Ticket Master Case Study Analysis

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Fisher College *

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5010

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Business

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Feb 20, 2024

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Uploaded by EarlManatee3662

Ticket Master Case Study Analysis Precented to: Dr. Edward J. Harris MBA 5010 Fisher College Reynaldo J. Vega 10/29//2023

Section I – The Situation In this case, the main focus is on Ticketmaster, a prominent ticket agent with a history dating back to 1976. The primary issue at hand is the controversy surrounding Ticketmaster's ticket distribution policies, its relationship with parent company Live Nation, pricing and fee structures, and concerns about its possible monopoly status in the ticketing industry. This controversy emerged in the context of the recent Taylor Swift concert tour and has led to negative media coverage, public backlash, and Congressional hearings, which are casting a critical spotlight on Ticketmaster's business practices and ethics. Section II – Causes The situation surrounding Ticketmaster's controversy can be attributed to a combination of internal and external factors. Here are the primary causes and the associated facts from the case to support the reasoning: 1. Internal Factors: a. Pricing and Fee Policies: Ticketmaster's internal pricing and fee structures have contributed to public dissatisfaction. The case mentions that ticket prices can be inflated by additional fees, which are often non-transparent, leading to consumer frustration. 2. External Factors: a. Relationship with Live Nation: The external factor of Ticketmaster's relationship with parent company Live Nation has raised concerns about conflicts of interest and potential anti-competitive practices. The case suggests that Live Nation's dominance

in the industry and its connection to Ticketmaster have led to questions about fair competition. b. Monopoly Concerns: External to the company, there is a perception that Ticketmaster holds a monopoly in the ticketing industry, resulting in accusations of unfair practices and inflated ticket prices. This is significant as the case highlights the challenges faced by Ticketmaster as a possible monopoly. These factors, both internal and external, have collectively contributed to the controversial situation that Ticketmaster is currently confronting. The interplay of pricing and fee policies, the relationship with Live Nation, and monopoly concerns has led to Congressional hearings and public backlash against the company. Section III – Alternatives Ticketmaster has several courses of action it can pursue to address the current controversy: 1. Transparency and Pricing Restructuring: Ticketmaster can proactively address the public's concerns by improving transparency in its pricing and fee structures. It can work on simplifying and making pricing more understandable for customers. This approach involves clearly disclosing all fees associated with ticket purchases upfront. Moreover, Ticketmaster can consider revising its fee policies to make them more customer-friendly, potentially reducing the overall cost of ticket purchases. 2. Ethical Governance and Independence: To mitigate concerns regarding its relationship with Live Nation, Ticketmaster can take steps to ensure ethical governance and independence in its operations. This includes implementing robust measures to prevent conflicts of interest and anti-competitive behavior. Ticketmaster

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can also engage third-party auditors or regulators to oversee its relationship with Live Nation and provide assurance of fair practices. 3. Advocating for Industry Regulation: Given the perception of monopoly in the ticketing industry, Ticketmaster can actively advocate for industry-specific regulations to ensure fair competition. Engaging with industry associations, policymakers, and stakeholders can help establish clear guidelines and standards for ticketing companies, reducing the risk of anti-competitive behavior. Each of these options addresses specific aspects of the controversy and aims to rebuild public trust, improve the company's ethical standing, and create a more competitive and transparent ticketing industry. Ticketmaster should carefully evaluate these courses of action and potentially consider a combination of these strategies to navigate the current challenges effectively. Section IV – Recommendations Ticketmaster should adopt a multifaceted approach that combines increased transparency and pricing restructuring with active advocacy for industry regulation. By enhancing transparency in its pricing structures and simplifying fee disclosure, Ticketmaster can mitigate customer frustration and rebuild trust. This step aligns with ethical business practices and is likely to enhance customer satisfaction. Simultaneously, Ticketmaster should proactively advocate for industry regulation, collaborating with industry stakeholders and regulators to establish clear guidelines and standards for ticketing companies. This approach not only addresses immediate concerns about pricing and fees but also demonstrates Ticketmaster's commitment to ethical operations and fair competition, thereby mitigating negative media coverage and public backlash. Combining

these strategies positions Ticketmaster as a responsible industry leader and is essential for restoring public trust and long-term sustainability. Section V – Implementation and Control To implement the recommended course of action effectively, Ticketmaster should take several steps. Firstly, the company should conduct an internal review to revise its pricing and fee structures, with a focus on simplification and standardized pricing, while ensuring the clear disclosure of all fees to customers. This information should be readily available during the ticket purchasing process, and clear communication about these changes is essential. Simultaneously, Ticketmaster should actively engage with industry associations, participate in discussions, and collaborate with relevant policymakers and regulators to advocate for industry-specific regulations. The company should monitor the progress of regulatory initiatives, report its advocacy efforts to the public, and track customer feedback to assess the success of pricing and fee changes. Success will be determined by improved customer satisfaction, positive media coverage, progress in industry regulation, and the creation of a fairer, more transparent ticketing environment with increased competition.

References: Mccabe, D., & Sisario, B. (2022, November 18). Justice Dept. is said to investigate Ticketmaster’s parent company . The New York Times. https://www.nytimes.com/2022/11/18/technology/live-nation-ticketmaster- investigation-taylor-swift.html Stewart, E. (2023, January 24). The problem with Ticketmaster, explained not by Taylor Swift . Vox. https://www.vox.com/the-goods/23569504/ticketmaster-monopoly-live- nation-taylor-swift-antitrust-clyde-lawrence

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