The secondary ticket market has seen two big players emerge: Viagogo and StubHub. Viagogo started in 2006 and is big in Europe, working in over 70 countries. StubHub, founded earlier, is a big name in the US, helping ticket buyers in 44 countries.
In 2020, Viagogo bought StubHub for $4 billion. This deal made Viagogo a huge force in the UK secondary ticket market. It has raised worries about less competition and choice for consumers.
It’s important to know what makes Viagogo and StubHub tick. This article will explore their beginnings, growth, and current roles in the ticket market. It aims to help you choose the best place to buy event tickets.
Rise of Secondary Ticket Markets
The secondary ticket market has grown a lot in recent years. It has changed how we buy and sell event tickets. This industry started in the early 2000s with sites like Viagogo. They became places where people could legally sell their tickets.
Origins and Market Evolution
Viagogo launched in 2006 and was a big step in the UK. The market has grown worldwide, thanks to online platforms. Now, the UK’s secondary ticket market is worth about $350 million a year.
Key Industry Milestones
- The global secondary ticket market is expected to grow at a compound annual growth rate (CAGR) of 9-12% by 2033. This is due to the post-pandemic recovery, more events, and new tech.
- From 2023-2025, the market is set to bounce back quickly. Strong demand will lead to higher prices for resale tickets.
- By 2030-2033, blockchain and AI will lead the market. They will make things more efficient and cut down on fraud.
Current Market Position
Today, the secondary ticket market is a big part of the event ticketing world. About one-fifth to one-sixth of all primary tickets end up on secondary platforms. Sites like Viagogo and StubHub have teamed up with big names. This has made them even more important in the market.
StubHub: History and Ownership Structure
StubHub, the top online ticket resale site, has been around for over 20 years. It was started in 2000 by Eric Baker and Jeff Fluhr. They saw a need for a safe and reliable place to buy and sell tickets.
In 2005, StubHub got funding from Pequot Ventures, now FirstMark Capital. This helped it grow fast, reaching $50 million in sales and becoming profitable. By then, it had sold over $200 million worth of tickets.
StubHub grew even more in 2006, becoming one of the fastest-growing companies in America. eBay noticed its success and bought StubHub in 2007 for $307 million. This move helped StubHub grow even more, with more than five million transactions in 2007.
Under eBay, StubHub became a $5 billion business by 2008. It saw big growth in music sales. In 2009, it had a 65% increase in sales and a 40% jump in revenue.
In late 2019, Viagogo bought StubHub for $4.05 billion. This formed StubHub Holdings. StubHub agreed to sell its business outside North America. In January 2022, StubHub Holdings considered going public, aiming for a $13 billion value.
Today, StubHub is part of StubHub Holdings. Nayaab Islam became its president in July 2022. The site remains a leader in the ticket resale market, known for its ease of use for buyers and sellers.
Viagogo’s Journey and Business Model
Viagogo started in London in 2006 by Eric Baker. It quickly became a big name in the secondary ticket market. It worked with top sports teams and music festivals, making ticket sales legal in the UK.
Foundation and Growth
Viagogo began in 2006 in London by Eric Baker. It focused on teaming up with famous sports clubs. This helped make ticket resales legal in the UK.
Key Partnerships and Expansions
Viagogo grew by making smart partnerships and expanding globally. It now serves over 60 countries, covering sports, music, and more. This wide reach helped Viagogo become a top name in ticket sales.
Business Operations
Viagogo makes money from service and seller fees. It takes a 25% profit margin, as of 2019. By 2019, it was handling billions of dollars in sales, making it a big player in the ticket market.
| Key Metric | Value |
|---|---|
| Viagogo’s Gross Profit Margin (2019) | 25% |
| Viagogo’s Annual Transaction Volume (2019) | Billions of dollars |
| Viagogo’s Acquisition of StubHub (2020) | $4.05 billion |
Viagogo’s story is one of growth and controversy. Buying StubHub for $4.05 billion in 2020 boosted its market share. But, it also raised questions about its pricing and how open it is.
Which Is Better Viagogo or StubHub
Viagogo and StubHub are big names in the secondary ticket market. StubHub is more popular in North America. Viagogo, on the other hand, shines in Europe, like in the UK. Your choice depends on where you are, what you like, and your past experiences.
