CS2033 Corporate Communications Management

Incident Report: Ticketmaster’s Taylor Swift Ticket Crisis

Name Matriculation Number

Huang Yue U2130855A

Park Sumin U2131912C

Nurul Izzah Bte Saifuddin U2230645E

Duru Ipek Sargin N2304048B

Liu Xiaoxuan U2030979F

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 1. Abstract

An effective corporate communication strategy is essential for corporations to navigate

crises in today’s digital landscape. Ticketmaster, an established ticket distribution company in

the US, faced a significant challenge in November 2022 during the pre-sale of Taylor Swift’s

“Eras” tour. This incident triggered criticism from the artist, her fans, and even politicians. This

case study aims to explore Ticketmaster's response to this corporate communication issue, with

a focus on the key stakeholders. It will also apply theoretical communication frameworks to

propose alternative courses of action for Ticketmaster.

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Part 1. Incident

1.1 Background information

In November 2022, Taylor Swift announced the “Eras” tour which is her first tour since

2018. Ticket sales for this event were handled by Ticketmaster, an established ticket

distribution company that had merged with Live Nation in 2010. The demand for Taylor

Swift’s tickets reached unprecedented levels, which was four times the previous peak. However,

this surge in demand was not adequately managed by Ticketmaster. Consequently, technical

issues arose during the ticket-purchasing process for consumers and a delayed response to these

issues resulted in widespread frustration among fans and the artist herself. This incident

eventually caught the attention of politicians and government institutions.

1.2 Organisational information

Ticketmaster is a global ticket sales and distribution company based in the US, which

merged with Live Nation in 2010. The company serves as an intermediary, connecting venues,

artists and promoters. It provides ticketing services for various events including concerts, sports,

and theatre (Bloomberg, 2023). In 2022, Ticketmaster recorded a sales revenue of 16.7 billion,

with the majority of its revenue coming from ticketing and concerts (Live Nation, 2023).

With its mission to put fans first, Ticketmaster strives to provide fans with access to

events they love and enhance the overall experience for artists and attendees (Ticketmaster,

2023). As a result, consumers expect a seamless ticket-buying process that includes a user-

friendly and responsive website, reasonable pricing, and transparency in information. However,

this can be difficult to achieve in high-demand events, such as the "Eras Tour." In fact, this

incident has highlighted difficulties facing Ticketmaster, which led to widespread criticism and

challenges that Ticketmaster must address.

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 1.3 Situation analysis

Taylor Swift officially announced her concert "The Eras Tour” on November 1, 2022.

The ticket sales were to be done through Ticketmaster, where fans could purchase during

Ticketmaster's Verified Fan Program presale, Capital One presale, or general sales (Horton,

2022).

To get early access to ticket sales, fans had to purchase and register for Ticketmaster’s

verified program, which was designed to safeguard tickets from automated bots and scalpers.

Over 3.5 million people pre-registered for this presale. Although the presale code was issued

to 1.5 million potential customers, the remaining 2 million people were placed on a waiting list

(Ticketmaster, 2022).

During the presale, with over 3.5 billion total system requests, the Ticketmaster website

experienced technical issues such as website crashes, long queues, and error messages

(Ticketmaster, 2022). This resulted in many fans failing to reserve their tickets. Frustrated fans

voiced out their complaints, making “Ticketmaster” the number one trending topic on Twitter

and TikTok worldwide (Graziosi, 2022).

In response, Ticketmaster responded a few hours later on Twitter that the issue was

caused by “historically unprecedented demand” and that they would postpone West Coast

events and Capital One presale to another day (see Appendix A). However, the Capitol One

presale also faced similar issues.

On November 17, just a day before the general sales, Ticketmaster announced the

cancellation of general sales due to “insufficient remaining ticket inventory.” (see Appendix B)

Ironically, tickets were being resold on sites such as StubHub at extremely high prices as much

as $22,000 (Horton, 2022).

Fans were not the only ones expressing their outrage; Taylor Swift herself also issued

a statement on November 18 (see Appendix C). In her statement, she expressed her discontent

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with Ticketmaster, noting that it was “excruciating for me to just watch mistakes happen with

no recourse” and emphasized that Ticketmaster had assured her that they could handle such

high demand (Horton, 2022).

