Amazon is in talks with the U.S. venue owners to sell event tickets, according to reports by news site Reuters. The publisher cited four sources which told them that the online retailing giant may soon offer event ticketing in the country. This move by the company could loosen the strong hold of Ticketmaster on the profitable ticketing business.
Ticketmaster could get Amazon as a competitor soon
If the online retailing giant moves ahead with its plan then it would represent the most recent attempt of the e-commerce company to use its huge consumer base to shake up a large market. The e-commerce company is looking at the U.S. ticketing market as ready for the kill.
Consumers do not like ticket fees and sport leagues, venue owners as well as teams want more distributors for their tickets as they continue to increase sales. Access to tickets could be one other means to lure members to the Amazon Prime shopping club. Selling tickets through the online retailing giant could assist the merchandise of sports teams and music acts.
Ticketmaster, which is owned by Live Nation Entertainment Inc., is the exclusive seller of primary tickets for many top venues in the U.S. currently. The competitors of Ticketmaster have struggled to battle with the latter company because of its strong relationships with the operators of major U.S. concert halls, arenas, sports stadiums, and other venues. In Britain, the online retailer has had huge success where it has been selling seats to West End shows since 2015. According to one of the sources, who owns venues in the same place, the e-commerce giant outsold Ticketmaster for some events as well.
The shares of Live Nation that had been up more than 12% earlier on Thursday after the quarterly results of the company showed gains following the report by Reuters and then for a short time turned negative.
Amazon wants more Prime subscribers: Analyst
The shares of the company recovered to close up 5.6% in the busiest trading day of the stock by volume since June 2014. The shares of the e-commerce giant closed down 2.6%.
According to sources with knowledge of the talks, the online retailer has had conversation to partner with Ticketmaster as a good way to get into the ticketing market in the US, however, those talks have stalled over who would control the data of the customer.
Ticketing would most likely make money for the e-commerce giant that has an amazing record of profitability. According to the estimates by research firm BTIG, Ticketmaster generated over $1.6 billion in revenue from initial sales of tickets to events last year. Making money in the ticketing business would be an expensive proposition. Brandon Ross, an analyst at BTIG, said “It’s all about Prime.” He added, “The reason they are spending multiple billions of dollars a year on programming is to get more Prime subscribers and engage more consumers.” Live Nation has declined to comment and the online retailing giant did not immediately respond to request for comment.