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Ticketmaster Wiki2Web Clarity Challenge

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Study Guide: Ticketmaster: History, Operations, and Industry Impact

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Ticketmaster: History, Operations, and Industry Impact Study Guide

Founding and Early Business Model (1976-1990)

Ticketmaster was founded on October 2, 1976, in Phoenix, Arizona.

Answer: True

Explanation: Ticketmaster's founding date and location are accurately stated as October 2, 1976, in Phoenix, Arizona.

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Albert Leffler and Jerry Nelson are credited as the sole founders of Ticketmaster.

Answer: False

Explanation: Albert Leffler and Jerry Nelson were among the founders, but they were not the sole founders; Peter Gadwa and Gordon Gunn III are also credited with its establishment.

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Ticketmaster's initial business model involved licensing software and selling hardware for ticketing systems.

Answer: True

Explanation: Upon its inception, Ticketmaster's business model focused on licensing its software and selling hardware components for ticketing systems.

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Fred Rosen was appointed CEO in 1982 and subsequently moved the company to Phoenix to be closer to the entertainment industry.

Answer: False

Explanation: While Fred Rosen was appointed CEO in 1982, he relocated the company to Los Angeles, not Phoenix, to better engage with the entertainment industry.

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Who are credited as the founders of Ticketmaster?

Answer: Albert Leffler, Peter Gadwa, Gordon Gunn III, and Jerry Nelson

Explanation: Ticketmaster was founded by Albert Leffler, Peter Gadwa, Gordon Gunn III, and Jerry Nelson.

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What was Ticketmaster's initial business model upon its founding?

Answer: Licensing computer programs and selling hardware for ticketing systems

Explanation: Upon its inception, Ticketmaster's business model focused on licensing its software and selling hardware components for ticketing systems.

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Corporate Expansion and Acquisitions (1990s-2008)

Ticketmaster acquired its main rival, Ticketron, in 1991, solidifying its market leadership.

Answer: True

Explanation: The acquisition of its competitor Ticketron in 1991 was a pivotal moment that significantly strengthened Ticketmaster's market position and leadership.

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Microsoft co-founder Bill Gates acquired a controlling stake in Ticketmaster in 1993.

Answer: False

Explanation: In 1993, it was Microsoft co-founder Paul Allen, not Bill Gates, who acquired a controlling stake in Ticketmaster.

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In 1998, USA Networks Inc. purchased a majority stake in Ticketmaster and renamed the company Ticketmaster Online-CitySearch.

Answer: True

Explanation: Following USA Networks Inc.'s acquisition of a majority stake in 1998, the company was indeed renamed Ticketmaster Online-CitySearch.

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Ticketmaster acquired Paciolan Inc. and Getmein.com in January 2008.

Answer: True

Explanation: January 2008 marked a period of significant expansion for Ticketmaster through the acquisition of companies such as Paciolan Inc. and Getmein.com.

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Ticketmaster acquired Front Gate Tickets in 2015, a service provider for concert venues.

Answer: False

Explanation: While Ticketmaster did acquire Front Gate Tickets in 2015, its primary role was as a service provider for music festivals, not exclusively concert venues.

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Ticketmaster acquired Strobe Labs in 2017 to enhance its fan engagement capabilities through social media.

Answer: True

Explanation: The acquisition of Strobe Labs in 2017 by Ticketmaster was aimed at bolstering its fan engagement strategies via social media platforms.

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In 2018, Ticketmaster acquired UPGRADED, a company specializing in converting physical tickets into digital ones using blockchain technology.

Answer: True

Explanation: Ticketmaster's 2018 acquisition of UPGRADED focused on leveraging blockchain technology for the digitization of physical tickets.

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Which rival ticketing company did Ticketmaster acquire in 1991?

Answer: Ticketron

Explanation: Ticketmaster acquired its competitor Ticketron in 1991, a move that significantly enhanced its market leadership.

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Who acquired an 80% stake in Ticketmaster in November 1993?

