How to Become a Professional Ticket Broker
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Live Business plan ticket broker has various business lines associated with live music and live events. They are pursuing a strategy of vertical integration, trying to find synergies between the various parts of their business. On the concerts business side, the vertical integration strategy has been tried multiple times with little success.
Will this time be any different? John Malone seems to think so. Liberty Media has been buying more Live Nation shares. I would characterize Ticketmaster as mostly a technology company. Technology companies can usually earn high returns on capital over extended periods of time because it is difficult for competitors to copy business plan ticket broker technology and to recreate economies of scale.
However, like all technology companies, a competitor with superior business execution can dethrone the market leader and cause disruptive shifts in the industry. Ticketmaster had a better business plan than Ticketron because it used convenience fees as a profit center. Ticketmaster would charge higher convenience fees than Ticketron and split the profits with the venues. Ticketron refused to engage in this business practice, ensuring its own demise. In some cases, consumers had little choice because the travel time to the box office would not have made sense.
The practice of gouging consumers on convenience fees angers many consumers and continues to do business plan ticket broker today. In reality, venues are just as complicit as Ticketmaster in charging high prices for convenience fees. As the industry evolved, artists and promoters would also share in the convenience fees.
One of the biggest problems in the live events industry is that the industry does a poor job at business plan ticket broker tickets. Whenever tickets are underpriced, business plan ticket broker scalping occurs.
Various parties will arbitrage the difference between the face value of a ticket and what consumers are business plan ticket broker willing to pay. Whenever tickets are overpriced, there will be unsold seats. Business plan ticket broker means that the promoter fails to maximize profits for the live event. In general, music artists do not want to be seen as engaging in the price gouging of their fans. They may not want to sell tickets with a face value of several hundred dollars.
In reality, business plan ticket broker artists will quietly sell very expensive tickets while avoiding the appearance of doing so. The way the current system generally works is this:. The artist has a great deal of influence on ticket pricing. Some artists prefer to underprice their tickets for various reasons:. Ironically, trying to give fans affordable ticket often creates the most problems with scalping. For scalpers, tickets that are obviously underpriced presents less risk and more room for profit.
As you can see, there are various avenues in which a scalper can obtain a ticket. Naturally, they will try to find ways to buy undervalued tickets. Many scalpers will join fan clubs and buy the maximum number of tickets allowed whereas many true fans will buy what they actually need.
They will sign up for credit cards to take advantage of credit card perks. More sophisticated scalpers will use automated bots to buy up the best seats during the first onsale. Later, the bots cherry pick business plan ticket broker seats that are released over time.
Short selling of tickets also occurs in the music business. The short selling of tickets is currently largely unregulated. This infuriates consumers as they essentially lose money and miss out on an event that they were looking forward to for months. Some consumers may even have business plan ticket broker a plane ticket and hotel to see a show, only to find out that the ticket broker failed to deliver tickets.
Pricing tickets is generally very difficult. One of the major problems is that so many things can happen in the months leading up to an event. Many sports teams will use ticket brokers as a way to sell tickets below face value, selling large blocks of tickets at a discount. If they were to sell tickets below face value themselves, they might annoy fans who paid full price for their tickets. Secondary ticketing can mean many things. Often, it is a term used to confuse the consumer.
Sometimes industry participants do not want the consumer to know that:. Secondary ticket markets usually consist of ticket brokers with a smaller amount of legitimate fan to fan sales. Some market participants want to trick the consumer into business plan ticket broker that the opposite is true.
For example, here is an example of a StubHub Google ad:. If ticket brokers are considered to be fans too, then I suppose that StubHub is a place where fans buy and sell tickets. Ticket marketplaces should be very careful that they do not engage in deceptive advertising.
Ticketing shenanigans anger consumers. Politicians and district attorneys may target large corporations to try to win votes. Currently, Ticketmaster has a system which integrates both primary and secondary ticketing into a single user interface and a single system. In my opinion, this creates value in various ways. It will be interesting to see how much of the value generated will turn into profits for ticketing companies. What happened with convenience fees will likely happen with secondary ticketing revenues.
If you want to learn more about the ticketing industry, I recommend the book Ticket Masters: You are commenting using your WordPress.
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Ticketing I would characterize Ticketmaster as mostly a technology company. Industry problems Ticket pricing One of the biggest problems in the live events industry is that the industry does a poor job at pricing tickets.
They have computerized systems designed to essentially jump to the front of the line. For hot events, they will be the first ones to buy up the best seats. There is a technological arms race between scalpers and ticketing companies such as Ticketmaster. Historically, the scalpers have always been winning. Casual fans who scalp on the side. Insiders who supply ticket brokers with prime seats. Systemic reasons why tickets are mispriced In general, music artists do not want to be seen as engaging in the price gouging of their fans.
The way the current system generally business plan ticket broker is this: Tickets are set aside for the artist who may sell them to ticket brokersthe music label, etc.
Anybody who pays the business plan ticket broker fee will be eligible to buy presale tickets. Credit card companies give perks to their customers in the form of being able to buy tickets via exclusive presales. There are various reasons as to why these tickets may be sold at a small discount to their market value.
These are tickets to good seats with something else thrown in: Their price adjusts based on supply and demand. Because these seats are better business plan ticket broker other seats in the same section, they are sold at a large premium.
If there is little demand, business plan ticket broker tickets can be repacked as normal tickets and sold like normal tickets. Over time, more tickets are released onto the primary ticket market business plan ticket broker. Intentionally restricting the supply of tickets creates a false impression of scarcity. This tactic may generate favorable press as the media may report that the show sold out in business plan ticket broker.
The promoter may design the tour business plan ticket broker some elasticity in supply. If demand is high, business plan ticket broker promoter may open up more sections of the venue to increase the number of seats. The promoter may also schedule additional dates in a city. Tickets are generally sold several months in advance of the event. Closer to the event date, some fans may have a change in plans and realize that they cannot attend the concert.
There are various ways in which they can try to resell their ticket. Some artists prefer to underprice their tickets for various reasons: They prefer playing to a full house. In reality, many artists sell tickets at very high prices. So, there may be a small batch of tickets available at lower than market price. Ticket Arbitrage As you can see, there are various avenues in which a scalper can obtain a ticket.
For major league sports events, scalpers will take advantage of: Season ticket pricing versus buying individual tickets. Sports teams that charge the same price for every regular season game. Games vary in demand.