In today’s live entertainment landscape, audiences constantly chase the most sought-after performances. Viagogo has found a special place for itself. But have you ever thought about how it makes money? Let’s explore the business model that makes Viagogo successful.
Viagogo started in London in 2006 by Eric Baker. It has become a big name in the secondary ticket market. In 2020, it bought StubHub for $4 billion. This move made Viagogo a top player in ticket resale. But how does it make money from its platform?
History and Evolution of Viagogo
Viagogo, a global ticket resale platform, started in 2006 in London. Eric Baker, co-founder of StubHub, founded it. It quickly grew by partnering with famous sports teams.
Early Partnerships and Growth
Viagogo teamed up with top English Premier League clubs like Chelsea FC and Manchester United FC. This made it the first to legally sell Premier League tickets in the UK. It then moved into the German market in 2007, partnering with Bayern Munich.
By 2008, Viagogo had sold £50 million worth of tickets. This made it a big name in the ticket resale world. It also partnered with top music industry players, boosting its growth and global reach.
Expansion into Global Markets
Viagogo didn’t stop growing. It expanded into new markets worldwide. In 2013, it entered the Australian market, starting its global journey.
StubHub Acquisition and Market Dominance
In February 2020, Viagogo bought its rival, StubHub, for $4 billion. This move made Viagogo the top player in the secondary ticket market. It now has about 90% of the UK market.
“The acquisition of StubHub is a transformative moment for Viagogo, creating the world’s largest ticket marketplace, and ensuring that fans have access to the widest choice of tickets, at fair prices.”
– Eric Baker, Founder and CEO of Viagogo
How Does Viagogo Make Money
Viagogo is a big name in ticket resale, making most of its money from ticket resale operations. It connects buyers with sellers, taking a cut of the sale price. This is like eBay, where Viagogo makes money from both primary and secondary ticket sales.
The main way Viagogo makes money is through a commission on ticket sales. Sellers pay about 15% of the sale price as a fee. Viagogo also charges extra for special features, like top search results or exclusive packages.
Viagogo also profits from professional ticket traders, known as “touts.” These traders list a lot of tickets, helping Viagogo make more money.
Even though Viagogo doesn’t share its exact finances, it’s clear it makes a lot. The CMA says Viagogo and StubHub control over 90% of the UK market. This shows how big Viagogo is in ticket resale.
Viagogo’s smart revenue generation methods and strong market position make it a top player. As ticket demand keeps rising, Viagogo’s success will depend on its platform and strategies.
Core Revenue Sources from Ticket Resale Operations
Viagogo makes a lot of money from ticket resale. It gets income from selling tickets directly and from reselling them. It also charges extra for premium services.
Primary Ticket Sales Commission
Viagogo works with event organizers to sell tickets. It gets a cut of the ticket price for each sale. This way, Viagogo profits from the first sale of tickets.
Secondary Market Fees
The resale market is key for Viagogo. It charges fees to both buyers and sellers. These fees can be 20-30% of the ticket’s resale price. This helps Viagogo make money from ticket resales.
Premium Service Charges
Viagogo also makes money from extra services. These include fast delivery, ticket insurance, and special seats. These services add value for buyers and help Viagogo earn more.
A report by the Competition and Markets Authority showed that most tickets on Viagogo come from professional traders. This shows Viagogo’s focus on the resale market.
| Revenue Source | Description | Contribution to Viagogo’s Revenue |
|---|---|---|
| Primary Ticket Sales Commission | Commissions earned on the sale of tickets directly from event organizers and venues | Significant portion of overall revenue |
| Secondary Market Fees | Fees charged to both buyers and sellers for transactions on the resale platform | Largest contributor to Viagogo’s revenue |
| Premium Service Charges | Additional fees for expedited delivery, ticket insurance, and access to exclusive amenities | Supplements revenue from primary and secondary ticket sales |
Strategic Partnerships and Business Alliances
Viagogo, a leading ticket resale platform, has made many partnerships to grow its market share. It started by working with Premier League clubs like Chelsea FC and Manchester United FC. This allowed fans to buy tickets through Viagogo’s site.
Viagogo also reached out to the music world, teaming up with stars like Madonna, Rihanna, and Coldplay. It worked with big concert promoters like Live Nation too. These music industry alliances helped Viagogo become a big name in live events.
In sports, Viagogo partnered with the French Tennis Federation for the French Open and some Australian Football League (AFL) clubs. These sports team collaborations made Viagogo a top ticket marketplace.
Viagogo also teamed up with companies like SFX Entertainment. This helped it grow in the live events world. These strategic viagogo partnerships have helped the company grow globally and stay on top.
“The combination of Viagogo and StubHub will allow us to enhance the experience for music, sports, and theater fans globally.”
Viagogo keeps looking for new ways to grow. Its partnerships with sports teams, music artists, and entertainment companies have been key to its success. They’ve made Viagogo a leading player in the ticket resale market.
Market Position and Competitive Advantage
Viagogo is a big name worldwide, working in over 90 countries. Its tech makes buying and selling tickets easy and fun for everyone. This is true for all sorts of events and places.
Global Market Presence
Viagogo leads in the secondary ticket market, especially in the UK and Europe. After buying StubHub, they had about 90% of the UK market in 2020.
Technology Platform Infrastructure
Viagogo’s tech is what sets them apart. It makes sure transactions are safe and smooth. This makes buying and selling tickets easy for everyone.
Customer Base and Market Share
Viagogo has many users, from regular folks to professional sellers. This mix shows they’re a big deal in the ticket world.
Viagogo works hard to be fair and open with event tickets. They fight against fraud and unfair selling. This has made them trustworthy to both event planners and fans.
“Viagogo has been operating in the United Kingdom since 2006 and has experienced growth every single year, except during the pandemic, demonstrating consistent performance.”
Pricing Strategy and Revenue Generation Methods
Viagogo’s pricing strategy is key to its success. The company lets sellers set their own prices, leading to high markups. This way, Viagogo can make more money by adjusting prices based on demand.
High ticket prices have raised eyebrows. For example, Taylor Swift’s tour tickets are being sold on Viagogo for up to £6,500. Viagogo says prices reflect what buyers are willing to pay, not just the original cost.
Viagogo makes money not just from selling tickets. It also charges fees for each transaction. These fees add up and help the company stay profitable. Its strong market position and ability to sell out tickets quickly have sparked both praise and criticism.
Common Questions
What is Viagogo?
Viagogo is an online marketplace for ticket resale. It operates in over 90 countries. It connects ticket sellers with fans looking for live event tickets.
When and where was Viagogo founded?
Viagogo started in 2006 in London, UK. It was founded by Eric Baker, who also co-founded StubHub.
How does Viagogo make money?
Viagogo makes money from service fees and commissions on ticket sales. It acts as a middleman between sellers and buyers. It takes a percentage of the sale price.
What are Viagogo’s core revenue sources?
Viagogo’s main income comes from commissions on primary ticket sales. It also earns from secondary market fees and premium service charges.
What strategic partnerships has Viagogo established?
Viagogo has teamed up with Premier League clubs and major music artists. It has also partnered with the French Tennis Federation and companies like SFX Entertainment and Live Nation.
What is Viagogo’s market position and competitive advantage?
Viagogo is a big player globally, operating in over 90 countries. After buying StubHub, it had about 90% of the UK secondary ticketing market in 2020.
How does Viagogo’s pricing strategy work?
Viagogo lets sellers set their own prices, leading to high markups. The company uses dynamic pricing to adjust ticket prices based on demand.
