Ticketmaster, SFX in Ticket Sales Pact

Resolving what USA Networks chief Barry Diller called their “short but slightly contentious” relationship, USA-owned Ticketmaster Inc. and live entertainment consolidator SFX Entertainment Inc. announced an exclusive, long-term agreement for Ticketmaster to sell tickets to all SFX events.

In a statement, SFX Chairman Robert Sillerman suggested the arrangement could let SFX reduce ticket prices at some venues. However, a source close to the deal said that along with lower-priced tickets will come higher-priced ones: SFX is said to be planning to introduce “scaled” prices more typical of theater productions than rock concerts. In this arrangement, Ticketmaster would get a lower per-ticket fee for the cheaper seats but a high per-ticket fee for the most expensive, “golden circle” seats.

The deal also calls for the companies to participate in joint merchandising and promotional ventures.