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SBD/February 3, 2011/Facilities
AEG Teams With Outbox Technology To Form Joint Ticketing Venture
Published February 3, 2011
AEG announced today that it is forming a joint ticketing venture with Outbox Technology and Cirque de Soleil. The new company, Outbox Enterprises, will be run by Outbox Technology CEO Jean-Francoys Brousseau and former Ticketmaster CEO Fred Rosen. The move comes one year after AEG was given the green light to develop a separate ticketing company after the Ticketmaster-Live Nation merger was approved by the Department of Justice. AEG sold about 10 million tickets last year, producing $400M in revenue. Montreal’s Bell Centre is an Outbox account (Don Muret, SportsBusiness Journal). The WALL STREET JOURNAL's Ethan Smith reports the new venture will "sell tickets to events at 105 arenas and theaters, in what could become a broader battle" with Ticketmaster. AEG “expects to start selling its tickets through Outbox in the next six to 12 months, and to have nearly all its venues throughout the world on the new system within two years.” The only exceptions are its sites in Germany, which are “under contract to a local ticketing company.” The venture also plans to “compete for the business of current Ticketmaster clients, as their agreements with Ticketmaster expire.” Instead of selling tickets on a centralized website, Outbox “offers venue operators what is called a ‘white label’ system, in which consumers buy tickets through the venue's website.” Outbox “operates as a mostly invisible, behind-the-scenes player.” AEG President & CEO Tim Leiweke said, "This isn't about trying to go out there and build a whole new brand around the name Outbox. This is about service." Outbox's partners “hope it will be the most significant challenge Ticketmaster has faced since 1991, when it bought Ticketron, its only major competitor.” Smith notes AEG was among Ticketmaster's “biggest clients by ticket volume” (WALL STREET JOURNAL, 2/3).