Thursday, August 21, 2008

Venues Today: Blending of Primary and Secondary Still Causing a Stir Between Ticket Pros

ANAHEIM, Calif. & LAS VEGAS — There’s little doubt that the merging of the primary and secondary ticket markets is underway, but just how close are the two sides to coming together as a single industry? Two recent panels at industry conventions — one for ticket brokers, the other for venue managers — show that both sides are far apart on many issues.

Ticket brokers who gathered in Las Vegas July 24-26 for Ticket Summit said they were still frustrated with major ticket companies over what they considered to be roadblocks to the buying and selling of tickets. Just days later, facility managers and box office professionals gathered at the International Association of Assembly Managers conference in Anaheim, Calif., July 25-29 and told a panel of ticketing professionals that they still didn’t believe they were getting their fair share of secondary revenue.

Tickets.com at the 2008 Ticket Summit
Ticket Summit was a mix of the primary and the secondary, hosting a panel that featured Eric Baker from Viagogo, Greg Bettinelli of StubHub, Jeff Lapin from Razorgator, Derek Palmer from Tickets.com, Jeff Scheman from TicketNetwork and Chris Tsakalakis from eBay.

“There continues to be this sense of unfairness by the consumer, the promoter and in many cases, the venue manager, that tickets for concerts in taxpayer-funded facilities are inaccessible to most people,” said Rod Pilbeam, executive director of AEG Ogden in Brisbane, Australia.

Pilbeam’s comment reflected a larger sentiment that still prevails among many facility managers — that buildings and box offices take large risks on concerts, often face excruciatingly tight margins and usually only see the negative side of brokers; namely counterfeit or misleading tickets.

“I’m getting squeezed by promoters who want a piece of every revenue stream,” said Michael Combs of the Tacoma (Wash.) Dome. “Our margins are shrinking all the time, but we log onto sites like StubHub and see tickets going for two to three times their face value, and we’re not seeing any of that income.”

The sense of inequity is coupled with a growing frustration towards aggressive ticket acquisition, where brokers use automated and non-automated means to purchase and resell tickets, along with an increase in secondary ticket listings that aren’t yet available to the public.

“We’re seeing a lot of this frustration communicated to the primary ticket companies because there are very few avenues for direct dialogue between the box office and those reselling tickets,” said Alan Rakov of Ticketmaster’s TicketExchange.

Primary ticketing companies were also the focus of frustration during Ticket Summit, with many brokers complaining that primary forays into secondary tickets could shrink overall market share for brokers.

Broker Russ Altman said he considered paperless tickets, like the ones used on the recent Tom Waits tour to block resale, to be an act of hostility toward the broker community.

“Why don’t the ticket companies stand up to the venues and refuse to develop technology that limits the ability of the buyer to control the ticket,” he said. “It’s our ticket, we paid for it and the ticket companies shouldn’t assist the venues in blocking us out.”

The paperless system Altman spoke of was developed by primary giant Ticketmaster, who recently purchased secondary marketplace TicketsNow.

“The big question is going to be how Ticketmaster balances out the needs of its primary clients while also continuing to rely on brokers to provide the inventory of secondary sites,” said broker Harris Rosner. “There have been some signs that Ticketmaster can move some inventory directly onto the secondary, but in our conversations with (Ticketmaster CEO) Sean Moriarty, he’s made it very clear that Ticketmaster will continue to work with brokers to supply the site.”

The other big disagreement between the two sides will likely center around customer data, said Jeff Lapin of RazorGator.

“Owning your customer is going to become more important than ever,” Lapin told the audience at Ticket Summit. — Dave Brooks