Personalized online radio service Pandora has acquired Ticketmaster competitor Ticketfly for around $450 million in cash and stock. The acquisition could help Pandora diversify its revenue, and puts its music intelligence to good use to target potential concertgoers.
Ticketfly sells concert and other types of event tickets for around 1200 venues and festivals in the U.S. and Canada, including the Pitchfork Music festival and Burning Man. The company sold 16 million tickets in 2014. That’s a far cry from some of the competition, with industry leader Live Nation selling 184 million tickets during the same year.
But concert tickets are also a high-margin business, and arguably one of the few areas of the music business that’s still growing. For Pandora, that means another source of revenue. At the moment, Pandora makes most of its money with advertising, with a smaller chunk coming in through paid subscriptions. During its most recent quarter, Pandora’s total revenue reached $285.6 million.
Interesting about the partnership is that Pandora already has a ton of knowledge about its users music preferences, with close to 80 million people listening to and in many cases rating music on the service every month. Combine that with the location data that Pandora gathers from its mobile apps, and you got perfect targeting for concert tickets.
The acquisition was first reported by Recode.