The spin-off of Ticketmaster from parent company IAC/InterActiveCorp. may prove a boon for producers and promoters who want to stage concerts and other events at venues outside the country.
That's because when the company starts operating independently it will mount an aggressive international expansion program.
Executives at Los Angeles-based ProSports and Entertainment Inc., which produces and promotes sporting events, car shows and concerts, are looking forward to the new possibilities.
"We view the spin-off of Ticketmaster as a great opportunity for us to have a strategic partner in new markets in South America and Asia," said Paul Feller, chief executive of ProSports and Entertainment.
Sean Moriarty, chief executive of Ticketmaster, told Wall Street analysts last week that he would be looking to double the company's international presence to 40 countries during the next five years, with a special emphasis on China.
As the spin-off loomed, West Hollywood-based Ticketmaster was already making moves to create an international presence. The company recently partnered with Emma Entertainment, Beijing Gehua Ticketmaster Ticketing Co. and Broadway China Network to sell an estimated 6.8 million tickets to the Olympic Games in Beijing.
Another development in Ticketmaster's position was its coming split with Live Nation. The concert promoter, which accounts for 15 percent of the ticket company's revenue, announced that it would stop using Ticketmaster services next year.
The combination of Ticketmaster's new emphasis on international growth and its split with Live Nation next year gives companies like ProSports and Entertainment hope that the nation's largest ticket seller will be more willing to work together on marketing deals to boost sales.
"Right now, we're competing with Live Nation in a way," Feller said. Ticketmaster will have more time and motivation to work with companies like his as part of its strategy to make up the lost Live Nation revenue.
Live Nation represents an estimated 10 percent of Ticketmaster's bottom line.
Typically, ProSports pays Ticketmaster a fee for handling ticket sales online and at the door. In turn, Ticketmaster handles all ticket sales and often helps market the events.
"They have a tremendous marketing machine and now they're going to be focusing on their core competency selling tickets," Feller said. "We should be able to take advantage of that fact."
Part of Ticketmaster's vision for the future includes what Moriarty calls "upsells," or marketing strategies that boost sales revenue by offering consumers premium services for additional fees.
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