Answer: Microsoft co-founder Paul Allen

Explanation: In November 1993, Microsoft co-founder Paul Allen acquired an 80% stake in Ticketmaster.

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What was the name of Ticketmaster after USA Networks Inc. purchased a majority stake in 1998?

Answer: Ticketmaster Online-CitySearch

Explanation: Following the acquisition of a majority stake by USA Networks Inc. in 1998, Ticketmaster was renamed Ticketmaster Online-CitySearch.

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Which of the following was NOT among Ticketmaster's key acquisitions in January 2008?

Answer: Front Gate Tickets

Explanation: While Ticketmaster acquired Paciolan Inc., Getmein.com, and TicketsNow in January 2008, Front Gate Tickets was acquired in 2015, making it the correct answer for what was NOT acquired in January 2008.

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In 2015, Ticketmaster expanded its services by acquiring which two companies?

Answer: Front Gate Tickets and Universe

Explanation: Ticketmaster expanded its service offerings in 2015 through the acquisition of Front Gate Tickets and Universe.

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The Live Nation Merger and Market Dominance (2009-Present)

Ticketmaster merged with Live Nation in February 2009, forming the entity Live Nation Entertainment.

Answer: True

Explanation: The merger between Ticketmaster and Live Nation occurred in February 2009, culminating in the formation of the new entity known as Live Nation Entertainment.

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The U.S. Justice Department approved the Live Nation-Ticketmaster merger in 2010 without any conditions.

Answer: False

Explanation: The U.S. Justice Department's approval of the Live Nation-Ticketmaster merger in 2010 was contingent upon specific conditions, including the divestiture of Paciolan and licensing agreements, contrary to the assertion of unconditional approval.

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On May 23, 2024, the U.S. Department of Justice and 29 states filed an antitrust lawsuit against Live Nation and Ticketmaster.

Answer: True

Explanation: An antitrust lawsuit was filed on May 23, 2024, by the U.S. Department of Justice and 29 states against Live Nation and Ticketmaster, alleging monopolistic practices.

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When did Ticketmaster merge with Live Nation to form Live Nation Entertainment?

Answer: February 2009

Explanation: The merger between Ticketmaster and Live Nation, which resulted in the formation of Live Nation Entertainment, took place in February 2009.

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What was a primary condition set by the U.S. Justice Department for approving the Live Nation-Ticketmaster merger?

Answer: The combined company must sell Paciolan and license its software to competitors.

Explanation: A key condition for the U.S. Justice Department's approval of the merger was the divestiture of Paciolan and the licensing of its ticketing software to competitors, ensuring a degree of market competition.

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What action did the Department of Justice take in 2020 regarding Ticketmaster's compliance with the Live Nation merger consent decree?

Answer: Fined Ticketmaster $3 million for violating the decree.

Explanation: In 2020, the Department of Justice imposed a $3 million fine on Ticketmaster for violations of the consent decree associated with the Live Nation merger.

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What did the U.S. Department of Justice and 29 states formally launch against Live Nation and Ticketmaster on May 23, 2024?

Answer: An antitrust lawsuit alleging abuse of market dominance.

Explanation: An antitrust lawsuit was filed on May 23, 2024, by the U.S. Department of Justice and 29 states against Live Nation and Ticketmaster, alleging monopolistic practices.

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Pricing Strategies, Fees, and Consumer Initiatives

In 2006, Ticketmaster advocated for legislation limiting the ticket resale market to authorized companies to combat scalping.

Answer: True

Explanation: Ticketmaster's stance in 2006 involved advocating for legislation that would restrict the ticket resale market to authorized entities, a move presented as a measure against scalping.

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The "All In Prices" initiative, announced in May 2025, aims to display total ticket costs upfront to comply with FTC regulations.

Answer: True

Explanation: The 'All In Prices' initiative, launched in May 2025, is designed to enhance transparency by displaying the total ticket cost, inclusive of all fees, prior to the final checkout stage, in alignment with FTC regulations.

