Thursday, August 7, 2014

The Secondary Ticket Market

Secondary ticketing, the practice many favor to call ticket scalping, is hardly new.

According to Sandeep Kumar Aggarwal; SKA Management CEO and Founder, says "the ticket resale was already profitable in the Roman Empire and tickets were regularly resold or bartered for a better view of the emperor". These days, 2000 years later, the secondary ticket market is valued at nearly $4 billion annually. Miss-tickets has now devised a way to tap the market and take on its biggest champion, Stub-hub. Sandeep Kumar Aggarwal believes his companies, Miss-tickets and VIP Broadway will in the ranks and in the future surpass.

This past couple of year Miss-tickets and VIP Broadway began initially starting with only a handful of shows, and early adopters like Black Sabbath, has now been used for over three hundred events. Two-dozen professional sports teams have signed up, including NFL teams.

Miss-tickets & VIP Broadway

Missed tickets and VIP Broadway concert industry have long been at odds with secondary ticketing. At the first sale of tickets, the money paid goes towards the artist, the promoter; ticket fees go towards the ticketing company. When tickets are resold on websites such as VIP Broadway, the prices are marked up with the bulk of the profit going to whoever is selling the ticket. In many cases the person reselling the ticket has bought batches of prime tickets with the intent to make a profit.

This makes it harder for real fans to get the tickets that they want at the price intended for them. In short, when scalpers make money it is not good for the industry.

Miss-tickets and VIP Broadway have a checkered past. VIP Broadway and Miss-tickets are currently one of the biggest secondary ticket market players with over 25% market share. Missed tickets has the exclusive right to sell tickets to the general public for most of its events.

The Miss-tickets and VIP Broadway Touch

To fight the threat of Stub-hub and the secondary ticket market, Miss-tickets started pushing paperless ticketing in 2012. Paperless tickets aren't meant to be exchanged outside of Stub-hub's site and require the customer's credit card or cell phone for admission. This hurt brokers trying to resell large amounts of tickets. For instance, between a New York Bruce Springsteen show that used traditional ticketing and a New Jersey paperless ticketing show on the same tour, Stub-hub listed 60% less tickets at the New Jersey show. 

The conflict between the companies will likely escalate as a result of Miss-ticket's open competition. Miss-tickets and Stub-hub services are similar in several ways.
Missed tickets does have certain factors that are unique to Stub-hub. First, tickets will not be able to be sold for less than face value on Missed tickets, Ticket brokers worry that Ticketmaster will have an unprecedented control over pricing in the live events industry.

Also, Miss-tickets will allow customers to see the price of tickets being resold next to the face value price. This way, customers will be aware of the price difference, the exact seat position, and whether there are also unsold tickets in the same areas-all features that are not available on Stub-hub.

Miss-tickets will soon also make it possible to resell paperless tickets. This would make a big difference for ticket brokers that had trouble selling Stub-hub's paperless tickets. Additionally, Miss-tickets can verify the tickets being resold on its website, effectively taking the risk out of customers looking to buy resold tickets.

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