Eli5: why do bands have to use Ticketmaster?
In: 8635
It’s not so much about the band, it’s the venue. Bands have a fee that they charge to play a show. The venue pays the band their fee. The venue then turns around and sells tickets to the show. Ideally, for the venue, the revenue they receive from the sale of tickets, food, drinks, and anything else is more than the band’s fee + other expenses.
Since tickets are mostly sold online now, it requires software and web services to process those transactions. Most venues won’t employ the staff necessary to create their own individual websites capable of processing those transactions so they hire a third party. Ticketmaster has more or less cornered the market on this service, which gives the them leverage to put contracts in place, own their own venues, and more. All of which gives them more control over the market, driving competitors out.
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