The following day, Ticketmaster finally issued an apology to the singer and her

supporters, claiming that the situation was caused by unregistered fans and a "staggering

number of bot attacks" (Ticketmaster, 2022) (see Appendix D).

Furthermore, this incident drew public scrutiny and criticism of Ticketmaster, with

Representative Alexandria Ocasio-Cortez voicing out about Ticketmaster’s monopoly and

anti-competitive behaviors (see Appendix E). Moreover, in response to complaints from Swift

fans, Tennessee’s attorney general initiated a consumer protection investigation into

Ticketmaster (Horton, 2022).

Additionally, Taylor Swift’s fans filed a lawsuit against Live Nation Entertainment in

December 2022, alleging Ticketmaster of violations against the Cartwright Act and Unfair

Competition Law, fraud, misrepresentation, and fraudulent inducement. Live Nation has

transferred this matter to federal court, and legal processes are underway, which may take years

to resolve (Maruf, 2022).

1.4 Stakeholder Perspectives

Firstly, Taylor Swift’s fans have been significantly affected by this crisis and are outraged

because their expectations for a seamless ticket-buying experience were not met. Their

dissatisfaction was exacerbated by a lack of an appropriate and clear response from

Ticketmaster, which took three days to issue a formal apology and acknowledge their mistakes.

While they may not have substantial individual influence over Ticketmaster, they facilitated

the public awareness of issue and united to initiate legal actions against Ticketmaster.

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 Taylor Swift, another external stakeholder, shares the fans’ outrage. As a client of

Ticketmaster, she expected it to deliver on its promise to handle high demand and ensure a

smooth ticketing process. However, Ticketmaster’s inability to meet these expectations

compelled her to issue a statement on Instagram, drawing public attention and further

highlighting the issue.

Furthermore, the government also became involved in this crisis, which was prompted

by public complaints and concerns. Hence, they may intervene to address any illegal activities

or issues related to Ticketmaster’s actions.

Internally, the situation reveals strategic tensions between Ticketmaster's executive and

management team and the corporate communications department. Notably, the chairman of

Live Nation attributed the crisis during ticket sales to the overwhelming demand, stating that

it “could have filled 900 stadiums”. He also defended against allegations of market power abuse

by Ticketmaster and its parent company (Whitten, 2022). Thus, the executives may attempt to

downplay the incident’s severity to minimize financial losses and maintain the company’s

reputation. In contrast, the corporate communications team is primarily responsible for

managing the company’s image and reputation, focusing on transparency and addressing the

issues openly. These conflicting goals and priorities among internal stakeholders at

Ticketmaster may have contributed to the delayed response to this crisis.

1.5 Discussion of Alternatives

In response to this crisis, Ticketmaster could have made alternative decisions. Firstly,

Ticketmaster could have remained silent throughout the entire crisis. While silence may be

effective in some crisis situations, in this case, this decision would have likely prompted greater

outrage from consumers and escalated the situation more rapidly. This is because Taylor Swift

and her fans are highly interested in purchasing tickets and this issue would remain relevant

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throughout Swift’s tour. In fact, Le et al (2018) suggest that absolute silence is the riskiest

option since it does not leave any room for clarification.

Another alternative for Ticketmaster would have been to provide timely feedback and

take ownership of the issue. For instance, Ticketmaster could have acknowledged its technical

issues at the outset, provided a clear explanation, and outlined a transparent ticket sales plan,

including compensation for consumers who purchased for the presale. While consumers might

still have been dissatisfied with the crisis, taking this course of action could have placated

consumers and prevented further escalation of the issue, such as fans initiating legal action

against Ticketmaster and attracting attention from politicians and government institutions.

Lastly, an alternative action for Ticketmaster could have been to initiate communication

with Taylor Swift directly. When Ticketmaster first became aware of the technical issues that

consumers were facing, the company could have promptly informed Taylor Swift about the

situation. Additionally, it could have involved Taylor Swift and her team in its decision-making

process. This proactive approach would have prevented Taylor Swift from making negative

statements about Ticketmaster and potentially damaging its reputation, while also avoiding

further escalation of the crisis. Moreover, since Taylor Swift is involved, her influence might

have helped in appeasing dissatisfied fans.

