December 21, 2024

Ticketmaster Competitor to Unveil a Web Site

In the latest volley of the entertainment industry’s ticketing wars, the Anschutz Entertainment Group, a concert promoter that owns major arenas like the Staples Center in Los Angeles and the O2 in London, will begin selling tickets to its concerts this weekend through a sleek new Web site it has developed to compete with Ticketmaster.

On Tuesday, A.E.G., which is owned by the Anschutz Company, will announce its new ticketing brand, AXS (pronounced “access”), and a Web site, axs.com, that on Saturday will begin selling tickets for events at two spaces in Denver that A.E.G. operates, the Bluebird Theater and the Ogden Theater. The company created axs.com with Outbox Enterprises, a ticketing start-up whose co-chief executive is Fredric D. Rosen, Ticketmaster’s chief for much of the 1980s and ’90s.

In its announcement, A.E.G. refers to several aspects of ticketing that Ticketmaster consumers have long complained about. Axs.com will display the full prices for tickets, counting all fees, and the company also says it will never charge to let people print their tickets at home. (Over the last year Ticketmaster has made efforts to disclose most of its fees up front and eliminate the print-at-home fee, although those changes have not been made throughout the entire site.)

A.E.G. is using the Denver theaters as a test run, and plans to introduce the system to more theaters by the end of the year. Timothy J. Leiweke, A.E.G.’s president and chief executive, said in an interview that the company expected to begin selling tickets for the Staples Center by early 2012, and at the O2 after the Olympic Games next summer in London.

The company began developing its own ticketing system after the merger of Live Nation, the world’s biggest concert promoter, and Ticketmaster in early 2010. As part of the Justice Department’s conditions for approving the deal, A.E.G. was allowed to license Ticketmaster’s software, but instead it chose to build its own service as a competitor.

A.E.G.’s deal with Outbox allows it to use that company’s technology for a “white label” ticketing system, meaning it would make generic tickets that individual theaters or arenas could adopt. But Mr. Leiweke said in an interview that the company’s goal was to build AXS into a consumer brand for all of A.E.G.’s theaters and events. Eventually, he said, the site will include video segments from concerts or a television network that A.E.G. is developing.

“You will start to see a lot less A.E.G. and a lot more of AXS,” Mr. Leiweke said.

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Ticketmaster Plans to Use a Variable Pricing Policy

Buying concert tickets may soon be more like booking an airline flight: what you pay could be determined by when you order.

The concert giant Ticketmaster announced a partnership Monday with MarketShare, a data analyst, that will look at ways to introduce what is known as dynamic pricing, which allows promoters to adjust prices according to demand. In theory, this would allow promoters to sell the most sought-after tickets at a higher price, while filling up the least desirable seats by charging less. Not every event would be sold that way. But it would also allow the company to compete more effectively against scalpers like StubHub.com.

“Efficient pricing is one of the most important and untapped opportunities to unlock value for fans, clients, artists and teams,” Nathan Hubbard, chief executive of Ticketmaster, said in a statement.

Ticketmaster, a division of Live Nation Entertainment, sold about 140 million tickets last year. But as more ticketing companies enter the fray, the company is under pressure to develop more competitive technology. Fred Rosen, Ticketmaster’s chief executive in the 1980s and ’90s, recently began a new ticketing company, Outbox, a joint venture with Cirque du Soleil and the promoter A.E.G. Live, Live Nation’s biggest competitor.

Ticketmaster said it would begin to introduce its new pricing policy for concerts and sporting events this year. Notably, the announcement said it would be introduced at Live Nation’s amphitheaters, where low attendance contributed to the company’s $228.4 million loss last year.

Some sports teams, like the San Francisco Giants, have been experimenting with dynamic pricing for years, but the music industry has been slow to adopt it. Concert promoters and theater owners tend to favor it as a way to sell more tickets and squeeze out scalpers, but artists often worry that they would appear to be exploiting their fans’ loyalty by maximizing price.

In the announcement, Mr. Hubbard said that Ticketmaster was “relentlessly focused on improving the fan experience and giving our clients amazing tools to sell more tickets.”

Some critics of the industry say fans play little part in the deal. “The people who run dynamic pricing want to pitch it as a benefit to fans for lower-priced tickets to some events,” said Joris Drayer, an assistant professor of sport and recreation management at Temple University, who studies the ticketing industry. “The reality is that this is a purely revenue-driven concept.”

Despite last year’s losses, pay for Live Nation’s top executives rose last year, according to a proxy statement filed with the Securities and Exchange Commission on Friday. The total compensation for Michael Rapino, its president and chief executive, was $15.9 million, more than double his 2009 pay of $6.7 million. Irving Azoff, the executive chairman, made $22.8 million, and Mr. Hubbard earned $5.7 million.

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