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Ticket prices on Ticketmaster are solely determined by Ticketmaster's service fees.

Answer: False

Explanation: Ticket prices are not solely determined by Ticketmaster's service fees; the initial face value is set by the artist or client, with additional fees added by Ticketmaster and venues.

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A facility charge, delivery fee, and service fee are the three main types of fees Ticketmaster typically adds.

Answer: True

Explanation: Ticketmaster's pricing structure typically incorporates a facility charge, a delivery fee, and a service fee.

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Concert tours now account for only about 10% of artist income, making Ticketmaster fees less critical.

Answer: False

Explanation: Contrary to the statement, concert tours constitute approximately 95% of artist income, making Ticketmaster fees a significant factor in artist revenue, not a less critical one.

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In 2022, Ticketmaster began experimenting with fixed pricing for all tickets to ensure affordability.

Answer: False

Explanation: In 2022, Ticketmaster began experimenting with demand-based, *dynamic pricing*, not fixed pricing, as a strategy to capture revenue and manage demand.

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During the sales process for Oasis's 2025 reunion tour, ticket prices surged significantly due to Ticketmaster's dynamic pricing.

Answer: True

Explanation: The sales process for the Oasis 2025 reunion tour saw significant ticket price increases, reportedly from £135 to over £350, attributed to Ticketmaster's dynamic pricing model.

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In May 2025, Ticketmaster announced the 'All In Prices' initiative to hide additional fees until the final checkout.

Answer: False

Explanation: The 'All In Prices' initiative, announced in May 2025, is designed to display additional fees upfront, not hide them, to comply with FTC regulations on junk fees.

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Robert Smith of The Cure confirmed in 2023 that dynamic pricing is a feature artists can choose to opt out of when working with Ticketmaster.

Answer: False

Explanation: While Robert Smith of The Cure did comment on dynamic pricing, the provided source material states he confirmed artists can choose to *opt into* this feature, not specifically that they can choose to *opt out of* it. The confirmation pertains to the opt-in capability.

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What was Ticketmaster's stance on the ticket resale market in 2006, according to President Sean Moriarty?

Answer: Lobbied for laws limiting resale to authorized companies to combat scalping.

Explanation: Ticketmaster President Sean Moriarty indicated in 2006 that the company had lobbied states for legislation restricting the ticket resale market to authorized entities to combat scalping.

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What is the purpose of Ticketmaster's "All In Prices" initiative announced in May 2025?

Answer: To display the total cost of tickets, including all fees, before final checkout.

Explanation: The 'All In Prices' initiative, launched in May 2025, is designed to enhance transparency by displaying the total ticket cost, inclusive of all fees, prior to the final checkout stage, in alignment with FTC regulations.

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What did Robert Smith of The Cure criticize about Ticketmaster's pricing for their 2023 tour?

Answer: The use of dynamic pricing and 'platinum' tickets with excessively high fees.

Explanation: Robert Smith of The Cure publicly criticized Ticketmaster's implementation of dynamic pricing and 'platinum' tickets for their 2023 tour, citing concerns over excessive fees.

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What did Robert Smith of The Cure confirm in 2023 regarding Ticketmaster's dynamic pricing?

Answer: That artists can choose to opt into this feature.

Explanation: Robert Smith of The Cure confirmed in 2023 that dynamic pricing is a feature artists have the option to utilize when contracting with Ticketmaster.

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Artist and Fan Disputes and Public Criticisms

In 2017, Ticketmaster filed a lawsuit against Prestige Entertainment for using bots to buy over 30,000 tickets for a Broadway musical.

Answer: True

Explanation: Ticketmaster initiated legal action against Prestige Entertainment in 2017, citing the broker's alleged use of bots to acquire a substantial quantity of tickets for a Broadway production.

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The String Cheese Incident protested Ticketmaster's fees in 2013 by providing fans with funds to resell tickets on the band's platform.

