Tensions Flare Between Telstra’s Ticketing Company And Venue Giant

Tension between Telstra-affiliated ticket on-seller BangTango and leading arena venue managers AEG Ogden are frayed after BangTango accused the venue giants of using market share to control the ticketing industry, and suggested the Australian Competition and Consumer Commission [ACCC] could get involved.

One of BangTango's directors Jamie Olsen alleged to The Australian that the venue management giants have capped tickets available for re-selling at 15 percent and claims the move is 'killing' the corporate sponsorship market in the Australian music industry, which their model – which expects 30 percent of a tour's tickets – is trying to exploit.

“We have faced a significant amount of resistance from AEG Ogden in particular,” Olsen said. “They manage six of the nine major concert stadiums and arenas across the country. AEG Ogden are trying to cap reselling arrangements to 15 percent of the total tickets for an event. And they are insisting we operate off Ticketek's platform.”

He added, “By capping at 15 percent, they will kill the corporate sponsorship market for the music industry in Australia. The issues we face are serious enough that I have a copy of the Competition and Consumer Commission Act sitting on my desk and I have to frequently refer to it to see if we are being subject to misuse of market power.

“This is from an industry that has form. Ticketek got fined $2.5 million a couple of years ago for behaviour we believe we are being subject to today.”

Today a spokesperson for AEG Ogden unreservedly disputed the claims to theMusic.com.au.

“We deny this matter has anything to do with market power and we specifically deny any such accusation. Otherwise, we are not making any comment about Mr. Olsen's comments as reported in The Australian, which we have already observed are inaccurate.”

BangTango launched in April with a high-profile partnership with Telstra in place, but their first major ticket release – for Bon Jovi's December stadium tour – ended in farce. Looking to rebuild industry and consumer confidence, BangTango is pushing ahead with its model, which it says it based around the interests of the promoter.

The ticket company currently offers promoters and artists access to the Telstra database of users, sponsorship money and the lure of any extra advertising, while keeping the pre-sale privilege fee paid by the purchaser for themselves. Their model depends on getting the 30 percent of tickets figure in order to give value to Telstra.

AEG Ogden manage Allphones Arena, Brisbane Entertainment Centre, Perth Arena, Newcastle Entertainment Centre and have won the Sydney Entertainment Centre contract, amongst others.

In 2011 Ticketek were found guilty by the ACCC of attempting to stop last minute discounted tickets from Lasttix, despite agreeing to do so.