Ultimately, while there is no clear-cut answer to how Ticketmaster should have

responded to the crisis, it is crucial to consider the diverse perspectives of the stakeholders

involved and the potential consequences of alternative decisions.

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Part 2. Theoretical analysis

2.1 Introduction

In the field of corporate communication, incidents like the Ticketmaster’s Taylor Swift

ticket crisis serve as compelling case studies. The complexities involved in managing such

events require the application of communication models to understand their dynamics. Thus,

this report aims to explain what happened in the incident and evaluate Ticketmaster’s decision

using two communication models: the interactive communication model and the stakeholder

salience model. By synthesizing insights from these theories, this report will demonstrate how

a combined application of these models can provide a comprehensive explanation of the

incident and offer valuable recommendations.

2.2 Interaction model of communication

To begin with, the interaction model of communication (Schramm, 1997) can be

applied to explain why the actions of Ticketmaster were faced with fierce criticism from fans

and customers on social media. According to the interaction model of communication (see

Appendix F), communication is a two-way process: when a sender encodes and transmits

messages through channel, receivers decode the message and provide feedback in response.

Both senders and receivers alternate positions to send messages and receive feedback within

psychological contexts. This model acknowledges that psychological contexts, an individual’s

mental and emotional state during communication, can influence communication.

In this case, ticket buyers were the primary senders, who initiated communication by

expressing concerns about issues during ticket presale through channels like social media, the

Ticketmaster website, and customer support. Based on the interaction communication model,

this should ideally be followed by timely feedback from Ticketmaster. However, Ticketmaster

remained silent and disrupted the feedback loop, exacerbating dissatisfaction among fans. In

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fact, (Woon & Pang, 2017) suggests that silence in crises can create an “information vacuum”

that can be filled with speculation and misinformation and result in an escalation of the crisis

and loss of trust in the organization. Accordingly, Ticketmaster should have provided ticket

buyers with timely feedback to prevent further intensification of the crisis. Furthermore, when

encoding and sending their feedback to fans, they should have taken into consideration the

psychological context of consumers and exercised more caution in their message. Therefore,

instead of simply announcing the cancellation of Taylor Swift’s general ticket sales without

any valid explanation on Twitter, the interactive model of communication suggests that

Ticketmaster should have acknowledged fans’ frustration and provided assurance about how

the situation would be addressed.

2.2 Stakeholder Salience Model

Secondly, the stakeholder salience model (Mitchell et al., 1997) can be employed to explain

why Ticketmaster’s response was insufficient and counterproductive. Stakeholders refer to any

group or individual who can affect or is affected by the achievements or actions of the

organization’s objectives (Freeman, 1984). According to the stakeholder salience model (see

Appendix G), stakeholders can be categorized based on their salience, or significance, to the

organization. Salience is determined by the power, legitimacy, and urgency of stakeholder’s

claims. Depending on how many attributes each stakeholder group has, they are classified as

either latent, expectant, or definitive stakeholder groups. Definitive stakeholders possessing all

power, legitimacy, and urgency should be prioritized in an organization’s communication.

Latent and expectant groups, with one and two attributes respectively, need to be monitored

and communicated with to prevent escalation of crisis.

In this context, Taylor Swift was a definitive stakeholder for Ticketmaster, given her power,

legitimacy, and urgency as a client of Ticketmaster. Despite her salience, Ticketmaster did not

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adequately communicate with Taylor Swift and this prompted her to issue her own statement

when ticket sales issues arose. Moreover, fans can be classified as dependent stakeholders with

urgency and legitimacy, in need of an immediate resolution to the issue. They represented

Ticketmaster’s consumers but lacked significant power. However, when there were issues with

ticket sales, Ticketmaster treated fans as a nuisance: they did not provide clear steps on how

the situation would be addressed and simply announced the cancellation of general sales. This

prompted fans to unite and file a lawsuit against Ticketmaster, thereby becoming definitive

stakeholders. This is consistent with Mitchell & Mitchell (2023) that the influence of social

media algorithms today has made ordinary users to become more salient stakeholder groups.

Therefore, the stakeholder salience model suggests that Ticketmaster should have actively

communicated with Taylor Swift and acknowledged fans as important stakeholder groups.

