Ticketek
The event ticket sales market in Argentina is dominated by two firms, which act
as agents for venues. Ticketek and TopShow sell tickets for concerts, theater
performances, athletic events, and other events on behalf of the venues. They do not take
ownership of the tickets, but rather coordinate the exchange, for which the companies
receive a service fee. In the case of Ticketek, the market leader, consumers may purchase
tickets online, by telephone, or at one of the many physical points of sale. This method
of a third-party agent for event ticket sales originated in the American market with
Ticketmaster. Although Ticketmaster now has a substantial international presence, it
does not have a significant foothold in the Argentine market. Instead, Ticketek, an
Australian company, entered the market and held a virtual monopoly until TopShow
began operations in 2006. TopShow, founded by industry insiders, has yet to gain much
market share in relation to Ticketek. Unlike Ticketek, the startup does not offer online
ticket sales or automated phone sales. However, TopShow is currently developing these
electronic services.1
Due to the significant barriers to entry of the market, a minimal threat of entry by
a similar ticketing agent such as Ticketek exists. Ticketek and TopShow receive
exclusive rights to distribute tickets for events based upon contracts with venues, such as
stadiums or theaters. The agents pay large sums to the venues for these agreements.
These considerable upfront payments are a significant barrier to entry and deter potential
entrants as the agents only recoup this cost throughout the life of the contract. Without
such contracts, Ticketek and TopShow would not exist. The agreements are ne ...