Moving market forces are changing Ticketmaster’s global growth strategy
Some of the forces that Ticketmaster is having to respond to are mentioned in a recent article in Investor’s Business Daily by Doug Tsuruoka Ticketmaster Uses Olympics To Woo China
The article is suitably congratulatory regarding the Olympics ticketing, although many have questioned how big the ‘rebate’ was offered by TM to get the deal signed. Nonetheless, yes it is a major new market opportunity although expressed in a particularly US-centric manner
“You are talking about a country roughly the size of the U.S. and a billion more people,” Ticketmaster SVP Logan said. “It will be a phenomenal national event.“
Such market development in new regions seems to be the most appropriate strategy given the maturing markets that TM faces in its other existing regions. Competition is heating up with more competitors, new online distribution models and the trend to controlling ticketing in-house going direct to the consumer. ”Ticketmaster is dealing with lackluster growth in its existing markets; in the fourth quarter of last year, the number of tickets it sold rose just 4%, while average revenue per ticket rose 7%.” A few previous examples are TM having bought Biletix in Turkey, Tick Tack Ticket in Spain, BilletNet in Sweden and Red Tickets in New Zealand. Oh and also Finland, Germany - but we won’t go near mentioning the purchase and demise of VenueMaster software originally developed by Synchro Systems !
Warning Will Robinson
Like many, Ticketmaster can see the huge potential in doing business in a new market the size of China. However, China’s digital economy (and other sectors for that matter) is seen as a formidable challenge for ‘gweilo’ foreigners.
“It’s very, very difficult to get a hold in China,” News Corp.’s chairman, RupertMurdoch told a media conference in New York last month.
“Google can’t get through, and eBay has folded its tent” in China, said Murdoch. It appears that Murdoch believes that the uneven and changing playing field is an insurmountable problem.
“There’s a new (Chinese) minister . . . there’s a (business policy) crackdown and everything stops,” he said. READ MORE>>