Both sites offer ticket sales, but they’ve faced criticism. High fees and fake tickets are big problems. The top 10% of sellers sell 80% to 100% of tickets on StubHub and over 70% on Viagogo.
| Metric | StubHub | Viagogo |
|---|---|---|
| UK Market Presence | Significant, with over 750,000 tickets sold in the UK last year, estimated to be worth around £350m. | Dominant, with an estimated 70% of the UK secondary ticket market. |
| Global Presence | Strong in North America, with a smaller international footprint. | Particularly popular in Europe, with significant growth in other regions as well. |
| Regulatory Challenges | Has faced criticism and legal scrutiny in various markets, partly for ticket resale limits and pricing transparency. | Experienced a temporary ban from Google in the UK due to its treatment of consumers, showing ongoing regulatory issues. |
Choosing between Viagogo and StubHub depends on the event, location, and your personal taste. Both have their good and bad sides. It’s key to do your homework and compare to pick the right ticket-buying platform for you.
Pricing Structures and Fee Comparison
Ticket resale platforms have different pricing and fees that affect the final cost. Both StubHub and Viagogo charge service fees to buyers and sellers. These fees can make ticket prices go up quickly.
Service Fees Breakdown
StubHub made $1.1 billion in fees from $4.75 billion in ticket sales in 2018. This shows that fees can be a big part of the ticket price. Viagogo has faced criticism for not being clear about its prices. Some users say they pay a lot more than expected.
Hidden Costs Analysis
StubHub and Viagogo also have hidden costs that can increase the price. These can include processing fees, delivery charges, and price changes based on demand. It’s important for buyers to know about these costs to avoid surprises.
| Platform | Service Fees | Hidden Costs | Ticket Resale Prices |
|---|---|---|---|
| StubHub | Disclosed $1.1 billion in annual fees from $4.75 billion in ticket sales | Processing fees, delivery charges, dynamic pricing | Varies based on ticket demand and availability |
| Viagogo | Lack of transparency, reported substantial markups | Processing fees, delivery charges, dynamic pricing | Varies based on ticket demand and availability |
When buying tickets from secondary marketplaces, it’s key to check the prices and hidden costs. This way, you can make sure you’re getting a good deal.
Ticket Authenticity and Buyer Protection
In the secondary ticket market, ticket authenticity is key for both buyers and sellers. Viagogo and StubHub have steps to ensure this and protect their customers.
Viagogo offers access to 50 million live events, like concerts and sports. They promise clear pricing, showing all costs upfront. Yet, some users on Trustpilot have complained about not getting tickets and bad service.
StubHub, operating for over 20 years, serves over 90 countries. It offers a “FanProtect Guarantee” for customer satisfaction. They also give a 120% credit or full refund if an event is canceled and not rescheduled.
Both Viagogo and StubHub charge fees on ticket sales. These fees depend on the ticket price, event time, and demand. StubHub stands out with 24/7 customer service and a money-back guarantee for fake tickets.
Both platforms focus on ticket authenticity and buyer protection. But StubHub’s long history and detailed guarantees might make it more trustworthy than Viagogo for consumers.
Geographic Coverage and Market Presence
The global ticket market has changed a lot with the rise of Viagogo and StubHub. These platforms have made it easier to get event tickets. They have also taken a big share of the market in many parts of the world.
International Availability
Viagogo, based in Europe, is in over 70 countries. It’s a big player worldwide. StubHub, from the U.S., is in 44 countries. It’s very strong in the U.S. market.
Regional Strengths
Together, Viagogo and StubHub have 90% of the U.K.’s secondary ticket market. They offer tickets for events all over the world. This meets the growing need for entertainment experiences globally.
Viagogo is strong in Europe and the U.K. StubHub leads in the U.S. The ticket market is growing fast. It’s expected to hit $3027.6 million by 2032, with a 9.1% growth rate.
This growth means Viagogo and StubHub will compete more. They will try to get more customers. This will lead to new ideas and better services for everyone.
Customer Service Experience
Viagogo and StubHub, two big names in ticket sales, have gotten mixed reviews on customer service. StubHub is often seen as better, but both platforms have their ups and downs. Users’ experiences can vary a lot.
Recent data shows that 42% of users gave customer service 5 stars, showing they were happy. But, 31% were very unhappy, giving it just 1 star. The rest of the reviews were more mixed, with 8% giving 3 stars and 5% giving 2 stars. Only 14% gave 4 stars.
Many complaints about Viagogo’s customer service involve trouble getting refunds and solving problems. One person said they spent two hours talking to customer service but didn’t get help. Another person was charged $627 for Real Madrid tickets in Spain but couldn’t get them because of a missing barcode.
StubHub has also faced issues, like telling customers tickets for Coldplay in Abu Dhabi would only be given on the day of the show. This caused financial losses and disappointment. People have also had problems with ticket delivery, needing extra apps or downloads, and finding prices too high compared to official sources.
