ProSports and Entertainment has adopted a similar strategy through its "Stratus Rewards Visa White Card," which gives high-end ticket buyers special seating at events, plus access to private jet travel, luxury automobiles and travel packages, among other things.
Moriarty also see huge potential in the ticket resale market.
The company collects fees from ticket buyers and those who re-sell tickets on its TicketExchange Web site. The resale market is expected to grow by about 12 percent industrywide to $4.5 million during the next five years.
Ticketmaster receives about 70 percent of its revenues from online ticket sales and between 10 percent and 20 percent from its ticket exchange service, where consumers can trade, buy or sell their tickets using the company's secured technology.
Growing its presence in the resale market is also a way to hedge against economic downturns that may affect sales. Moriarty told Wall Street analysts last week that Ticketmaster's brand name should help it compete with reseller market share leader StubHub.com, a unit of eBay Inc.
Another part of Moriarty's strategic plan calls for restructuring the company to make it more cost efficient.
Layoffs at the West Hollywood headquarters are possible, as Moriarty told analysts the company would be looking at "platform consolidation opportunities and other operating cost reductions."
About 520 people work out of the West Hollywood headquarters and at satellite offices in Los Angeles.
Prior to the spin-off Ticketmaster is expected to pay $730 million to IAC/InterActiveCorp., leaving it with approximately $430 million in cash.
IAC/InterActiveCorp. will also spin off HSN shopping network, the Interval time-share exchange and LendingTree online mortgage unit.
IAC/InterActiveCorp. is expected to receive more than $1.5 billion in total dividends from each business unit it spins off with the exception of LendingTree, according to last week's SEC filings.
IAC will focus on new media and advertising businesses, including its Ask.com search site and Match.com dating service.
For every share of IAC common stock, shareholders will receive one-fifth of a share of HSN, one-fifth of a share of Interval, one-fifth of a share of Ticketmaster and one-thirtieth of a share of LendingTree.
That means John Malone's Liberty Media Group will still be the largest shareholder of each company, followed by Lord Abbett & Co., Clearbridge Advisors and Barry Diller.
Chief Executive: Sean Moriarty
Headquarters: West Hollywood
Employees: 520 in West Hollywood and Los Angeles
Profile: Operates in 20 countries, providing ticket sales, ticket resale services, marketing and distribution through its Web site
Sales: More than 128 million tickets sold at a gross value of about $7 billion during 2006
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