Answer: True

Explanation: In 2013, The String Cheese Incident implemented a protest against Ticketmaster's fees by facilitating ticket resales on their own platform with reduced charges.

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Pearl Jam alleged in 1994 that Ticketmaster used its market power to block the band from booking venues due to a dispute over service fees.

Answer: True

Explanation: Pearl Jam's 1994 complaint to the U.S. Department of Justice asserted that Ticketmaster leveraged its market dominance to obstruct the band's venue bookings stemming from a service fee disagreement.

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Bruce Springsteen raised concerns in 2009 about fans being redirected from Ticketmaster.com to TicketsNow, a reseller.

Answer: True

Explanation: Bruce Springsteen voiced concerns in 2009 regarding the practice of redirecting fans from Ticketmaster.com to the reseller TicketsNow, highlighting a potential conflict of interest.

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A 2019 Billboard report indicated Live Nation's strategy to direct certain tickets to resale sites instead of primary channels.

Answer: True

Explanation: A 2019 report by Billboard suggested that Live Nation employed a strategy involving the redirection of specific tickets to resale platforms rather than primary sales channels.

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Robert Smith of The Cure criticized Ticketmaster's dynamic pricing and 'platinum' tickets for their 2023 tour.

Answer: True

Explanation: Robert Smith of The Cure publicly criticized Ticketmaster's implementation of dynamic pricing and 'platinum' tickets for their 2023 tour, citing concerns over excessive fees.

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During the pre-sale for Taylor Swift's 'The Eras Tour' in November 2022, Ticketmaster's website experienced minor technical difficulties.

Answer: False

Explanation: Contrary to the notion of 'minor technical difficulties,' the Ticketmaster website experienced a significant crash due to overwhelming demand, halting the pre-sale and resulting in widespread user complaints and criticism.

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Fans known as 'Swifties' filed a lawsuit against Ticketmaster accusing them of price-fixing and antitrust violations.

Answer: True

Explanation: A class-action lawsuit was filed by Taylor Swift fans ('Swifties') against Ticketmaster and Live Nation, alleging practices such as price-fixing and antitrust violations.

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During Bad Bunny's concerts in Mexico City in December 2022, Ticketmaster Mexico attributed access problems to an unprecedented volume of legitimate tickets.

Answer: False

Explanation: Ticketmaster Mexico attributed the access problems during Bad Bunny's concerts to an unprecedented volume of *fake* tickets, not legitimate ones.

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Zach Bryan criticized Ticketmaster for his 2023 tour by making tickets non-transferable to deter scalpers.

Answer: True

Explanation: Zach Bryan took measures against scalping for his 2023 tour by implementing non-transferable tickets and publicly critiquing Ticketmaster.

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Drake fans alleged in a March 2023 lawsuit that Ticketmaster concealed information about fewer show dates to artificially inflate demand.

Answer: False

Explanation: The lawsuit filed by Drake fans alleged that Ticketmaster concealed information about *additional* show dates, not fewer, with the intent to artificially inflate demand and ticket prices.

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Ticketmaster's website experienced crashes during the Eurovision Song Contest 2023 ticket sales, with tickets selling out rapidly.

Answer: True

Explanation: During the Eurovision Song Contest 2023 ticket sales, Ticketmaster's website experienced crashes, and tickets were subsequently sold out rapidly.

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Ticketmaster faced criticism for sending accurate emails to successful ballot applicants for the Coronation Concert in the UK.

Answer: False

Explanation: The criticism directed at Ticketmaster regarding the Coronation Concert in the UK stemmed from the company sending *misleading* emails to unsuccessful applicants, incorrectly informing them they had won tickets, rather than accurate emails.

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In 1994, Pearl Jam filed a complaint with the U.S. Department of Justice alleging Ticketmaster did what?

Answer: Used its market power to prevent the band from booking venues.

