Essay on Case Study Ticketmaster Exclusive Dealing

Why? Players suggest that the stadium rents are set to understate the profits of the baseball club and to move some profits to the stadium corporation that is owned by two of the baseball club’s owners. A Related-party transactions (RTP) is defined

Founded in 1976 and headquartered in West Hollywood, California, Ticketmaster is the world’s number one live entertainment ticketing and marketing company. Ticketmaster operates in over twenty markets worldwide, serving more than 9,000 clients across multiple event categories. It provides exclusive ticketing services for leading arenas, stadiums, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. Ticketmaster’s pledge to its clients is, “To provide the best systems, services, and tools for the optimal sale of tickets to the widest possible audience. For Ticketmaster consumers, its pledge is, “To provide convenient,

The level of pricing is directly related to the location of the seats in the stadium. If a customer purchases seats in section 300, prices will be cheaper than those in section 100 or 200. Also, those customers attending games in box seating will be subjected to the highest ticket prices in the entire stadium. As for prices for season tickets, the prices are based on the section of seating with a discount since a customer will reserve those seats all season rather than the seat not being sold. The prices for the season ticket provided by DirecTv is set by the company, and no other television provider has no other offer in the market currently.

Exhibit 5 shows the breakdown of fixed costs. Exhibit 6 shows corresponding contribution margin for compensation based on a fixed fee as well as a 100% variable fee. If we assume Alltel would pay the talent 90% of ticket prices, which would vary slightly depending on talent, while maintaining the same facilities charge and service charge, the total contribution margin drops form $37 per paying customer to just over $15.While this is not ideal, the benefit is the reduction in up front expenses required. By going to 100% variable compensation Alltel no longer has a substantial fixed cost associated with paying the talent. Since Alltel only received ~10% of sales, we would suggest Alltel no longer handle the promoting, saving them another $20k in fixed advertising cost. The talent would now be in charge of the promotion. They would have the most to gain from the promotion as they would retain 90% of sales. Hiring a promoter would have its own ROI calculation and Alltel could certainly continue to offer the services but with a fixed price outsourced model or affiliate variable compensation model negotiable with each event. Alltel is not a true promoter and this would allow them to focus attention on their core business and let true promoters promote. The net result of this is a contribution margin 38% and a breakeven of 5264 paying customers. This is down from the previous breakeven of 8341. We would describe this process of

Reservation price is the price or point at which you are indifferent between doing the deal and not doing the deal. The reservation price should always reflect the BATNA. The reservation value has nothing to do what with what you hope to pay, what you “should” pay, or what is a “fair” price in the negotiation. In NBC’s case, NBC’s reservation price should be approximately $5.5 million dollars per episode. This represents the current break-even license fee.

Rishe is correct, pricing in this way will not maximize revenue from ticket sales because it’ll bring lower attendance, which bring negative change in revenue by decreasing in concessions, parking and merchandise.

I believe that matching the 2 for 1 deal, was not in the best interest of Cinemex. While it did help boost attendance, Heyman is cutting the prices of the tickets drastically since implementing which in turn cuts down his revenue. Even after his competitors initiated the sale, Weeks 27 – Week 34, Cinemex showed a steady increase in attendance before even implementing the 2 for 1 deal. There are so many outside factors that can help determine the attendance at a movie theater (ex.popularity of films, weather, location, time of year). With the special, more consumers will attend the movies on a Wednesday when they are receiving the deal, which slows down your revenue for the remainder of the week. While Cinemex is

Section 1 of the Sherman Antitrust Act prohibits the efforts of multiple firms to restrain trade by controlling prices and supply in a market (46 Case W. Res. 1033). In terms of a professional sports league, a

For the plaintiff’s arguments, Needle argued that the NFL teams (specifically NFLP and Reebok) violated sections 1 and 2 of the Sherman Antitrust Act by sighting violating activity within the market of each NFL team’s intellectual property. For the defendant's arguments, the teams of the NFL, and NFLP, said that all 32 teams have their own market business, each separate from the rest. This means each and every business has the right to freely share licenses with vendors and companies. The defendants arguments were very true, making the plaintiff shaky about the case.

The Better Online Ticket Sale Act will prohibit the usage of computer softwares to purchase large amounts of tickets and reselling them at a higher price, claiming the ticket scalping is unfair. If I was a member of congress, I would have supported this act because using softwares to buy and resell tickets drives up the price for the buyers, who had less chance of purchasing it competing with the software at the original price. Aristotle would have also been supportive of this act, who believe retail trade and money making are unnatural ways of attaining wealth. Moreover, John Ruskin would make similar decision, due to his concern with the way we obtain wealth, and inequality in the economy. However, Andrew Carnegie would have thought

The Online Event Ticket Sales industry has grown rapidly amid a large shift from physical ticket sale to a fully digitized online ticketing experience. Over the past half-decade, the disposable incomes of consumers have grown alongside the music industry 's continued shift toward live performances and shows. The ease of online shopping, particularly through mobile wallets, online banking, cryptocurrency and digital ticketing, has

The prices are pretty good. All day passes for people that are under 42” tall cost $23 and people that are over 42” cost $38. There are season passes available as well. Season passes for

Concession sales and ticket sales are the two biggest sources of revenue for a movie theater but the exhibitors has limited control over both revenues and profits because those two are important aspects. Attendance allows for profitable sales of concessions and advertisements, but there are significant caps on the volume of concession sales per person, and selling price seem to have reached a maximum. Both continue to increase in cost to the consumers and may have reached a price point that is starting to drive consumers away from going to see a movie.

or perceived value is used to set the price of the service or good (Boundless, 2017). Demand-based pricing is well-known for being used in the hotel and airline industry. It was not until early 2016 when Disney decided to make the switch to this as well (Sampson, 2016). Ticket prices now cost up to 20% more during holidays and weekends (Barnes, 2016). Seasonal changes were also included, where “peak” tickets for visits during December, Spring break, and July weekends come at a higher price (Barnes, 2016). A three-tiered system based on the date of the visit was

with one theater entrance purchase. This is very economical for people who wait for all their favorite