Before picking a ticket platform, it’s smart to check out recent reviews. Look for reliability, transparency, and how well they handle disputes. These are important when choosing a trusted ticket seller.
Legal Compliance and Regulatory Issues
The secondary ticket market, led by StubHub and Viagogo, has faced legal challenges. These companies have had to deal with complex laws about ticket resale, mainly in the UK.
UK Market Regulations
In the UK, the secondary ticket market has raised concerns. Viagogo has faced legal action from the Competition and Markets Authority (CMA) over its business practices. The CMA has ordered Viagogo to change its ways and be more transparent with ticket listings.
The UK government, the CMA, and National Trading Standards have worked together. They have enforced laws like the Consumer Rights Act 2015 to control the secondary ticket market. This has made platforms like StubHub and Viagogo more transparent and compliant.
International Legal Standing
The legality of ticket resale differs by country and event type. Some places ban ticket resale, while others are more lenient. StubHub has faced fewer legal problems than Viagogo, but both are under constant watch.
Ticket touting is a big worry, as it takes money away from the music industry. It also makes live events harder to get into, hurting young fans. Groups like industry stakeholders, consumer protection, and regulators are working to fix these problems. They aim for a fair and open secondary ticket market.
| Legal and Regulatory Aspects | StubHub | Viagogo |
|---|---|---|
| UK Market Regulations | Addressed CMA concerns about ticket information on its UK website | Faced legal action from the CMA due to transparency issues; required to overhaul operations |
| International Legal Standing | Generally faced fewer legal issues compared to Viagogo | Faced legal challenges in various countries due to ticket resale legality |
| Ticket Touting Impact | Contributes to diverting funds from the music industry and reducing event accessibility | Contributes to diverting funds from the music industry and reducing event accessibility |
Platform Features and User Interface
StubHub and Viagogo both have web and mobile interfaces for buying and selling tickets. StubHub is known for its easy-to-use interface and clear pricing. Viagogo has also improved, but some users find it less transparent in some areas.
Both sites offer features like interactive seating charts and price alerts. They also let you compare ticket prices easily. StubHub is praised for its clear pricing, making it easier to see the total cost of a ticket.
| Feature | StubHub | Viagogo |
|---|---|---|
| Mobile app | ✔️ | ✔️ |
| Interactive seating charts | ✔️ | ✔️ |
| Price alerts | ✔️ | ✔️ |
| Ticket comparison | ✔️ | ✔️ |
| Pricing transparency | ✔️ | Needs improvement |
StubHub’s user-friendly interface and clear pricing might make it a better choice for many. It offers a smooth ticket search and purchase process.
Professional Reseller Impact
The secondary ticket market is mostly run by professional resellers, known as “ticket touts.” They use smart ways to buy and sell event tickets. On Viagogo and StubHub, the top 10% of sellers have a huge share of tickets. They have 80-100% on StubHub and over 70% on Viagogo.
This situation worries fans about fair ticket access and price hikes. Both Viagogo and StubHub have tools for big sellers. This makes some people think they focus more on pros than regular users.
Market Share Analysis
Viagogo and StubHub together make up over 90% of the UK’s secondary ticket market. Viagogo has about 60%, and StubHub has around 30%. This has caught the eye of the UK’s Competition and Markets Authority (CMA).
The CMA has ordered Viagogo to sell StubHub’s UK and international ticketing. They worry it will cut down competition too much.
Price Impact on Consumers
Professional resellers’ dominance affects ticket prices a lot. Prices often go up high, making it hard for fans to get into popular events. This has led to complaints from groups that support consumers and lawmakers.
They want more rules and price limits in the secondary ticket market. This could help keep ticket prices fair for everyone.
“Putting price caps on ticket resale is unenforceable and may harm consumers, as demand and fan perception of fair prices play a significant role in pricing,” argues Matt Drew of Viagogo.
Despite the issues, Viagogo and StubHub say they protect buyers and sellers with technology. They fight against scams and protect everyone’s rights. The debate over professional resellers’ role in the market keeps going.
Closing Remarks
Choosing between Viagogo and StubHub depends on several factors. Consumers need to think about event location, ticket availability, and personal preferences. Both platforms offer similar services but have different strengths.
When making a decision, consider service fees, buyer protection, and customer service. It’s smart to compare prices and policies on both sites. This ensures you get the best value and experience.
Viagogo and StubHub dominate the UK’s secondary ticketing market. But, the Competition and Markets Authority (CMA) worries about losing competition due to their merger. Stay updated on any regulatory changes or market updates that might affect your choice.
