As if the Seattle powerhouse that is Amazon couldn’t get any bigger or serve a bigger piece of the market, the company recently announced its intentions to enter the arena of ticket sales. The opportunity for consumers to buy tickets and merchandise together seems like a win win for both the company and its customers. But just how will Amazon fair in a market that is already dominated by Ticketmaster?
Amazon will do quite well for itself if its track record is any indication. Amazon has already talked directly with large venues here in the States about providing ticket sales and these talks are rumored to be going very favorably. It would require an enormous company like Amazon in order to dethrone Ticketmaster. In order to break into the market, Amazon has already offered to provide sponsorship checks that are worth millions of dollars directly to the cities and their venues. Amazon has also discussed using a StubHub style model with a sports team which chooses to remain anonymous.
But it is also true that Amazon is considering other options besides direct competition with Ticketmaster. The online retail giant also has plans to work with Ticketmaster in ways that would be beneficial to both companies. These talks have been going on for months now, but negotiations have stalled over the issue of who would get to hold onto the data about the customers that are captured from each sale. With such a valuable commodity being up in the air it is unclear whether Amazon will proceed with these negotiations or will continue on its course to offer direct competition with Ticketmaster for market share.
Ticketmaster is now owned by Live Nation and has been ever since 2009 when it was purchased for $2.5 billion. Ticketmaster’s advantage over Amazon at the moment is a great many relationships that it has established with major venues all over the United States that have been in place for many years. In order to compete with Ticketmaster, Amazon is ready to spend big dollars and to do so fast.
It isn’t as though Amazon is unfamiliar with the ticketing business either since they already operate Amazon Tickets in countries overseas. This experience will prove invaluable when Amazon finally rolls out with ticket sales in the U.S. which could happen at any time now. Once the negotiations are finalized between Amazon and the major venues in cities all across the country, experts feel there will be nothing standing in Amazon’s way.
It may not be very long before you order tickets online with Amazon along with your books and electronics. The day is coming rapidly when Amazon will be poised to dominate another niche market, and customers will be sure to welcome another option in the arena that is currently monopolized by Ticketmaster.