alt Hacker NewsI always wonder why ticketmaster/live nation isn't making more money? Given they are a monopoly, I'd expect them to be making a ton of profit. But it doesn't really seem to look that way: https://www.google.com/finance/quote/LYV:NYSE
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datsci_est_2015 • yesterday at 9:01 PM
“They” (shareholders, etc.) also own the venues and promoters, so much of the pass-through revenue is captured by the same interests that own TM.
toast0 • yesterday at 8:45 PM
Ticketmaster's job is to take the heat for ticketing (high prices, BS fees, sketchy reselling, etc), but funnel enough money back to the producing parties (artist/event, venue, promoter) that nobody is going to go through the effort to try to compete.
Better to set their margins at 2-3% and keep a monopoly than be forced down in a competitive marketplace.
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Because a large proportion of the money flows out the door. Most of their revenue is pass-through revenue, due to the sports teams and concert promoters (and by extension musicians) they sell tickets for. Ticketing works as a high volume low margin business.
You need to deduct at least 70% (or more) from their topline to get a true picture of the company’s revenue vs revenue that walks straight out the door.