Explanation: Pearl Jam's 1994 complaint to the U.S. Department of Justice asserted that Ticketmaster leveraged its market dominance to obstruct the band's venue bookings stemming from a service fee disagreement.

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What conflict of interest did Bruce Springsteen highlight concerning Ticketmaster in 2009?

Answer: Fans were redirected from Ticketmaster.com to TicketsNow, a ticket reseller, after the initial sale.

Explanation: Bruce Springsteen voiced concerns in 2009 regarding the practice of redirecting fans from Ticketmaster.com to the reseller TicketsNow, highlighting a potential conflict of interest.

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What major event involving Taylor Swift's 'The Eras Tour' in November 2022 led to widespread criticism of Ticketmaster?

Answer: The pre-sale was halted due to the website crashing from extreme demand.

Explanation: The pre-sale for Taylor Swift's 'The Eras Tour' was halted due to a website crash caused by overwhelming demand, leading to widespread criticism of Ticketmaster.

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What was Ticketmaster Mexico's explanation for the access problems experienced by attendees at Bad Bunny's concerts in December 2022?

Answer: An unprecedented volume of fake tickets causing system disruptions.

Explanation: Ticketmaster Mexico attributed the access problems during Bad Bunny's concerts to an unprecedented volume of *fake* tickets, not legitimate ones.

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What did Zach Bryan do for his 2023 tour to deter scalpers and express dissatisfaction with Ticketmaster?

Answer: He made tickets non-transferable and released a live album titled 'All My Homies Hate Ticketmaster'.

Explanation: Zach Bryan took measures against scalping for his 2023 tour by implementing non-transferable tickets and publicly critiquing Ticketmaster, including releasing an album titled 'All My Homies Hate Ticketmaster'.

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What criticism did Ticketmaster face regarding the Coronation Concert ballot in the UK?

Answer: They sent misleading emails to unsuccessful applicants stating they had won tickets.

Explanation: The criticism directed at Ticketmaster regarding the Coronation Concert in the UK stemmed from the company sending *misleading* emails to unsuccessful applicants, incorrectly informing them they had won tickets, rather than accurate emails.

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What issues did fans encounter during the sales for Oasis's 2025 reunion tour handled by Ticketmaster?

Answer: Long queues, website crashes, and significant price increases due to dynamic pricing.

Explanation: The sales process for the Oasis 2025 reunion tour saw significant ticket price increases, reportedly from £135 to over £350, attributed to Ticketmaster's dynamic pricing model, alongside issues like long queues and website crashes.

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Operational Aspects and Industry Partnerships

Ticketmaster Entertainment, LLC, is headquartered in Los Angeles, California.

Answer: False

Explanation: Ticketmaster Entertainment, LLC, is headquartered in Beverly Hills, California, not Los Angeles.

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Ticketmaster's clients exclusively include artists and promoters.

Answer: False

Explanation: The assertion that Ticketmaster's clients exclusively include artists and promoters is inaccurate, as venues are also identified as clients.

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In 2018, Ticketmaster reported selling approximately 500 million tickets for around 400,000 events.

Answer: True

Explanation: Ticketmaster's 2018 performance report indicated sales of nearly 500 million tickets across approximately 400,000 events.

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Ticketmaster has partnered with major sports leagues like the NFL, NHL, and NBA.

Answer: True

Explanation: Ticketmaster has established significant partnerships, serving as the primary ticketing provider for major professional sports leagues such as the NFL, NHL, and NBA.

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Where is Ticketmaster Entertainment, LLC headquartered?

Answer: Beverly Hills, California

Explanation: Ticketmaster Entertainment, LLC is headquartered in Beverly Hills, California, as stated in the supporting documentation.

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Which of the following is NOT listed as a client type for Ticketmaster?

Answer: Ticket Brokers

Explanation: The source material identifies venues, artists, and promoters as Ticketmaster's clients. Ticket brokers are not listed as clients; rather, Ticketmaster's systems are often designed to mitigate their activities.

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