Major players in the digital ticketing industry include Ticketmaster and StubHub.Ticketmaster is part of Live Nation, a $22.7 billion company. It handles about two-thirds of U.S. ticketing needs. StubHub, though privately owned, is looking to go public at a $16.5 billion value.
Both sites sell tickets for sports, concerts, and theater. But, their fees can differ a lot. A 2018 report by the U.S. Government Accountability Office found fees ranging from 13% to 58% of ticket prices.
On average, these fees add up to about 30% of the ticket cost. This can make tickets much more expensive for buyers.
Primary Market vs Secondary Market Ticket Sales
The ticket sales world is split into two main areas: the primary market and the secondary market. Knowing the difference is key for buyers to find good deals and avoid scams.
Primary Market Direct Sales Process
In the primary market, tickets are sold directly by event organizers or venue owners. This market is closely watched, with tickets usually found on official sites like Ticketmaster or SeatGeek. These sites have special deals with teams and venues.
But, buyers in this market face extra fees and charges from event producers.
Secondary Market Resale Dynamics
The secondary market is where tickets are sold again by buyers, often for more money. This market is less controlled, with pros and scalpers using bots to buy lots of tickets. They then sell them for a profit on sites like StubHub.
Platforms like StubHub charge extra fees to both buyers and sellers.
Platform Differences and Market Share
Ticketmaster and SeatGeek work in both markets, but StubHub mainly deals in resale. Data shows the secondary ticket market is as big as all 32 NHL teams combined. This shows how big the resale market is.
A 2017 BBC survey found nearly half of buyers didn’t know the difference between primary and secondary markets. This shows the need for clearer information and education in the industry.
Ticketmaster Fees Vs Stubhub Fees
When you buy event tickets, the fees from Ticketmaster and StubHub can really add up. Both have their own fee systems. Knowing the differences helps you choose wisely.
Ticketmaster’s fees include service charges, processing fees, and facility fees. They say they get one-third of the service charge for concerts. The rest goes to the venue. On the other hand, StubHub’s fees change based on ticket price, event time, and demand.
Both sites charge different fees for different events. StubHub takes a 10% service charge from buyers and 15% from sellers. Ticketmaster’s fees average 15% but can be more, with extra convenience fees and processing fees.
| Ticketmaster Fees | StubHub Fees |
|---|---|
| Service Charges (1/3 to Ticketmaster, 2/3 to Venue) | 10% Buyer Fee, 15% Seller Fee |
| Processing Fees | Varies based on Ticket Price, Time to Event, Supply and Demand |
| Facility Fees | No Fixed Percentage Fees |
| Average 15% Total Fees | Average 12.5% Total Fees |
Both Ticketmaster and StubHub have faced legal issues and customer complaints. The choice between them depends on your personal preference and the event you’re attending.
Fee Structures and Revenue Distribution
In the world of live events, ticket sales bring in money for many parties. This includes venues, artists, and ticketing platforms. Ticketmaster, a leading ticket seller, gets 5-7% of service fees. Venues usually get two-thirds of these fees.
Ticketmaster’s profit margin is about 2% of the ticket price. But, the total fees can add up a lot. Ticketmaster’s commission rate is very low compared to digital platforms. Artists often get 90% or more of ticket revenue, leaving the promoter with the rest.
Venue and Artist Revenue Share
Live Nation, a concert promoter, guarantees artists a set amount, like $100,000. This ensures artists get a share of ticket revenue. The promoter covers expenses and takes the financial risk.
Platform Profit Margins
Ticketing fees help platforms like Ticketmaster and StubHub make money. Ticketmaster’s fees have risen from 20% in 2016 to 27% in 2018. Some fees can reach 37% of the ticket’s face value. StubHub’s fees can also increase ticket prices, like from $66.50 to $83.88.
Additional Processing Charges
Live events, like concerts, have higher fees than movie tickets or museum fees. Concert ticket fees average 30% of the face value. Sporting event fees average 20%. These fees help platforms cover costs but have faced criticism.
| Ticket Type | Average Ticketing Fees |
|---|---|
| Concert Tickets | 30% of ticket face value |
| Sporting Event Tickets | 20% of ticket face value |
| Movie Tickets | Lower than live event tickets |
| Museum Entrance Fees | Lower than live event tickets |
Ticket Transfer and Resale Policies
The ticket sales world is complex, with primary and secondary markets often in conflict. While cross-selling tickets between platforms is not directly allowed, some marketplaces let sellers use other platforms’ transfer tools. Yet, the resale process gets complicated because some tickets are non-transferable.
Professional ticket brokers use special software to list tickets on many platforms without double sales. This approach helps them reach more people but shows the resale system’s challenges.
The U.S. House of Representatives passed the TICKET Act to tackle these problems. It aims to require total price transparency and stop resellers from offering tickets they don’t have. This effort is meant to make the ticket resale market clearer and fairer.
- Cross-selling tickets between platforms is not directly facilitated, but some marketplaces allow sellers to complete transactions using other platforms’ transfer tools.
- Some tickets are non-transferable, complicating the resale process.
- Professional brokers use software to list tickets on multiple marketplaces without risking double sales.
- The TICKET Act, passed by the U.S. House of Representatives, aims to require total price transparency and ban the practice of resellers offering tickets they don’t yet possess.
Conclusion
Ticketmaster and StubHub are big names in the world of live events, sports, and concerts. They offer a wide range of tickets and have similar websites and apps. You can get tickets delivered to you electronically or in paper form, but paper tickets might cost extra.
When choosing between Ticketmaster and StubHub, think about prices and what events are available. Legal issues, like the DOJ’s lawsuit against Live Nation, could change how tickets are sold. Both sites have safety features and offer refunds for canceled shows or fake tickets.
As ticket sales keep changing, it’s important to shop around. Compare prices, fees, and what you get for your money. This way, you can find the best deal for your live event, sports, or concert tickets.
