up-front fees for exclusive distribution rights; negating AMZN’s ability to use their size to crack the market. Ticketmaster (LYV) expressed interest in working with AMZN to unload distressed inventory, but AMZN was looking for the ability to provide Prime members with access to the best shows. Amazon Tickets is still operational in the U.K., as the country uses an open model that enables various platforms and companies to sell seats.
Howie Long-Short: Live Nation Entertainment, which owns Ticketmaster, reported its best Q3 of all-time; with concerts, advertising and ticketing segments all reporting their strongest quarterly adjusted operating income ever. LYV grew Q3 revenue 12% YOY (to $3.6 billion) and 19% over the first 9 months of 2017. The company also announced the introduction of the first open source digital ticketing platform in sports (for the NFL) and scaled its Verified Fan product (expects to save fans $100 million in ’17) during the most recent quarter. If AMZN can’t compete with them, nobody can; that won’t hurt Songkick’s pending anti-competition lawsuit against the company.
Fan Marino: Disappointing news for those who regularly attend games and concerts. Amazon intended on cutting the service and processing fees for Prime members; a change that would have resulted in a savings of +/- $15 for every $100 ticket purchased.
For the balance of today’s newsletter, sign-up here!