2.3 Synthesis

Moreover, the communication interaction model and stakeholder salience model work together

to offer recommendations for Ticketmaster. Firstly, Ticketmaster should prioritize its

communication with high-salience stakeholders like Taylor Swift. By keeping the artist

informed and involved, Ticketmaster can avoid further escalation of the crisis. Secondly, in

communicating with these stakeholders, Ticketmaster should ensure timely and cautious

responses through appropriate channels, like its official website in accordance with the

interaction model. Lastly, Ticketmaster should acknowledge fans as stakeholders and provide

clear and frequent updates on the status of presale, preventing disruptions in the feedback loop.

2.4 Conclusion

In conclusion, while there is no definitive answer to corporate communication

responses, communication models could provide insightful explanations and recommendations.

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To explain the Ticketmaster’s response to the Taylor Swift ticket sales crisis, the interaction

model and stakeholder salience model were employed. These theories worked together to

suggest that Ticketmaster should have prioritized timely feedback and proactive engagement

with its salient stakeholders, such as Taylor Swift and her fans.

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 References

Bloomberg. (2023). Ticketmaster

LLC. https://www.bloomberg.com/profile/company/0009574D:US#xj4y7vzkg

Graziosi, G. (2022, November 16). AOC demands Ticketmaster be dismantled after Taylor

Swift ticket sale chaos. The Independent. https://www.the-

independent.com/news/world/americas/us-politics/aoc-ticketmaster-taylor-swift-

tickets-b2225903.html

Horton, A. (2022, November 19). Taylor Swift slams Ticketmaster over ‘excruciating’ ticket

debacle. the Guardian. https://www.theguardian.com/music/2022/nov/18/taylor-

swift-tickets-ticketmaster-live-nation-us-justice-department

Le, P. D., Teo, H. X., Pang, A., Li, Y., & Goh, C. (2018). When is silence golden? The use

of strategic silence in crisis communication. Corporate Communications: An

International Journal, 24(1), 162-178. https://doi.org/10.1108/ccij-10-2018-0108

Live Nation. (2023, February 23). Live Nation Entertainment's concert revenue from 2008 to

2022 (in billion U.S. dollars).

Statista. https://www.statista.com/statistics/193710/concert-revenue-of-live-nation-

entertainment-since-2008/

Maruf, R. (2022, December 5). More than two dozen Taylor Swift fans sue Ticketmaster |

CNN business. CNN. https://edition.cnn.com/2022/12/05/business/ticketmaster-

taylor-swift-lawsuit/index.html

Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder

identification and salience: Defining the principle of who and what really counts. The

Academy of Management Review, 22(4), 853. https://doi.org/10.2307/259247

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Mitchell, R. K., & Mitchell, B. T. (2023). Stakeholder salience, social media, and the

cognitive Commons. Encyclopedia of Stakeholder Management, 338-

344. https://doi.org/10.4337/9781800374249.ch72

Schramm, W. (1997). The beginnings of communication study in America. SAGE.

Ticketmaster. (2022, November 19). Taylor Swift | The eras tour onsale explained.

Ticketmaster Business. https://business.ticketmaster.com/business-solutions/taylor-

swift-the-eras-tour-onsale-explained/

Ticketmaster. (2023). Who We Are. https://www.ticketmaster.com/about/about-us.html

Whitten, S. (2022, November 17). Ticketmaster's largest shareholder blames massive

demand − including from bots − for Taylor Swift ticket fiasco.

CNBC. https://www.cnbc.com/2022/11/17/taylor-swift-ticketmaster-fiasco-due-to-

demand-bots-liberty-media-ceo-says.html

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and implications. Corporate Communications: An International Journal, 22(3), 329-

353. https://doi.org/10.1108/ccij-10-2016-0066

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 Appendices

Appendix A. Update and postponement of presale by Ticketmaster

Appendix B. Cancellation of general sale update on Twitter

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Appendix C. Taylor Swift’s statement on Instagram

Appendix D. Ticketmaster’s apology

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Appendix E. Representative Alexandria Ocasio-Cortez’s response to Ticketmaster crisis

Appendix F. Interaction model of communication

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Appendix G. Stakeholder salience model

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 Appendix H. ChatGPT prompt history

The following is the ChatGPT prompt history. I am satisfied with the results from ChatGPT

because it provided some recommendations that I can expand on. It was much easier to

formulate answer.

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